The Hard Truth About Hiring an Outsourced Accountant: What You Need to Know

Hiring an outsourced accountant is no doubt a game changer for your business, but before you take the plunge, there are a few things you should know—both the good and the not-so-good. In this post, I’ll share four major benefits of outsourcing your accounting, along with three potential downsides, so you can make an informed decision. Let’s make sure this relationship is built to thrive, not flop.

The Good: Four Reasons to Hire an Outsourced Accountant

1. Cost Efficiency

Outsourcing your accounting can save you a significant amount of money. Typically, an outsourced solution will cost you at least half—or even better—compared to hiring an in-house accountant. Of course, it's important to compare apples to apples: the qualifications, skills, and services of the outsourced team should match what you'd expect from an in-house hire. When you do this comparison right, the savings are real.

2. Access to Expertise in Technology and Workflows

One of the biggest benefits of working with an outsourced accountant is the access to their tech skills and streamlined workflows. These firms know how to securely handle your data quickly and efficiently, using the best apps and tools available. We’re talking about systems that allow your accountant to jump into your business, understand your processes, and actually make an impact.

3. Professionalism

Professionalism is key. When you work with an outsourced accounting team, they should always show up ready to help with a smile and a high level of service. If you’ve had in-house employees, you’ve probably had a few who start showing up late or calling in sick. They get comfortable with you as their manager, and because you’re busy, you may not have noticed the first couple of times they were late. As a result, they may have gotten the impression that you are indifferent about their punctuality. This is not an issue with outsourced firms, because they have managers who ensure their team shows up for their clients in a way that positively represents the company. In other words, you won’t need to micromanage.

4. Scalability

As your business grows, your outsourced accountant can easily add additional staff to continue managing your books at a larger scale. There’s no need for you to hire or train anyone—this is all taken care of by the accounting firm. You can focus on running your business while they manage the financial side.

The Not-So-Good: Three Things to Consider Before Hiring

1. Onboarding Isn’t Instant

The idea that an outsourced accountant will instantly set up your business and be up to speed in a week or two is simply not true. Onboarding takes time—usually around 90 to 180 days—before they fully understand your business, systems, and needs. Be prepared for a process that takes longer than you might expect. If you’ve received a quote from an outsourced accounting firm that claims you will be fully onboarded in a few weeks, I’d say that’s a major red flag. 

2. You’ll Need Support from Within Your Company

Unlike in-house staff who can physically walk into your office to grab documents and meet with your team, an outsourced accountant will need regular support from someone inside your business—whether it’s an administrative assistant or an office manager. It’s important to have a designated person who can help ensure your accountant has everything they need to succeed. When your accountant succeeds, your business succeeds. 

3. Specialized, Homegrown Systems Can Be a Challenge

If you’ve built your own custom systems over time—like an Excel spreadsheet with 85 tabs (we’ve all been there)—you may find that your outsourced accountant doesn’t have the time or resources to learn these systems. The good news? They’ll help you replace these outdated, clunky tools with more efficient, automated systems. It’s a tough pill to swallow, but streamlining your processes is often the best way forward.

Make Sure It’s the Right Fit

Outsourcing your accounting can be a huge benefit, but before you sign that contract, make sure you’re working with a firm that’s a good fit for you. After all, you are hiring some one. One of the things we do at Ignite Spot is offer a free accounting file review, where we analyze your system and give you feedback on what’s working and what could be improved. It’s a great way to ensure that you’re partnering with the right team and that they can truly help make your business more profitable and protect your cash flow.

So, if you’re ready to take the leap into outsourced accounting, make sure you do it with the right expectations and the right team by your side.