Finance outsourcing is the practice of delegating partial or full finance functions to an external specialist instead of managing them entirely in-house. Such a delegation involves different models such as transactional support, strategic partnerships, full BPO setups, BOT arrangements, or project-based freelancers (depending on your business needs).
Want to gain a real competitive edge in these modern times? It does not lie in doing more, but in deciding what you no longer need to do internally. Studies show that the global finance and accounting (F&A) outsourcing market is projected to reach $54.79 billion in 2025 and expand to $81.25 billion by 2030 at an 8.21% CAGR.
Nowadays, several D2C companies and consumer brands are reassessing where they must allocate time, cost, and talent. And finance operations have become a strategic starting point!
Leaders who once viewed finance outsourcing as a cost tool now see it as an enabler of:
- Automation
- High accuracy
- Stronger decision-making
So, want to access specialized expertise in 2025? Read this article to check out the various finance outsourcing models and how you can select the best for maximum benefits.
Major Finance Outsourcing Models 2025
Finance outsourcing gives businesses outside support for tasks like:
- Bookkeeping
- Reporting
- Payroll
- Accounts payable
- Budgeting
- Deeper financial decision-making
Such delegation of tasks can be carried out through three different models, which describe:
- How the work is shared (relationship-based)
- Where the team is located (location-based)
- How do you pay for the service (pricing based)
As a VP or director of a D2C company, you must have a deep knowledge of these finance outsourcing models, as without it, you cannot choose a setup that fits your budget + level of control. Let’s check them out:
A. Relationship-Based Models
| Model | What It Means | When Small Businesses Use It |
| Transactional Outsourcing | You outsource routine, repeatable tasks such as bookkeeping, invoice posting, payroll, or reconciliation. | When you want to reduce manual workload and keep costs low. |
| Strategic Partnership | You outsource advanced financial functions such as:
|
When you want guidance for growth, planning, or investment decisions. |
| BPO (Business Process Outsourcing) | A provider takes over the entire finance functions. They use their own systems, processes, and team. | When you want to outsource large parts of finance without managing internal staff. |
| BOT (Build-Operate-Transfer) | A provider builds and runs an offshore finance team for you. After it stabilizes, you take ownership of the team. | When you plan long-term expansion and want your own dedicated offshore team. |
| Freelancing | You hire independent professionals for specific projects or tasks. | When you need short-term help, such as cleanup, system setup, or year-end work. |
B. Location-Based Models
| Model | What It Means | When Small Businesses Use It |
| Offshore | Work is done in distant countries with lower labor costs (e.g., India, the Philippines). | When cost savings are a priority. |
| Nearshore | Work is outsourced to a nearby country within a close time zone. | When you want easier communication but still prefer lower costs. |
| Onshore | Work stays within your own country. | When you need:
|
| Multisourcing | A mix of onshore, offshore, or nearshore resources. | When you want a balance between cost, speed, and specialized skills. |
C. Pricing Models
| Model | What It Means | When Small Businesses Use It |
| Fixed Price | You pay one set amount for clearly defined tasks or projects. | When the scope is stable and predictable. |
| Time and Materials | You pay based on hours worked and resources used. | When the work is flexible or the scope may change. |
| Cost-Plus | You pay actual costs plus a fixed margin. | When you want transparency and a long-term partnership. |
| Shared Risk–Reward | You pay based on results such as:
|
When you want both sides to be aligned on outcomes. |
How to Choose the Right Finance Outsourcing Model?
Choosing a finance outsourcing model is not about picking the cheapest option! It is about deciding:
- What part of your finance work do you want to delegate
- How much control do you want to keep
- What do you expect the service to solve
To pick the right finance outsourcing model in 2025, follow these simple steps:
Step I: Define Your Primary Goal
Decide what you want outsourcing to achieve. Some common goals include:
- Reducing daily workload
- Getting accurate books and reports
- Accessing skills you do not have in-house
- Managing finance tasks without hiring full-time staff
- Building long-term finance capabilities
Your goal guides every decision after this.
Step II: List the Tasks You Want to Outsource
Divide your finance work into several categories:
- Bookkeeping (day-to-day entries)
- Accounts Payable (vendor bills)
- Accounts Receivable (customer invoices)
- Payroll
- Monthly reporting
- Budgeting and forecasting
- Cash-flow planning
Step III: Match the Work to the Right Model
Once you know the tasks, match them to the right finance outsourcing model:
- Routine Tasks = Transactional Or BPO
- Ongoing Reporting + Finance Management = BPO
- Growth Planning + Insights = Strategic Partnership
- Short-Term Cleanup Or Setup = Freelancers
- Long-Term Offshore Team = BOT
Always remember that you do not need to choose one model. Many growing D2C companies with 5+ employees prefer choosing a mix.
Step IV: Decide How Much Control You Want
Ask yourself:
- Do you want to oversee day-to-day finance work?
- Are you comfortable letting the provider run entire processes?
- Do you want the provider to only support your team?
Now, if you prefer “higher control”, go for “onshore or nearshore teams”. Whereas, if you are satisfied with “lower control”, choose “offshore or BPO models”. For “future ownership” of the team, you may consider the “BOT model”.
Step V: Evaluate Your Need for Scalability
Think about the next 12 to 24 months:
- Do you expect more transactions?
