7 Accounting Functions Companies Are Outsourcing the Most in 2025

In a world where business moves at lightning speed, staying on top of your finances isn’t just important, it’s essential. But trying to manage every accounting task in-house can quickly become overwhelming, stretching your team thin and leaving room for costly mistakes. That’s where outsourcing comes in.

Outsourcing your accounting functions has become a strategic move for companies of all sizes, offering access to seasoned professionals, streamlined processes, and cutting-edge technology without the expense of hiring a full-time team.

In this blog, we’ll explore the seven most commonly outsourced accounting functions and explain why handing these responsibilities to experts can significantly improve accuracy, ensure compliance, and free up your internal resources for what matters most: growing your business.

1. Bookkeeping and Back-Office Support

Bookkeeping might sound like the plainest part of accounting, but it’s the foundational layer that keeps everything balanced. It’s like the engine in a well-oiled machine invisible yet essential. Without it, your financial vehicle sputters.

Why it’s commonly outsourced: Many businesses, especially growing ones, find that their internal teams either lack the time or the technical accuracy required to maintain error-free books. Outsourcing it to professionals means entrusting this function to those who specialize in keeping records clean and compliant.

Core task involves:

•    Recording daily financial transactions

•    General ledger maintenance

•    Reconciling cash, credit card and bank statements

•    Categorizing expenses appropriately

•    Fixed asset tracking

•    Monitoring and reconciling small cash expenses

•    Preparing monthly financial statements like Profit & Loss and cash flow reports

•    Sales tax tracking and preparation

Business benefits:

•    Boosted Efficiency: Outsourced bookkeeping services optimize your back-office processes by efficiently organizing data and providing faster, more accurate financial reporting. This helps uncover valuable financial insights without overloading your internal team.

•    Enhanced Internal Controls: Outsourcing brings stronger oversight with clear separation of duties and well-documented policies, reducing errors and ensuring reliable financial records.

•    Significant Cost Savings: More than half of companies (57%) choose to outsource their accounting functions primarily to cut costs. Outsourcing eliminates the need for hiring, training, and maintaining full-time staff, while still gaining access to expert bookkeeping support.

2. Accounts Payable and Accounts Receivable

Your AP/AR process is the rhythm of your company’s cash flow. Outsourcing these functions is like having a dedicated traffic controller ensuring money flows in and out smoothly, avoiding bottlenecks.

Accounts Receivable tasks:

•    Customer invoicing and billing

•    Tracking receivables

•    Reconciling incoming payments

Accounts Payable tasks:

•    Entering and processing vendor invoices

•    Scheduling payments to vendors

•    Tracking early payment discounts

•    Maintaining payable aging reports

Why companies outsource:

•    Faster payments and collections: Reduce days sales outstanding (DSO) and strengthen vendor trust.

•    Improved forecasting: Know when to expect inflows and when to plan for outflows.

•    Fraud prevention: External teams establish robust protocols to flag duplicates and unauthorized payments.

Outsourcing Accounts Payable and Accounts Receivable is like having a vigilant financial assistant providing timely reports, tracking due dates, and ensuring you stay on top of payments and collections without missing a beat.

3. Tax Preparation and Compliance

Taxes are complex, ever-evolving, and risky if handled incorrectly. It’s like navigating a dense legal jungle one misstep and you're staring down penalties or audits.

Core task involves

•    Preparation and filing of federal, state, and local tax returns

•    Sales tax, VAT, and excise tax return preparation

•    Ensuring compliance with current tax laws and regulations

•    Responding to IRS/state tax notices and managing correspondence

•    Maintaining accurate tax records and documentation for audits

•    Monitoring tax filing deadlines to avoid penalties and interest

•    Assisting with payroll tax filings and compliance

•    Providing tax planning strategies to reduce liabilities and optimize cash flow

Why outsourcing makes sense:

•    Stay compliant: Experts stay updated on changing tax codes to file accurately and on time.

•    Reduce tax burden: Strategic planning helps reduce taxable income within legal bounds.

