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Explainer

Managed finance operations: the routine finance work, run for you as one service.

Managed finance operations is a name for outsourcing the day-to-day work of a finance team, not just the bookkeeping. Here is what it usually covers, what it does not, and how to tell whether your business needs it.

Book a free 30-minute call The short answer

The short answer

What It Means

A managed finance operations service takes responsibility for the recurring finance work of a business: recording transactions, paying bills, collecting from customers, posting payroll and closing the month, on a fixed schedule, for a fixed fee.

The difference from basic bookkeeping is scope and ownership. A bookkeeper records what happened. A managed service also runs the processes that make things happen, such as preparing payment runs and following up overdue invoices, while the owner keeps the decisions.

What it covers

What It Usually Includes

  • Bookkeeping. Transactions categorized, every account reconciled, documents attached.
  • Accounts payable. Bills captured and coded, a payment list prepared for approval, payments matched.
  • Accounts receivable. Invoices issued, reminders sent, payments applied, an aged list reviewed.
  • Payroll support. Payroll run in the payroll system or posted from it, with taxes and benefits reconciled.
  • Month-end close. Accruals, prepaid expenses and other adjustments posted, the period closed, reports sent on a set day.
  • Year-end support. A file your CPA can use for tax work without a cleanup.

What it is not

What It Usually Does Not Include

  • Tax returns and tax advice. Done by a CPA or enrolled agent.
  • Audits and assurance. Done by licensed CPA firms.
  • Strategic finance. Fundraising, pricing strategy and board-level planning are fractional CFO work.
  • Control of your money. A managed service prepares payments; the owner approves and releases them.

Compared

Managed Finance Operations vs the Alternatives

BookkeeperManaged finance operationsFractional CFO
Main outputAccurate recordsRecords plus running payables, receivables and the closePlans, forecasts, financing
RhythmWeekly to monthlyWeekly and monthly, on a fixed calendarA few days a month
Best forSimple businessesGrowing businesses without a finance teamBusinesses facing big decisions

Many businesses use managed finance operations every month and bring in a CPA and, later, a fractional CFO on top. Read bookkeeper vs accountant vs controller for how those roles fit together.

Is it for you

When It Makes Sense

  • The owner or an office manager is spending hours a week on bills, invoices and reconciliations.
  • The business is too small for a full finance team but too busy for occasional bookkeeping.
  • Late customer payments are hurting cash, and nobody follows up consistently.
  • A key finance employee has left, or the business wants cover so one absence does not stop the work.

For a cost comparison with hiring, see in-house bookkeeper vs outsourced firm.

Where we fit

How We Do It

Our bookkeeping packages cover the monthly or weekly bookkeeping and close in QuickBooks Online or Xero. Payables and receivables management can be added from $100 a month each, and we run payroll in QuickBooks Workforce and Gusto. You approve every payment, and your CPA gets a file ready for tax work.

Book a free 30-minute call Bookkeeping packages

Questions

Common Questions

What is managed finance operations?
An outsourced service that runs the recurring finance work of a business, including bookkeeping, payables, receivables, payroll support and the month-end close, on a fixed schedule for a fixed fee.
How is managed finance operations different from bookkeeping?
Bookkeeping records transactions and closes the month. Managed finance operations also runs the processes around them, such as preparing bill payments and following up overdue invoices, while the owner keeps approval.
Is managed finance operations the same as a fractional CFO?
No. A fractional CFO focuses on planning, forecasting and financing decisions a few days a month. Managed finance operations handles the routine work every week and month.
Who approves payments in a managed finance service?
The owner or an authorized manager. The service prepares the payment list; it should not be able to move money on its own.
Does managed finance operations include taxes?
Usually not. Tax returns and tax advice are handled by a CPA or enrolled agent, using the books the service keeps.
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13+ years in practice Across accounting outsourcing, ERP and accounting software work.

Next

Where to Go Next

Insight What Does a Bookkeeper Do? The daily, weekly and monthly work. Insight In-House vs Outsourced What each option really costs. Insight AR and AP Automation What it fixes, and what it does not. Insight What Bookkeeping Services Cost The market bands, and what sits outside the monthly fee. The engagement How We Work What a month with us looks like. Service Bookkeeping Packages Monthly and weekly bookkeeping in QuickBooks or Xero.

Spending too many hours on finance admin?

Tell us what takes the most time today and which software you use. We will tell you what could be handed over.

Book a free 30-minute call See our packages
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