Running a finance department can be expensive, time-consuming, and often overwhelming. When your team is stretched thin and buried in repetitive tasks, it’s hard to focus on what really matters—strategy and growth.
That’s why more businesses are outsourcing financial services. By shifting back-office work like payroll, forecasting, and reporting to specialized providers, companies can cut costs, improve accuracy, and free up internal teams to focus on higher-value work, such as core business initiatives.
If you’re a CFO or manager wondering whether outsourced finance and accounting could solve your staffing problems and budgetary woes, look no further. In this article, we’ll explain what financial services outsourcing is, which tasks you can outsource, the key benefits, and how to get started with the right partner.
Financial services outsourcing is when a business hands off some or all of its finance and accounting tasks to an external provider, like a financial services call center. These providers can be located overseas, by outsourcing to the Philippines or other parts of Asia, or within your own country (known as “onshore outsourcing”).
The main goal of business process outsourcing (BPO), as it relates to financial services, is to reduce the need for in-house account services and expensive accounting software licenses or subscription fees. Instead, you send tasks to an external financial service provider whose team members are specially trained for the work. This can dramatically streamline the workflow and save costs for all levels of industry, from startups and small businesses to large enterprises and corporations.
Outsourcing finance usually means reducing the amount of work that happens in the back office, reducing the accounting systems you have to manage in-house, and shunting it to expert service providers in other countries. Outsourced accounting means your finance team can let go of the bookkeeping, cash flow, and data analysis for which they’re overqualified or too busy.
More specifically, you can outsource such finance and accounting functions as:
An outsourced finance team can manage invoicing, vendor payments, and customer collections with accuracy and consistency. They’ll make sure cash comes in on time and goes out without delays. With better systems and fewer errors, you’ll have a tighter grip on cash flow and more predictable financial cycles. Plus, you avoid the hassle of tracking down missing payments or handling disputes.
Forecasting gives you a look into the future of your business. With outsourced forecasting support, you’ll get financial models based on real-time financial data and industry benchmarks. These insights help you prepare for highs and lows, manage resources better, and make smarter decisions about growth or investment. It’s not just about seeing what’s next—it’s about being ready for it, with confidence in the numbers.
Outsourced financial planning gives you structure, clarity, and direction. A fractional CFO or finance team will help build a working budget, identify risks, and align your business planning with overall strategy. Whether you’re planning for next quarter or the next five years, this kind of support gives you a clearer path forward. It’s a mix of data, strategy, and experience that turns numbers into action.
Outsourced finance teams can deliver monthly, quarterly, and annual reports without delays or confusion. You’ll get clean financial statements, income statements, and cash flow reports that are easy to understand. These aren’t just documents for your accountant—they’re tools that help you track performance and make confident, informed decisions.
Outsourced financial teams can manage tax preparation with precision, ensuring compliance with local, state, and federal tax laws. They’ll handle everything from tax filings to identifying potential deductions, helping you avoid costly mistakes and minimizing your tax burden. With an outsourced provider, you can rest easy knowing that your business is in good hands come tax season.
Running payroll isn’t just writing checks. It’s tax filings, benefits tracking, reimbursements, and staying compliant with tax compliance regulations. Outsourced providers handle it all, making sure your team is paid correctly and on time. They can also manage onboarding documents, track PTO, and take care of financial admin tasks that eat up hours every week. It’s one less thing for your internal team to worry about.
These tasks, which don’t require face time with clients or customers, are perfect for sending overseas. They still get done in real-time, leveraging the same cloud-based software that your in-house team relies on, while freeing up your remaining financial team to focus on their core competencies.
Outsourcing your accounting isn’t just a cost-cutting tactic—it’s a strategic move that helps your business scale smarter and faster. Here’s how outsourced accounting services can power your growth.