•    Avoid penalties: Eliminate missed deadlines and errors with expert handling of tax filings and compliance.

•    Be audit-ready: Your documentation is always organized and accessible.

Think of outsourced tax preparation services as bringing in a skilled navigator who knows every tax rule and checkpoint helping you avoid costly detours, errors, and compliance dead ends.

4. Inventory Accounting and Cost Control

Inventory isn’t just about counting stock it’s about understanding the value behind it. Outsourcing this function is like having a financial radar that picks up inefficiencies before they sink your profit margins.

Tasks handled:

•    Recording inventory transactions (purchases, transfers, usage, shrinkage)

•    Applying appropriate inventory valuation methods (FIFO, LIFO, Weighted Average)

•    Reconciling physical inventory with book records

•    Analyzing obsolete, slow-moving, and damaged inventory

•    Tracking inventory adjustments and write-offs

•    Ensuring compliance with GAAP or IFRS for inventory valuation

•    Analyzing and allocating direct and indirect costs to inventory

•    Monitoring standard vs. actual costs and identifying variances

•    Cost of Goods Sold (COGS) calculation and reporting

The benefits:

•    Accurate valuations: Reduces write-offs and ensures proper asset tracking.

•    Real-time insights: Cloud-based dashboards provide visibility on stock levels and cash tied up.

•    Smarter procurement: Avoid overstocking or understocking with data-driven decisions.

With outsourced inventory accounting, you're not just managing items you're managing value and profitability.

5. Controller Services: The Finance Gatekeeper

Controllers are the bridge between raw numbers and executive decisions. Outsourcing this function is like hiring a backstage manager who ensures the show runs flawlessly.

Handled by outsourced controllers:

•    Month-end and year-end close

•    Compliance management

•    Financial reporting and analysis

•    Coordination of financial statement audits with external auditors

•    Evaluation of internal controls

•    Managing accounting software and systems

•    Policy and procedure enforcement

Key outcomes:

•    Accurate reporting: Numbers you can trust, delivered consistently.

•    Scalable processes: As your business grows, processes adapt smoothly.

•    Compliance-ready: Controllers ensure your practices align with legal and internal standards.

Outsourced controller services offer quality control for your finances delivering accuracy, consistency, and compliance while optimizing cost and operational efficiency.

6. CFO Services

A CFO doesn’t just manage money, they shape the financial future. Outsourcing CFO services gives you access to seasoned leadership and strategic guidance that drives long-term growth, without the overhead of a full-time executive.

Services offered:

•    Develop and execute the company’s financial strategy

•    Capital planning

•    Long-term financial strategy

•    Investor and board presentations

•    Risk analysis and mitigation

•    Cash flow management

Why do businesses opt for this:

•    Top-tier insight: Access to years of experience and industry best practices

•    Faster decision-making: Timely advice that aligns with your growth vision

Outsourced CFOs empower businesses to act boldly with financial intelligence, not just instinct.

7. Financial Planning & Analysis (FP&A)

FP&A is your strategic compass. Outsourcing this function gives you a team that tracks your financial position and projects your path forward, helping you stay on course and adapt confidently.

What outsourced FP&A covers:

•    Planning, budgeting, and forecasting

•    Variance and trend analysis

•    Due diligence and M&A support

•    Strategic tax planning

•    Management reporting and narrative

•    Scenario modeling and growth projections

Why outsourcing FP&A works:

•    Spot trends early: Discover cost, revenue, and cash flow patterns to seize strategic opportunities.

•    Fix hidden inefficiencies: Get fresh eyes on areas where money slips through the cracks.

•    Plan with confidence: Build accurate forecasts to scale smarter not based on guesswork.

Scale Smarter, Not Harder

Outsourcing accounting functions isn’t about giving up control, it’s about gaining the clarity and freedom to focus on growth. Whether it’s everyday bookkeeping or high-stakes CFO strategy, letting experts handle your financial backend gives you a sharper, and stronger edge.