Top 5 accounting functions to outsource

Outsourcing accounting functions can be a cost-effective and efficient way for companies to manage their finances and stay compliant with legal and financial regulations. However, with so many different accounting tasks to choose from, it can be difficult to know which ones to outsource. In this article, we’ll take a look at the top 5 accounting functions that are most commonly outsourced, and the specific sub-functions that fall under each category.

1. Bookkeeping: Bookkeeping is the process of recording and maintaining financial transactions, such as purchases, sales, and payments. It involves tasks such as recording transactions in journals and ledgers, reconciling accounts, and preparing financial statements. Sub-functions that fall under bookkeeping include accounts payable, accounts receivable, and general ledger maintenance.
2. Payroll: Payroll is the process of calculating and distributing employee salaries and wages, as well as handling taxes and deductions. Sub-functions that fall under payroll include calculating payroll taxes, preparing and distributing paychecks, and maintaining records of employee compensation.
3. Tax preparation: Tax preparation involves the process of preparing and filing taxes for a company or individual. It involves tasks such as calculating tax liability, preparing tax returns, and ensuring compliance with tax laws and regulations. Sub-functions that fall under tax preparation include preparing and filing federal and state taxes, and providing tax planning and advice.
4. Financial statement preparation: Financial statement preparation involves the process of preparing financial statements such as income statements, balance sheets, and cash flow statements. It involves tasks such as analyzing financial information, preparing reports, and ensuring compliance with financial reporting standards. Sub-functions that fall under financial statement preparation include preparing and analyzing financial statements, and providing financial forecasting and budgeting.
5. Auditing: Auditing is the process of reviewing and verifying the accuracy of financial statements and records. It involves tasks such as reviewing financial records, identifying and addressing any discrepancies, and providing assurance that financial statements are accurate and compliant with financial reporting standards. Sub-functions that fall under auditing include conducting internal and external audits, and providing fraud detection and prevention services.

In conclusion, outsourcing accounting functions can be a cost-effective and efficient way for companies to manage their finances and stay compliant with legal and financial regulations. By understanding the specific sub-functions that fall under the most common accounting functions, companies can make an informed decision on which tasks to outsource, and improve the overall efficiency and cost-effectiveness of their accounting operations.