The outsourced accounting occurs when an organization does not do their accounting work directly. Instead, an outside party is contracted to do all the accounting work including bookkeeping, payroll records, balance sheets, and tax preparation. This has the benefit of saving companies time as well as overhead costs since they do not need a full-time, on-site accountancy department. Industry professionals and technologically sophisticated accounting software services can also be made available through outsourced accounting firms thus offering accuracy and compliance. It benefits especially startups and small companies, which require financial advice but lack the means to keep an internal department.