Hiring, training, and retaining an in-house finance team is expensive, but outsourcing reduces these costs dramatically. You only pay for the services you need, when you need them. No full-time salaries, benefits packages, or office overhead. This creates room in your budget for scalability—like marketing, product development, or new hires in core roles. Best of all, outsourced services often improve accuracy and compliance, which can save you from costly mistakes down the line.
No longer must you confine your talent search to the nearby cities and boroughs. Now you can access talent from anywhere in the world. That means you’ll have access to a much greater pool of candidates. Plus, outsourcing companies train employees in specific core competencies, so they’re likely to be more knowledgeable and efficient in their areas of expertise than generalists here at home who are forced into wearing too many hats to excel in any one of them.
With the help of an outsourced team, you can streamline both the people and the functions in your financial processes. Build a team full of experts who work together, passing files from one digital desk to the next in an efficient and cost-effective workflow that saves time and maximizes cash flow. As a bonus, not only do you save money, but your financial operations start going much more smoothly.
Once you have a smaller financial operations team under your physical roof, managing your daily business needs will become less time-consuming. With fewer in-house employees, your overall employment and operational costs will decrease—this includes everything from staffing and payroll, benefits, office space requirements, hardware, and software subscriptions.
Any work that has an established step-by-step process and requires little decision-making is great for outsourcing. This allows for full-time, in-house teams to focus on creative decision-making, strategizing, and other efforts that only their highly trained and specialized skill sets can handle, helping to enhance strategic decisions.
If you’re going to make the jump, you’ll need to find a trustworthy outsourcing partner – one who will maintain excellent cybersecurity protocols while saving you money and reducing your need for full-time, in-house staff.
The following steps will lead you through the process of determining your financial management needs, so you can make the most of automation and cost savings.
Before you even talk to potential BPO providers, think through your outsourcing needs. This isn’t just an exercise; it’s critical information that potential partners will need from you to offer quotes, draw up contracts, and kick off your relationship. Ask yourself questions such as:
Next, list all finance-related functions across your team and separate them into two groups:
This exercise gives you a clear picture of what can—and should—be outsourced.
Once you’ve identified which services you want to outsource, look at your current spend. If consolidating tasks or decreasing software license payments frees up part of your budget, that money can help support outsourcing.
Your budget should reflect both your goals and the level of service you expect. With that in place, you’re ready to explore potential providers.
There are many outsourcing providers available, but not all of them are the right fit. The selection process can be time-consuming and risky if handled alone.
Working with an experienced advisor, such as TDS Global Solutions, can reduce that risk. With decades of experience in outsourcing solutions, we help businesses find vetted, reliable partners who understand their industry and priorities. Whether you’re looking for advice on whether to outsource to an onshore vs offshore call center, have questions about the top countries for offshoring, or simply don’t know where to start, we can help.
Before moving forward with any specific provider, verify their experience and track record. Ask for client references. Review how long they’ve been in business. Schedule a conversation to get a sense of their team, communication style, and approach to data security and compliance.
This step is important—don’t skip it, even if everything looks good on paper.
Rather than committing to a full-scale engagement, begin with a trial project. This allows both sides to understand expectations, processes, and communication preferences.
A pilot gives you the opportunity to evaluate performance and results before expanding the partnership. It also allows the provider to adapt to your business needs gradually, which supports long-term success.
Outsourcing financial services is a proven strategy for reducing costs and improving performance. Companies that delegate functions such as financial reporting, accounts receivable/payable, and financial analysis to offshore teams consistently operate more efficiently.
Choosing the right outsourcing partner from the start will help prevent issues like weak security, poor compliance, or insufficient staff training that can create big risks for your business.
At TDS Global Solutions, we build partnerships based on your company's specific needs and carefully match you with outsourcing partners known for their skill and reliability. If you're ready to cut hiring and operational costs, simplify heavy workloads, streamline accounting, and tap into top global talent, TDS Global Solutions can help.
Contact us today to learn more and get started!
Our custom-built solutions are specially designed to meet your business objectives, connecting you with the right provider for your needs. Connect with us today, and find out how we can drive your business to new heights.
