Is a Team-Based Outsourced Accounting Department Right for Your Small Business?
Running a small business involves juggling countless responsibilities, and managing your finances effectively is one of the most critical tasks. As your business grows, you may find that your current accounting solutions no longer meet your needs. Hiring another full-time accountant may seem like the next logical step, but alternative options, like a team-based outsourced accounting department, can often deliver more value at costs less than hiring a full-time senior accountant. Outsourced accounting departments provide full-cycle accounting services remotely, offering a flexible and comprehensive solution for small businesses.
But is this option right for you? Let’s explore the benefits, considerations, and scenarios where this model excels—and where it might not be a fit.
Benefits of a Team-Based Outsourced Accounting Department
1. Diverse Expertise
A team-based approach brings together professionals with varying skill levels and specializations, from bookkeepers to CPAs. This pooled expertise ensures that your financial tasks are handled by individuals best suited to the job. Additionally, the experience gained from working with various clients—spanning auditing, consulting, and in-house accounting—equips these professionals with insights into how other companies have solved similar challenges. This breadth of knowledge can add significant value to your small business.
2. Enhanced Efficiency
By distributing tasks among a team, an outsourced accounting department can handle multiple processes simultaneously, reducing turnaround times. Moreover, knowledge retention within the team minimizes disruptions caused by turnover, ensuring consistent service and avoiding gaps in your financial operation.
3. Improved Internal Controls
A team structure enhances financial oversight by implementing segregation of duties and standardized processes. Regular reviews within the team reduce the risk of errors and fraud, bolstering the integrity of your financial operations. For example, each of Blackledge Financial Services client’s books are reviewed by a CPA to ensure accuracy, compliance, and to identify potential areas of improvement.
4. Cost Savings
Outsourcing eliminates many expenses associated with hiring and retaining in-house staff, such as salaries, benefits, office space, and training. For often less than the cost of one full-time senior accountant, you gain access to an entire team, maximizing your financial management budget.
5. Scalability and Flexibility
As your business grows, your financial needs will evolve. Outsourced accounting teams can easily scale their services to meet these changing demands, whether you need more complex reporting, additional resources, or seasonal support during peak times.
6. Reliability and Availability
With a team in place, someone is always available to address urgent issues or provide support. This availability minimizes delays caused by absences or other disruptions, ensuring your financial processes run smoothly. Contrast this with a single accountant or bookkeeper who may need time off for sickness, vacations, or other life events. Having a team on board mitigates the risk of disruption to your financial operations.
7. Strategic Insights
Outsourced accounting teams don’t just manage your books; they can offer proactive financial advice and insights. These strategic recommendations help you make informed decisions, optimize resources, and identify opportunities for growth, positioning your business for long-term success.
When a Team-Based Outsourced Accounting Department May Not Be a Fit
While the benefits of outsourcing are substantial, this solution isn’t suitable for every business. Some organizations may face obstacles that make in-house accounting a better choice:
1. In-Person and Paper-Intensive Processes
Businesses heavily reliant on physical paperwork or in-person processes may find it challenging to transition to the digital and remote nature of outsourced services. If your workflows are not yet optimized for remote collaboration, implementing such a solution could be a difficult cultural shift.
2. Limited Digital Infrastructure
If your business lacks the necessary technology, such as cloud-based accounting software, transitioning to an outsourced model may require additional investment and time to modernize your infrastructure. However, at Blackledge Financial Services, we have experience with such transitions. For example, your accounting software can be migrated to QuickBooks Online quickly, integrating banking, payroll, employee expense reimbursements, job management software, etc. to minimize operational disruption.
Conclusion
For many small businesses, a team-based outsourced accounting department provides a cost-effective, scalable, and reliable solution to manage finances and information flows. By offering diverse expertise, enhanced efficiency, and strategic insights, this model can free up your time to focus on growing your business while ensuring your financial health remains strong.
However, it’s essential to assess your business’s unique needs and challenges before making the transition. If your processes are in-person and paper-intensive, an outsourced solution may not be the right fit.
At Blackledge Financial Services, we’re committed to helping small businesses thrive by providing remote outsourced accounting services tailored to their needs. With a team of skilled professionals and a focus on delivering value, we’re here to support your growth every step of the way. Contact us to continue the conversation.