6 Benefits of Outsourced Accounting
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Rose Report: Issue 74
BY TED ROSE, ROSE FINANCIAL SOLUTIONS
According to Capterra, over 70 percent of businesses outsource some or all of their accounting and finance functions. Whether small, mid-sized, or large, businesses benefit from outsourced accounting in several ways, starting with cost savings. Other benefits include scalability, access to expertise, improved technology, reduced risks, and reliable compliance with government regulations.
Another reason for outsourcing accounting? The ongoing shortage of accountants makes it more challenging than ever to hire qualified full-time staff. Businesses can benefit not only from outsourced accounting but from complete Finance as a Service (FaaS) which leverages the strength of ROSE's technology platform, Easby®, and experienced finance, accounting, and tax professionals.
What Is Encompassed in Outsourced Accounting?
Outsourced accounting encompasses the functions of a controller, which include financial reporting from income statements to cash flow statements to balance sheets along with bookkeeping and payroll administration. With ROSE's FaaS approach, your firm, organization, or business can receive the full range of financial services with a fully staffed, outsourced finance department or division.
Benefits of Outsourced Accounting Services
More than two-thirds of businesses and organizations outsource some or all of their finance department and accounting functions because outsourcing comes with many benefits. They include:
Cost Savings
You can save between 20% and 50% of direct accounting costs by outsourcing your accounting services with ROSE Financial Solutions. Accounting services can also identify other cost centers for your business or organization and help you save on other expenses.
Access to Expertise
Outsourced accounting services can bring industry and sector-level expertise to your enterprise. Rose Financial Solutions offers expertise in a variety of business sectors, including government contracting and DCAA compliance. ROSE also offers expertise for technology and SaaS companies, and many different types of professional services, from technology consultants and architects to healthcare practitioners.
Rose Financial Solution professionals are also experienced in helping startups and small businesses. They provide expertise in assisting international businesses to succeed in the U.S., including the U.S. subsidiaries of global firms. ROSE also offers expertise for not-for-profit organizations, including annual compliance filings, annual reports, grants management, and reporting to granting organizations.
Understanding The Accounting Shortage and Hiring Considerations
According to CPA Journal, the accounting industry is "facing a severe crisis," because of a shortage of accountants. About 75 percent of accountants in the U.S. are at or near retirement age, according to the AICPA. There has also been a 33% decline in the number of candidates applying to take the CPA exam since 2016.
Competing for qualified accounting professionals in this environment is challenging for businesses, and outsourcing to a strong firm with qualified CPAs, accounting, and finance professionals for outsourced accounting services is an effective solution to the problem. In particular, firms like ROSE, with industry expertise in GovCon, nonprofits, tech and software, and foreign corporations with U.S. subsidiaries, offer a solution to the accountant shortage.
Scalability
It takes a lot of time, effort, and money to hire qualified accounting staff to grow a business from a few employees to one with hundreds of employees and multiple locations. If you're a tech or SaaS business, you may be able to have many remote workers, but the specialized expertise required to scale your products and subscriptions is difficult to come by.
Fortunately, ROSE Financial Solutions and their pioneering FaaS approach allows you to scale, whether you're a GovCon business taking on many new contracts or a nonprofit adding new programs and services.
Reduced Risk and Improved Compliance
All businesses benefit from reduced risk, but some have specialized needs to comply with government regulations, including government contractors, who must comply with DCAA requirements. Nonprofit organizations must also comply with state and federal laws regarding unrelated business income and fund accounting.
Outsourcing accounting functions to expert firms like Rose Financial Solutions will enable your organization to provide financial transparency and separation of duties, thus reducing risk and improving your ability to obtain bonding and insurance coverage, required for many government-based and other contracting processes.
Technology Advantages
Some businesses still use outdated programs or solutions like Excel to perform major accounting functions, and these programs are not up to the task of providing actionable financial insights, meeting complex requirements for government compliance, or making long-term strategic decisions about the future of your business. Rose Financial Solutions is not only experienced in working with major accounting platforms as a FaaS pioneer, they offer the Easby cloud-based platform, which can interface with internal accounting platforms and provide meaningful, actionable financial reports.
Our FaaS solution, Easby, combines people, process, technology, organization, and data. to simplify and automate accounting functions, ensure compliance, and deliver strategic guidance and financial analysis from a team of top finance and accounting professionals.
Learn more about how Easby can fit your needs.
Ability to Focus on Core Business Functions
Accounting is a specialized field, providing support for financial management, tax, and government program compliance and requirements, and in the case of international businesses, providing support across borders, enabling successful operations around the globe.
Experienced financial professionals and an integrated FaaS platform, as provided by Rose Financial Solutions, will enable you and your organization to focus on your core business functions, whether they are fulfilling government contract obligations, growing and scaling your business, or achieving your nonprofit organization's mission.
Choosing Between Internal and Outsourced Accounting: Key Considerations
If your business or organization already has a highly experienced and qualified accountant as controller or CFO, you can rely on their experience to determine how ROSE's FaaS approach and outsourced accounting can support your business. If you have a bookkeeper, their work can serve as the basis for outsourced accounting services.
Key considerations for deciding whether to conduct your accounting processes internally or outsource them include cost, efficiency, compliance, and experience.
Rose Financial Solutions: Your Outsourced Accounting Specialists
As a leader and pioneer in developing Finance as a Service (FaaS) with expertise in many industries, ROSE can help your business to scale, reduce risk, and comply with government regulations. You can benefit from outsourced accounting in many ways beyond simply saving money and time.
Contact Rose Financial Solutions today to learn the benefits of outsourced accounting and how FaaS can help your nonprofit organization, GovCon business, startup or expansion, tech/SaaS business, or professional services firm.
Ted Rose
President, CEO, and Founder
In 1994 Ted Rose founded Rose Financial Solutions (ROSE), the Premier U.S. Based Finance and Accounting Outsourcing Firm. In 2010, the Blackbook of Outsourcing named ROSE the #1 FAO firm in the world based on client satisfaction. As the president and CEO of ROSE, he provides executives with financial clarity. Ted has also acted as the CFO for a number of growth companies and assisted with various rounds of financing and M&A transactions.
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