{"id":23851,"date":"2025-05-26T16:58:02","date_gmt":"2025-05-26T16:58:02","guid":{"rendered":"https:\/\/old.finsmartaccounting.com\/usa\/?p=23851"},"modified":"2025-06-10T15:31:00","modified_gmt":"2025-06-10T15:31:00","slug":"accounting-outsourcing-explained-everything-you-need-to-know-to-get-started","status":"publish","type":"post","link":"https:\/\/old.finsmartaccounting.com\/usa\/accounting-outsourcing-explained-everything-you-need-to-know-to-get-started\/","title":{"rendered":"Accounting Outsourcing Explained: Everything You Need to Know to Get Started"},"content":{"rendered":"

Accounting firms (big and small) are increasing their investments in accounting outsourcing.<\/span><\/p>\n

With<\/span> Deloitte<\/span><\/a> moving a third of its roles to India and<\/span> EY<\/span><\/a> opening its <\/span>22,000 square feet outsourcing center in the same country, leading <\/span>accounting firms<\/span><\/a> are zeroing in on the hiring strategy that has helped corporations grow their firms for the last few decades.<\/span><\/p>\n

What is accounting outsourcing<\/strong><\/a>, how does it work, and how can you prepare your firm to leverage it in 2025 and beyond?<\/span><\/p>\n

This article answers these questions and more.<\/span><\/p>\n

What is Accounting Outsourcing?<\/b><\/h2>\n

Accounting outsourcing is when you delegate some of your client’s work (the repetitive, technical, or specialized work) to a third-party service provider, who may be local or in another country.<\/span><\/p>\n

How it works<\/b><\/p>\n

When you hire an accounting outsourcing company, they become an extension of your firm. They could use their software or be added to yours to ensure secure information exchange.<\/span><\/p>\n

The external provider is usually a firm with its staff, workflow systems, and tech stack, so it can handle your processes and deliver the final outcomes and deliverables as agreed.<\/span><\/p>\n

Alternatively, they can<\/span> embed their staff<\/span><\/a> into your firm. In this instance, they\u2019ll work in your internal systems like your in-house staff.<\/span><\/p>\n

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In any case, you’ll be required to pay an hourly or monthly subscription for using their services.<\/span><\/p>\n

Outsourcing vs Offshoring vs Freelancing<\/b><\/h2>\n

Outsourcing is delegating your projects to a third-party provider, regardless of where they reside.<\/span><\/p>\n

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Offshoring is when you delegate your services to a third-party accounting service provider that lives in another country, usually a country with lower labor costs.<\/span><\/p>\n

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Freelancing is when you delegate these services to an individual accounting professional<\/strong><\/a> instead of a company. This option is the cheapest and most flexible option, but it is also the most unreliable in terms of turnaround time, technology, data security, etc.<\/span><\/p>\n

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While outsourcing is the general term for delegating your services to a third party, offshoring is handing that service to a company in another country, while freelancing is giving that service to an accounting professional (as opposed to a company).<\/span><\/p>\n

Why It\u2019s Gaining Popularity<\/b><\/p>\n

Many firms (accounting, bookkeeping, CPAs, and CFOs) are struggling to keep up with the financial demands of hiring, paying, and compensating full-time accounting staff.<\/span><\/p>\n

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Since there are equally qualified accounting professionals in places where they can pay for only the services without hiring and long-term commitment, it makes more financial sense for them to use these external professionals (who may be more experienced in relevant reporting standards and tax laws than their in-house staff) to get the job done.<\/span><\/p>\n

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This allows them to free up their internal team to focus on core, more sensitive, and profitable work.<\/span><\/p>\n

Key Benefits of Accounting Outsourcing for Modern Firms<\/b><\/h2>\n

Cost-efficiency<\/b><\/p>\n

Accounting outsourcing firms offer a subscription-based pricing model, where you only pay for the services you need. No employee compensation, paid time off, or payroll taxes.<\/span><\/p>\n

This significantly reduces your firm\u2019s operating costs while improving your client service.<\/span><\/p>\n

For example, Finsmart Accounting<\/strong><\/a> provides expert accounting professionals who will work 40 hours a week (160 hours a month) for $2,600. There are no hidden fees and you don’t have to worry about a severance package when the relationship ends.<\/span><\/p>\n

Scalability<\/b><\/p>\n

Accounting outsourcing gives you access to a steady stream of qualified professionals who are ready to take on as much work as you have, which enables you to meet the needs of a growing client base.<\/span><\/p>\n

Focus on Core Services<\/b><\/p>\n

Every accountant has their favorite and least favorite services.<\/span><\/p>\n

Outsourcing gives you the option to channel your internal team to the projects that matter most to them (and potentially your firm), knowing you can find more qualified, experienced, and passionate accounting professionals to handle the other projects.<\/span><\/p>\n

Time Zone Advantage<\/b><\/p>\n

The time difference between American firms and their outsourcing partners in India or the Philippines enables overnight work.<\/span><\/p>\n

As businesses are closing for the day in the U.S., that’s when businesses are starting their day in India. This means the work you assign gets done before your next business day, which helps project turnaround time.<\/span><\/p>\n

Access to Qualified Professionals<\/b><\/p>\n

Aside from their rigorous accounting education, the average outsourced employee has diverse experiences working with different businesses in your client\u2019s industry.<\/span><\/p>\n

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They boast a wealth of experience that can apply to your client’s financial situation.<\/span><\/p>\n

What Services Do Accounting Outsourcing Firms Offer?<\/b><\/h3>\n