The Benefits of Outsourcing Finance & Accounting

A skilled finance team provides strategic direction, sophisticated insights into the company’s financial situation, financial forecasting, growth planning, and tight control over budgets and cash flow. 

However, interviewing, hiring, training, and paying full-time salaries for each of these employees can be expensive and time-consuming. Many small businesses just don’t have the resources to assemble a full-time finance team. Outsourcing can help!

Why outsource your finance team?

Outsourcing your company’s finance team is a less expensive option that can be even more effective than an in-house finance team. Outsourcing affords small businesses the expertise of top-of-the-line finance and accounting professionals without the price tag. 

For growth-stage companies, this is a particularly compelling option, as the finance consulting team can help businesses that are in a stage of constant evolution make quick financial choices and identify the most valuable new opportunities. When outsourcing these roles, companies also benefit from the scalability of being able to adjust the scope of the team’s work on an as-needed basis.

Below, we’ve covered the benefits of outsourcing each of these three key finance roles.

Benefits of an Outsourced CFO:

  • Strategic planning: Outsourced CFOs can analyze your company’s financial picture and provide high-level strategic guidance that will optimize revenue growth.
  • Exit strategy: If your company is planning for an exit, an outsourced CFO or an exit planning advisor can help you package your company’s finances attractively and prepare all the necessary documents to get the best possible sale price.
  • Expertise & cash flow analysis: An outsourced CFO will be highly skilled with years of professional experience especially in cash flow forecasting. This expertise will bring an invaluable new perspective to your business. They can review company performance and provide a detailed analysis and plan to address any existing financial issues. 

Benefits of an outsourced controller:

  • Offload financial management: An outsourced controller will quite literally take control of your company’s day-to-day finances, making it their business to know everything about the company’s cash flow, expenses, purchasing, budgets, and vendors. They will likely become the point person for your legal and financial partners and vendors and be a key decision-maker in the purchasing process.
  • Identify cost savings: By getting to know the ins-and-outs of your business, an outsourced controller will apply their in-depth financial expertise to finding the biggest opportunities for cost-savings.

Benefits of an outsourced bookkeeper:

  • Multiple perspectives: When a company outsources its bookkeeping, the role is usually fulfilled by more than one person. This increases accountability and allows you to benefit from more than one pair of eyes and multiple skill sets managing your day-to-day accounting, without paying for full-time personnel. 
  • System administration: When you work with an outsourced bookkeeper, they will typically already have access to the best financial management systems, and you won’t have to pay the cost of incorporating new enterprise software. 

At TGG our dedicated 4-person teams can partner with your company to elevate your financials. To find out more, contact us.

This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.

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