Healthcare executives frequently outsource services to accounting firms. Services commonly outsourced include due diligence for mergers or acquisitions, preparation of financial projections, accounting for newly acquired entities and CFO services.
Mergers of medical entities are on the rise. Medical practices are merging to enhance profitability and to increase leverage in managed care contracting. Prior to a merger, it is necessary to assess the finances of the target entity. This job, referred to as due diligence, is commonly outsourced to an accounting firm. The accountants are asked to review financial records to help determine if there is a financial fit.
Accounting firms are frequently asked to prepare financial projections. Financial projections are helpful when entities are seeking financing, considering an acquisition or considering offering new products or services. The accountant interviews management to determine what course of action the business expects to take. This information is then translated into financial terms and the projection is created. Financial projections might include pro-forma income statements, balance sheets or cash flow statements quantifying expected financial results given certain assumptions.
Accounting for newly acquired or merged entities is commonly outsourced. After a transaction, the surviving entity may not immediately have sufficient in-house financial expertise to perform the accounting for the newly acquired entity. Rather than letting the accounting wait until the entity is integrated and additional finance personnel are hired, the initial accounting work is often outsourced.
CFO (chief financial officer) or controllership services are commonly outsourced. For small publicly traded or privately held companies it sometimes makes economic sense to outsource the CFO position. Companies needing seasoned financial expertise but lacking the economic resources to employ such expertise on a full-time basis sometime outsourced these services. Under the outsourcing model, the company purchases only the amount of services that are affordable and necessary. Rather than employing the accountant full-time, services are purchased as needed via outsourcing thereby reducing costs.
With outsourcing, companies benefit from having seasoned professionals available to fill gaps as necessary. Outsourcing can provide a high level of sophistication giving the business access to qualified financial personnel on an as needed basis. Business owners facing time or resource constraints should consider outsourcing as a solution.
Healthcare executives frequently outsource services to accounting firms. Services commonly outsourced include due diligence for mergers or acquisitions, preparation of financial projections, accounting for newly acquired entities and CFO services. 
