Should You Hire an Accountant/Accounting Service Firm
Another aspect to consider is the needs of your business. By understanding what your company needs, it would allow you to make the best decision between hiring an accountant or an accounting service firm.
It is common for small companies to start with the usage of financial software programs to assist them in managing cash flow, financial reports and other related matters until the business grows and more financial responsibilities come.
When that happen, it would be advisable to shift the responsibilities to a certified expert to handle such activities like tax filing, tax planning and business planning. Some of the benefits of having an accounting firm are:
What are the Benefits of Outsourcing your Accounting Functions
Having someone else or another entity focus on the accounting and finances of any operation will then give the business the freedom to look into other aspects of the business. Here is a list of some of those benefits:
The most significant benefit of outsourcing your accounting functions is that it is cost saving. Despite the cost incurred for engaging accounting providers, the money is saved from the monthly salary, annual leave, time in lieu and sick leave for permanent employees.
Instead of spending time on recruiting, training, and other employee-related activities, you will be able to obtain “instant employees” by opting for finance and accounting services.
This saves time and effort of considering the employees as you are only responsible for paying for their services.
Worry-free for deadlines and timeline
By outsourcing the accounting functions, you would not be needed to worry about the submission or reporting deadlines as the service providers would do it for you. This relieves the burden of deadlines and allows the owner to focus on other aspects of the business.
Better quality of work
Outsourced accounting providers will honour the service agreement because they need it as part of their business as compare to permanent employees who probably only worry about the next pay check.
Always up-to-date with latest regulations and legislations
Another advantage of having experts is that they are updated with the latest regulations and legislations relating to accounting functions.
Only pay for what you need
Outsourcing your accounting function also means that most of the time, you will only be charged for services that you use as and when you require them.
Streamlining your business
Outsourcing accounting services usually proves to have fewer errors due to this streamlining and thus, you would have to spend less time trying to rectify mistakes.
Access to the latest accounting technology
Together with the service, you are more likely to also get the latest in accounting technology. By outsourcing, you no longer need to spend so much time researching on accounting programs.
Drive core business functions
Through outsourcing your accounting, it allows the business to put money towards activities that will increase revenue as compare to hiring an internal accountant that would not necessarily drive revenue.
Increase controls & Reduce Fraud
In small companies, it is common for accounting to be managed internally in the hands of one or two people, posing higher risk of fraud. By outsourcing and moving the responsibility to a third-party, it reduces the risk of fraud and allows for greater internal controls.
Outsourcing proves to be a catalyst for numerous businesses to spur the growth of the organisation, especially in today’s climate. Through doing so, business owners can now spend a significant amount of your day investing in business operations instead of having to worry about internal processes.