- Will you expand into new locations?
- Do you plan to add products or services?
Note that growing consumer brands operating in the US, UK, and Australia usually shift from “transactional outsourcing” to “strategic partnerships or BPO”. That’s because these give wider support as the company scales.
Step VI: Select the Location (Offshore, Nearshore, Onshore)
Your choice depends on cost, communication needs, and comfort level:
- Offshore = Lower cost, larger talent pool.
- Nearshore = Easier coordination because time zones are closer.
- Onshore = Highest comfort for compliance and faster responses.
- Multisourcing = A mix of all three for balance.
Always remember that tocation does not change the quality of work if you choose the right accounting outsourcing company.
Step VII: Review Providers and Compare Fit
Check:
- Experience in your industry
- Range of services
- The tools and software they use
- Team size and stability
- How they handle data security
Your goal? Find a provider that fits your stage of business + your risk tolerance.
Step VIII: Start with a Trial or Limited Scope
Before committing long-term:
- Outsource a small section (e.g., AP or bookkeeping)
- Check accuracy, communication, and turnaround
- Expand only if you are satisfied
This lowers risk and gives you clarity on the relationship model that works for you.
How to Evaluate a Finance Outsourcing Provider?
The selection of an accounting company in the USA is not only about price. It is about finding a team you can trust with your financial data and long-term plans. Usually, a good finance outsourcing provider has these features/ capabilities:
1. Industry Knowledge
Select a provider that understands your type of business. If they already work with companies similar to yours, they will know your:
- Common challenges
- Reporting needs
- Compliance requirements
2. Strong Technology Capabilities
Modern finance work depends on digital tools. A good provider should use:
- Cloud accounting systems
- Automation tools
- AI-based processes for data entry, matching, and reporting
3. Security Standards
Your financial data must stay protected. Check if the provider has:
- Security certifications
- Clear data protection policies
- Encrypted systems
- Role-based access rules
Strong security reduces the risk of misuse or leaks.
4. Service-Level Agreements (SLAs)
SLAs are written promises about performance. They define:
- Response time
- Accuracy levels
- Turnaround time
- Reporting frequency
Choose providers who issue detailed SLAs and are committed to following the industry-approved benchmarks.
5. Ability to Scale
Your needs may increase as your D2C company grows. Thus, your provider should be able to handle:
- More transactions
- New services
- Additional reporting
- Seasonal spikes
6. References and Client Feedback
Ask for references or case studies. This helps you confirm:
- Quality of their work
- Stability of their team
- How they handle problems
- How they communicate
References give you a realistic view before signing.
Looking for a Finance Outsourcing Partner? We at Atidiv Maintain a 95% Client Retention Ratio!
So now you know finance outsourcing is the process of handing specific finance tasks or entire functions to an external partner. The benefit? You can reduce workload + access professional talent + run your operations with more clarity. But these benefits can be achieved only when you choose the right partner.
To make the right selection, you should focus on the fundamentals:
- Define goals and expectations
- Identify tasks to outsource
- Match tasks to the right model
- Check technology and security
- Review references and stability
If you are searching for a finance outsourcing partner, you can hire Atidiv in 2025. We are a 16+ years experienced agency with 70+ global clients. We maintain a vast network of 390,000+ chartered accountants and CPAs that deliver services with 100% accuracy.
Get started at only $15 per hour. Book a free consultation call to learn more.
Finance Outsourcing FAQs
1. How to reduce risk with finance outsourcing?
The best way is to start with a pilot. Before outsourcing everything, begin with a smaller portion of delegation, such as:
- Bookkeeping
- Accounts payable
- Monthly reporting
This shows how the provider works in real situations. Later, when you are satisfied with the modus operandi and quality of services delivered by your hired accounting outsourcing company, you may extend the contract and delegate more functions.
2. How do I know which finance tasks I should outsource first?
Start with tasks that take the most time or cause delays, such as:
- Bookkeeping
- Payroll
- AP/AR
- Monthly reporting
These are routine and easy to hand over. Once these are running smoothly, you can then later outsource higher-level tasks like forecasting or cash-flow planning.
3. Is finance outsourcing affordable for small businesses?
Most businesses see 20 to 60% cost savings compared to in-house staffing due to:
- Lower labor costs
- Automation
- Standardized processes
All these reduce spending on salaries, systems, and training. You also pay only for the services you use, which keeps your budget under control.
4. Will outsourcing improve the speed and quality of my finance work?
In most cases, yes. Modern outsourcing partners use automation + AI to reduce errors and handle work faster. Invoice processing, for example, can drop from 18 days to under 3 days.
Additionally, you get access to trained accountants, which strengthens accuracy and gives you faster financial insights.
5. How do I protect my financial data when outsourcing?
It is recommended that you choose a provider with:
- Strong security controls
- Better encryption
- Limited access
- Background-checked staff
- Compliance certifications
Additionally, set clear rules through SLAs and keep tracking dashboards. This gives you complete visibility and reduces risk.
6. What should I expect from finance outsourcing in 2025?
Studies show that by the end of 2025, 73% of CFOs plan to increase outsourcing and automation. Modern providers will rely more on AI, generative AI, and hybrid pricing models. This will lead to:
- Faster reporting
- Lower overhead
- Stronger support for small businesses.