Outsourcing Your Finance & Accounting

compass pointing to the word outsourcing | Outsource Your Finance & Accounting | Dalby, Wendlnad & Co. | CPAs & Business Advisors | Grand Junction CO | Glenwood Springs CO | Montrose CO Outsourcing may appeal to organizations that are currently struggling with mounting overhead costs. By outsourcing, you convert certain fixed overhead costs associated with compensating and supporting employees into variable costs that can be scaled back in an economic downturn — or dialed up in times of growth and transition.

One department that’s ripe with outsourcing opportunities is finance and accounting. There are many external providers, including Dalby Wendland, that provide such specialized, time-consuming services as payroll processing, tax preparation and bookkeeping. You can even outsource your controller or CFO function. But do the benefits of outsourcing these tasks outweigh the potential downsides?

The Upsides

Outsourcing finance and accounting functions allows you to work with financial professionals of varying levels of experience and expertise tailored to the functions they’ll perform. These responsibilities could include:

  • Processing payables, receivables and cash transactions,
  • Reconciling accounts at each month-end,
  • Preparing financial statements, budgets and forecasts,
  • Assisting with tax and financial reporting requirements, and
  • Communicating financial matters to your shareholders and/or board of directors.

Cost is a top concern when outsourcing these functions. But keep in mind that, with an outside firm, you pay only for the amount and level of services you require.

For example, an in-house accountant may spend some time doing work that someone at a lower pay level could handle equally well. Outsourcing also will spare your organization the expenses associated with a regular employee, such as payroll taxes, health insurance, paid leave and training to stay atop any tax law or regulatory changes and continuing education requirements.

The Trade-Offs

If you use an outsider to perform the duties of your CFO or controller, that person may not be at your immediate disposal whenever a financial question arises. Meetings with the CPA firm will need to be planned and scheduled. You’ll also need to determine how financial data will flow between your company and the accountant who’s providing these services. These concerns, however, seem to be fewer and more easily rectified due to cloud, applications, and virtual meeting technologies.

More for Your Money

Depending on your needs and budget, you can outsource the tasks that make sense for your organization. Outsource professionals may have more efficient processes and oftentimes stay abreast of regulatory issues and other beneficial ongoing education. In addition, if you are wanting higher-level CFO support, it is important to know this level of expert typically commands a higher salary of $100k+.

Another benefit you may reap is from occasionally using other firm experts via your outsource partner — investment advisors, HR and IT support, and valuation specialists, as necessary.

And, when working with external accounting and financial service providers, you may receive reduced fees for year-end audit and tax services. Because of the professional attention to accounting and finance functions received throughout the year, most of the accounting questions that typically arise in an audit already will have been resolved.

Should you outsource?

Outsourcing finance and accounting functions is a smart move for many organizations — but it’s not right for everyone. Contact us to discuss the pros and cons of using this strategy in your organization. Dalby Wendland provides Client Accounting Services that can be scaled to your needs.

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