Every business needs accounting services. If you have a growing business, you might be wondering whether to keep an in-house account or outsource. While it can be convenient to maintain or employ an accountant, it has some hidden costs you can get rid of when you outsource accounting services from a reputable Atlanta accounting firm. Keep reading to learn more about these costs and the benefits of outsourcing
In-House Accounting Costs
Before you hire an in-house accountant, you should take into account the tangible and intangible costs associated with this. These include the following:
- Wages and benefits. While predictable, wages can vary depending on different factors such as the kind of business you run, its location, the skills and experience of the accountant, as well as the volume of accounting work they handle. Also, you might give this employee some benefits like retirement plans and healthcare. In addition, hiring an in-house accountant is associated with other expenses such as payroll taxes, workers’ compensation, and employee turnover. And when you end up hiring the wrong accountant, you could be dealing with the financial consequences of the mistakes they make.
- Overhead costs. For your accountant to perform their job, you must provide them with office space, computers, supplies, and other equipment. Also, you must invest in additional costs associated with recruiting, training, and managing the employee.
Why Outsource Accounting Services
By outsourcing, you can minimize or eliminate the majority of efficiencies associated with in-house accounting. An accounting firm will only give you a fixed quote for specific kinds and amounts of accounting services. Because you only pay for the services you need, you don’t worry about hidden costs. The best firm uses the latest cyber and cloud security features, ensuring the security of your business data. Also, outsourcing eliminates the stress of dealing with new regulations, compliance, and taxation. You allow experts to handle accounting-related tasks for you, giving you more time to concentrate on other important aspects of running a business.
Moreover, there are many ways in-house accounting can hamper decision-making. Apart from answering questions, you should also keep up with accounting policies. Also, you should handle changing technology needs and employee performance. When you outsource, you only need to define and relay your accounting objectives to your provider. Then your provider will meet such objectives within a certain period. Meeting such objectives is essential to the success and continuous growth of your business.