How Outsourced Accounting Services Can Take Airline Finance Operations to New Heights

Your accounting team just missed another month-end close deadline, and your CFO is asking tough questions. 

The ripple effect hits fast: delayed financial reports stall board meetings, compliance issues trigger auditor concerns, and cash flow projections become guesswork. 

Meanwhile, your competitors are making data-driven decisions while you're still waiting for basic financial insights. 

This guide will show you how outsourced accounting for airlines can eliminate these bottlenecks and give you the financial agility to compete in today's market.

What Challenges Do Airlines Face With Accounting?

The airline industry is unique in many ways, and this includes its accounting needs. Some of the challenges airlines face with their finance operations include:

Legal considerations

Airlines encounter significant challenges in adhering to both international and domestic regulations, including strict compliance with varied tax laws across different countries. Additionally, they must ensure their financial reporting is accurate and transparent enough to satisfy stakeholders and government agencies. 

Smart sourcing or niche outsourcing

It can be difficult to find qualified accounting professionals with specialized industry knowledge while managing the costs of an in-house finance team. Plus, it’s necessary to ensure seamless integration of accounting processes with other departments—like operations and marketing—to maintain efficiency. 

Dealing with global spread and airline alliances

Coordinating financial operations with partner airlines can be challenging. It involves:

• Handling multi-currency transactions
• Managing accounting processes for international flights
• Keeping track of revenue and expenses across various geographic locations and time zones

It is further complicated by specific tax implications and currency conversions that some accountants may not be familiar with.

Access and use of proprietary information

Airlines must maintain the confidentiality and security of sensitive financial data. To prevent unauthorized disclosures, they face the challenge of controlling access to this financial information among various departments and employees. 

Benefits of Outsourcing Accounting for Airlines

Outsourced accounting services bring a host of benefits to airlines, including:

Enhanced cash flow

Accounting outsourcing can help airlines optimize their cash flow management by providing timely and accurate financial reports, budgeting, and forecasting. This allows you to make strategic decisions that improve your financial standing.

Access to part-time or full-time resources

With outsourced accounting services, you can access part-time or full-time resources as needed. 

This flexibility allows you to scale your finance operations according to your current needs without having to worry about the costs of hiring and training new staff.

Quick service turnaround

Outsourced accounting services are equipped with cutting-edge technology and streamlined processes, allowing for a quick turnaround time for accounting tasks. 

Airlines can receive timely financial reports and analyses, which is crucial in making informed business decisions.

Cost savings

By outsourcing your accounting functions, you can save on the costs associated with hiring full-time staff, as well as training and maintaining an in-house finance team. 

Outsourced services also eliminate the need for expensive accounting software and technology investments.

Improved compliance and risk management

Airlines operate under strict financial regulations like the Sarbanes-Oxley Act and Generally Accepted Accounting Principles (GAAP), and compliance is crucial to their success. Outsourced accounting services have specialized knowledge of the airline industry’s financial regulations and can ensure that all financial activities are compliant. 

They also provide risk management strategies to mitigate any potential risks.

Focus on core business activities

Outsourced accounting services allow you to focus on your core business activities without the distraction of managing complex finance operations. This allows for increased efficiency and productivity in other areas of your airline business.

Access to advanced technology

This ties into the broader trend of digital transformation in aviation, where airlines are adopting cutting-edge tools not only for operations but also for finance.

This eliminates the need for airlines to invest in expensive financial systems and allows you to benefit from the latest technologies without additional costs.

How To Outsource Airline Accounting Services: A Step-by-Step Process

Outsourcing accounting services for your airline is easier than you’d think. Just follow these steps, and you’ll be well on your way:

1. Identify potential providers

When seeking outsourced accounting services, it is essential to research and identify potential providers that have experience working with airlines. Look for firms that offer specialized expertise in the airline industry.

2. Conduct due diligence

Once you have a list of potential providers, conduct due diligence to ensure they are reputable and have a proven track record in providing outsourced accounting services to airlines. 

This step is crucial, as you will be entrusting them with your airline’s financial operations.

3. Evaluate service-level agreements

Before signing any agreements, carefully review the service-level agreements (SLAs) offered by each provider. SLAs outline the scope of services provided and ensure that both parties are on the same page regarding expectations.

4. Plan the transition

When transitioning to outsourced accounting services, it is essential to have a well-thought-out plan in place. This should include a timeline for the transition and communication with all relevant stakeholders.

