INSIGHT

Outsourced accounting FAQs: Everything business leaders need to know before making the switch

Mark Leverette • June 3, 2025

Services: Outsourced Accounting

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Running a business demands your attention on growth, client relationships and strategic planning—not getting bogged down in financial paperwork. Many business owners find themselves struggling with accounting tasks that consume valuable time and resources. Outsourced accounting offers a solution that allows you to focus on what you do best while financial professionals handle the numbers.  

This article addresses the most common questions business owners ask about outsourced accounting services, from basic definitions to implementation strategies and cost considerations. 

What is outsourced accounting? 

Outsourced accounting occurs when a business hires an external, third-party company to handle its finance and accounting functions. These functions can include managing payroll, accounts payable, accounts receivable, monthly bank reconciliations, tax prep support, legal compliance and financial reporting, among others. 

When you choose to outsource, the accounting firm essentially serves as your financial department, providing comprehensive support tailored to your specific needs. This approach gives you access to professional financial management without the overhead of a full in-house team. 

How does outsourced accounting differ from in-house accounting? 

In-house accounting involves hiring and training internal staff to handle financial tasks. Outsourced accounting relies on external professionals who are already equipped to manage a business’s financial operations. 

The differences extend beyond personnel. In-house accounting employees typically require a full-time salary and employee benefits, while outsourced accounting services can be tailored to the specific needs of a company. This flexibility allows you to scale services up or down as your business requirements change. 

Additionally, outsourced accounting teams often bring specialized knowledge across various industries and regulatory environments that a single in-house accountant might not possess. 

What types of businesses benefit most from outsourced accounting 

Outsourced accounting can benefit a wide range of business types and sizes, from small startups to mid-size companies. Regardless of industry or rate of growth, companies can find value in hiring an external firm to handle accounting services and improve financial reporting. 

Growing companies with increasingly complex financial needs may benefit from outsourcing, as can small businesses that may lack the internal skills and resources needed to effectively manage their bookkeeping and financial reporting requirements. 

What benefits will I gain from outsourced accounting? 

Outsourcing can provide several benefits, including cost and time savings, as you will no longer need to oversee the hiring and training of in-house accounting employees. This allows businesses to redirect internal staff and resources to support higher-value, core business operations and boost productivity. 

When you work with an outsourced accounting provider, you gain: 

• Access to advanced financial technologies without additional investment 
• Reduced risk of fraud through improved financial controls 
• Consistent financial reporting even during staff transitions 
• Scalable services that grow with your business 
• Proactive compliance management 

How do I select the right outsourced accounting provider? 

Finding an outsourced accounting service provider that fits the unique needs of your company doesn’t have to be a daunting task. An ideal third-party solution will offer extensive industry experience, certified professionals and proven methods for success. 

Look for a provider that demonstrates: 

• Specific experience in your industry 
• Clear, responsive communication 
• Technology solutions that align with your business 
• Strong references from similar businesses 
• Transparent pricing models 
• Customizable service packages 

What costs should I expect for outsourced accounting services? 

Outsourced accounting service costs vary based on the scope of the services needed and the size of the business. Costs may be charged on a flexible, hourly basis or structured within a fixed monthly package. Additional costs or fees may be incurred for additional services throughout the duration of service. 

Most providers will work with you to create a service package that addresses your specific needs while respecting your budget constraints. Remember that outsourcing often eliminates hidden costs associated with in-house accounting, such as recruitment, training, benefits, software and continuing education. 

How is data security handled with outsourced accounting? 

Reputable outsourced accounting firms prioritize data security and the protection of sensitive financial information. Many companies that offer outsourced accounting utilize cloud technology platforms that provide the highest levels of security available in the industry. 

When evaluating providers, ask about: 

• Encryption practices for data transmission and storage 
• Multi-factor authentication requirements 
• Regular security audits and testing 
• Business continuity protocols 
• Employee background checks and training 

Working with BPM 

Outsourced accounting services offer a strategic advantage for businesses looking to improve financial management while focusing on core operations. By partnering with BPM, you gain access to a dedicated team of professionals who understand your industry challenges and provide customized financial solutions that grow with your business. 

To schedule a consultation and discover how our outsourced accounting services can help your business thrive with streamlined financial processes and actionable insights, contact us.