Choosing the Right Finance Outsourcing Partners: A CFO’s Checklist

January 31, 2025 Mimi Torrington

CEO and CFO comparing accounting outsourcing companies on their tablet

Are you looking to outsource functions in your accounting or finance department? When bringing on an extension of your team, you want to choose the right partner. After all, an outsourced finance professional will have access to the sensitive information of your company, meaning you want to choose a trustworthy and reliable partner.

In this article, we’ll cover a CFO’s decision-making process for selecting the right finance outsourcing partners, what qualities to evaluate, and a five-step checklist to follow when pursuing outsourcing.

How to Select the Best Financial Provider to Outsource Your Accounting

Business executive team choosing finance & accounting outsourcing (FAO) provider

The best finance outsourcing providers will offer your company a mix of experience, value, and cost-effectiveness. Here are the main qualities that you should evaluate in your CFO decision-making process.

Technical Skills

Technical skills are non-negotiable. After all, if your outsourced finance professional can’t put together a projection, how useful will they be? Technical skills to look for will be different for every company. For example, if you are in the manufacturing industry, your outsourced professional might need to understand the percentage of completion accounting method, while this might not be needed if you are a software company.

The technical skills of your finance outsourcing partner will also need to match the services you need. If you are looking for an outsourced accountant to file income tax returns or prepare reviewed financial statements, they should be able to offer these services. You don’t want to have numerous outsourced partners. The right professional will offer you everything you need.

Soft Skills

Soft skills carry equal importance as technical skills. As a CFO, you will be reviewing reports and documentation prepared by your outsourced finance partner. You need a partner that has clear communication to make informed decisions. Also, be sure your outsourced partner offers your preferred communication methods. If you prefer video calls, they should accommodate your preferences.

Gauging the soft skills of a prospective outsourced finance or accounting professional can be done in the initial meeting. Do they clearly communicate with you? How about responding to inquiry emails timely? If you are waiting days for responses, that can be a red flag.

Education

Outsourced finance partners will almost always have some formal education. This is commonly a bachelor’s degree in accounting, finance, or a related field. Some candidates might also have master’s degrees in tax, business management, or finance. Although industry experience often outweighs education, it is important to inquire about the degrees your outsourced partner has.

Credentials

Credentials are another important component of finding the best finance outsourcing providers. Does your outsourced partner have a Chartered Financial Analyst (CFA) license? How about holding a Certified Public Accountant (CPA) license? Although formal credentials aren’t required, professionals with these designations are required to follow robust ethics and continuing education requirements.

Additionally, credentialed candidates can offer you more services. For example, a CPA can issue assurance services, like reviewed or audited financial statements. This can be beneficial if your investors or lenders want independent statements and reports. Ask your prospective finance outsourcing partner what credentials their team members have.

Services

Your CFO decision-making process also needs to include an inquiry into the services offered by your outsourcing partner. If your goal is to transition tasks to your outsourcing team to free up time in your schedule, you want to be sure they have the ability to take on these roles. Most outsourcing partners will have a list of services offered. Check this list and compare it to the list of services you want to outsource.

Cultural Fit

Outsourced finance and accounting professionals are an extension of your company. They don’t work independently. In fact, they work alongside your existing team members to streamline operations and reduce costs. This means that the right finance outsourcing partner needs to be a good cultural fit.

For example, if your team likes to hop on calls each week to discuss upcoming projects and deadlines, your outsourced partner should be willing to participate in these calls. Eliminating operational silos and effectively working with your outsourced partner relies on them being a good cultural fit.

Security Protocols

Security protocols are another non-negotiable aspect of outsourcing. Studies suggest that three in four companies were at risk of a material cyberattack in 2023. Protecting the sensitive information of your company and customers relies on working with an outsourcing partner with high-end security protocols.

How do they protect your information? Do they have firewalls that deter cyberattacks when they remote into your system or access your financial documents? Understand the protocols in place that protect your company and customers. The right outsourced partner will make security a priority.

Scalability

One of the main benefits of working with a finance outsourcing partner is scalability. When you partner with a finance or accounting professional, there is often an entire team working in the background. Not only does this ensure continuity if an employee leaves, but you also have the ability to pull in more team members and offload additional tasks as your business begins to scale.

When interviewing prospective outsourcing partners, ask about their company. How many team members are available to work on your account? What happens if the primary team member assigned to your account leaves? The best finance outsourcing providers have flexibility in who works on your account and can easily scale alongside your company.

Cost

Cost is not the most important factor when selecting your finance and accounting outsourced partner; however, it is something you want to consider. How much does the outsourced firm charge? Is it hourly or is there a flat fee each month? Are there additional fees for certain services? How often do prices increase?

When evaluating the cost, it’s essential that you consider the value you receive in return. If your outsourced provider gives you the resources needed to increase revenue by 10%, the fee you pay might be immaterial. Also, it’s important to think about the alternative to outsourcing, which is most likely hiring an in-house employee. Even though you might pay an in-house employee a lower hourly rate, the overall fee adds up when you factor in payroll taxes and benefits.

Want a broader perspective on choosing an outsourcing provider? Check out our guide: Choosing an Outsourcing Provider: Top Five Things to Look for in a Partner

How to Outsource Accounting in Five Steps

business owner shaking hands after signing contract with accounting outsourcing provider

Tackling accounting and finance outsourcing can seem like a daunting task. Here is a five-step process on how to outsource accounting in your company.

  1. Define Your Accounting Goals Before You Outsource

    The first step in accounting outsourcing is to identify your goals. What do you want to accomplish with outsourcing? Do you want more free time, improved accuracy, or greater goal progress? Identifying your goals is important because it dictates which services you can benefit the most from outsourcing.

    With your goals in mind, make a list of services you want to outsource. Prioritize these services from most needed to least needed. For example, if you are trying to reach your strategic growth goals, an outsourcing partner that offers financial projections would be a high priority.

  2. Select a Partner

    Next, select your partner. Using the evaluation criteria from above, interview prospective finance outsourcing partners. Don’t automatically default to the outsourced professional with the cheapest fees. Instead, choose the partner that provides an optimal balance between value and costs.

  3. Create a Plan

    Now, it’s time to create a plan with your outsourced partner. When will you onboard the outsourced professional? How will it change the dynamic of your team? What are your expectations? The clearer you can be with your goals, the better. You want to enter into the partnership with clear expectations on both ends.

    For example, if you want monthly reports by the first week of the next month, what do you need to do? Does your team need to ensure all data is entered by the first day after month-end? You can’t expect your outsourcing partner to succeed without any effort on your end.

  4. Inform Your Team

    When bringing on a finance and accounting outsourcing partner, your existing team members need to be informed of the changes. After all, some of their roles and responsibilities might be moved to the outsourced team. Hold a team meeting and address any questions or concerns from your team members. Also, be sure to highlight the benefits of outsourcing, such as more time for your employees to focus on other tasks.

  5. Review Implementation

    After your outsourcing partner is integrated into your company, it’s important to review the success of the implementation. Do your outsourcing partners have everything they need to meet your expectations? Did you come across any more tasks that could benefit from outsourcing? Reviewing and adjusting keeps your company moving forward.

Next steps: Understand what to expect from your chosen provider: Using Accounting Outsourcing Services: What to Expect

Summary

As a part of your CFO decision-making process, you need to be sure you are finding the right outsourced partner. The best finance outsourcing partners will bring value, expertise, and cost savings to your company. For more information on how to outsource accounting, including selecting the right outsourced partner and creating your outsourcing checklist, reach out to one of our team members to schedule your free consultation.

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