Accurate accounting is vital for businesses and, put simply, the idea of outsourcing this business process worries many – and rightfully so. If you’re not careful with who you give control of your company’s finances to, the potential for a disaster is high.
Outsourcing your accounting can serve as your full accounting department, either replacing or supporting your internal team, and providing professional expertise and operational flexibility.
There are many myths surrounding outsourcing, but how many are true? Well, that depends on who you choose to handle the formation of your global dream team. Join us as we explore the most common myths in accounting where outsourcing is concerned so you can better decide if it could help take your business to the next level.
Before We Dive In, What Does Outsourcing Really Mean?
Outsourcing, especially in the realm of finance and accounting, is the practice of engaging an external provider to handle specific accounting functions or services for your business. This can range from basic bookkeeping and financial reporting to more complex accounting services like tax preparation and compliance.
By leveraging outsourced accounting services, businesses can tap into a pool of highly skilled accounting professionals who bring specialized industry knowledge and expertise to the table.
Instead of relying solely on an in house accounting team, companies can use outsourced accounting as a cost effective solution to meet all their accounting needs. This approach allows businesses of any size to access advanced finance and accounting capabilities without the overhead of hiring, training, and maintaining a full-time staff.
Whether you need support with day-to-day bookkeeping or require a dedicated team for more strategic financial management, outsourcing offers a flexible, scalable solution that helps your business stay agile and competitive.
Ultimately, outsourcing is about finding the right team and services to support your financial goals, so you can focus on growing your business.
Let’s dive into the myths and misunderstandings surrounding accounting and bookkeeping outsourcing—and set the record straight once and for all.
Myth # 1: Outsourcing Means Relinquishing Control Over My Company’s Finances
A frequent concern among business owners is that outsourcing accounting services means giving up control over their finances. In reality, outsourcing is designed to empower businesses, not sideline them.
When you work with outsourced accountants, you retain full authority over your financial decisions and strategic planning. The role of an outsourcing partner is to support your accounting processes, ensuring your financial records are accurate, up-to-date, and compliant with current tax laws.
By delegating routine financial tasks to experienced professionals, you gain access to reliable financial information that enables you to make informed decisions and focus on your core business activities.
Outsourcing doesn’t mean stepping back—it means having a trusted team to handle the details, so you can concentrate on the big picture and drive your business forward with confidence. With the right accounting services provider, you maintain oversight and control, while benefiting from streamlined processes and expert support.
Myth #2: Outsourcing Is Only for Businesses Looking to Cut Costs
While it’s true that outsourcing can be a cost-effective solution, the advantages go far beyond just saving money. Outsourced accounting services offer businesses access to specialized expertise, advanced technology, and best practices in financial management.
By outsourcing non-core accounting functions, companies can improve operational efficiency and free up valuable resources to focus on growth, innovation, and strategic planning.
Outsourced accounting also provides actionable insights and relevant information that can inform your business strategy and help drive profitability. With a dedicated team of professionals managing your accounting services, you gain the flexibility to scale as your business grows and the ability to respond quickly to changing market conditions.
Ultimately, outsourcing is about optimizing your accounting function to support your long-term goals, not just reducing expenses.
Myth #3: Outsourcing is Only for Enterprises
It’s a common misconception that only large enterprises can benefit from outsourcing. In fact, outsourced accounting services are a game-changer for small businesses and startups as well.
By partnering with experienced professionals and leveraging the latest accounting software, small business owners can efficiently manage their finances, stay compliant, and make informed decisions without the burden of building an in-house team.
Whether you need help with monthly bookkeeping, tax prep, or managing your entire accounting function, outsourcing offers flexible solutions tailored to your unique needs. This allows small businesses to access the same level of expertise and technology as larger companies, helping them stay competitive and focused on growth.
No matter the size of your business, outsourcing can provide the support and solutions you need to manage your finances effectively and achieve your goals.
