by Sharai Lavoie | Apr 6, 2026 | Financial Services, Outsourcing
There is a particular kind of Q1 that leadership teams celebrate and finance teams quietly dread.
The books closed on time. Every report was delivered. Board materials were polished and accurate. From the outside, the quarter was a success. From the inside, the finance team knows exactly what it cost: late nights during the last week of the month, manual workarounds that should have been automated two years ago, and a closing process that depended on three people being available simultaneously with no margin for error.
This is what operational heroics look like in finance. The work gets done, but the method is neither repeatable, scalable, nor sustainable.
The Heroics Trap
Heroics create a dangerous feedback loop. When the team delivers results through extraordinary effort, leadership has no reason to question the underlying structure. The outcome is the same whether it was produced by a well-designed system or by a controller working until midnight. From a results perspective, both look identical.
The difference only becomes visible under two conditions: when volume increases, and the team cannot absorb the additional load, or when a key person becomes unavailable and the process breaks.
By the time either condition materializes, the cost of fixing the underlying structure is significantly higher than it would have been during a period of relative stability. The organization has optimized for output without investing in the infrastructure that sustains it.
Five Warning Signs That Heroics Are Masking Structural Risk
The close takes longer every quarter. Not dramatically, but consistently. What took four days now takes five. What took five now takes six. Each incremental day adds complexity that existing processes cannot absorb without more time or effort.
Key processes depend on specific people. If the team cannot close the books, produce a board deck, or reconcile intercompany transactions when one particular person is out, the organization has a knowledge concentration problem. This is not a talent issue. It is a design issue.
The team avoids taking time off during predictable periods. When finance team members consistently decline vacation during the last week of the month, during quarter-end, or during planning season, it signals that the processes cannot function without their direct involvement. The constraint is not workload. It is a structural dependency.
Workarounds have become permanent. Every finance team has workarounds. The problem arises when temporary solutions become permanent fixtures. A manual journal entry that was supposed to be automated after the system migration. A reconciliation spreadsheet that was supposed to be replaced by a system integration. A reporting template that was supposed to be rebuilt in the new platform. When workarounds persist for more than two quarters, they are no longer workarounds. They are the process.
The team is reactive to leadership requests. If producing an ad hoc analysis for the CEO takes more than a day, or if answering a board member’s question requires the team to pull data from multiple disconnected sources, the finance function is optimized for routine output rather than strategic responsiveness. This is a structural limitation, not a performance one.
What Sustainable Looks Like
Sustainable finance operations share a set of common characteristics that distinguish them from heroics-dependent models.
Processes are documented and transferable. Any qualified team member can execute the close, produce a report, or run a reconciliation using documented procedures. The knowledge lives in the system, not in any individual.
Systems are connected, and data flows automatically. Manual data transfers between tools are the exception, not the rule. When a transaction posts in the ERP, it flows through to reporting, consolidation, and analysis without manual intervention.
Capacity planning is built into the operating model. The team knows its throughput limits and has a clear plan for how additional volume, entities, or complexity will be absorbed. Growth does not create an emergency. It triggers a predefined scaling response.
Close timelines are stable or improving. A well-structured finance function closes faster as it matures, not slower. If the timeline is extending, the root cause is almost always technical debt accumulating faster than the team can address it.
Making the Shift
The transition from heroics to systems does not require a massive transformation initiative. It requires a commitment to identifying the highest-impact structural gaps and closing them methodically.
Begin with the close process. Document every step. Identify which steps require manual effort and why. Determine whether the root cause is a missing integration, an undocumented process, or a knowledge gap. Assign ownership for resolving each gap and set a timeline.
Then move to reporting. Audit how data moves from source systems to the reports that leadership consumes. Every manual step in that chain is a potential point of failure and a candidate for automation.
Finally, examine the team’s time allocation. If more than half of the finance team’s hours are spent on execution and processing rather than analysis and strategy, the function is structurally underinvested. The solution is not hiring more people. It is removing the structural barriers that prevent the existing team from operating at the level the business needs.
The Real Metric
The measure of a strong finance function is not whether it delivered this quarter. It is whether it can deliver the next four quarters at the same quality without increasing headcount or extending timelines.
If the answer depends on the same people working the same hours with the same workarounds, the function is running on heroics. And heroics, by definition, are not a strategy.
At Lavoie CPA, we help leadership teams build finance operations that deliver consistent results through structure, not stamina.
