Should an Accounting Firm Outsource their IT? Pros & Cons

March 16th, 2023 | IT Outsourcing

As an accounting firm, your primary focus is providing financial services to your clients. However, in today’s digital age, technology plays an increasingly important role in the operations of businesses of all types, including accounting firms. This raises the question of whether an accounting firm should outsource their IT. 

Should an Accounting Firm Outsource their IT? 

Pros of Outsourcing IT for an Accounting Firm

Cost savings 

Outsourcing IT can be a cost-effective way for accounting firms to manage their technology needs. By outsourcing IT, firms can avoid the costs associated with hiring and training in-house IT staff. Aside from cost savings you can also expect cost predictability. IT outsourcing providers typically offer predictable pricing models, such as monthly or annual contracts. This allows accounting firms to better plan and budget their IT costs, which can help them to avoid unexpected expenses or budget overruns. 

Access to specialized expertise 

Outsourcing IT provides access to specialized expertise that may not be available in-house. IT outsourcing providers have teams of experts with a wide range of skills and experience that can help accounting firms to stay up to date with the latest technology. Additionally, access to specialized expertise can help accounting firms to improve the quality of their work, work more efficiently, and gain a competitive advantage in their market. This can ultimately lead to increased profitability and growth for the firm. 


Outsourcing IT allows accounting firms to scale their technology needs up or down as their business changes. This can help firms to avoid the costs associated with hiring and laying off in-house staff. By leveraging scalable IT solutions, an accounting firm can improve its operational efficiency and position itself for long-term success. 

Increased focus on core competencies 

By outsourcing IT, accounting firms can focus on their core competencies and provide better services to their clients. 

Cons of Outsourcing IT for an Accounting Firm 

Lack of control 

Outsourcing IT can lead to a loss of control over the technology that is being used. This can make it difficult for accounting firms to ensure that their technology is being used effectively. 

Communication challenges 

Outsourcing IT can lead to communication challenges, as the IT outsourcing provider may be located in a different country or time zone. 

Legal and compliance issues 

Outsourcing IT can raise legal and compliance issues, as the laws and regulations of the outsourcing country may be different from those of the accounting firm. 

Security risks 

Outsourcing IT can also raise security risks, as the accounting firm’s sensitive data may be stored on the IT outsourcing provider’s servers. 

Outsourcing IT can be a cost-effective way for accounting firms to manage their technology needs. However, it’s important for accounting firms to weigh the pros and cons of outsourcing IT before making a decision. The key is to find the right balance between cost savings and quality of service, and to choose an outsourcing provider that can meet the specific needs of the accounting firm. It’s also important to ensure that the outsourcing provider is in compliance with all relevant laws and regulations and has proper security measures in place to protect sensitive data. 

Looking to outsource your IT? 

Aldridge specializes in outsourcing for accounting firms. If you’re looking to outsource IT, take a look at our IT Outsourcing & Managed Services page to see if we’re a good fit for your firm.