Outsourcing Accounting Services for Small Business

Reading Time: 5 minutes

Small businesses often face numerous challenges when it comes to managing their finances. They have to ensure that their accounting records are accurate and up-to-date, comply with tax regulations, and make financial decisions that can impact their business’s growth. Outsourcing accounting services can help small businesses overcome these challenges and provide them with several benefits.

Key Benefits of Outsourcing Accounting Services

Outsourcing accounting services refers to the process of hiring an external accounting firm to handle a company’s accounting needs. This firm may offer a range of accounting services such as bookkeeping, tax preparation, financial reporting, payroll management, and more. Here are some reasons why small businesses should consider outsourcing their accounting services:


Outsourcing accounting services can be a cost-effective option for small businesses. It eliminates the need to hire a full-time accountant or finance team, which can be expensive, especially for small businesses that are just starting. Outsourcing accounting services allows small businesses to pay for only the services they need and when they need them. It can help reduce operating costs and improve the company’s financial performance.

Access to expert knowledge

Accounting firms that offer outsourcing services often have a team of experienced accountants who specialize in various areas of accounting. These professionals have the knowledge and expertise to help small businesses navigate complex tax regulations, financial reporting, and accounting software. They can also provide valuable advice and insights that can help small businesses make informed financial decisions.

Focus on core business activities

Outsourcing accounting services allows small businesses to focus on their core business activities without worrying about managing their finances. It gives business owners more time to focus on marketing, sales, and customer service, which can help improve the company’s bottom line. By outsourcing accounting services, small businesses can free up their resources and focus on growing their business.


Outsourcing accounting services provides small businesses with flexibility and scalability. As the business grows, the accounting needs of the business also grow. Outsourcing accounting services allows small businesses to scale their accounting needs as their business grows. The accounting firm can provide additional services, such as financial planning and analysis, as the business expands, without the need to hire additional staff.

Reduced Risk of Errors

Accounting errors can be costly and can have a significant impact on a small business’s finances. Outsourcing accounting services to a professional accounting firm reduces the risk of errors. Accounting firms have processes and procedures in place to ensure that their clients’ accounting records are accurate and up-to-date. They also have the expertise to identify potential errors before they become costly mistakes.


Image courtesy of Growth Force

Understanding the Pros and Cons

Outsourcing accounting services can provide several benefits to businesses, but it also has its disadvantages. Here are some of the pros and cons of outsourced accounting:


  • Cost savings: Outsourcing accounting services can help businesses save on operating costs, including salaries and benefits for in-house accountants.
  • Access to expert knowledge: Outsourcing accounting services can provide businesses with access to specialized accounting expertise that they may not have in-house.
  • Focus on core business activities: Outsourcing accounting services can allow businesses to focus on their core activities and avoid distractions related to accounting and bookkeeping.
  • Scalability: Outsourcing accounting services can help businesses scale their accounting needs as they grow without the need for additional hiring.
  • Reduced risk of errors: Outsourcing accounting services to professionals reduces the risk of errors in financial reporting and compliance.


  • Security concerns: Outsourcing accounting services may pose a security risk, as sensitive financial information is shared with a third-party provider.
  • Communication challenges: Communication challenges may arise between the business and the outsourced provider, especially if they operate in different time zones or have language barriers.
  • Lack of control: Outsourcing accounting services means the business has less control over their accounting processes, which could lead to issues with quality control and compliance.
  • Dependency: Outsourcing accounting services could make the business dependent on the provider and make it difficult to switch providers or bring accounting back in-house.
  • Cultural differences: Outsourcing accounting services to a provider in a different country may lead to cultural differences that could impact communication and understanding of business practices.

Outsourcing accounting services has both advantages and disadvantages. Businesses should carefully consider their options and ensure they choose a reputable provider that aligns with their needs and business objectives. They should also take appropriate steps to mitigate any potential risks and ensure they maintain control over their accounting processes.

What Accounting Services Can I Outsource?

Small businesses can outsource a range of accounting services depending on their specific needs. Here are some of the most common accounting services that can be outsourced:


This involves the recording and categorizing of financial transactions such as sales, expenses, and payments. Bookkeeping services can include accounts payable and accounts receivable management, bank and credit card reconciliations, and general ledger maintenance.


