Should you outsource or hire an accountant?
A popular question from many business owners is whether they should hire an accountant or outsource to another firm.
While both have their benefits, it really comes down to the overall cost and easing of working processes.
There’s a lot more to the decision than you may think. Here’s what you need to consider when deciding on outsourcing or hiring an accountant.
Pros and cons of hiring an accountant
There are a few benefits of having your own in-house accountant.
The first is that they will focus all of their attention on your business alone. They’ll know all of your inner workings and be a fully-fledged team member, meaning you won’t have to reach out to get hold of them.
Having someone become part of your team also means they will share the values of your business and will have an insider’s eye on your business.
Now, with that being said, the first question is, do you have time to recruit a new staff member? Hunting and hiring a qualified accountant is a job in itself and can take you away from your daily duties.
Once you hire an accountant, you have to enrol them in your payroll scheme and then ensure they are given a reasonable salary.
A new accountant to your team will also have to take time to get used to your books and finances, learn about your business structure, and potentially undertake training.
The costs start to add up further when you consider your employer’s National Insurance contributions (NICs), holiday and sickness pay and even pension contributions.
If there’s a time when you feel you no longer require their services, or perhaps they’re no longer suitable for your team, then the parting processes will be a lot more complicated.
Pros and cons of outsourcing
Although it may sound preferable to hire an in-house accountant, there are more reasons why outsourcing is the better option.
For a start, you have ready access to a team of experienced professionals like the team at Diamond Outsourcing.
Having a team which has worked with countless businesses of all sizes, you’re guaranteed to find someone who can jump straight in and take over your accounting processes.
As your business grows and develops, your outsourced accountant will be able to scale their work for you. The same goes if you enter a quiet period. As your outsourced accountant won’t be working as a contracted employee, you can decide to stop using their services with ease.
If you decide you need to pick the service back up, it’s much easier than going through applications and hiring a replacement accountant.
Because your outsourced accountant will be independent, you’re guaranteed to have honest and impartial advice, minimising the risk of fraud.
Most outsourced firms also offer a range of additional services you can choose from if you desire.
Even though this sounds good, the main drawback is not having a dedicated staff member in the office next door. You’ll do most of your interaction with an outsourced accountant through email or telephone, maybe the occasional meeting. Even then, with the added benefit of cloud accounting, you’ll still have real-time access to your accounts and be able to share them with the outsourcing firm.
Before you rush into making any decisions, the team at Diamond Outsourcing is happy to answer any queries on the costs of outsourcing your accounting and how it may benefit your business.
Get in touch with the team.