Should You Outsource Accounting or Hire In-House?

Should You Outsource Accounting or Hire In-House?

As an entrepreneur, you’re going to need someone with proper accounting experience. Not only will this help you manage your company’s finances, but you’ll also be able to improve your efficiency from year to year. It’s not always obvious, though, whether you should hire a new employee for the role or outsource these obligations to a third-party. Not sure where to start? Don’t worry, we got you covered. Let’s take a look at everything you need to know about whether or not you should outsource accounting.

In-House Accounting

Working directly with an employee comes with a handful of perks. Young partners discussing in meeting at creative office For one, you’ll get to communicate with them directly on a daily basis. This leads to more awareness of where they are in a project, any issues they may be having, and any adjustments you may need to make. They’ll also adapt to your company’s specific needs the longer they work with you. After a few years of practice, a loyal accountant will know exactly how to handle the numbers your business is dealing with. This level of flexibility can be invaluable if unexpected scenarios occur that require different accounting practices than normal.

Outsourced Accounting

While not quite as personal as an in-house accountant, an outsourced accounting employee can still offer high-quality, reliable service. Active accountant checking receipts in her office When it comes to outsourcing, two factors stand out:

  • Since these workers have only one role, they’re less likely to make oversights or mistakes
  • The third-party firm’s reputation depends on their accountants’ performances, meaning they’ll take extra steps to review their work.

It’s not uncommon for an in-house accountant to have multiple roles or obligations. Unfortunately, this can prove to be a distraction that lowers the quality of their accounting work, especially during busier times of the year. So, outsourced accountants are a solid choice when you need accounting services without having to directly communicate with the worker on a daily basis.

So, Which Should You Choose?

If you’re looking for an employee who can perform multiple roles in addition to accounting, then an in-house accountant is the right option for you. But, if you need someone to only take care of accounting obligations, it makes more sense to hire an outsourced accountant. It’s a more efficient use of both time and money since they only work (and get paid) when you need them to. This is a great decision for small business owners, as entrepreneurs with smaller companies often can’t afford to hire a full-time employee for one role.

Knowing If You Should Outsource Accounting Can Seem Difficult

But it doesn’t have to be. With the above information about whether or not to outsource accounting in mind, you’ll be well on your way to making the best choice for the role. Want to learn more about how to optimize your business operations? Our article on outsourcing has plenty of useful information.