Outsourced Accounting

Article Autumn Hines

If your idea of financial leadership involves staring at spreadsheets until your eyes glaze over, we need to talk. While accurate accounting is great (and we love a fully reconciled ledger as much as the next accountant), today’s business world demands more than knowing where every penny went.  

Strategic Financial Leadership – Own Your Stuff  

My household of two adults, two teenagers, two preteens, and a mutant poodle dog has a mantra: “Own Your Stuff.”  

Strategic financial leadership is owning your organization’s stuff.  We are talking about your money, performance, goals, relationships, strategy, risks, and STUFF.  Strategic financial leadership is not passively looking at financial statements from 90 days ago and managing operations via bank balance.  Think of it as looking over the horizon, forecasting, budgeting, and blending operational data with financial data to track real-time progress.  What if your financial function kept you attuned to the pulse of your business today, not looking at a photo album from last month to see what you did?  

Here’s what modern financial leadership looks like when it’s proactive and not looking backward through a rearview mirror:  

Long-term Planning  

  • Running “what-if” scenarios (because hope isn’t a strategy)  
  • Making sure your capital structure can weather future storms  
  • Mapping growth plans that don’t require a crystal ball  

Risk Intelligence  

  • Proactively identify financial risks before they identify you  
  • Understanding key relationship impacts (admit everything is linked)  
  • Working capital strategies that keep cash flowing (and your stress levels low)  

The Value of an Advisor  

There are levels to everything.  Some organizations need a full-time Chief Financial Officer (CFO).  Let’s be honest, though: for many organizations, hiring a full-time CFO is like buying a Ferrari for your grocery runs.  An outsourced fractional advisor is a great alternative to hiring a full-time CFO to provide financial leadership.  Here’s what you get with an outsourced advisor:  

Swiss Army Knife of Expertise  

  • Access to a broad range of experience (good and bad) across numerous organizations  
  • Depth of resources beyond what can be developed internally (learn from someone else’s trials and errors)  
  • Fresh eyes that aren’t jaded by office politics or biased by organizational history (and impervious to your version of Negative Ned)  

Flexibility Without the Commitment  

  • Expertise when you need it   
  • Cost that won’t make your accountant cry (no benefits, no office space, one less meal at the company picnic)  
  • Proven systems ready to roll (no reinventing the wheel)  

Built-in Safety Net  

  • A whole team of experts to leverage  (because two heads are better than one, and five are better than two)  
  • Continuity of service that evolves with your business (no more depending on tribal knowledge)  
  • Real-world experience with emerging financial tools and technologies (we test the waters so you don’t have to)  

Be Confident

Strategic financial leadership doesn’t just give you good numbers; it gives you CONFIDENCE to make the right decisions for your organization. Partnering with an advisor could be a key way to gain confidence in your accounting function through strategic financial leadership.    

Reach out if you have questions about what strategic financial leadership could look like in your organization.

Coming Soon: When Data Tells a Story  

Next month, we’ll explore how data analytics transforms financial decision-making. Don’t worry—we’ll minimize the jargon and maximize the insights . 

Article Dean Dorton

Key Performance Indicators, or KPIs for those who can’t resist a good acronym, are the corporate world’s way of turning the messy, unpredictable nature of business into neat little numbers, graphs, or even emoticons! 

KPIs as Your Guide

KPIs serve as navigational tools, allowing companies to: 

  • Measure progress toward strategic goals  
  • Identify areas needing improvement (perhaps adding salt to a wound) 
  • Make data-driven decisions (does anyone make gut-based decisions anymore?) 
  • Align team efforts with organizational objectives  
  • Benchmark performance against industry standards or competitors (don’t’ fall behind!) 

Effective KPIs Should Be S.M.A.R.T.

  • Specific and clearly defined (like the specials at your favorite lunch restaurant) 
  • Measurable and quantifiable (because if you can’t measure it, does it even exist?) 
  • Actionable, providing insights for improvement (“there is no try”) 
  • Relevant to business objectives  
  • Time-bound with regular reporting intervals  

5 Common KPIs for Any Size Businesses

  • Net Profit Margin – Net profit / total revenue  
  • Customer Acquisition Cost (CAC) – Total marketing and sales divided by number of new clients 
  • Employee Turnover Rate – Number of employees who left divided by the average number of employees for a period 
  • Inventory Turnover Ratio – Cost of goods sold divided by average inventory 
  • Revenue per Customer – Total revenue divided by the number of customers 

KPIs work best when they are updated in real-time and accessible (versus antiquated and hard to find). KPIs are often displayed on a financial dashboard. There is no shortage of options when it comes to tools that provide KPIs and dashboards. Find a solution that integrates with your accounting platform for the best results. 

