Overcoming Common Concerns About Outsourced Finance in Government

When a finance director position becomes vacant in a local government, the traditional response has been simple: hire a replacement. But today’s challenging labor market makes qualified government finance professionals increasingly difficult to find and retain. And with employee turnover issues in local governments causing so many challenges, many municipalities are looking for alternative options — including outsourced government finance solutions.

At James Moore, our professionals serve as outsourced finance departments to small local governments through our Municipal Finance Support Services (MFSS). It’s a service that delivers a lot of value to under-resourced local governments, but municipalities often have some initial hesitations before entering the engagement. City managers question whether remote support can truly replace having a full-time staff member whose desk they can walk over to at any time. Finance committees wonder if external professionals will understand the complex regulatory requirements they’re bound by. And leaders ask whether investing in a vendor delivers the same value as an employee.

These concerns are valid; government financial management requires specialized knowledge, responsive service and careful stewardship of public resources. That’s why we’ve deliberately designed our outsourced finance solutions to address these concerns head on, providing a service model that delivers exceptional quality and value without sacrificing the support municipalities need.

In this overview, we’re breaking down some of the most common concerns we hear from municipalities exploring an outsourced government finance model. If you’re curious about whether this is a solution that might make sense for your municipality, read on to learn about how we’ve shaped our solutions to maximize efficiency and impact.

Concern #1: Physical Presence and Accessibility

One of the most common concerns we hear from municipalities is about our team’s lack of physical presence in their offices. Many leaders are accustomed to having finance personnel on-site and the idea of working with remote professionals can feel like a significant adjustment.

This concern often manifests in two specific ways. First, there’s the day-to-day accessibility factor — the ability to get immediate answers to questions or run impromptu reports when needed. Second, there’s the expectation that finance personnel will attend all public meetings (such as city commission sessions) regardless of whether financial matters are on the agenda.

While these expectations are understandable, we believe they largely stem from established habits rather than genuine necessity. Our experience shows that with intentional communication practices, remote support can be just as effective as in-person assistance — and often more efficient.

We address these concerns by establishing clear communication protocols and regular check-ins. We encourage clients to compile their questions and schedule focused sessions via email or video conference. It’s an approach that ensures both parties come prepared, sees work occur on a predictable cadence, and maximizes the use of everyone’s time. This isn’t to say we won’t be responsive to time-sensitive concerns; if there’s an urgent issue, you can expect our team to provide the short-term support you need.

For public meetings, we take a value-driven approach, attending when financial matters are being discussed but avoiding unnecessary appearances that would only increase costs to the municipality. This targeted method ensures local municipalities are allocating their public funds intentionally, rather than having our professionals be in attendance for every meeting.

Our goal isn’t to be less accessible. It’s to be more intentional with our interactions, providing reliable, responsive service without unnecessary expenses. Most clients discover that after a brief adjustment period, this structured approach actually improves their financial operations rather than hindering them.

Concern #2: Government-Specific Knowledge and Experience

Many municipalities question whether an outside firm truly understands the unique requirements of government accounting and finance. It’s a legitimate concern: government financial management operates under specific regulations and requirements that differ substantially from private sector accounting. And let’s be clear, not every CPA firm has the right level of expertise in government accounting to be able to effectively advise a local municipality. But at James Moore, our professionals do.

Our dedicated government finance practice is composed of government accounting CPAs with decades of cumulative experience advising municipalities across Florida. Members of our team have previously worked in local government, bringing an in-depth understanding of the issues that our clients typically face. Our team understands many of the nuances of municipal government finance, including:

• GASB requirements and upcoming pronouncements
• Florida-specific statutory requirements
• Federal and state grant compliance regulations
• Government-specific financial reporting standards
• Local government budgeting processes and constraints

Working with a local CPA firm that lacks this expertise in government finance could certainly make your concerns a reality. While that firm might be able to help with simple accounting and bookkeeping, understanding the intricacies of grant compliance or GASB is likely beyond their scope. That’s why at James Moore, our MFSS team is staffed with dedicated government accounting professionals who specialize in serving local governments throughout Florida.

This industry-specific knowledge also allows for quick adaptation to your unique processes and procedures. Of course, each municipality might approach its work in a slightly different way. But our experience advising similar government entities means we can help our clients implement best practices from day one and adopt a more efficient approach to managing their city’s finances.

Concern #3: Budgeting for the Expense of an Outsourced Solution

When municipalities consider outsourced finance solutions, it’s common for pricing to emerge as a concern. Many municipalities can (rightly) be hesitant to enter a significant contract with a new vendor before fully evaluating their options.

In many instances, the cost of working with an outsourced government finance partner like James Moore is comparable to or substantially less than the equivalent cost of maintaining a full-time staff member. A finance director commanding an $80,000-$100,000 base salary comes with additional expenses including:

• Benefits package (health insurance, retirement contributions)
• Payroll taxes
• Paid time off and potential overtime
• Training and continuing education
• Recruitment and onboarding costs

These additional expenses typically add 40-50% to the base salary, bringing the all-in cost for a qualified finance professional to at least $120,000 or more annually. These figures don’t account for the risks of turnover or extended vacancies — risks that are significantly exacerbated when a municipality’s finances hinge on one key employee.

Some really small city governments lack the budget for this entirely. For these types of municipalities, a more streamlined approach to government accounting might make sense. We often find that smaller cities with town clerks who manage their finances as a small part of their role benefit significantly from outsourced support for specialized tasks.

At James Moore, we’ve designed our outsourced government finance model to provide a predictable, comprehensive solution that offers local governments a stable cost structure. Plus, our services offer something a single employee cannot: a team of specialists with diverse expertise in a wide variety of areas of government accounting. Clients receive access not just to one professional but to a depth of knowledge that spans multiple specialized areas of government finance. No matter what level of support you need, our team is here to help.

Our approach is driven by value. We aim to provide local governments with a sustainable solution that delivers superior service at a competitive rate. To learn more about our approach and how it relates to your municipality’s needs, we encourage you to contact our team today.

How James Moore Addresses Your Government Finance Challenges

Local governments face unprecedented challenges in recruiting and retaining qualified finance professionals — and challenges are only worsening. As municipalities explore outsourced solutions to this talent gap, it’s natural to have questions or concerns about the process. Our hope is that by addressing these concerns, we’re putting you in the position to make more informed decisions about the best path forward for your municipality.

When properly implemented in partnership with a provider specializing in government accounting, an outsourced approach to government finance can transform what initially seems like a staffing challenge into an opportunity to enhance financial management, improve compliance and deliver greater value to taxpayers.

We’re firm believers that our approach helps municipalities gain access to comprehensive financial management expertise that exceeds what they could achieve with a single in-house professional. It provides depth of knowledge across multiple specialized areas, eliminates recruitment challenges, and creates a sustainable solution that can grow with the organization’s needs.
James Moore’s Government Services team welcomes the opportunity to discuss how our services can be tailored to address your municipality’s specific needs. If you’d like more information about our outsourced finance solutions for local government, contact us today

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.