Are you the owner of a small traditional bakery or a startup that is the fast and the furious? Or maybe you are running a middle-size business and having trouble finding a loyal member of the team, that you can trust? In this blog post, we’ll show the key points you should consider when choosing between Accounting Outsourcing vs. Hiring an Accountant.
Calculating salaries, taxes, sick leave and vacation compensations may not be the most complex task, but it still requires special expertise and careful attention. The growth of a business increases the complexity of its financial support. In this situation, one accountant may not be able to keep up with the workload. Responsibilities such as calculating salaries, coordinating payments from buyers and to suppliers, calculating taxes, submitting reports to the Tax and Customs Board, and staying up to date with relevant legislation all need to be taken into consideration. Therefore, it is essential that the right accountant is chosen for the job.
Typically, the cost of services of a specialized accounting company starts at a significantly lower price than the salary of a full-time accountant. Every business owner knows that optimizing operational costs is critical to achieving success.
It can be challenging to find a suitably qualified accountant. Utilizing your organization as a testing ground for a novice accountant to learn by trial and error is unlikely to produce desirable outcomes. Professionals working in accounting companies have the advantage of being exposed to a variety of businesses, all within different business conditions.
Staying up to date
In-house accountants need to maintain their professional qualification to ensure they are providing the best service possible. It is recommended that they attend advanced training courses at least once a year. That is an expense your company must endure (remember cost optimization!). However, the qualification alone does not insure your business against the mistakes or inept actions of an accountant, which can lead to financial losses. In an outsourcing company, due to the distribution of duties, constant monitoring of relevant legislation is carried out, staff members have the opportunity to continually develop their skills, all this ensures the optimal outcome for the customer.
No additional costs
Outsourcing accounting services can help in reducing overhead costs by eliminating the need for purchasing and maintaining computer equipment, accounting and legal software licenses and having additional space in the office for papers, folders and an archive.
It is not uncommon for accountants to come and go. When the next audit arrives and accounting errors or unpaid taxes are discovered, you may have to take responsibility and figure out and cover any incurred costs yourself. Companies providing accounting services often include a liability clause in the contract for any documents prepared and actions performed, even after the contract’s expiration date. Therefore, it is important to familiarize yourself with the conditions of the agreement before signing it.
Finding an accountant has become increasingly convenient due to the abundance of individuals graduating with degrees in economics and accounting from universities. However, the lack of practical experience among these recent graduates may lead entrepreneurs to hesitate in paying for their training and potential errors. On the contrary, employing experienced professionals can be quite costly. As a result, outsourcing accounting services might be a viable solution.
We invite you to check out our blog post on setting up MyInvoices, which can help make your accounting processes much easier.