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Let’s consider your business like a car. Accounting is the engine that keeps everything running smoothly. But is there a need to hire a full-time mechanic always? That’s why more businesses are turning towards outsourced accounting services. It keeps the finances well in control while reducing the complexities of managing it all in-house.
In fact, the Global Outsourced Accounting Service Market size is estimated to be valued at USD 15 billion in 2025 and is expected to reach USD 25 billion by 2032. Growing companies are choosing to outsource their finances to experts who can handle it all behind the scenes. But how does the outsourced accounting services work? In this blog, we’ll walk you through the entire process. We also have explained the tools used, and why it might be the smartest decision for your business right now.
Why Businesses Choose Outsourced Accounting services?
There are plenty of reasons to choose outsourced accounting services. Here are some of the top reasons.
Cost-Effectiveness
One of the biggest reasons why businesses look into outsourced accounting is the cost savings. Without sacrificing quality, you can save a huge sum of money. You only pay for what you need. No extra expenses, no hidden HR costs and more importantly this can be huge cost saving for startups.
Access to Expertise
When you outsource your accounting, you don’t just hire the services. Instead, you get a team of seasoned professionals with expertise in diverse industries. An in-house team’s knowledge might be restricted to just one or two people. With an outsourced team, you get experienced professionals who can handle modern-day requirements at ease.
Scalability and Flexibility
Adapting to your needs is another major advantage with Outsourced Accounting. When you go through different business cycles, it’s important for your accounting to stay aligned with the business journey. Apart from that, when your business becomes scalable, your accounting requirements need to be scalable too. Thanks to outsourced services, accounting can now be scalable and flexible.
Meanwhile, let’s get into the business straight away and investigate how outsourced accounting works.
How Outsourced Accounting Works: Step-by-Step Process
Outsourcing your accounting becomes smooth and completely structured when you follow a step-by-step process. Here are the six common steps involved in the process.
Step 1 – In an initial consultation call, explain the outsourced accounting services firm with your requirements and your current financial situation.
Step 2 - Get a tailored service proposal from the firm. Once you approve the proposal, you will get an onboarding plan with all the essentials.
Step 3 - The firm integrates with your existing accounting software. A secure system is set up for document sharing, bank feeding, and payroll systems.
Step 4 – Your outsourced team takes care of all the accounting services included in the initial approval. The daily routine and weekly tasks get underway after that.
Step 5 – You will get regular monthly or quarterly updates to review reports, discuss any pending anomalies and improvise processes. A dedicated manager will be appointed for a seamless process.
Step 6 - Finally, the outsourced team handles final reconciliations, year-end closing, Compliance filings and audit preparation (if needed). This ensures you remain ready for tax season and beyond without urgency.
Having explained how the outsourced system works, one cannot neglect the importance of tools or software. Let’s delve deeper into the key tools used in the process.
Key Tools Used in Outsourced Accounting services
Every tool used in the process has a significant use-case attached to it. Let’s look at the top tools commonly used in outsourced accounting services.
Cloud Accounting Software - QuickBooks, Xero, Zoho Books
Document Management Tools - Dext, Hubdoc
Communication Tools - Slack, Zoom
Project Management & Workflow - Asana, ClickUp, Karbon
Apart from this, you can recommend or suggest tools to the outsourced team based on the requirements. If you consider accessing these tools separately in the market for your in-house team, the cost could be high. In comparison, the outsourced team has access to all these tools at an affordable price. More importantly, the outsourced team knows the ins and outs of these tools, making it easier for a smooth workflow.
Now that we have discussed the working process and the key tools used, let’s discuss the final part about picking the ideal outsourced accounting services firm.
How can Tarsus help you with outsourced accounting services?
While considering a business firm for accounting services, you have to consider various factors. You need to understand how the firm handles data security, scalability, and communication. Also, you need to go through certifications & industry experience while also ensuring detailed Service-Level Agreements (SLAs).
Tarsus is a well-known and qualified outsourced accounting services firm in the US Market. Having worked with a number of clients, Tarsus brings you invaluable experience combined with unmatched professionalism. From offering back-office financial and accounting services, outsourced CFO services, to financial strategic planning, Tarsus has been the go-to-firm for a number of startups. Connect with Tarsus now and scale your business to the top as we take care of your accounting needs.
Read out latest case study: Tidal Cyber: Scaling a Cybersecurity Startup with Strong Financial Foundations
Contact Us Today
Want to explore how an outsourced accounting and CFO service can help streamline your finances and improve profitability?
Contact us today to discuss how we can tailor a financial solution to your business needs.
