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10 Signs That It’s Time To Outsource Your Accounting & Bookkeeping

May 15, 2024

By Jenette Mitchell

Financial Management, GAAP Accounting


In every business, big or small, good accounting and bookkeeping are the keys to financial health. However, accounting tasks can often pull business owners and their teams away from their primary goals, like growing the company and serving customers. For many businesses, outsourcing accounting to a trusted partner can save the business time and money. Here are ten clear signs that it’s time to outsource your accounting and bookkeeping.

1. You’re Focusing More on Accounting than Growing Your Business

When you and your team spend more time juggling numbers than handling the work that directly contributes to your business growth, it might be time to look for other options. Whether it’s chasing down invoices, reconciling accounts, or trying to make sense of cash flow, these tasks can take up time that could be used on innovation and customer satisfaction. Outsourcing your accounting frees up your team’s schedule and bandwidth, allowing them to focus their full attention on what they do best.

2. You Worry About Data Security

With data breaches on the rise, protecting sensitive financial data is more crucial than ever. Small and medium-sized businesses often struggle with implementing robust security measures due to cost or lack of expertise. An experienced outsourcing partner can bring top-tier security to your financial data, safeguarding it from threats and giving you peace of mind.

3. Payroll and Accounting Functions Often Run Late

Delays in payroll can demotivate your team, while late accounting tasks can lead to missed opportunities or financial penalties. These delays often signal that your current system can’t keep up with the demands of your business. An outsourcing firm will ensure deadlines are always met and your business runs smoothly.

4. An Audit Makes You Nervous

Feeling unprepared for an audit can be common among business owners who manage their accounting in-house. This nervousness often stems from a lack of confidence in the accuracy and organization of their financial records. An outsourcing partner can keep your books audit-ready all year round.

5. Your Business Is Growing Rapidly

Growth is exciting, but it also complicates accounting and bookkeeping. More transactions, employees, and customers mean more financial details to track and manage. When growth outpaces your ability to handle accounting tasks effectively, it’s time to call in the experts. An outsourcing team scales with you, ensuring your financial operations support rather than hinder your expansion.

6. Your Business Has New Investors

New investors bring capital and opportunities, but they also expect timely, accurate professional financial reporting and transparency. Meeting these expectations might be challenging if you’re handling accounting on your own. Outsourcing partners manage day-to-day accounting with precision and provide the high-level financial insights and reports that investors want to see.

Transitioning to professional accounting and bookkeeping services marks a turning point for many businesses. It’s not necessarily about offloading tasks — it’s about upgrading to a system where expertise, efficiency, and security drive your financial operations.

7. Moving From Cash-basis to GAAP Accounting

As your business grows, you might need to shift from cash-basis to Generally Accepted Accounting Principles (GAAP) accounting. This is an important step for businesses that are scaling, seeking investment, or planning for an IPO. Outsourcing to professionals who are well-versed in GAAP ensures compliance and aligns your financial reporting with standards recognized by investors and regulators.

8. You’re Losing Money Despite Increased Revenue

Your revenue is up, but your profits are not reflecting this growth. Often, this discrepancy signals issues like unmonitored expenses, inefficiencies, or pricing strategies that don’t cover costs. Getting insights from an experienced accounting partner can highlight where issues lie. Skilled accountants can help you analyze your finances, identify where you’re losing money, and provide actionable insights to improve your bottom line.

9. Your Accounting Workflow Isn’t Working

If your accounting practices have not evolved with the rest of your business, you’re likely dealing with inefficiencies that slow you down and could lead to errors. Maybe you’re still relying on manual entry or outdated software.

An outsourcing partner brings modern technology and practices to your accounting operations, streamlining tasks with automation and up-to-date software. This upgrade can save time and reduce the risk of errors, making your financial operations smoother and more reliable.

10. You’ve Received Management Letters

If you’ve received a management letter from your auditor pointing out deficiencies in your financial processes, it’s a clear signal that change is needed. Outsourcing your accounting functions means entrusting them to experts who understand how to rectify these issues, ensuring your financial practices meet audit standards.

The Right Partner For You

By partnering with a trusted outsourcing firm like Quatrro Business Support Services, you gain access to expertise, technology, and insights that can transform your approach to financial management. Partner with us to get more more to go on and refocus your energy on what truly matters—growing your business. Contact us today to explore how we can streamline your financial operations and secure your path to success.

Jenette Mitchell
Written by

Jenette Mitchell is an AVP of Accounting at Quatrro leading the Auto and Care Solutions accounting teams. With over 12+ years of experience, and an MBA in Accounting, she excels in spearheading innovation and implementing analytics-driven solutions that drive efficiencies and cost-savings for her clients.

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