Choosing an Outsourced Accounting Provider: 15 Questions to Ask

Not all outsourced accounting providers are created equal. Some are glorified bookkeepers with a nice website. Others are professional finance teams that will transform your financial operations.

The questions you ask during evaluation determine which one you end up with. Here are 15 questions—organized by category—that will reveal whether a provider is right for your business.

Team Structure Questions

1. Who will actually work on my account?

Why it matters: Sales teams are impressive. Day-to-day teams vary. You want to know who'll be doing the actual work—their experience level, credentials, and tenure.

Good answer: "You'll have a dedicated team: [Name], a senior accountant with 8 years experience, handles your day-to-day. [Name], a CPA with controller experience, oversees the work and reviews financials. You'll meet them before signing."

Red flag: "We'll assign someone from our team." (Who? What level? You should know.)

2. What happens when my primary contact is unavailable?

Why it matters: People take vacation, get sick, or leave. If one person holds all knowledge of your account, you're exposed.

Good answer: "Every account has a backup who knows your business. We document all processes. When [primary] is out, [backup] handles urgent items seamlessly."

Red flag: "You'll always be able to reach your main contact." (What if you can't?)

3. What's your team's turnover rate?

Why it matters: High turnover means constantly retraining new people on your account. Low turnover indicates a stable team.

Good answer: "Our turnover is [X%], which is below industry average. Most of our senior team has been here 3+ years."

Red flag: Avoidance or vague answers about team stability.

Technology Questions

4. What accounting systems do you support?

Why it matters: You want a provider expert in your system, not learning on your dime.

Good answer: "We specialize in [your system]. [X]% of our clients use it. Our team is certified and handles everything from setup to optimization."

Red flag: "We can work with anything." (Jack of all trades, master of none.)

5. What other tools do you use or require?

Why it matters: Understanding their tech stack reveals their sophistication and any additional costs.

Good answer: "We standardize on [bill pay], [expense management], [document storage]. We'll evaluate your current stack and recommend changes only if they improve efficiency or reduce cost."

Red flag: "You'll need to purchase our proprietary system." (Vendor lock-in.)

6. How do you handle system access and security?

Why it matters: They're accessing your financial systems. Security should be a priority.

Good answer: "We require 2FA, use password managers, conduct quarterly access reviews, and are SOC 2 compliant. We'll provide documentation of our security practices."

Red flag: Dismissive responses about security or no formal policies.

Communication Questions

7. What's your communication process?

Why it matters: Clear communication prevents misunderstandings and builds relationship.

Good answer: "We have structured touchpoints: weekly 15-minute check-ins, monthly financial review calls, quarterly business reviews. For day-to-day, we use Slack/email with 24-hour response SLA."

Red flag: "Just email whenever you have questions." (No proactive communication.)

8. What's your response time for questions?

Why it matters: You need to know what "responsive" actually means.

Good answer: "Routine questions within 24 hours. Urgent items same day. We define escalation procedures so you know how to get urgent help."

Red flag: No defined SLAs or vague commitments.

9. How do you handle escalations or problems?

Why it matters: Problems happen. How they're handled reveals character.

Good answer: "If something goes wrong, your primary contact escalates to their manager immediately. We do root cause analysis, fix the problem, and implement process changes to prevent recurrence. We're transparent about issues—you'll never be surprised."

Red flag: "We don't have problems." (Everyone has problems. Pretending otherwise is concerning.)

Service Scope Questions

10. What's included in your standard engagement?

Why it matters: You need to understand what you're buying to compare proposals.

Good answer: A detailed scope document listing: transaction processing, AP/AR, bank reconciliation, monthly close, financial statements, management reporting, controller oversight. Clear about what's included vs. what costs extra.

Red flag: Vague descriptions or "we do everything." (Nothing is everything.)

11. What's explicitly NOT included?

Why it matters: Surprise bills come from scope gaps. Know them upfront.

Good answer: "Tax return preparation is separate—we coordinate with your CPA. Audit support beyond standard PBC preparation is project-based. System implementations are scoped separately."

Red flag: "Everything's included" followed by add-on fees later.

12. Do you offer strategic finance services beyond accounting?

Why it matters: Accounting is the foundation. You may eventually need FP&A, CFO services, or strategic finance support.

Good answer: "Yes, we offer fractional CFO services that integrate with accounting. Many clients start with accounting and add strategic services as they grow. The same team, so there's no context loss."

Red flag: "We only do bookkeeping." (You may outgrow them quickly.)

Pricing Questions

13. How do you price your services?

Why it matters: Understanding pricing model helps you budget and compare.

Good answer: "Flat monthly fee based on your complexity—transaction volume, entity count, reporting requirements. We'll scope this together so there are no surprises. The fee includes standard scope; ad hoc projects are quoted separately."

Red flag: Hourly billing for ongoing services (creates unpredictability) or pricing that seems too low (you get what you pay for).

14. What triggers price increases?

Why it matters: Growth is good. Understanding how pricing scales helps you plan.

Good answer: "We review scope annually. If transaction volume grows significantly or you add entities/complexity, we'll discuss pricing adjustment. Normal business growth within a reasonable range doesn't trigger increases."

Red flag: Automatic escalators tied to metrics you can't control.

Reference Questions

15. Can you provide references from similar companies?

Why it matters: References reveal real-world performance.

Good answer: "Absolutely. We'll connect you with 2-3 clients similar in size and industry. They've agreed to speak candidly about their experience."

Red flag: Can't provide references, or references are unrelated to your situation.

Questions to Ask References

• How long have you worked with them?
• What was the transition like?
• How responsive are they to questions?
• Have they ever missed a deadline?
• What's not working well?
• Would you recommend them? Why or why not?
• If you had to do it over, would you choose them again?

Putting It Together: Evaluation Framework

After meeting with providers, score them on these dimensions: