Accounting and Bookkeeping

Outsourced accounting is the assigning of accounting, bookkeeping, and/or compliance work to accounting professionals in another country.

To do this, a business owner will partner with an outsourced accounting services provider, who will present him or her with qualified candidates. Let’s say this business owner is you. You’ll then have the opportunity to screen, interview, and hire the offshore candidates who will form your new global team.


In essence, the service provides you with an accounting department experience. You delegate the day-to-day work you may have been spending hours completing to your global team members. With the time you get back, you can focus on your core business or yourself. Many small businesses, start-ups, and entrepreneurs find it challenging to hire an accountant. Especially with the right skills to prepare their company’s financial statements, manage bank account operations, analyze financial data, and prepare the outgoing invoices. Nowadays, it is even more challenging to find a qualified and eligible person at an affordable rate.


More than 1/3 of small businesses are outsourcing their accounting. Interestingly, most small companies who outsource are not feeling comfortable doing the accounting on their own. Even though it is commonly believed that accounting and bookkeeping must be done inside of the business. But it is essential to ask yourself whether you have the necessary skills and experience to do this job. Also, do your staff has enough experience to coup with increasing accounting tasks. To add it up, 62% of all small businesses think that they overpay their taxes.


Due to this fact, you might consider outsourcing accounting services to a company that is with the right knowledge and qualifications. Also, which company can do the same job more qualitatively and cost-effectively. For the same reason, many executive directors have noticed various positive aspects of outsourcing bookkeeping and accounting services. Importantly, outsourcing such services should be without any adverse effects on their business, employees, and customers.

Main Benefits of Outsource Accounting

So we know why firms are turning to offshore resources, but what’s actually driving them to do so in the first place? Before we go into the benefits, it makes sense to provide context by looking at these drivers, or market forces:

Price Pressure: Clients expect to pay less for compliance and administrative services, as a result of advances in cloud accounting technology (also known as online or web-based accounting software).

Talent Shortage: Attracting and retaining qualified accountants is a challenge, and they tend to fall on the higher end of the pay scale. This squeezes margins on lower-value jobs.

Capacity Crunch: There just isn’t enough time in a day to complete the procedural work and still leave time for high-margin strategic work.

Greater Competition: Back in the day, your competitors were across town. Now, they can be anywhere: across the country, or even across the globe.

The benefits of delegating work to a global team address all of these forces. The benefits of outsourcing accounting include:

  • Increased capacity, efficiency and profitability. These are probably the biggest benefits, because from these advantages, the others arise.
  • More time to focus on business development and providing a better client experience
  • A better work-life balance
  • The ability to fill roles more quickly with qualified staff

7 Benefits to Outsource Accounting and Bookkeeping Services

Cost-saving Accounting Services

In general, most businesses consider outsourcing to be additional, and therefore unnecessary cost for their business. It is not the right perception at all. In fact, it is the opposite. Our clients who are outsourcing accounting are willing to reduce their expenses but most importantly, without reducing the quality. The savings that outsourcing usually provides can be quite considerable as most companies can offer their services at lower cost rates (typically due to lower labor costs at their location). Besides, by outsourcing, you save money on paying the salaries, taxes, office supplies, and benefits for the full-time or part-time employees. You only pay for what you need. There is no loss in productivity costs that come along with hiring full-time employees.

Eliminates time and costs of hiring processes

If you will look at the picture, the recruitment process is a rigorous job. It takes resources to manage it, from creating a recruitment strategy to selecting applicants to interview. Recruitment process takes your business time, it costs, and you will need to dedicate the time either for yourself or the employee. Many companies do not consider the time they spend looking for a professional Accountant. And time is equally correlated with costs. It must be accounted for savings of outsourcing business processes.

Saving your time

As your business grows, you will find yourself spending more time managing your money and less time scaling the business. Therefore, outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy, and resources on creating business strategies. It will be bringing more revenue, as well as networking and building relationships with our customers.

Expert Accountants and Bookkeepers

Outsourcing may offer you the possibility to hire a professional with a higher level of expertise at an affordable price. Outsourced bookkeeping and accounting service firms continuously have to improve their skills and qualifications to stay competitive in the market. Imagine, 50 people working in the same office. They can easily share the new accounting trends, solutions, and tools. To add more, great accounting companies have more extensive access to training, and courses, and they are participating continually. Moreover, outsourcing to an accounting firm is giving you access to a team of Accountants. For example, at Baltic Assist, for the fixed price company gets a team of accountants. Not merely one person to deal with different kinds of tasks. By choosing the outsourcing company wisely, you can be sure that your accounting is in the reliable and knowledgeable company’s hands.