Start the Conversation Today.
by Sharai Lavoie | Oct 1, 2021 | Accounting, Outsourcing
When a business is in growth mode, executives need to make more difficult decisions that are efficient and cost-effective for their organization. The foundation of these decisions is a firm grasp of the financial health of the organization. That is why business owners need professional assistance with core business operations like accounting and financial management. Organizations, however, have the choice to have that professional accounting assistance in-house or hire an outsourced accounting firm.
While in-house accounting staff performs specific business operations such as accounting and financial reporting, outsourced accounting staff can conserve costs and optimize performance through tailored solutions. Businesses get to conserve time and focus primarily on core operations through outsourcing tedious functions. Reviewing the pros and cons of both options will help your business choose which is right for you.
Contents
What is In-House Accounting
Hiring employees and paying them a fixed payroll to perform specific business operations such as accounting, financial reporting, strategic planning, and HR management is referred to as an in-house resource. In-house accounting teams provide budgeting for the company, as well as bookkeeping, and accounting services.
Pros of In-House Accounting
- Dedicated workforce is aligned to the business goals making teams efficient with specific accounting needs
- Dedicated teams provide quick solutions as they know the organization inside out
- In-house professionals can be trained for other in-house operations
- Sensitive financial information remains undisclosed
Cons of In-House Accounting
- Teams become a financial burden when workflow is limited
- Hiring dedicated resources have a huge retention cost, including state taxes, benefits, training, and employee office supplies and equipment
- Owning licensed accounting software for each employee is an added cost
- There is a huge time burden for replacing employees that quit, plus you have to train a new employee from the ground-up
What is Outsourced Accounting?
Seeking professional assistance with accounting from certified firms rather than hiring dedicated in-house resources is referred to as outsourced accounting. Outsourcing projects to skilled firms equipped with resources to perform specific accounting tasks saves businesses from various managerial challenges. Business owners can also make calculated decisions based on information from finance specialists. THis is because many outsourced accounting firms offer more robust reporting, insights, and software.
Pros of Outsourced Accounting
- Outsourcing ensures you only pay for the workload you need to get done
- Proactive businesses outsource and get the job done helping in house employees focus on other pertinent tasks
- Vulnerability to fraud is higher in small and medium-sized businesses, which businesses can avoid by working with a team of skilled specialists
- Access to top-level professionals who understand the latest trends in accounting and can apply their skills to your company’s finances
Cons of Outsourced Accounting
- Instructions and communication between a company and an outsourced account firm must be very clear for getting desired results within the approved budget
- Business owners have limited control over the processes of outsourced teams
- In some cases, outsourced accounting teams are not as responsive as you would want them to be
In-House vs. Outsourced Accounting
It is vital to consider your business’ particular needs when looking for an accounting solution. Here is a list of things to consider when deciding between the two:
Cost Factor
Businesses need to calculate whether they have enough workload to justify hiring a full accounting team. A dedicated in-house accounting team can provide a lot of value but can be expensive when you consider the employee costs (salaries, benefits, overhead). Outsourced accounting can be a more cost-effective option, especially for seasonal work or big projects.
Efficiency
While in-house teams can do the same tasks assigned to outsourced teams, the latter can be more efficient. That is because an outsourced accounting firm’s sole focus is the accounting tasks at hand, whereas your in-house staff may have other responsibilities that require their focus and attention.
Security
While it is unfortunate, there are instances where employee fraud can happen. Companies sometimes prefer outsourcing finances to avoid these situations. Non-disclosure agreements signed between the business owners and outsourced firms ensure protection against fraud. On the other hand, companies that deal with sensitive information may be more comfortable working with an in-house team.
Working Hours
Dedicated employees generally work regular office hours. However, accounting firms operate round the clock and deliver immediately if required. The nature of business is once again a factor of consideration that determines efficiency.
In House Vs Outsourced Accounting – Which One Should You Choose
Both, in-house accounting and outsourcing accounting operations are viable solutions. Once again, business owners must review their business models and decide accordingly. The outsourcing industry is progressing rapidly as businesses are opting for outsourced services in different fields to simplify their operations.
Outsourced accounting teams focus on the particular tasks provided by their clients. While in-house teams can also be highly effective, sometimes they don’t have the experience that some outsourced teams have. For some businesses, hiring outsourced talent is cheaper. At the end of the day, your business needs a professional touch to tackle laborious operations so that you can focus primarily on business development.
Outsourcing projects can significantly reduce various hassles for your business that in-house teams may not be ready to handle. If you require assistance with accounting management services, financial reporting, strategic planning, as well as HR services, consider contacting Lavoie. We also provide cloud-based corporate performance management, accounting, and financial management software solutions that accurately meet the specific needs of small and medium-sized businesses.
