We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Accounting Outsourcing?

Malcolm Tatum
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Accounting outsourcing is the business strategy of outsourcing a portion or all of the accounting functions necessary to keep the business operational. While the concept of outsourcing is often associated with small and medium sized businesses, large corporations may also outsource their accounting needs to a reliable accounting service. There are a number of reasons why a company would consider accounting outsourcing, with most of the reasons focusing around making the best use of the resources available to the business.

For small businesses, the question of why they might outsource accounting functions often has to do with limited resources. Rather than employing a full-time staff to handle such functions as managing the accounts receivable and payable, processing payroll, or calculating and paying federal and other applicable taxes, the small business owner may choose to engage the services of a reliable accounting firm. As a result, the business will have fewer salaries to cover and less benefits to pay, and does not have to be concerned about absenteeism that could delay posting payments or getting a payroll out in a timely manner. With these functions in the hands of a reliable accounting outsourcing provider, the small business can use its resources for other important tasks, such as enhancing the production process or implementing strategies to increase sales.

Mid-sized businesses may also find that accounting outsourcing is a good option for many of the same reasons. Outsourcing means the business has the benefit of trained accounting professionals without having to supply salaries and benefit packages, and can redirect its resources to other projects. At the same time, a mid-sized business may find that choosing to outsource the accounting functions also cuts expenses for office supplies substantially, which in turn helps to increase the bottom line for the business each month.

Corporations sometimes find that accounting outsourcing is helpful when it comes to maintaining the fast pace that is common with many larger businesses. Engaging outside services to handle accounting functions means there is no need to spend time and money hiring and then training qualified personnel. As a bonus, since the accounting records are stored remotely and can usually be accessed by authorized personnel when and as needed, outsourcing means that officers and others can quickly get to the financial data they need, even if they are traveling. Benefits of this type work well in a corporation where people constantly engage in multitasking, and need up to date information as quickly as possible.

Fees for accounting outsourcing vary, depending on the needs of the client. Many services offer accounting packages with flat fees that cover a specific type and number of accounting transactions, as well as a schedule of charges for additional functions that may be needed from time to time. Others allow customers to build customized packages, including only those functions they actually need, charging the customer only for the functions selected. Customized packages are often worth consideration by small businesses or mid-sized businesses that wish to keep some functions in house, while outsourcing the remainder to a vendor partner.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.