Payroll management involves processing employee salaries and benefits, calculating taxes, and ensuring compliance with labor laws. Outsourcing payroll services can help small businesses ensure accurate and timely payment of their employees while reducing administrative burden.

Tax Preparation

Tax preparation services involve preparing and filing tax returns for businesses. This includes calculating and paying taxes, keeping track of tax deadlines, and ensuring compliance with tax regulations.

Financial Reporting

Financial reporting involves the preparation of financial statements such as balance sheets, income statements, and cash flow statements. Outsourcing financial reporting services can help small businesses gain insights into their financial performance and make informed decisions.

Accounts Receivable and Collections

Managing accounts receivable involves tracking customer invoices, following up on late payments, and managing collections. Outsourcing this service can help small businesses maintain positive cash flow and reduce the risk of bad debts.

Budgeting and Forecasting

Budgeting and forecasting services involve creating financial plans for businesses, predicting revenue and expenses, and analyzing financial trends. Outsourcing these services can help small businesses plan and manage their finances effectively.

Financial Analysis

Financial analysis services involve analyzing financial data to identify trends and patterns, and to provide insights into the business’s financial health. Outsourcing financial analysis services can help small businesses make informed financial decisions and improve their overall financial performance.

In summary, outsourcing accounting services can provide small businesses with a range of benefits, including access to expert knowledge, cost savings, scalability, and reduced risk of errors. Small businesses can outsource various accounting services depending on their specific needs, and partnering with a reputable accounting firm can help them manage their finances more efficiently and effectively.

Ready to Outsource Your Accounting?

If you’re ready to hire a CPA to manage your accounting, be sure to prepare a list of services you’re ready to offload, and start setting up consultations. Make sure that the CPA you are speaking with has a proven history of working with other small business owners (check for reviews that offer specifics) and, ideally, has industry experience.

Our Accounting and Bookkeeping Services include everything from payroll and ledger upkeep to bookkeeping cleanups, forecasting, and more. Let our team of trusted CPAs and advisors be your partner in business success!


