Why Use Outsourced Accounting Services? A Guide for Finance Teams

Modern finance teams are under pressure from all sides. Compliance requirements are evolving all the time. Technology demands keep changing, even as technology costs become harder to manage.

And then there’s perhaps the biggest challenge of all: finding the highly skilled, expert talent your need.

For globalizing companies, the challenge is even more acute. Scaling internationally depends on access to specialist finance talent – people who understand how to navigate different countries’ rules, risks, and reporting frameworks.

Even with the right expertise, managing multiple entities, currencies, and compliance regimes eats up time, attention, and internal resources. Cost and complexity increase as you grow.

Get any of this wrong and your finance function could prove to be a brake on global growth, not the accelerator it should be

But there is an alternative: outsourced accounting services.

It’s easy to assume that outsourcing your accounting is merely a cost-saving measure. But as we’ll explore in the rest of this guide, it can be about so much more than that. Find the right service provider and outsourced accountancy services can prove to be a more sustainable way of scaling your finance function across borders.

And as we’ll explore, it can be a win-win situation. You save on the inherent costs and overheads of replicating your finance function in each new country, while still benefiting from the localized knowledge and expertise your business needs to succeed.

How the best HR leaders manage global expansion

Lee Burrow, Chief People Officer at TopSource, explains the 3 key ways that HR leaders can play a pivotal role in boosting their company’s global growth

• Get expert compliance advice early to avoid frustration and stay aligned with local regulations.

• Balance localization and globalization to build a cohesive, adaptable culture.

• Adapt HR and people practices—from policies to engagement surveys—to different cultural settings for lasting success.

Read the full ebook

 

How does outsourcing accounting work?

Put simply, outsourced accounting involves partnering with external specialists to handle some or all of your financial operations.

The scope of outsourced accounting varies significantly based on your company’s needs.

Some companies just outsource specific functions like accounts payable or accounts receivable, while others transition their entire accounting department to an external provider. The key is finding the right balance between internal control and external efficiency.

Twenty years ago, outsourcing meant getting basic bookkeeping off your plate. It was about cost savings through labour arbitrage. But times have changed. Today’s leading outsourced providers look nothing like their predecessors. They don’t just process transactions. They help finance teams scale, modernise, and deliver better insight, faster. What they offer now is infrastructure and expertise, not just labour.

Let’s look at a few examples.

• CFO and controller-level services that combine technical accounting knowledge with business judgment, giving you senior finance capability without adding headcount.
• Global payroll processing: we’re not just talking about offshoring here – the best accounting providers offer full wraparound services, providing expertise and ensuring that your payroll is aligned with local tax codes, labour laws & reporting requirements.
• Financial reporting & analysis: clear, tailored reports with actionable insight, supporting faster decisions and stronger financial oversight.

 When do you need outsourced accountancy services?

Not every finance function should be outsourced. But many can be, especially when your business is expanding quickly, adding complexity, or looking to scale without replicating cost and headcount in every location.

The real question isn’t whether to outsource. It’s what to outsource and why. Strategic outsourcing isn’t about offloading tasks. It’s about building a finance function that’s faster, leaner, and more capable at every stage of growth.

Here’s how to think about what belongs in-house, and what external partners can often handle more effectively.

So let’s take a closer look at some of the functions that should – or possibly shouldn’t – be outsourced.

Accounts payable and receivable

Many AP and AR processes are well-defined, repeatable, and critical to cash flow. They benefit from standardisation, automation, and clear controls, often making them ideal for outsourcing.

A dedicated global partner can:

• Process invoices and payments on time, across geographies
• Capture early payment discounts and improve vendor relationships
• Apply collections processes more consistently and objectively

General ledger and transaction processing

Recording transactions, reconciling accounts, and maintaining accurate books are foundational to every finance team. But if you’re running a lean team, it’s worth considering outsourcing here too.

Specifically, outsourcing gives you:

• Consistent, error-free bookkeeping
• Localised compliance with country-specific accounting standards
• Scalable support as transaction volume grows

Month-end close and consolidation

For overworked finance teams, month-end often becomes a fire drill. Deadlines slip, errors multiply, and leadership waits for data that should already be informing decisions.

A strong outsourced partner brings rigorously structured close processes, timely, reconciled reports across entities and currencies and, overall fewer nasty surprises.

Board and management reporting

For finance teams supporting global operations, reporting becomes significantly more complex as you scale. Each entity may use different systems, follow different close calendars, or report in formats that don’t align. Consolidating this data into clear, actionable insights takes time and often stretches internal teams to the limit.

Outsourced partners can take on this burden, bringing structure, speed, and consistency to your reporting process, especially when operating across multiple jurisdictions.

Global payroll

Payroll is one of the most sensitive functions to scale internationally. Each new country brings its own tax rules, labour laws, reporting standards, and payment timelines. What works in one market rarely translates cleanly to the next.

As a result, internal finance teams quickly find themselves coordinating a patchwork of local requirements rather than running a single, controlled process.

Outsourcing payroll in this context isn’t about efficiency alone. It’s about reducing exposure and risk as you know. A specialist partner brings local, in-market expertise aligned to your group-level policies, ensuring payroll is executed accurately and consistently across jurisdictions.

Tax compliance and filings

While strategic tax planning often stays in-house or with specialist advisors, compliance work, like VAT returns, statutory filings, and withholding tax, can be efficiently managed by outsourced teams.

Again, it’s not just about accuracy. It’s about lowering your risk exposure and freeing up internal bandwidth.

Which accountancy functions should stay in house?

