Outsourced Accounting Firm Guide: Services, Cost & Selection

David’s franchise operation had grown to seven locations generating $6.2M in annual revenue. His original bookkeeper—great for a single unit—was drowning in multi-location complexity. Month-end close took three weeks instead of days. He couldn’t get per-unit profitability. Lenders were asking for GAAP-compliant financials his bookkeeper didn’t know how to produce. Building an in-house team meant ~$180,000 in salaries plus benefits and management overhead. He needed an accounting department without building one—he needed an outsourced accounting firm.

Why this matters: Inadequate financial management contributes to most small-business failures. The right outsourced partner gives you clean books, visibility, and lender-/investor-ready reporting—without full-time headcount.

TL;DR

• What it is: Your external finance department—bookkeeping → month-end close → GAAP reporting → dashboards → controller/CFO oversight.
• Who it’s for: Startups, franchises/multi-location operators, and SMBs scaling from $1M–$20M.
• Cost: Most retainers fall between $2,000–$8,000/month depending on volume, complexity, and scope.
• Why outsource: Faster close, better reporting, lower risk, and 55–75% lower total cost of ownership than in-house.

What Is an Outsourced Accounting Firm?

An outsourced accounting firm replaces or augments internal staff to run end-to-end accounting operations remotely:

• Bookkeeping & reconciliations
• A/P & A/R management
• Month-end close (P&L, Balance Sheet, Cash Flow)
• GAAP compliance & controls
• Management reporting & dashboards
• Payroll accounting & tax coordination
• Controller/CFO-level guidance when needed

Think of it as your external finance department—with broader expertise, modern tooling, and elastic capacity.

Core Services (What You Actually Get)

• Full-cycle bookkeeping: Clean chart of accounts, coding, bank/CC reconciliations, accuracy checks.
• Accounts payable: Intake → code → approvals → pay runs → vendor relations.
• Accounts receivable: Invoicing, payment posting, collections workflow, aging reports.
• Monthly close (3–7 business days): P&L, Balance Sheet, Cash Flow, variance & trend analysis.Financial reporting: Board-ready packages, KPI dashboards, department/location P&Ls.
• Payroll accounting: Proper expense treatment, accruals, journal entries; partner with your payroll provider.
• Tax coordination: Organized financials and docs to streamline CPA prep; year-round tax-aware guidance.
• Industry specializations: Franchise, SaaS, e-commerce, manufacturing, healthcare, and more.
• Strategic guidance: Cash forecasting, budgeting, process redesign, systems and controls.

Outsourced vs. In-House (At-a-Glance)

Who Benefits Most?

Startups & Early-Stage

Investor-ready financials without $75K+ headcount. Proper setup from day one, clean data for diligence, cash forecasting, and KPI tracking.

Multi-Location & Franchise

Standardized processes across units, consolidated + unit-level reporting, automated inter-location transactions, weekly operator dashboards.

Growing SMBs ($1M–$20M)

Graduating from founder-led accounting/bookkeeper to GAAP, accruals, inventory/rev-rec, and management reporting—without a $200K department.

Deeper Look at the Work

Bookkeeping, A/P & A/R

• A/P: Invoice capture, coding, approvals, payment timing to match cash strategy.
• A/R: Invoicing, reminders, collections policy, cash application, aging risk visibility.

Monthly Close & GAAP

• Close in 3–7 business days with reconciled statements.
• GAAP-compliant reporting acceptable to lenders/investors.
• Optional department/location/project P&Ls.

Payroll & Tax Support

• Accounting for payroll, benefits, and accruals.
• Documentation and schedules your CPA needs; proactive tax-aware planning.

Industry-Specific Requirements

• Franchise: Royalty & marketing fund accounting, multi-unit consolidation, franchisee formats.
• SaaS: ASC 606 revenue recognition, deferred schedules, MRR/ARR, cohort metrics, billing integrations.
• E-commerce: Multi-channel revenue, fees netting, COGS, inventory across warehouses/3PLs, returns.

Benefits You Feel in the First 90 Days

• Faster close → decisions on current data, not last month’s guess.
• Real visibility → dashboards that show what to fix and where profit hides.
• Reduced risk → controls, checklists, multi-person review.
• Lower TCO → one fee covers the team, tools, and continuity.

Real Cost Comparison

In-House (small/mid business)

• Senior accountant/bookkeeper: $91K–$126K fully loaded
• Controller: $130K–$196K fully loaded
• Software/tools: $3K–$8K
• Recruiting/training/office: $17K–$42K
• Management time: non-trivial

Outsourced Firm

• Retainer: $2,000–$8,000/mo → $24K–$96K/yr
• Software: usually included or minimal

How Much Do Outsourced Accounting Firms Cost?

Typical Retainers (guide, not a quote):

• $2,000–$3,500/mo: Single-location or simple ops; <100 txns/mo.
• $3,500–$5,500/mo: Moderate complexity; 100–300 txns/mo; multiple revenue streams.
• $5,500–$8,000+/mo: 300+ txns/mo, multi-entity/location, inventory, or controller-level scope.

Projects (one-time): Historical cleanup, migrations, audit prep—$3,000–$15,000 depending on scope.

Cost Drivers: Transaction volume, complexity (entities/locations/rev models), industry specialization, scope (bookkeeping vs. controller), reporting requirements, and your current software stack.

Red Flags (Walk Away If…)

• Too-good-to-be-true pricing ($800–$1,200 for “everything”).
• Offshore-only with weak communication/time-zone coverage.
• No CPAs / thin credentials.
• Rigid tech demands that force platform changes without reason.
• Vague scope and unwillingness to provide references.

Transition Timeline (What to Expect)

• Weeks 1–2: Discovery & Assessment – Access, diagnostics, issue list, plan.
• Weeks 3–4: Setup & Migration – COA design, workflows, integrations, data migration.
• Weeks 5–6: Parallel Processing – Run side-by-side to validate accuracy.
• Weeks 7–8: Full Cutover – First independent close, reporting, feedback, refinements.

Most teams stabilize within 60 days (complex orgs: ~90).

FAQs

Do we lose control of our data?
No. You retain platform ownership and admin access; the firm operates within your environment.

Can we keep our payroll provider?
Yes. The firm accounts for payroll and coordinates with your provider.

How fast will our month-end close be?
Target is 3–7 business days once processes are normalized.

What if we add locations or an entity?
Scope scales; capacity adjusts without hiring cycles.

Getting Started

Outsourced accounting gives growing companies the accuracy, speed, and visibility to make smarter decisions—without building a department.

Exact Partners delivers outsourced accounting for startups, franchises, and growing SMBs. CPA-led teams, GAAP reporting, fast closes, scalable capacity, and we work inside the tools you already use.

Schedule a consultation: getexact.com • (716) 249-6434