There are multiple studies out there that point to the same statistic that small business owners rank their accountants as their most important puzzle pieces in their businesses. With accountants, success is limited.
Accountants can do so much more than IT managers, lawyers, bankers, and other kinds of staff, though there are unfortunately many business owners out there who have never thought about it.
Well, if you do think about it, accountants are entrusted with the financials of the company. They are responsible for keeping things on track so that your business can move forward.
A bad accountant means bad business.
When you look at traditional forms of bookkeeping for businesses, you see in-house accountants. Nowadays, more and more companies are turning to outsourcing solutions for their accounting.
Of course, there are pros and cons to each of these situations, which is why so many business owners find it difficult to make the right decision.
That is exactly why we wanted to take this article to look into why a business owner might outsource accounting:
In-house accountants that you employ in your business can be difficult to control unless you are hiring someone that is fresh off the job market. The in-house accountant for a company might be a certified public accountant (CPA). If so, they likely have knowledge of the GAAP or generally accepted accounting principles.
On the other hand, you might have a self-taught accountant. They could have been hired for a number of reasons. These two types of accountants can mean VERY different things for your business.
The aim of outsourcing is to provide your business with consistently high-quality work. Outsourcing firms work with exclusively skilled CPAs to ensure the quality and benefits of their accounting services. Accounting firms, unlike regular businesses, require their employees to stay up-to-date with training, regulation changes, or certifications.
In-house accountants are typically on the same work schedule as regular employees. This means that your accountant probably works 9-5. If they are there, they can help with any problems you have. If not, you might just be left hanging in the wind.
When you outsource, you work with an accounting team that provides you with extended hours so that you can reap the benefit of always having an accountant on your side whenever you need them. This type of service is especially important for businesses that don’t work regular hours, such as entertainment, restaurant, or web-based businesses.
The annual cost can go either way. If you have an in-house accountant that is a full-time employee, you likely pay them health insurance, benefits, and 401K. You also lose out on productivity when they are sick or out of town.
If you have an in-house accountant who you don’t pay much, though they are highly skilled, you are one of the lucky ones. Otherwise, you may want to look into outsourcing
Make sure to get in contact with us here at Infinite Accounting if you have any further questions!