Myth #4: Outsourcing Means Client Data is at Risk of a Breach
Privacy laws are tightening, and financial data is incredibly sensitive. It’s important to keep such information under wraps and accurate at all times, and outsourcing does not have to be a saboteur of that mission.
Outsourcing done well will not result in any data breaches. While offshore teams require access to your systems and information over the internet, there are protocols and procedures that can be put in place to ensure security and integrity.
For instance, Cloudstaff Vault is an enterprise-grade security mechanism designed to keep highly sensitive information secure. The isolated facility ensures offshore professionals can only access what’s necessary, with zero opportunity for any data breaches to occur.
Having achieved and maintained ISO 27001 certification, as well as being GDPR compliant, Cloudstaff partners and clients can be assured that information security is top priority. The standard requires a systematic examination of any risks, threats and vulnerabilities. From there, management processes are implemented to ensure security levels are satisfactory.
Remote work of all kinds does indeed present new risks, but these risks are avoidable with the right procedures and best practice.
Myth #5: Outsourcing would Produce a Drop in Quality for our Accounting
This myth is common but not true. Our database is full to the brim with experienced professionals who have gone through all of the necessary training to assist accounting and bookkeeping companies. Our team’s industry specialization allows us to deliver tailored solutions that address the unique financial reporting and compliance needs of clients across various sectors.
A quality outsourcing firm, such as Cloudstaff, will ensure that any offshore professional that’s placed in your company has the appropriate knowledge and credentials to perform their role expertly. Our Cloudstaff Academy program provides fast track training for tax and accountancy for Australia and the United States, ensuring our database is only full of trained workers. Our services are specifically designed to support accounting firms seeking specialized expertise and reliable outsourced solutions.
What’s better is that moving accounting roles to the Philippines saves your business up to 70% on traditional staffing roles. While you’re saving on cost, you’re not inherently losing out on quality. The Philippines produces around 15,000 accountancy degree graduates per year, of which 5,000 will pass the CPA board exam, and thousands upon thousands of the qualified professionals in our database also have experience working in either Australia, the United Kingdom, or the United States.
From bookkeeping to tax preparation, Xero to QuickBooks, our Cloudstaffers have the capabilities and experience necessary to help businesses thrive. We are recognized for our leadership and expertise in the accounting industry, particularly in delivering advanced online and cloud-based accounting services.
Myth #6: Outsourcing Means I’ll Have to Lay Off Staff
It’s true that outsourcing is often more cost and time efficient, but that doesn’t mean there’s no room for your existing onshore team.
Retention is an issue for almost every business and outsourcing actually helps here. Hiring remote, offshore professionals supports and frees up your onshore team from the smaller, repetitive tasks so they can focus on high-value activities. Additionally, outsourcing back office functions such as accounting, payroll, and HR can further support your core business operations by allowing your team to dedicate more time to strategic growth.
Myth #7: Outsourcing is Only Good for Virtual Assistance
As mentioned when dispelling the myth above, offshore professionals can be well-versed in many areas of accounting and perfectly execute a variety of business functions for you.
Whether you need to bolster your team at the end of tax season or a helping hand with management reporting, you have more than Virtual Assistance at your disposal when outsourcing. Accounts payable and accounts receivable are key functions that can be efficiently managed by outsourced teams, ensuring accurate daily financial record-keeping and supporting your business operations.
Key business elements such as bookkeeping (AR/AP), accountants, tax and compliance, auditing, and financial planning can all be taken care of with highly skilled, remote staff. Outsourced teams help manage cash flow, prepare financial statements, and leverage the latest technologies to improve efficiency across your financial processes.
At Cloudstaff, We Work for You
Cloudstaff specializes in providing expert outsourcing solutions tailored to your financial needs. Partner with us to streamline your operations, reduce costs, and gain access to skilled professionals who ensure accuracy and compliance.
We’re here to empower your business to focus on growth while we handle the numbers. Ready to transform your accounting workflow? Speak to one of our specialists today and discover how outsourcing can help you succeed.