Does an Outsourced Accountant Save You Money?

Effective financial management can be a resource-intensive undertaking. Businesses can hire an in-house team, but this option is often cost-prohibitive when factoring in long-term expenses — especially for small to medium-sized organizations.

That’s where outsourced accounting services come in. Hiring outsourced financial professionals is quickly becoming a popular choice for organizations on the hunt for cost-effective, flexible, and reliable financial management. Even so, many business owners are still unsure about handing off this mission-critical component of operations to a third-party team.

From worrying about final costs to concerns about the quality of accounting offered, organizations have many questions about outsourced accounting. Let’s explore what you should expect from an outsourced accounting team in terms of costs and uncover some key benefits that make this type of service a strategic option for businesses of all sizes and types.

G-Squared Partners stands out in outsourced accounting services, bringing over a decade of expertise to cater to various sectors, from tech startups to commercial real estate. Connect with us today for a partnership that evolves with your business.

What Is an Outsourced Accountant?

While the breadth of tasks an outsourced accounting team covers can be diverse, their goal is simple: handle a business's accounting and other financial operations. Within this broad definition are different types of outsourced services:

• Outsourced Bookkeeping: these professionals tackle basic financial record-keeping and are suitable for everyday business transactions.
• Outsourced Accounting: outsourced accountants are a step above bookkeepers and cover a wider range of financial duties.
• Outsourced CFO: an outsourced Chief Financial Officer (CFO) provides the most comprehensive financial leadership.

The needs of one business will never precisely match the needs of another. Some organizations just need simple financial record keeping, which a bookkeeper and accountant can easily handle. Others are searching for more strategic leadership and guidance that only an outsourced CFO can provide — and everything in between.

Compared to in-house teams, outsourced accountants will often come equipped with additional expertise and specialty knowledge that is often lacking for internal accounting departments. On the other hand, outsourced teams work on a fractional or part-time basis and do not have constant availability. 

Outsourced teams often work with a diverse range of businesses. From startups to established corporations or software-as-a-service business and commercial real estate funds, their versatility is part of what makes these types of services so popular.

How Much Does an Outsourced Accountant Cost Compared to Hiring In-House?

Outsourced accounting services are often tailored to the financial demands of the specific business. While retainer or hourly rate packages can be attractive, businesses should always seek providers that offer customized packages that meet their exact needs. As a result, there isn’t a clear-cut answer to the question of how much you can expect to pay: the answer, as in many things in business, is “it depends”.

But, when compared to in-house teams, there are a few factors to look into to judge which one will be the most financially prudent option.

First is the simple overhead reductions. In-house teams need additional office space, equipment, and much more. When businesses hire an outsourced accounting team, they effectively cut these costs down to zero. There are also salary considerations.

In a small business, a controller’s salary might be as much as $125,000 - $150,000 or more. Add to this number the other costs related to employment, like benefits, taxes, and ongoing training, and the overall cost of a single team member may be as much as 150% of the expected salary.

More Than Cost Savings: Benefits of an Outsourced Accountant

While costs are certainly a major element of comparing in-house teams to outsourced providers, it’s worth looking beyond price to explore the other benefits of these types of services. Here are a few advantages of working with an outsourced team:

• Time Savings and Productivity: outsourced teams allow business owners and executives to shift their focus toward core business activities rather than accounting complexities. Time saved translates to increased productivity and business growth.
• Scalable Services: businesses adapt and evolve. Whether it’s market fluctuations or simple strategic growth, outsourced accountants can scale service up or down depending on the organization’s needs.
• Access to Expertise: outsourced accountants are well-versed financial professionals. As such, they bring a level of strategic insight that can enhance overall business strategy and decision-making.
• Risk Management and Compliance: outsourced teams can help identify and mitigate financial risks as well as stay compliant with standards like GAAP. 

G-Squared Partners: Experienced Outsourced Accountants

The decision to opt for outsourced accounting offers much more than potential cost savings. Businesses gain a comprehensive approach to financial management that provides better time efficiency, scalability, and access to expert financial insights. 

By choosing a service provider like G-Squared Partners, your team can benefit from bespoke accounting solutions that exactly match the needs of your organization. To get a clearer picture of what outsourced accounting services might cost, be sure to explore our premium resource to determine whether an outsourced team is a good fit for your business.