All businesses need accounting services. If yours is growing, you might be torn between maintaining an in-house accountant or outsourcing. Although the former might appear convenient, it also has some hidden costs that you can eliminate by outsourcing.
3 Common Costs Associated with In-house Accounting
Before hiring an in-house bookkeeper, you must consider both the tangible and intangible costs of doing so. Key considerations are: 1. Wages and Benefits Wages are fairly predictable costs, but they can vary depending on various factors. These include the type of business you’re in, its location, the volume of accounting work, and the accountant’s skills and experience. You might also have to provide benefits, such as healthcare and retirement plans. Other expenses are payroll taxes and workers’ compensation. Hidden costs include employee turnover, overtime, embezzlement of funds, and penalties and fines. Inexperienced accountants may make mistakes that might end up costing you more in lost opportunities. 2. Overhead Costs An in-house accounting department will need resources such as office space, supplies, computers, and other equipment. You’ll also need to invest extra costs in hiring, training and managing them. 3. Time Most people don’t consider this intangible cost when opting for an in-house accounting department. You must analyze the time spent on handling accounting issues versus the value you receive. Time spent hiring, training and handling employee turnover could be better used in increasing your overall productivity.
What Are the Benefits of Outsourcing Accounting Services?
Outsourcing solves most of the inefficiencies associated with in-house accounting. One of its biggest advantages is the significant cost savings. You’re given a fixed quote for certain types and amounts of bookkeeping services. Since you only pay for exactly what you need, there won’t be any hidden costs. You also save time and reduce overhead expenses. This allows you to focus on your core business and improve productivity, which ultimately increases profitability. Other benefits of outsourcing are: Improved Data Security Outsourced accounting solutions include the latest cyber and cloud security features. You’ll get this benefit at a more affordable cost than you would have if you’d implemented it in-house. Minimal Risks Outsourcing removes the stress of having to deal with the latest regulations, taxation and compliance. Since you’re dealing with experts, they’ll handle all these tasks on your behalf. This gives you more time to focus on more productive personal and professional pursuits. Faster Decision-making Process In-house bookkeeping can hamper decision-making in several ways. Other than TBD answers to some questions, you must also keep up with complex accounting policies. You’re also expected to handle ever-changing technology needs, as well as employee performance. With outsourcing, all you need to do is define your accounting objectives and they will be met within the specified period.
Why Office Squad Is the Ultimate Solution?
At TheOfficeSquad, our bookkeepers can handle all of your accounting needs and save you money in the long run. If your business is growing, you may feel overwhelmed by the demands of in-house accounting. Our accounting and bookkeeping services are designed to make your organization leaner and more profitable. Contact us today at 702-649-3495 for more information on our full range of services.