When implementing KPIs, remember to choose metrics that align closely with your specific business goals and industry. Regularly review and adjust your KPIs to ensure they continue to provide valuable insights as your business evolves. Remember, the goal is not to track every metric possible but to focus on those that most effectively guide your business toward its objectives. 

By carefully selecting and monitoring these KPIs, businesses can gain valuable insights into their operations, make data-driven decisions, and drive sustainable growth. 

Please contact us if you would like to learn more about KPIs. Dean Dorton has expertise across multiple industries that can help you identify the information that drives your business and develop KPIs to help you meet your goals. 

Article Autumn Hines

Things change. Some changes are improvements, some are not. Being stagnant is not an option so owning and steering change becomes a competitive advantage. Companies that embrace a culture of continuous improvement recognize that the journey toward perfection is perpetual. It is a cultural goal, not a destination. Outsourced accounting services have emerged as a catalyst for this transformative process, offering more than just cost savings—they provide a strategic advantage in fostering innovation and efficiency. 

The Foundation of Continuous Improvement

Continuous improvement is like a corporate gym membership. The organization talks about it, but few people pursue it. Continuous improvement is a systematic, long-term approach to enhancing services, processes, and products through incremental and breakthrough improvements. It is rooted in the philosophy that every aspect of operations can be improved. This mindset is crucial in accounting, where precision and timeliness are paramount. 

Outsourced Accounting as a Change Agent

Believe it or not, accountants can drive change! Outsourced accounting services bring fresh perspectives and specialized expertise to the table. They are not bound by the ‘this is how we’ve always done it’ mentality, which often hinders innovation within in-house teams. By partnering with a firm like Dean Dorton, which specializes in accounting, companies can tap into a pool of professionals who are continuously exposed to diverse challenges and solutions, thereby bringing in innovative ideas and practices that can trigger a chain reaction of improvements. 

Leveraging Expertise

Your problems may not be as unique as you think they are. Dean Dorton’s outsourced accounting professionals work with a variety of clients, each with their unique problems and challenges. The Dean Dorton team focuses on industries such as equine, healthcare, nonprofit, and family office to provide industry-specific expertise. We are like accounting tourists, collecting souvenirs of best practices and innovative solutions from each client we visit.    

Technology Integration and Automation

The accounting world is not known for having cool toys, but we have some very cool toys. The integration of innovative technologies is a significant aspect of continuous improvement in accounting. Dean Dorton’s outsourced accounting services provide access to advanced software and tools (such as Sage Intacct) that may not be feasible for every company to invest in independently. Our goal is to automate mundane tasks, use tools such as data analytics, dashboards, and key performance indicators to drive better decision-making. 

A Partnership for Growth

Dean Dorton’s outsourced accounting is not just a service—it’s a partnership. We work together with our clients to understand their vision and goals. We contribute to creating a roadmap for continuous improvement, aligning financial strategies with business objectives, and ensuring that every step taken is a step towards greater success. 

Conclusion

In conclusion, building a culture of continuous improvement is essential for companies aiming to stay ahead of their competition. Dean Dorton’s outsourced accounting services play a pivotal role within the competitive business landscape our clients face. We provide the expertise, technology, and innovative practices necessary to drive a culture of continuous improvement.  

Let us help your organization build a culture of continuous improvement through outsourced accounting. This will not only enhance your financial operations but also instill a broader organizational ethos of excellence and innovation. 

If you would like to learn more about how Dean Dorton’s outsourced accounting team can drive innovation and continuous improvement within your organization, please contact Justin Hubbard. 

Article Nikki Gilland

As someone who works in the world of outsourced accounting, I receive several recurring questions when Chief Financial Officers (CFOs) are considering outsourcing their accounting function. Interest in outsourcing the accounting function is often driven by cost factors, efficiencies, a system upgrade, and access to specialized expertise. Intuitively, outsourcing makes sense to a lot of organizations. However, this is not a decision to be taken lightly.