Sign Up For Our Weekly Newsletter
Based on 107 reviews
powered by Google
Annie Phillips
Annie Phillips
12:35 10 Oct 21
Turn around time was amazing on the project I needed done. When you don’t understand all the different forms... communication is key and you will get that here. They are there to explain what and why you need it.read more
Meru Kapadia
Meru Kapadia
23:33 01 Oct 21
I usually don't write reviews much as everyone has different experiences, but definitely wanted to share the positive... experience I have had here and why I would recommend them to all my family, friends and co-workers.I got a referral for here from a friend, so thought of giving them a try over my old CPA firm. I have been going here for a couple years now and have to say they are top notch. They are always responsive and willing to work with me even when I am delayed. I generally like to ask a lot of questions and not once did I feel like they were annoyed by it and would very thoroughly and positively answer all my concerns with detail explanations. Even during the pandemic, they worked with me 100% virtual and it was seamless. Overall, I am very happy with this firm and will continue with them for the foreseeable future.read more
Kevan Shah
Kevan Shah
21:45 01 Oct 21
I’ve been going to them for 3 years now for multiple of my businesses. I changed to them after I had problems with my... previous CPA firm and I’m so glad I did! Best decision I ever made for my businesses. They have saved me thousands of dollars over the years as well as deal with my immensely complicated tax filling issues. No matter when I call, they always help answer all my questions (and trust me I have a lot) and put my mind at ease on all my concerns. I feel as if I am family the way they take care of me. The quality of their work has not changed; very consistent and professional. It is an understatement when I say I highly recommend them.read more
Maunil Shah
Maunil Shah
16:19 01 Oct 21
AKIF CPA is the best place for your tax needs! Saim has been easily available for my all my questions and concerns. ... Couldn’t ask for a better firm that provides excellent service and a familiarity with their clients. I always recommend family and friends to AKIF CPA!!read more
Shah Hussain
Shah Hussain
03:58 01 Oct 21
Hello AKIF CPA,I wanted to share my experience with you, your team and whomever may be reading this message. My most... humble thanks to you and your team for a being such great part of my success.You have done a fabulous job for us this year, and since you took over our books (during our most devastating times) you have literally taken weight off of our shoulders.Thanks for bringing everything up to date and also providing us with numbers or as you call it consultations, ahead of time so we could seal the holes.Great work!!!Shah H.read more
Sumit Dalwadi
Sumit Dalwadi
04:57 30 Sep 21
The professionals at Akif have been absolutely amazing! Quick to answer all the questions I had and always available... to offer their guidance.read more
Calvin R
Calvin R
20:21 29 Sep 21
I recommend these guys! I will be going back next year. They made everything simple and we understood what was... happening. There we issues with our taxes due to our previous accountant and these guys fixed everything. They answered our questions and service was always with a smile.read more
Ammoria Daniels
Ammoria Daniels
02:11 16 Sep 21
We contacted Akif with an urgent matter regarding corporate taxes. Akif immediately understood what was needed and... within days had everything ready to sign. The level of service we received was amazing and unmatched. Waqar expertise in trucking industry made our situation seamless. His communication was outstanding; I heard from him daily and could have been completed sooner if I was as fast as he was 😃 Highly recommended!read more
Joe Paneitz
Joe Paneitz
18:30 18 Aug 21
What an absolute pleasure to work with this CPA firm. My business is already seeing such a positive impact and growth.... I cannot believe I didn't connect with them sooner. This firm is helping in so many ways! 5 stars is an understatement! Thank you so much for your help AKIF CPAread more
Helptest ARCpoint Labs
Helptest ARCpoint Labs
15:02 18 Aug 21
The firm is quick, responsive, and has the latest technological software. Thus far, I have been with them for 3+ years... and will continue to work with them even after relocating. They make it easy even when I'm miles away. Would highly recommend them.read more
Luz Tipaz
Luz Tipaz
16:06 13 Jul 21
Saim and his team are the best CPAs in town. I have been their client for years. All started when I needed help with... company structure with multiple companies and then accounting and Taxes. I have been very happy ever since. Thank you AKIF CPA.read more
Maria perez
Maria perez
18:31 08 Jun 21
Me and my husband have been getting all of our personal Taxes, business Taxes, monthly bookkeeping, accounting and... payroll done with AKIF CPA. Recently, we had more stuff come up and had detailed analysis done on capital gains, single family rentals (SFR) and business disposition. You will only know how great this CPA company is until you have worked with them and given them a chance. Words can’t describe our experience. AKIF CPA gets the job done every time - very reliable, professional and affordable.read more
Afnaan Amin
Afnaan Amin
22:14 02 Jun 21
Very good experience, we had unique situation in regards to cross border income as Canadians currently residing in the... US. Income on both sides of the border through completely different channels. Everything was very easy and completed timely, I also had lots of random questions and Mohammad provided top notch service along the way and even after we finished our taxes!! Highly recommended.read more
Ryan Paton
Ryan Paton
10:56 08 May 21
I moved to the USA from Canada late 2018 as part of a promotion/relocation for work. For my 2019 returns, I used an... accounting firm recommended by the local Canadian social club in my city, which was a terrible experience. They were slow to respond to inquiries and would follow up in piecemeal requests which dragged out my return process over several months, often asking for information I had already provided.For the price I paid, I vowed to find better service. I found Mohammad online and decided to reach out. Mohammad was extremely responsive, took care of my US and Canadian returns as well as my wife's business returns in a timely manner. Overall, it was a very positive experience and I would recommend him to another in my situation.read more
Tuan Vo
Tuan Vo
01:59 20 Apr 21
I relocated to Texas from Alberta, Canada and needed a CPA to help me with my cross-border taxes as I was not happy... with the CPA that I used previously. During my interviewing process to find another CPA, I had good feedback from Mohammad as he was able to answer my questions regarding my unique tax situation with expertise, and importantly to me, in a timely manner. I decided to use his services for the current tax year and I have nothing but compliments for the work Mohammad provided. If you are in need of a professional cross-border CPA, I highly recommend reaching out to Mohammad Akif.read more
See All Reviews

Crypto Tax & Accounting Newsletter Signup


Cross-Border Tax Newsletter Signup