Outsourcing isn’t about replacing your internal leadership. It’s about scaling your finance capability around them, giving your CFO, controller, or head of finance the specialist support they need to focus on what matters most.

Some areas will always require internal ownership; for example, strategic expansion decisions, key banking relationships, and overall executive oversight. But even in these contexts, the execution, analysis, and reporting work can often be shared with an external partner.

Here’s what that could look like in practice.

Strategic financial planning

Your leadership team sets direction. But outsourced support can build the models, test the scenarios, and prep the materials, freeing internal teams from spreadsheet-heavy work and enabling them to focus on the big strategic picture.

Banking and treasury operations

You’ll likely want to manage your banking relationships and credit strategy internally. But outsourced partners can track cash positions, process wire transfers and reconcile accounts across multiple currencies, under your controls and policies.

Governance, audit and risk

Risk oversight and internal audit often stay in-house or with a separate advisor, to protect independence. But outsourced teams still play a role: by standardising processes, strengthening documentation, and reducing errors across markets, they can raise the baseline for control globally.

Tax strategy and compliance

Long-term tax planning and structuring may require close integration with your business model. But day-to-day compliance – filings, returns, local regulatory updates – can be more reliably managed by a specialist partner with local knowledge and systems designed for scale.

When should your business use outsourced accountancy services?

There’s not just the question of what to outsource – there’s also the question of when.

Rapid growth

Fast-growing companies often struggle to scale their finance operations quickly enough. Hiring takes time, new staff need training, and mistakes happen during rapid expansion. Outsourced accounting provides immediate capacity that scales with growth.

Transitioning to new accountancy system

Implementing new accounting software is disruptive. Outsourcing during or immediately after a system transition can ease the pain. External providers bring experience with multiple platforms and can manage the transition while maintaining business continuity.

Integration after an acquisition

Acquired companies come with their own accounting systems, processes, and staff. Rather than immediately disrupting the acquired entity’s operations, many acquirers use outsourcing as a bridge strategy, standardizing processes and systems before deciding on long-term structures.

Cost reduction pressures

When facing pressure to reduce costs, finance departments often become targets. Outsourcing provides a path to significant cost reduction without sacrificing quality or control. However, cost should be viewed as one factor among several rather than the sole driver.

Talent challenges

If you’re struggling to recruit qualified accounting staff, experiencing high turnover, or dealing with key person dependencies, outsourcing removes these headaches. Outsourcing can prove especially useful as you expand your global footprint, as you may struggle to source the specialist finance talent you badly need.

Finding the right outsourced accounting provider: key criteria to look for

Relevant experience

Look for providers with experience in your industry and company size. A firm that primarily serves Fortune 500 manufacturers may not be the best fit for a $20M software company. Ask for specific case studies and references from similar companies.

Industry experience matters because different sectors have unique accounting considerations. Real estate requires property-level accounting, nonprofits need fund accounting, manufacturers manage inventory and cost accounting. Providers with relevant experience require less education and make fewer mistakes.

Service expertise

Evaluate the whole service portfolio of any vendor, even if you’re only outsourcing one function initially. Your needs will evolve. Choosing a provider that can grow with you provides valuable flexibility.

Technology platform & capabilities

Understand the provider’s technology approach. Do they work within your existing accounting software or require you to adopt their platform? What reporting tools do they provide? How do they handle data security?

The best outsourced accounting services embrace cloud-based platforms and automation. Look for providers investing in technology rather than relying primarily on manual processes.

Delivery model and location

Understand where the work will be performed. Many providers combine onshore relationship management with offshore processing. This hybrid approach can provide excellent quality at attractive pricing.

Location matters less than it once did, but time zone considerations remain relevant. If you need real-time support during your business hours, ensure your vendor offers appropriate coverage.

Team structure

Ask about team structure. Will you have a dedicated team or share resources? Who serves as your primary contact? What’s their typical staff tenure and turnover?

Evaluate quality control processes

Dig into quality assurance. What review procedures exist? How do they handle errors?

The best accounting outsourcing companies implement multi-layer review processes—having different people prepare and review work. They track error rates, analyze root causes, and continuously improve processes.

Scalability and flexibility

Assess ability to scale. If your business grew quickly, could they handle a 50% increase in transaction volume? What happens during seasonal peaks? How quickly can they add capacity?

Also evaluate flexibility. Can they adapt to changing requirements? Will they customize processes to fit your needs, or do they operate only within rigid frameworks?

Data security and business continuity

Financial data is sensitive. Understand security protocols, data protection measures, access controls, and compliance certifications. Ask about disaster recovery plans and business continuity procedures.

Providers handling sensitive financial information should maintain certifications like SOC 2 Type II, ISO 27001, or equivalent standards demonstrating serious security commitment.

Pricing structure and transparency

Understand the pricing model. Is it per-transaction, per-hour, or fixed monthly fees? What triggers price adjustments? Are there minimums or long-term commitments?

Building a finance function that’s fit for global growth

Outsourced accountancy has come a long way. It’s no longer just a back-office fix or a way to cut costs. For fast-growing and globally expanding businesses, it’s become a smarter, more scalable way to run finance.

With the right partner, you don’t just offload tasks, you gain valuable strategic capability. You build a function that keeps pace with growth, handles complexity without adding headcount, and frees your leadership to focus on forward-looking strategy.

From managing compliance across multiple markets to accelerating reporting and controlling cost, outsourcing offers a practical, proven way to build a more agile finance operation, freeing up your finance team to focus on global growth.

So if your thinking of outsourcing your accounting, don’t ask “should we outsource?”

Instead reframe the question: “what kind of finance team do we need for where we’re going?”