Outsourced Accounting Vs. Hiring An In-House Accountant
The evolution of technology and innovations in the accounting sector have led to numerous options, all of which have merits and faults. For this reason, when considering accounting and tax expertise, you must choose between outsourcing or hiring an in-house accountant.
Both have a unique set of advantages and disadvantages, and to make the right choice for your needs, you must understand how these decisions affect your company.
To educate you, JT Comptabilité CPA et Consultation has explained both of these accounting options in detail below and tried to explain which one is best for you based on your preference and situation.
Outsourced accounting eliminates the challenge of going through dozens (and sometimes hundreds) of applicants. Additionally, you only need to pay for the services without overhead costs. Another advantage of outsourcing your accounting and bookkeeping is as these responsibilities have been taken care of, you can use the extra time to introduce new aspects to your business. This is especially helpful for small or medium businesses with fewer hands on deck.
One of the significant disadvantages of outsourcing your accounting is less control. You can’t walk down the hall to ask about every financial event, and for business owners, handing over control of the books can sometimes feel uncomfortable. Similarly, outsourced bookkeeping can have the drawback of miscommunication that can cause misunderstandings. There is also a confidentiality and security risk. There’s always the chance that confidential information could be compromised, leaving your business in jeopardy.
In-house accounting involves interviewing candidates and ensuring an understanding of each candidate’s qualifications and whether they are the right fit for the job. This ensures that whoever works on your accounting is a qualified expert and is a major advantage if your accounting needs are very specific, specialized, or unusual. If this is the case, outsourcing may cost you more than hiring your own accountant.
Finally, when you hire someone, you’re free to set the tasks they perform, whereas outsourced services usually come within a package that may not always fit your needs. Having your own accountant also brings value to your business and ensures loyalty.
Finding the right accountant who fits your organization takes time and effort. One of the biggest challenges for business owners is properly evaluating someone’s accounting skills without having a deep knowledge of accounting.
Another concern is that chances are that some points of the year will be quieter than others. This means your full-time in-house accountant will be less valuable than they are during the busy periods, resulting in high costs but low benefits at these times. Hiring someone means you’ll have to foot the bill for the complete package, including salary, benefits, office space, accounting software, etc.
In the end, if yours is a small business that wants to improve its core business focus and avoid the risk and costs of hiring more employees, it could choose to outsource its accounting. As your business grows in size and when the complexity of your accounting needs increases, you can consider hiring an in-house accountant.
If you’re looking for tax accountants in Montreal, Québec, reach out to JT Comptabilité CPA et Consultation. As a leading accounting firm, we are committed to providing our clients with the highest levels of customer service. Our team of qualified CPA experts is invested in your success, and nothing gives us greater pleasure than seeing your business grow financially. Our services include tax and accounting, business consulting, business immigration, work permits, and consulting in Canadian taxes, accounting, and business immigration.
Get in touch with us today!