An outsourced finance function (sometimes referred to as a virtual finance office or financial outsourcing) is a service provided by accounting and bookkeeping firms that specialise in managing key financial tasks in a business.
This service can include processing supplier invoices, sales invoices, bank reconciliations, completing VAT returns, management accounts, payroll, budgeting, financial analysis, and other financial tasks. Check out our list of the key services you should include in your offering.
An outsourced finance function can help improve efficiencies within your client's business. Saving them time and money, whilst providing them with access to experienced accounting professionals who can help them manage their operational finance tasks more effectively. Which in turn, allows the business owner to free up their own time to concentrate on running the business.
Outsourced finance functions can help to reduce costs associated with in-house finance teams, including hiring, training and maintaining staff. It can also help businesses to access the latest technology and software, which can help streamline their processes and improve efficiency.
The emergence of Cloud accounting software such as Xero, Sage, Quickbooks and FreeAgent and their respective ecosystems has lowered the barrier to entry for firms looking to increase client value by taking on some of the more time-consuming financial tasks such as bookkeeping, payments and credit control. Accountants and bookkeepers are able to take on more of the day-to-day finance tasks at a fraction of the time and cost compared with clients handling this in-house.
Offering your clients an outsourced finance function as a service allows them to save money and frees them up to focus on growing their business. For accounting and bookkeeping firms, offering this service helps to increase per-client revenue, can lead to deeper client relationships and helps ensure clients maintain good financial health. And when it comes to pricing your outsourced finance service, it will almost always work out cheaper for the client than hiring even a junior full-time finance person.
We've put together a guide to launching and growing a virtual finance function your clients will love, you can download your copy for free here.