Outsourced Accounting
Outsourced accounting is a business practice where a company hires an external third-party service provider to handle some or all of its accounting functions, such as bookkeeping, payroll, tax preparation, and financial reporting. This approach allows businesses to access specialized expertise and technology without maintaining an in-house accounting department. It is commonly used by small to medium-sized enterprises (SMEs), startups, and companies looking to reduce costs and focus on core operations.
Developers should learn about outsourced accounting when building or integrating financial software, as it helps in designing systems that support external service providers, such as APIs for data exchange, security protocols for sensitive financial data, and compliance features. It is particularly relevant for fintech applications, enterprise resource planning (ERP) systems, and tools that automate accounting processes, enabling seamless collaboration between businesses and their accounting partners.