Scaling Accounting easily

The accounting service providers have the amount of availability to scale your services significantly without any lag. For example, if your bookkeeping and accounting tasks exceed the number of functions for 1 employee, you can easily be enforced with the extra workforce. Without the need to go through a rigorous recruitment process. Moreover, accounting and bookkeeping service providers are charging on an hourly basis. It means you can scale up or scale down the hours without any interruption.

Automation technologies

Most businesses use accounting automation software to save time. It will save time, but importantly, it reduces risks. Automating accounting is minimizing human errors. Secondly, in automation software, accountants get real-time reports. They assist in catching potential problems and resolving them in an early stage. Thirdly, it will reduce the probability of internal fraud. Most of the accounting service providers are highly qualified in the automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP, and more. If your accountants are still using only Excel sheets – you are wasting your time and money.

An Accountant is your Advisor

A good accountant will always provide advice on how to make accounting more efficient. Sometimes he might work with a couple of companies and propose an excellent experience from another client. Whether it is about taxation, accounting software, or even providing financial advice.

When You Should Consider Outsourcing Your Accounting and Bookkeeping

From our experience working with different Scandinavian and Western companies, outsourcing bookkeeping and accounting tend to work the best when:

  • A small business does not require a full-time bookkeeper but needs a person with more skills than the office manager, or receptionist can provide.
  • A company of any size cannot find a full-time employee with suitable abilities at the affordable costs.
  • A growing company is looking for opportunities to scale their accounting and bookkeeping services anytime.
  • The temporary services are needed, e.g., extra help with end of the year reports or if a full-time employee is going on holidays, maternity leave, etc.

However, even you will hire a skilled and qualified person, someone (usually the executive director) will still need to be involved in the process while approving invoices, making deposits, reviewing timesheets, etc.

5 Things to Look for Before Outsourcing

Once you decided to outsource, the next step should be to choose an outsourcing company that will be a great fit with your goals and objectives, but most importantly, would be able to match your needs and requirements. We believe, when outsourcing bookkeeping and accounting services, the quality of performance and efficiency must be the top priority. However, a few more essential factors must be considered, as well.

What Accounting and Bookkeeping Services You Are In Need

Is it to prepare the end of the month reports, balance sheets, payroll services, reporting to authorities, or taking care of your account payables and receivables? You maybe need someone to prepare your bank reconciliations and analysis or just enter the data into the accounting software? Whatever it would be, you need to be clear on what you do personally, what you’re in-
the house staff is responsible for what you want someone else to do.

Competitive Cost Range

Every accounting and bookkeeping company have their payment schemes – some of them charge by the hour, others every month. Therefore, you can choose the payment term that suits your needs and budget the most, but do not make your decision only based on cost-effectiveness.

Expertise

Make sure that the company you want to hire is experienced, professional, and has the right qualifications. Remember you can always ask for some recommendations from their previous or existing clients, look at their reputation in the market, financial stability, and most importantly, their ability to deliver high quality and consistent results.

Data Security

In our opinion, data security plays an important part when outsourcing accounting services online. The highly respectable firm handles its clients’ data with the most required privacy and ensures that each transaction is secure. It is essential because you will be not only communicating cash flow information to them but also confidential data.

Flexible Service Level Agreement

Accounting and bookkeeping service provider must show their flexibility and desire to match your future needs and requirements. We strongly suggest checking the term and conditions before you sign the contract, so you will be aware of how to terminate the agreement if you are not satisfied with their work.

6 Accounting Tasks Your Business Can Outsource Tomorrow

  • Bookkeeping
  • Reporting to authorities and Management
  • Payroll processing services
  • Account payables (payments creation)
  • Account receivables (debtors follow up)
  • Payroll


Bonus advice: If you hire a big-five accounting firm to perform an audit, you should continue to use the other company for your accounting and bookkeeping functions. Due to independent regulations and standards within the accounting profession, a CPA firm performing an audit cannot also perform the accounting and bookkeeping for the same company.


There are significant advantages for clients who decide to outsource their accounting tasks. To begin with, cost-efficiency, and ending with flexibility in terms of contracts or scaling the number of functions. Accounting and bookkeeping are a vital part of business, but also complex. It requires time and specific knowledge. Without accounting experience, there might occur many
errors which can lead to a decrease in your business or even go bankrupt.


Outsourcing Alliance is a reliable accounting service provider to small and medium-sized businesses. You can check our accounting and bookkeeping services or leave us a quote.

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