Outsourced accounting is hiring a service that provides a full accounting department experience. Most common reasons for doing this:

    • Budgetary issues –it frees up limited resources that can be focused on core competencies, attracting, and retaining customers.
    • Investor capital –Investors want to see complete and accurate financials on paper. It is important to provide proper documents.
    • Financing from a bank – Bank will want a correct and comprehensive financial report to calculate their risk.
    • Advances in technology – accounting technology advances with the time, do not get left behind with bookkeeping. It is resource-draining to try and keep up with all the technological advances of accounting, time and money-wise.
    • Significant growth – When the company’s cash flow increases, it also means more resources are needed to handle the revenue. Outsource is simplest way. No head count, human resources issues etc