5. Train and transfer knowledge

As the transition takes place, it is vital to train your team on new processes and accounting procedures. This will ensure a smooth transfer of knowledge and minimize any disruptions to your finance operations.

6. Monitor and manage the transition process

During the transition process, it is essential to monitor and manage progress to ensure everything is going according to plan. Regular communication with the outsourced accounting service provider and your team will help address any issues.

7. Post-transition support and evaluation

Once the transition is complete, post-transition support should be provided by the outsourced accounting provider. Maintain ongoing communication and evaluation of their services to ensure they are meeting your expectations.

6 Best Providers of Outsourced Accounting for Airlines

Now that you know the basics of outsourced accounting, it’s time to find your provider. Here’s our list of top recruiting firms and accounting staffing agencies, in no particular order:

1. Near

Near (Hire With Near) is a full-service staffing and recruiting agency that helps US companies of all sizes hire top-performing remote talent in Latin America across finance, accounting, sales, software engineering, AI, data, design, marketing, operations, and virtual assistance.

We can find accounting professionals with the necessary airline industry background and expertise to handle your specific financial requirements.

Our approach includes:

• Fast placement process: Candidate lists within 3 days, completed placements in under 3 weeks
• No upfront costs: You'll never pay anything upfront—once you make a hire, choose between a one-off fee or monthly fee depending on whether you prefer us to handle payroll and compliance
• Extensive talent network: Pre-vetted talent pool of over 45,000 candidates, plus custom sourcing to find talent meeting your exact requirements and expectations
• Top-tier professionals: Access LatAm accounting professionals who perform like your best US hires
• Real-time collaboration: Close time zones eliminate overnight delays common with traditional offshore accounting

Companies like CyberFortress saved over $1M annually by building their entire accounting department with Latin American professionals, achieving faster month-end closes and improved financial reporting.

2. Berkowitz Pollack Brant

Berkowitz Pollack Brant is a firm of advisors and certified public accountants (CPAs) based out of Miami, Florida. Since 1980, it has grown into one of the top 100 US firms and serves over 100 philanthropic organizations.

Its work for aviation businesses and airlines includes tax advisory, outsourced bill payment services, payroll and 1099s, account reconciliation, cash flow analysis, maintenance program reporting, crew expense reports, advice on entertainment use, and more.

3. CBIZ

Nationwide professional service provider CBIZ is a trusted provider of accounting, tax, insurance, and HR services. It was included in Accounting Today’s 2024 Top 11 Largest Accounting Providers Nationally.

The company’s airline specialists provide deal advisory, employee benefit plan audits, financial statement audits, tax compliance and consulting, and risk advisory to the airline industry.

4. Fleming Advisors

Fleming Advisors provides tax, accounting, and advisory services from Owasso, Oklahoma, and Leawood, Kansas. Pharmacy, real estate, and aviation are the main industries it services.

Its accounting and reporting services as aviation tax advisors include accounting services, cash flow forecasts, operating cost analysis, and compliance reviews. Fleming Advisors also handles federal, state, and local considerations.

5. Aviation CPAs

Fort Lauderdale, Florida’s Aviation CPAs is a tax, consulting, and financial services firm specializing in flight tax systems. Established in 1984, it’s now a member of several flight organizations and serves clients around the world.

Its wide range of services includes flight tax systems, aviation tax software, tax returns, state sales and use tax, audits, ownership structures, flight crew services, financial management, and other tax services.

6. PITON Global

PITON Global is a Fortune 500 outsourcing company with contact bases in the US, Australia, and the United Kingdom. Its leaders boast multiple awards and decades of experience in the field.

The firm’s airlines and aviation outsourcing services include accounting and finance, among other back-office services. It has worked with Delta, United, American, Southwest, Singapore, and Cathay Pacific airlines for their outsourcing needs.

Final Thoughts

In the competitive airline industry, efficient and compliant finance operations are essential for success.

Outsourcing accounting services tailored specifically for the airline industry can provide a range of benefits that can help take your finance operations to new heights. 

Not only do outsourced accounting services offer specialized expertise in managing the complexities of an airline’s finances, but they also bring operational cost savings, enhanced compliance, and seamless management of financial operations. 

Don’t forget the importance of partnering with an experienced and reputable outsourcing provider.

At Near, we specialize in recruiting highly qualified accountants in LatAm.

Let us help you find the perfect fit for your airline’s finance operations. Book a free consultation call today.