Outsourced accounting services have expanded steadily over the years. Recent statistics compiled by Fortunly found that starting from 2025 until 2030, global outsourcing in finance and accounting is projected to rise at a compound annual growth rate (CAGR) of 9.3%.
As businesses reorganize their financial operations, many are now leaning towards outsourcing. In fact, 71% of CEOs in the financial services industry outsource or offshore parts of their services. Before you jump into outsourcing accounting services, there are a few things you need to jot down. Let’s take a look at them in this article.
What Is Outsourced Accounting Service?
Accounting outsourcing is a service that provides small firms with comprehensive accounting department expertise. Companies outsource their day-to-day transactions, such as accounts payable, accounts receivable, payroll processing, audit support, financial reporting, and other financial services to outsourced accounting firms.
Outsourced accounting professionals assist firms in staying on track with payments, financial planning, financial analysis, bookkeeping, and other functions. In addition, they advise small companies on the optimal investment and structure for their client firm to achieve financial stability.
What Are the Different Types of Accounting Services?
1. Public Accounting
Public accounting refers to services that provide accounting knowledge and services to businesses, governments, non-profit organizations, and individuals. The size of public accounting companies varies, from solitary practitioners to a few large worldwide firms with hundreds of thousands of CPAs across the world.
Certified public accountants, or CPAs, are frequently engaged in public accounting. They analyze a company's financials for public disclosure as a third party. In addition, these accounting professionals may also prepare tax returns for individuals and businesses. Audits, advisory services, and tax consultation are some of their duties.
2. Management Accounting
All accounting aimed at informing management about operational business KPIs is referred to as management accounting. It analyzes data to assist management in making well-informed decisions that reduce risk and increase profit for the company.
Management accountants analyze performance and measure accounting data to help with operational decisions. In short, they investigate and explain the "why" behind the figures reported.
3. Governmental Accounting
Governmental accounting records and manages all financial transactions incurred by the government. It audits government agencies' records as well as private firms and people who pay taxes. Government accountants also conduct audits of firms that are subject to various government laws.
4. Internal Auditing
In internal auditing, accountants conduct internal audits to evaluate a company's controls and identify fraud. They also analyze risk management and verify that it is efficient, effective, secure, and compliant. An internal audit, for example, might identify hazards to the organization's reputation if it uncovers employee safety breaches or instances of unjust treatment.
Why Outsource Accounting Services?
Having an outsourced accounting team for your business can give you real-time updates on the condition of your finances. Below are some of the benefits of outsourcing an accounting function.
1. Maintain Lower Costs
Hiring an outsourced bookkeeper is less expensive than employing an in-house bookkeeper. In the United States, the typical hourly pay for accounting and bookkeeping services ranges from $12 to $25. But you can enjoy higher cost savings if you outsource to the Philippines.
One reason for this is the absence of "hidden costs" associated with keeping a full-time workforce. These hidden costs are not limited to sick pay, vacation pay, benefits, and taxes.
2. Tap Into World-Class Expertise
Outsourced accounting solutions allow you to access world-class accounting and business services. The work output of outsourced accounting functions follows high-quality standards. Not only does the function of accounting demand it, but the professional accounting service provider's reputation also depends on it.
3. Access to the Latest Technologies
Outsourcing companies have cloud-based technology platforms to provide you with real-time, automated financial reporting. Outsourced accountants use it to implement processes in your company. It is one of many ways to increase efficiency in your company.
4. Flexibility to Scale Up Human Resources
Outsourced accounting solutions allow you to scale your business as needed. During tax season, for example, your company may require a large volume of assistance. As a result, you may need a partner to handle half of your operation.
5. Improve Your Operational Efficiency
Your business can do more in a faster turnaround time with outsourcing. For example, when you let a skilled accountant work on your finances, you save tons of time. In addition, you will have enough time to focus on your core business functions.
5 Outsourced Accounting Professionals to Hire
Before you look for the best accounting service provider, you need to identify first what expertise your business needs. There are a variety of specialty areas in accounting. Here at KDCI, we have the following specialists you may integrate into your company.
1. Bookkeeper/Accountant
Our offshore bookkeeper/accountant can handle your entire accounting process and record financial transactions. If financial statements confuse you, that's a sign to hire an outsourced accountant. They can coach you in all things related to accounting and finances.
2. Accounts Payable Specialist
If your company struggles with expense management, it's time to hire an accounts payable specialist. Accounts payable specialists process payments, verify invoices, and perform account reconciliations.
3. Accounts Receivable Specialist
The primary duty of accounts receivable specialists is to receive payments on invoices. Therefore, you should hire these specialists to increase your accounts receivable turnover. Moreover, they oversee billing operations and processes to ensure the collection of account balances.
4. Financial Statement Prep
This service combines accounting data into a standardized set of financials known as financial statements. In general, financial statements reflect a company's performance, liquidity, and cash flows. Banks, for example, can use financial statements to assess the ability of your company to pay debts.
5. Revenue Accounting Expert
This expert's primary responsibility is to strictly monitor accounts payable and receivable. They also keep track of transactions, tax deductions, and costs as well as provide progress and revenue reports. If managing revenues is challenging for you, there's no doubt you need a revenue accounting expert.
Let KDCI Outsourcing Handle Your Accounting Needs
Are you overwhelmed with numbers, invoices, and receipts? Stop trying to do more with fewer resources and outsource to a reliable service provider!
At KDCI, we offer offshore staffing solutions for finance and accounting. In addition, unlike traditional accounting firms, we provide scalable, value-added accounting outsourcing services tailored to meet your evolving business needs.
Are you ready to outsource and build a high-performing outsourced accounting team? Contact us to get your FREE consultation with our experts!
