Why Outsourced Bookkeeping is a Smart Move for Growing IT Companies

Outsourced bookkeeping is a good move for emerging IT enterprises because it helps streamline internal processes and make cost savings, among other benefits. Both these functions would be difficult to achieve otherwise, because

• Without outsourced bookkeeping, you will have to divide your focus between core and non-core functions

• Not outsourcing could also be a potentially expensive exercise, because you will then have to account for employee salaries, training costs, internet bills, establishment renting, etc. 

Furthermore, maintaining the same quality of service also requires you to retain the same competent employees, which is not an easy task to accomplish consistently. 

Therefore, if you are still wondering,” Why outsource bookkeeping?”, here is some perspective on the answer:

• 37% businesses outsource IT and accounting services together, which reflects the associated importance of these functions.
• Compliance remains a big case of concern for SaaS companies, especially the recent tax impositions on SaaS digital sales by 43 U.S. states. The percentage varies, but it is in the spirit of the 21% VAT imposed in the EU.
• QuickBooks (31%), Sage Intacct (17%), NetSuite (16%), and Xero (13%) hold the maximum market share with bookkeeping outsourcing from IT/SaaS entities.

In 2025, your IT firm could focus on its key processes and utilize the actionable insights it gains from outsourced bookkeeping to improve strategy-making.

In this article, we will first try to understand how IT and bookkeeping could complement each other. Thereafter, we shall dive into the reasons why it will be a smart move for growing IT firms to outsource bookkeeping in 2025.

IT and Outsourced Bookkeeping: How They Work Together

While hiring the right bookkeeper for IT company, businesses gauge the significant advantages that they would potentially unlock. The following table charts how the IT functions can be ideally complemented by outsourced bookkeeping functions, thus yielding significant benefits for your business.

In 2025, your IT firm needs to adapt to the dynamic market and outsource certain functions to not only save time but also improve the overall efficacy of the services you offer.

Why Will It Be a Smart Move to Outsource Your Bookkeeping in 2025?

You might have courted doubts like “why outsource your bookkeeping?” ​while strategizing the streamlining of IT business processes. Here, we will go through the reasons one by one, and it is not easy to shake away the rationale that they stem from.

SaaS-Specific Expertise

The IT industry is unlike any other, requiring a great deal of skilled workers coordinating perfectly to yield the best results. Therefore, they need the bookkeeping service to be on par with them so that company growth is achieved. Along these lines, outsourced bookkeeping has these special functions for growing IT and SaaS firms:

• Carry out SaaS-specific accounting functions, like the ASC 606, which is a five-step revenue recognition model for companies to report customer contracts
• Deferred revenue tracking, which means funds received for yet undelivered services tpo be counted as a liability on the books, allowing for conservative accounting
• Facilitate multi-entity consolidation, which means combining multiple subsidiary transactions into the effective value, adjusted for currency conversion
• Ensure SEC compliance, which means all your dealings with brokers, advisories, and public companies will be accounted for according to the U.S. Securities and Exchange Commission mandates

Therefore, as an IT firm, you could derive specific advantages concerning accurate accounting, convenient book maintenance, and industry-specific compliance with outsourced bookkeeping in 2025.

Regulatory Tax Compliance

As a growing IT firm, you will often find yourself collaborating with experts who live in different states or even different countries. Opting for domain-specific, outsourced bookkeeping services ensures that you can effectively deal with recurring revenue-related complexities by maintaining the GAAP standard. Outsourcing to the best U.S. accounting firms that know the SaaS-related regulations inside out makes for a prudent business strategy.

Staying Investor-Ready

Emerging IT firms require their financial reporting to be clearly defined so that investors do not think twice before putting their money on their success. To align yourself as the profitable entity that investors look for, your books must reflect optimization for

• Venture capital 
• Private equity
• Mergers and acquisitions

Thus, your investments and overall approach to the market must be appealing to the investors, and specialist bookkeepers could help you with that. For instance, M&A expectations include prudent optimism and uncertainty adjustment, which reflect your financial wisdom in choosing alliances. In 2025, bookkeepers could lend you important investor advice that you could use in your market decisions.