Here are the seven most common questions I receive from CFOs:

1. What specific accounting services does Dean Dorton offer?

Dean Dorton’s accounting services are customized to our clients’ needs. This includes data entry, bill pay, bank reconciliation, customer invoicing, customer receipt management, month-end close, financial reporting, management meetings, and CFO services.  We provide our clients with an accounting system designed to efficiently meet their operational needs.  We work in three models:

  1. Full Outsourcing:  Data entry to controller or CFO-level services.
  2. Co-Sourcing Option A:  Dean Dorton works with the client controller to provide accounting support.
  3. Co-Sourcing Option B:  Dean Dorton provides controller or CFO-level services, working alongside client team members.

2. How do you ensure confidentiality and security of financial data?

Dean Dorton utilizes multi-factor authentication across all platforms involved in receiving, storing, or distributing client information. This includes email exchange, the accounting system, electronic bill pays, and client data retention.

3. Can you provide examples of cost savings achieved for other clients?

This is a tricky question because there may not be direct cost savings.  I typically turn this question around and ask, “Have you ever thought about the financial, mental, and physical cost of interviewing, hiring, retaining, and training an internal accounting department?” 

My contemporaries like to argue that outsourced accounting services enhance the quality of the accounting function at a rate that is less than what would be required to build an accounting function of equal value internally.  That is more than likely true.  What is true is that continuity risk and accounting recruitment and retention costs disappear when the accounting function is outsourced. 

4. How do you stay compliant with current accounting standards and regulations?

Multiple team members in our outsourced accounting department are CPAs.  This certification requires ongoing professional training to maintain the credential.  Our team meets bi-monthly to discuss accounting standards and industry trends impacting our clients and we collaborate with colleagues from our tax, assurance, and consulting services.  Dean Dorton is a large accounting firm with deep resources within the accounting industry.

5. What is your process for handling and resolving errors or discrepancies?

I appreciate this question because it acknowledges that small errors will happen.  Our goal is to make sure any errors are small.  Error prevention begins by evaluating workflows for where the greatest risk for error exists.  We document these workflows to help ensure that all parties agree on accounting procedures to be performed.  If an error is found, we immediately notify the client’s team.  We then take action to remedy any operational issue the error created and adjust existing workflows to prevent the error from recurring.   

6. Can you scale your services to meet our growth?

Absolutely!  Our services are adaptable to your changing needs. Scaling (growing) businesses makes for great outsourced accounting clients because the accounting service can be established before the client’s operations are overly complex.  This allows us to increase our services with you and prevent unhealthy habits from forming.  This also helps ensure the quality of the accounting data over a long period of time.  It is common for our service model to move from a co-sourcing model to a full outsourcing model over the relationship. 

7. What is your communication process, and how often can we expect updates?

Effective communication is key to our client relationships. We introduce our clients to their accounting team at the onset of the engagement. All client relationships have a designated account manager who is responsible for the client’s experience. The frequency of communication varies by client, but we typically have some form of communication with our clients weekly.  Our goal is to have regularly scheduled meetings with client management to discuss financial health, key metrics, and strategic objectives.  We use telephones, virtual meetings, email, and chat when interacting with our clients, and face-to-face meetings.   

Deciding to outsource your accounting function is a strategic move that can bring about significant advantages, including access to specialized expertise, enhanced efficiency, and the ability to focus on core business operations. At Dean Dorton, we are committed to providing a seamless, transparent, and highly effective outsourced accounting service that aligns with your business’s growth trajectory and financial health. Our team’s dedication to excellence and continuous improvement ensures that we remain at the forefront of accounting best practices, offering you peace of mind and a robust foundation for your accounting needs. 

Do you have additional questions about outsourced accounting? If so, please contact Justin Hubbard, Director of Accounting & Financial Outsourcing at Dean Dorton.  

Article Nikki Gilland

As the pace of change continues to accelerate, nonprofits are finding new and creative ways to keep up. Today’s leading nonprofits are perfecting the art of virtual fundraising and volunteering. They’re implementing fresh social media strategies. They’re creating innovative donor retention programs. And they’re driving their missions forward despite myriad ongoing global challenges.

It’s a complicated landscape. That’s why operations need to be as simple as possible. So, why do so many nonprofit leaders find themselves spending more time on day-to-day tasks and less time on the type of strategic thinking that will drive their organizations forward?

Trying to be a part-time CFO and run a nonprofit just won’t work anymore. To be a true visionary leader, nonprofit executives need real-time financial information to make the right decisions that can embolden their organizations’ missions.

If you’re trying to do everything yourself, it’s time to stop and find a partner who can give you the people, proven processes, and software to handle your finances so you can focus on strategy.

