Why Smart Startups Are Outsourcing Accounting Services For Small Business

Let’s say a founder builds something meaningful, gains traction, maybe even secures funding, and then the financial reality sets in. QuickBooks is behind, invoices aren’t tracked, and no one really knows if the business is profitable.

The issue isn’t intelligence. It’s capacity. When you’re running a small business or nonprofit, you’re managing operations, people, and growth. Accounting slips through the cracks. Deadlines pile up. Staff turnover makes things worse. Before long, you’re spending more time fixing spreadsheets than leading the business.

WHAT DOES OUTSOURCING ACCOUNTING ACTUALLY MEAN?

Outsourcing accounting brings in a specialized team to manage tasks like bookkeeping, payroll integration, financial reporting, and tax prep. You’re not hiring an employee. You’re partnering with a firm that already has the tools, processes, and expertise in place.

They manage your books. They standardize your systems. They flag problems before they escalate.

Two Ways to Outsource (Pick What Works for You)

Full-service outsourcing 

Your entire financial function is handled: monthly close, reporting, tax prep, payroll coordination, and strategic guidance. This works best for startups and nonprofits wanting clean numbers and reliable financial leadership.

Modular services 

Pick what you need—bookkeeping, reporting, payroll, or tax support. Many organizations start here and expand once they experience the relief outsourcing brings..

WHY STARTUPS ARE ACTUALLY EMBRACING OUTSOURCING

Let me break down what’s really driving this shift.

1. You Save Real Money on Payroll

A full-time bookkeeper in Seattle costs $50,000–$65,000 annually—and once you add employer taxes, benefits, and software, the true cost is $65,000–$75,000. Senior accountants or CPAs exceed $100,000.

Outsourcing accounting services for small businesses typically costs:

• $1,500–$3,000/month for small businesses and startups
• $3,000–$5,000/month for nonprofits with grant or fund reporting

You only pay for what you need. No hiring, training, benefits, or scrambling when someone quits.

2. You Get Expert-Level Knowledge

One in-house bookkeeper brings one person’s experience. An outsourced accounting firm brings a team that has seen issues across dozens of businesses.

For nonprofits, this matters even more; restricted funds, grant compliance, and audit readiness require specialized expertise.

3. You Get Proven Systems and Tools

Outsourced teams already work with:

• QuickBooks Online / QuickBooks Desktop
• Bill.com
• Gusto, ADP, Paychex, Paycom
• Secure document management systems

Instead of relying on whatever your bookkeeper happens to know, you benefit from systems tested across hundreds of clients.

4. You Get Your Time Back

Once you stop worrying about reconciliations and deadlines, you finally have space to think about growth, mission, and strategy. That shift alone is worth outsourcing.

WHEN SHOULD YOU MAKE THE MOVE?

You don’t need a crisis to outsource. The right moment is when you notice:

• Accounting takes more than a few hours a week
• You’re behind on bookkeeping or taxes
• You’re preparing to raise funding
• You’re unsure about cash flow or profitability
• Your team is stretched or your bookkeeper left
• You’ve outgrown your current systems

If any of these sound familiar, outsourcing solves the problem quickly and professionally.

IN-HOUSE VS. OUTSOURCED: WHAT ACTUALLY CHANGES?

Let’s look at the real differences.

Cost Comparison

In-house bookkeeper:

• Salary: $50,000–$65,000
• Payroll taxes and benefits: 20–25% extra
• Software (QuickBooks, Bill.com, etc.): $500–$1,000/year
• Office space and equipment: Included in overhead
• Training and professional development: $1,000–$2,000/year

Estimated total: $65,000 – $75,000 + per year

Outsourced accounting services:

• Monthly fee based on complexity: $1,500–$5,000
• Software: Usually included
• Scalability: You pay for what you need

Total: $18,000–$60,000 per year (and no fixed overhead)

The math here is pretty clear.

Quality and Accuracy

Outsourced teams have internal checks, peer review, and standardized processes. One in-house person often lacks the capacity for rigorous review, and mistakes compound.

Speed and Responsiveness

A firm with a one-business-day response time (like Greenwood Ohlund) ensures questions are answered quickly — unlike relying on one overwhelmed employee.

Control and Visibility

The right outsourcing partner gives you:

• Access to QuickBooks
• Monthly financials delivered on a schedule
• Dashboards and KPIs
• Regular check-ins

You don’t lose control — you gain clarity.

HOW TO CHOOSE AN OUTSOURCING ACCOUNTING PARTNER

Not all outsourced accounting services are created equal.

What to Look For

• Industry experience. Do they work with businesses like yours? If you’re a nonprofit, has this firm handled Form 990s? If you’re a tech startup, do they understand SaaS accounting? Ask for references in your industry.
• Technology proficiency. Make sure they’re fluent with QuickBooks Online (or whatever you’re using). They should understand Bill.com, Stripe integration, payroll platforms. Ask what tools they use and why.
• Transparent pricing with defined deliverables. You should know exactly what you’re paying for each month. No surprises. No “call for pricing” websites that tell you nothing.
• Monthly reports and KPIs. What will you actually receive? Monthly P&L statements? Cash flow forecasts? Balance sheet? A dashboard with key metrics? Make sure the reporting actually answers your questions.
• Availability and responsiveness. How fast do they respond? Do they have after-hours support if you need it? What’s their communication style; email, phone, project management software?
• Clear data security practices. This is non-negotiable. Ask about encryption, role-based access controls, how they handle data security. This matters.

