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What would your business do with an extra $300,000? It sounds like a silly question—you could reinvest it in growth, product development, or market expansion.
That’s if you had it, of course. But have you ever stopped to think about why you don’t? If you’re like most scaling businesses, you’re bleeding cash by keeping your accounting in-house instead of outsourcing accounting services. And yes, when you do the math, that’s $5,000, $10,000 or $25,000 a month.
Worse, 82% of business failures are caused by cash flow mismanagement. Yet founders continue to push themselves to handle financial tasks internally, working beyond their capacity while simultaneously serving as CEO, financial manager, and everything in between.
The solution? More companies are choosing to outsource accounting services to specialized partners who can handle their finance and accounting needs. And if you’ve been thinking of outsourcing, you’re not alone: 73% of young businesses keep accounting in-house, but that number drops to 49% for companies over 5 years old.
When considering outsourcing accounting services, many business leaders only think about the base salaries they pay their accounting staff. But the real cost of having an in-house accounting team goes way deeper. A full-time in-house accounting department can cost nearly $1,000 a day:
Compare that to outsourced finance and accounting services, which run between $300 and $2,000 a month for small businesses and start-ups. Even for larger companies that need full financial management and CFO services, outsourced solutions average around $60,000 a year—a tiny fraction of what “in-house” costs.
The shift to outsourcing isn’t just about cost savings, though saving $35,000+ a year is definitely tempting.
Modern businesses are dealing with increasingly complex financial challenges that require specialized expertise and technology solutions.
Consider this: 62% of small businesses still have in-house accounting teams, but the numbers tell a scary story about their performance. Fully 38% of startup failures are due to running out of cash or being unable to raise new capital.
The good news is when you outsource accounting services, you’re not just hiring a bookkeeper—you’re getting an entire team of financial experts. These professionals bring tax strategy and compliance expertise, financial reporting and analysis capabilities, and strategic planning expertise that many growing companies can’t afford to have in-house.
Your accounting needs will grow with your business—but outsourced accounting firms know that. They can scale up or down with seasonal fluctuations, growth phases, market conditions, or new market entries. This flexibility is gold for companies that are growing fast or navigating market changes.
Modern financial management requires advanced tools and systems, but outsourcing accounting services gives you access to enterprise-grade financial software, advanced reporting, and secure data management platforms that would be too expensive to implement and maintain yourself.
The benefits of finance outsourcing go far beyond cost savings. Smart companies are finding that outsourcing their accounting function gives them strategic advantages that impact every part of the business.
Professional financial reporting means faster, better decision making. Companies with outsourced accounting can see trends and opportunities sooner, respond to market changes faster, and plan for growth with more confidence. This visibility into financial performance often leads to better decisions and better outcomes.
Compliance gets a lot easier when you work with accountants who are up to date with changing tax laws, industry regulations, and reporting requirements. This is especially useful during audits or when entering new markets with different regulatory environments.
Most importantly, outsourcing accounting services gives you back your time and mental bandwidth. Instead of working at 110–130% capacity juggling financial tasks, founders and executives can focus on what really matters: growing the business, developing products, building customer relationships, and building strong teams.
Meet TechGrow Solutions, a fictional SaaS startup similar to many of our clients before we worked with them at Enshored. Rapid customer growth put pressure on their in-house accounting team, and they faced financial reporting delays, increasing errors, and founders spending precious evening hours reconciling accounts instead of growing the business.
Their in-house finance team couldn’t keep up. Monthly closes were taking 15+ days. The financial management team was working overtime but still couldn’t produce accurate, timely reports. The final straw was when they found several material errors in their financial statements just before an investor meeting.
The answer? They outsourced accounting services to a specialist. The transition took less than 45 days, and the results were amazing.
In the first quarter, they achieved:
Most importantly, they got their time back. TechGrow’s leadership team was drowning in financial tasks, but outsourcing their accounting function allowed them to focus on what really mattered, and as a result, growth accelerated.
Outsourcing accounting services requires you to assess your current financial operations. Rate each statement on a scale of 1-5, where 1 is “Strongly Disagree” and 5 is “Strongly Agree.”
Financial Operations:
Team:
Growth & Scaling:
Score:
Add up your scores across the 15 questions and check your total below.
15-30
Your current accounting is working fine, and you should focus on more important projects than outsourcing your accounting.
31-45
Consider selective outsourcing for finance or accounting functions.
46-60
You are a good candidate for full outsourcing.
61-75
Outsource your accounting and finance now!
Other Indicators
It’s not all about the numbers. Consider these other qualitative flags:
If any of these apply to you, then outsourced finance and accounting might make sense.
Outsourcing starts long before you sign a contract—it requires planning, communication, and strategy.
Most businesses that outsource accounting services follow a process. First, they document their current processes—from daily bookkeeping to monthly financial reporting. Then, they identify pain points and opportunities for improvement. This groundwork is key to finding the right outsourced accounting team and ensuring a seamless transition.
It’s all about finding a partner whose expertise matches your needs and whose processes match yours.
Your outsourced finance partner should offer more than just basic bookkeeping. Look for a team that provides full financial management—from accounts receivable to strategic planning. Consider their technology stack, their experience with businesses like yours, and their track record of delivering measurable financial improvements.
Start with a detailed transition plan. Your first month should be all about knowledge transfer and process documentation. Work with your financial professionals to capture all the details of your current operations. Share your chart of accounts, your reporting requirements, and your key financial data. This foundation building is key to long-term success.
By month two your outsourced accounting team should start parallel processing. They’ll run your accounting function alongside your current system to ensure accuracy and identify opportunities for improvement. This phase often reveals inefficiencies you didn’t even know existed in your financial reporting.
Month three is usually the final transition. Your new financial management team takes over your accounting needs while you maintain oversight and strategic control. This is when most businesses start to see the benefits of outsourcing their accounting services
Looking forward, outsourcing will transform more than just your accounting function. With professional financial services backing you up, you’ll be free to focus on growth.
Think about the impact: instead of being one of the four out of five businesses that fail because of cash flow mismanagement, you could be one of the growing number of businesses that outsource finance and accounting to drive sustainable growth. With expertise at your fingertips and costs reduced by thousands a month, you’ll make better decisions and seize new opportunities.
But—$300,000 in savings per year or not—remember that outsourcing accounting services is about more than saving money. When you partner with the right team, you’ll gain a strategic partner invested in your growth, equipped with the tools and expertise to help you achieve your business goals.
If that sounds like a smart move for your business, contact us today to get started.
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