Let’s explore three reasons why nonprofit leaders need access to better financial data and how outsourced accounting services can help:

1. Nonprofits need strategic leadership now more than ever

When you’re asked to make strategic decisions for your organization, do you base them on data, gut feeling, or a combination of both? If you said you decide by gut alone, it may be time to rethink your decision-making process. A recent study of nearly 700 business leaders conducted by BI-Survey revealed that best-in-class companies today base their strategic decisions on data (60%), while “laggard” companies base as many as 70% of their strategic decisions on gut feel.

The only path forward for nonprofit leaders is to back up gut feelings with real-time financial information. But before that can happen, leaders need the time to think strategically. Sadly, they’re not getting enough of it in today’s evolving environment.

A study of nonprofit executives conducted by shows the reasons why leaders need to spend every minute possible on strategic tasks:1

  • 73% say if their company fails to transform, it won’t exist in the future
  • 78% say the competitive landscape is “more aggressive”
  • 79% believe the pace at which their company needs to change is accelerating

Ask yourself: What does your nonprofit need to do to keep up?

2. Nonprofits need real-time insights that power quick, smart decision-making

According to a study of 1,135 executives conducted by PwC and The Economist, 44% say they make a big, strategic decision at least once a month. But nearly one-third of respondents said they ended up making those big decisions based on gut alone because they couldn’t access the data they needed in a timely fashion.

When you make big decisions, you need to access and understand data fast so you can evaluate all the possible scenarios. And if you or your finance team is using QuickBooks or other manual processes that leave you drowning in a sea of disconnected spreadsheets, you won’t be able to move quickly enough.

Spreadsheets don’t just inhibit decision-making for nonprofit leaders. They also rely on too many manual keystrokes that raise the risk for inaccurate reporting. They don’t create and deliver dashboards you can use to view your success and take your organization to the next level. And they don’t give you the kind of transparency into your finances that you need to plan the programs and fundraising initiatives that will resonate most with key constituents.

If your nonprofit is experiencing any of these challenges, it’s time to consider how a partner can help you take finances off your plate.

3. Nonprofits need highly-advanced financial expertise without adding headcount

Having financial data that is as accurate as possible isn’t a nice-to-have in the nonprofit sector. It’s a necessity. It takes just one error or omission to put an organization’s tax-exempt status in peril. Any noncompliance issues can jeopardize your grant eligibility.

But that’s where it gets hard for leaders. If your organization is like many nonprofits, you may not have the budget for a CFO, let alone a large, in-house financial staff. Even if you do, your budget likely pales in comparison to the for-profit down the street. And when staff turnover happens, that financial professional you trusted the most takes their expertise out the door with them, leaving you in a mad dash to hire someone new fast in a challenging job market.

You can’t afford to lose your best people, especially those who know the ins-and-outs of nonprofit finances and have the power to help your organization go further with limited resources.

Your fastest path to data-driven success: partner up

If you’re spending too much time on operational tasks and not enough time on strategic thinking, you don’t need a new smartwatch. You need outside expertise. At Dean Dorton, we provide outsourced accounting services that help nonprofit leaders recapture lost time, increase financial efficiency, improve data accuracy, and accelerate their mission’s success.

We’ll give you access to a team of qualified financial professionals who work with nonprofits of all sizes. We perform everything from core accounting functions to strategic financial analysis and virtual CFO services — all without breaking your budget. Best of all, outsourced accounting services can scale as your organization grows. We’ll serve as a true financial partner, helping you brainstorm new ways to expand your mission impact and accelerate your success.

Our services are powered by the best-in-class, cloud-native, highly secure Sage Intacct platform, giving you constant access to the timely, high-value financial information you need when you need it.

To learn more, contact us today.

Article Dean Dorton

Every stage of business growth places new demands on your accounting team. Whether you’re a small business with an administrative team of one or a larger organization with a fully staffed department managing the daily workings of your business, having competent and knowledgeable professionals managing your accounting is essential to your long-term success.

There are benefits at any size to outsourcing some or all of your accounting needs. We’ll discuss the most common (and costly) accounting mistakes, then examine some of the ways you can optimize your business through outsourcing.

The High Cost of Poor Accounting

Accounting is a field that requires strong attention to detail, organizational prowess, and the ability to stay current with ever-changing regulations.

While no accounting professional (or professional who is also tasked with keeping the books) sets out to make mistakes, mistakes do happen, and they can have significant consequences.