Red Flags to Watch For

Don’t work with anyone who:

• Can’t clearly explain their pricing
• Won’t provide references
• Doesn’t have documented data security practices
• Takes weeks to respond to questions
• Seems to be in over their head with your industry

THE STEP-BY-STEP PROCESS FOR GETTING STARTED

Here’s how we do it with our clients.

Step 1: Assess Your Current Situation

Your systems, data accuracy, reporting gaps, and compliance deadlines are reviewed. This sets the baseline.

Step 2: Define Your Scope

You decide what’s outsourced: bookkeeping, payroll, tax, reporting, or full CAS. Scope is tailored to growth projections.

Step 3: Finalize the Contract

A clear engagement letter outlines deliverables, SLAs, security, pricing, and onboarding timeline.

Step 4: Set Up Tools & Access

Bank feeds, QuickBooks, Bill.com, payroll access, secure data rooms, and communication channels are established.

Step 5: Establish Workflows

You define:

• Monthly close schedule
• Reporting cadence
• Metrics to track
• Meeting frequency

Step 6: Review & Improve

After a few months, processes are refined. Quarterly strategic conversations ensure alignment with goals and growth.

WHAT TO EXPECT DURING THE ENGAGEMENT

Here’s what the first few months look like.

Timeline and Milestones

Week 1-2: Kickoff and Assessment We understand your current setup, your pain points, and your goals.

Week 2-4: Data Migration and System Integration We get access to your systems. We reconcile your accounts. We clean up any messy data from the past.

Week 4-6: First Close We do your first monthly or quarterly close using our processes. We deliver your first set of reports.

Month 3+: Recurring Monthly Closes You get into a rhythm. Reports land on a predictable schedule. You have regular check-ins with our team.

Communication and Collaboration

We’ll have a dedicated contact person. You can email or call with questions. We’ll meet monthly or quarterly, whatever you prefer. We might use Slack for quick updates or Bill.com for accounts payable questions.

The goal is that you never feel like you’re shouting into a void. You’ve got a partner.

Reporting You’ll Actually Use

You’ll get a monthly profit and loss statement showing revenue, expenses, and net income. You’ll get a balance sheet showing what you own and what you owe. You’ll get cash flow reporting so you understand when money is actually coming in and going out.

For nonprofits, we add grant tracking and restricted fund reporting. For professional services, we show revenue by client or project. For manufacturers, we track inventory and job costs. We tailor this to what actually matters for your business.

ADDRESSING THE WORRIES YOU ACTUALLY HAVE

Let’s look at the concerns that actually keep people up at night.

“Won’t I lose control of my books?”

No. You’ll actually have more control because you’ll understand what’s happening. You have access to QuickBooks. You see every transaction. We send you reconciliations. We do quarterly reviews where you can ask questions. Control comes from understanding, not from doing the data entry yourself.

“What about data security and privacy?”

This is taken seriously. We use encryption for all data transfer. We have role-based access so people only see what they need to see. We use secure document management systems. We’re compliant with industry standards for accounting firms. Ask us about our specific security practices, we should be able to answer in detail.

“How do I stay compliant with tax laws and regulations?”

This is literally our job. We stay on top of tax law changes. We know the IRS requirements. For nonprofits, we track Form 990 deadlines and compliance requirements. For small businesses, we flag tax planning opportunities. We don’t wait for problems, we catch them before they happen.

We’ll also let you know if you need an audit, a review, or a compilation. We’ll tell you when to file extensions. We’ll remind you about quarterly estimated tax payments. You’ll never miss a deadline because it’s not on our radar, it is.

“What if I need something custom later?”

Most outsourcing accounting services firms, including us, offer modular services. Started with bookkeeping? We can add CFO-level strategic advisory. Need help with a special project or acquisition? We can bring in specialists. Need temporary extra capacity because you’re scaling? We have it.

The relationship can grow as your business grows.

WHY GREENWOOD OHLUND DOES THIS DIFFERENTLY

We’ve been doing this for almost 50 years.

We started by serving nonprofits. Over the decades, we’ve added professional services firms, tech startups, manufacturers, and fisheries operations. We’ve seen every type of financial problem. We’ve solved problems you haven’t even thought of yet.

Here’s what makes us different:

• Deep nonprofit and mission-driven expertise
• Industry-standard tools like QuickBooks Online, Desktop, Bill.com, and major payroll platforms
• One-business-day response times
• Financials delivered by the 15th–20th each month
• Collaborative, relationship-focused approach
• A team large enough for complex needs, small enough for personalized service

Clients come for clarity, responsiveness, and strategic support that feels like an extension of their internal team

WHAT HAPPENS NEXT?

If you’re reading this and thinking, “Yeah, we need this,” here’s what to do.

If you want to talk, contact us. We’ll do a free consultation. We’ll ask questions about your situation. We’ll tell you honestly whether outsourcing makes sense for you right now. We might recommend full services. We might recommend starting with bookkeeping only.

We’re not trying to upsell you on something you don’t need. We’re trying to help you make the right decision.

If you decide this is the move, we’ll walk you through everything. You’ll get clear communication, professional expertise, and a partner who actually cares about your financial health.

Your job is to run your business. Our job is to make sure your accounting isn’t the thing keeping you up at night.

Let’s make that happen.

FAQs