What Can You Outsource in Accounting?

You know you need support in your financial department, but you don’t know where to start – or what that truly means. You’re not sure what you should, or even can, hand off to someone outside of your business so that you can focus on what your business needs from you.

What can you outsource in accounting? You can outsource nearly everything in your accounting or finance department. In fact, some businesses and organizations opt to establish a completely outsourced, virtual finance department.

But, if you’re looking for a more specific breakdown of what you can hand off to an accountant to help with your business, here are seven of the most common tasks and responsibilities:

#1. Routine Tasks

You can outsource routine tasks like bookkeeping, data entry, and reconciliations. More specifically, an outsourced accountant can help with ledger entries, record keeping, and categorizing transactions.

#2. Payroll Processing

An accountant can help your business handle payroll calculations, tax withholdings, and compliance with employment laws.

#3. Tax Preparation and Filing

Many online accounting firms also offer tax preparation services and can help you manage your corporate and individual tax returns while ensuring compliance, which can be complex and time-consuming. 

Some firms, like Modventures, are also knowledgeable in specific industries like nonprofit accounting and can help ensure you submit all the required forms and statements.

#4. Financial Reporting and Analysis

The benefit of an outsourced accountant is that they’re able to perform services as needed in periods of growth – meaning they can provide financial reports and gather information for these periods for review. 

This is in addition to preparing periodic financial reports and analyses and generally managing reporting for your business.

#5. Accounts Payable and Receivable

Your accounts payable and receivable are responsible for managing invoicing, bill payments, and tracking receivables. It’s one of the best places to outsource in accounting for most businesses because it removes the time and pressure that has been put on an in-house employee or owner.

We recommend reading Why Your Small Business Needs Accounts Receivable and Why Your Small Business Needs Accounts Payable if you’re unsure why they’re necessary for your business’s finance department.

#6. Audit Support Services

One way to outsource part of your accounting is to invest in audit support services. Audit support services provide assistance with preparing for audits, including gathering necessary documentation and reviewing and reconciling accounts. 

#7. Regulatory Compliance Reporting

In a similar fashion, outsourced accountants can help you prepare the reports and documents required for regulatory compliance for your business.

An outsourced accountant is typically experienced in integrating into your pre-existing business and team, allowing you to focus on the task at hand and not ensuring that your team and process move smoothly during your reporting period.

If you’re ready to outsource your accounting but don’t know where to start or what to outsource in your business, connect with the Modventures team today to go over your best options to get your desired results.