Tech Integration

Research reveals that 68% businesses seek automation, often AI-led, when it comes to finance and accounting functions. However, it is not easy to fathom the right tools that would work best with your industry, as each industry has its own unique challenges and distinguishing characteristics. Growing IT firms prefer outsourced bookkeeping because they have access to experts who work with modern accounting and auditing software like QuickBooks or Xero. Thus, even while focusing on their core tasks, IT firms can find out the actionable insights that they can integrate into the company’s strategy.

Data Security

If there is one approach towards service that defines brand integrity like no other, it is an IT company’s approach towards data security. Here is how IT-specific bookkeeping could enhance an emerging business’s reputation in the marketspace:

• Adherence to SOC 2 compliance, a voluntary yet telling indicator of a business’s outlook, in its willingness to fulfill the 5-step reliability checkpoint – security, availability, processing integrity, confidentiality, and privacy
• Maintenance of high levels of data encryption so that stakeholder information is always secure
• Deployment of risk management tools to ensure protection against malware attacks that threaten business credibility

Scalability

Outsourced bookkeeping gives IT firms access to expert help whenever they need it. It doesn’t matter if you’re a startup just getting started, gearing up for Series A funding, or already thinking about the public markets. An outsourced finance team can grow along with your business and support you with:

• IPO – Guidance to get you investor-ready and move smoothly toward going public
• CFO – Strategic leadership that keeps your finances aligned with long-term goals
• Financial planning – Practical planning to manage cash flow, budgets, and future growth
• Transaction advisory support – Expert help during mergers, fundraising, or major financial decisions

Finding it Difficult to Find an Industry-Specific Bookkeeping Partner? Atidiv is Here to Help You Out!

The IT industry offers specialized services, and it takes a great deal of focus on the part of the company to maintain a consistent quality of services. Also, a company needs to grow, and that requires good financial management and attention toward bookkeeping. 

Balancing these two functions becomes too much of a task for growing IT firms. In that light, outsourcing to brands like Atidiv helps growing businesses maintain their books, reconcile bank accounts, and manage daily transactions, among other benefits. Read this article to understand how Atidiv helped an NYC-based brand deal with its operations at 50% of the cost and save 80% of its time. 

These are the major advantages of outsourcing with Atidiv:

• Flexible support for SMEs so that they can scale without incurring huge costs
• Collaboration in real-time with competent financial experts to manage the client’s books, bringing time- and cost-efficiency
• Extensive handling of accounts and financing so that the client can focus on their core functions
• Integration of services with the client’s existing software for accurate financial reporting and actionable insights
• Audit and investment assistance by carrying out monthly bank reconciliations to reflect an up-to-date financial health

Atidiv, in its ongoing stint of 16+ years of service, offers clients access to 390,000+ chartered accountants and CPAs for unmatched financial services. Contact us today to get access to the best financial services, with on-demand financial advisory services starting at just USD 18.

FAQs

1. How important is relevant bookkeeping tech integration for my IT firm in 2025?

It is extremely important. Tech integration ensures you have smoother workflows, fewer errors, and accurate financial reporting that could inform your subsequent projects objectively. However, partner only with reliable outsourcing partners like Atidiv to ensure the best business outcomes.

2. What is transaction advisory support, and how is it important for my IT business?

Transaction advisory support helps IT companies make financially sound decisions during mergers, acquisitions, or while they make major investments. Bookkeeping experts assess risks, validate valuations, and ensure every transaction aligns with long-term business goals to provide you with useful financial advice.

3. Can I deal with tax compliance better when I opt for outsourced bookkeeping?

Absolutely. Outsourced bookkeeping ensures accurate records, timely filings, and consistent alignment with changing federal and state tax laws. With expert bookkeeping services at their aid, IT firms avoid penalties, reduce stress during busy seasons, and maintain investor confidence.