Ensuring your business’s cashflow is secure and consistently growing is the #1 way to scale your business.
After all, profit is a direct representation of your business health.
It only makes sense then that as a savvy business owner, you may be considering the potential beneficial differences between hiring an in-house accountant – or outsourcing.
Both sides have merit. Our financial gurus have pooled one hundred and fifty years of experience to shed some light on the latter.
Broad Experience Vs Specialization
This upside to outsourcing accountancy is typically overlooked.
Whereas an in-house accountant will spend their time on just one business (yours) an accounting firm will acquire a wide range of knowledge from many different businesses.
This includes businesses who are from your industry, who may be doing potentially better (or worse) than yours. There are valuable lessons to be gleaned from both, and a firm can help you capitalize on them.
Likewise, an accountant who has helped many different types of businesses succeed is more equipped to help yours scale.
Let’s Talk Cost Differences
There are many benefits to hiring in-house; unfortunately, one (very big) downside is the cost.
Hiring in-house will require you to pay a full time salary, which can range anywhere between $60,000 to $120,000, depending on your business size.
Comparatively, you could be receiving the same results from an accounting firm, but for a fraction of the price.
Additionally, an accounting firm will dedicate an entire team of bookkeepers, accountants, growth strategists and tax specialists to growing your business. Again, most outsourced accountants will only cost between 10%-20% of what you’d be paying an in-house accountants salary.
Improve Focus: No Separation Of Duties
One common occurrence with in-house accountants is to split their duties for increased productivity. This might mean the accountant can take on HR or admin roles, and potentially save you salary costs.
Unfortunately, when duties are compounded it can actually lead to your in-house finance team being less productive.
Responsibilities from different sectors (finance vs administration, HR vs bookkeeping) can often lead to disorganization of priorities.
You can avoid this by outsourcing to an accounting firm, who will only focus on your accounts and bookkeeping. This will lead to much better results, faster turnaround time and less mistakes. Ultimately, you’ll gain much more clarity on your financial situation without mixing priorities.
Avoid Delays Without Turnover Or Time Off
Hiring an in-house accountant will subject them to the same rules and regulations that any full-time employee would receive.
Namely, you’ll have to factor in their time off (annual leave, sick days, etc) and if they ever do change jobs, then you’ll likely spend up to three months training new staff to replace them.
An accounting firm, however, will never take time off your business,
Okay, it’s a bit unfair to say: but that’s only because an accounting firm will have an entire team to pick up the slack of any team member who may be off sick!
To Outsource Or Not?
Thinking of outsourcing your tax work, but want to be sure it’s to an accountant you can trust?
Look no further than The A Firm! All of our clients have come to us through word of mouth referral; there’s nothing we take more seriously than customer service and quality of work! Call our friendly team today to book your free meet and greet with our director.