Choosing between an in-house team or outsourcing your Accounting Services may be confusing. To get a clear picture, you should weigh the pros and cons and analyze the cost of each option. Many businesses use in-house accounting teams while others prefer to outsource these services. If these options are confusing, consider how much it costs to hire an in-house team or outsource the work. You can also weigh out the pros and cons of both situations. While this can be a complex and difficult decision, understanding the key difference and comparing both options will help you make the right decision.
The Cost of Keeping an In-House Team
The cost of an in-house accounting team will vary depending on the size of your business and the team you need. The financial situation varies according to your business’s financial function and size. And, according to the size, you will have to decide on the number of employees. You should also consider that the employee costs are not only a monthly salary, but also include the training process, benefits, overhead, overtime, and more.
The Cost of Outsourcing Accounting Services
The cost of outsourcing accounting services also varies according to different service providers. This service usually comes with a bookkeeper, accountant, controller, and more, depending on your needs. Accounting providers usually charge per year, and this amount includes everything on the team. You will have to pay a monthly amount, but you do not have to pay a salary per head. So, outsourcing your accounting services makes it easier for you to budget, and you do not have to worry about spending more. On top of this benefit, you also do not have to worry about hiring new employees, training the staff, managing the team, and focusing on retaining the members. All you’ll have to do is hire a reliable service provider and pay the monthly fee.
Top Reasons to Outsource Your Business Accounting Services
There are many reasons why businesses outsource their accounting and bookkeeping services. The points discussed above outline some of the reasons why many businesses would prefer to outsource these services instead of hiring an in-house team. However, what follows are the primary reasons many businesses decide to outsource their accounting services.
- Compared to hiring an in-house team, outsourcing is more cost-effective. Hiring an in-house team comes with many expenses, including salary, incentives, and other costs. When you outsource these services, you pay a fee monthly without having to worry about extra expenses.
- When you outsource accounting services, it is easier to scale and grow your business compared to managing an in-house team. When you use an in-house team, you have to plan for that team to grow alongside your business. But when you outsource such services, you do not have to worry about all these aspects.
- The final reason why many businesses decide to outsource bookkeeping and accounting services is due to speed to market. The speed to market is one of the top reasons your business should also outsource such services.
Benefits of Outsourcing Accounting Services
Outsourcing accounting and bookkeeping services come with many benefits, including fraud prevention. When you have an in-house team, security is one of the main concerns. Employees can steal from you and you may not have the right software to protect your system from scammers. When you outsource an in-house team, you will have a team of experts taking care of your finances. So, you will not have to worry about inaccurate financial reporting.
So, if you cannot decide between outsourcing your Accounting Services or hiring an in-house team, these comparisons should help you make a decision.