These are some of the most common poor habits and costly errors in accounting.

1. Delayed or incorrect expense trackingIf you have a small team managing a lot of moving parts in your organization, basic bookkeeping tasks like entering expenses and reconciling accounts can continually get placed on the back burner in favor of other duties that appear more urgent. When the urgency does strike (typically around tax season), the flurry of playing catch-up can lead to missed and misattributed expenses.

The cost: When expenses aren’t entered immediately, receipts can get lost or damaged, and poorly filed receipts are overlooked, resulting in missed write-offs and incorrect tax calculations. Additionally, when expenses aren’t properly recorded, a business’s balance sheet is off, making the business appear more profitable than it actually is.2. Manual data entryData entry errors can upend your accounting system. Common manual data entry errors include transposing numbers, over- and under-charging customers, applying payments to the incorrect invoice, and duplicate entries.

The cost: Improperly entered accounting data can lead to lost income, frustrated customers, and even additional IRS fines.3. Fines and fees for late payments and missed deadlines

Typical business costs include vendors who supply goods or services to your business, industry or networking-related memberships, estimated tax payments, and miscellaneous operating expenses. These accounts payable must be tracked and paid to remain in good standing.

The cost: Remitting payments past the due day may incur fees. Not paying estimated or annual taxes by the deadline will result in fines. If you routinely pay vendors late, they may choose to stop doing business with you.

4. Incorrect or incomplete tax filings

Filing business taxes requires an accurate accounting of your profits, losses, and expenses over the year. Poor accounting practices can lead to incorrect tax filings. When these errors are discovered, you will need to file an amended return to correct any errors in your taxes.

The cost: Incorrect and incomplete business tax filings can trigger an audit. Audits require an in-depth review of several years’ worth of tax documentation, tying up your administrative and accounting staff and diverting resources away from your daily work of running a business.

5. Outdated Software

Like any other software application, accounting software can become antiquated. Outdated software may expose you to cybersecurity risks as software vendors may not update security protocols on older systems. You may also find it hard to identify employees who know how to use the outdated software, or be unable to locate training programs that can support new employees learning the necessary skills to operate the software.

The cost: If vendors stop supporting antiquated systems, this could open you up to costly security breaches. You may also find you’re spending more time and money on recruiting or training efforts needed for employees to operate the system. There are also numerous cost-saving benefits provided by modern systems, such as customizable reporting, real-time dashboards, data analysis, multi-entity consolidations, and inter-company transfer automation.

Better Business Outcomes Through Outsourced Accounting

If your business accounting is currently being managed by an individual or small team overseeing all the administrative tasks (including the accounting), outsourcing some of those responsibilities can free up your workforce so they can focus on the work of managing your business.

Why is outsourcing accounting a smart business move?

Cash flow is key to growing your business. Outsourcing some or all of your business accounting functions can improve your cash flow by:

  • Ensuring your accounts are regularly reconciled so you have an accurate accounting of profits and losses.
  • Keeping tabs on expenses that allow your staff to flag opportunities for saving money.
  • Producing accurate financial statements that can be used to secure new funding.
  • Freeing up your administrative staff to focus on more important aspects of your business.
  • Reducing or eliminating the time and expense of onboarding new accounting staff or accounting technologies.

How Do Outsourced Accounting Services Work?When you outsource your business accounting services, you are handing the most important administrative function of your business over to people who are passionate about accounting.

A reputable outsourced accounting service provider will work with you to determine your bookkeeping needs. Often these firms offer tiered services so you can select the level of service that’s right for your business.What services are offered through outsourced accounting firms?

Typical services offered by outsourced accounting firms include

  • Managing accounts receivable and payable
  • Regular account reconciliation
  • Forecasting
  • Expense attribution and reimbursement
  • Payroll
  • Regulatory compliance
  • Tax preparation
  • Custom reporting

What roles do outsourced accounting services fill?Many of the services offered by outsourcing your accounting services can replace the need for in-house bookkeeping professionals. A quality accounting service will be able to fulfill every role within the financial services sector that would otherwise be handled internally.

Some firms even offer CFO services. In this role, they act as your organization’s CFO, fully taking on that responsibility up to and including reporting to the board of directors.

If you aren’t interested in fully replacing your entire accounting staff, you may be able to find a firm that offers training and consulting to help you streamline your financial functions and get your team working efficiently.

Are you ready to get your business financials under control? Learn more about Dean Dorton’s outsourced accounting services.