Accounting is an essential function of every business. It’s not uncommon for accountants to know more about a business than the owner. They might be able to see a cash crunch before you do, or be able to spot suspicious activity. This is why many business owners decide to have their own accountant in-house. They feel like the closest they are to the company, the safer and more compliant they’ll be. But that’s not always the case.
Being too close can also compromise you as they have ready access to your operations. In some cases, outsourcing may be the best option. As a matter of fact, it’s usually the best option for small and growing businesses. Let’s take a look at whether you should outsource your accounting or bring it in-house.
Why You Should Outsource
One of the biggest benefits of working with an outsourced solution is that you will only pay for what you need. If you’re a small and growing organisation, chances are you won’t be able to use your accountant fully during their shift.
An accounting firm will also be able to offer more services. Take Azets, for instance. They are one of the UK’s largest firms supporting SMEs and Not only do they offer tax, audit, and accounting services, but you can also get business services from Azets. This means that you’ll have an accountant and a business advisor all in one. Companies like these can grow with you and help you grow by offering all the services you need to scale up. All this without losing touch with your finances or the new rules and regulations you may have to follow.
Last, but not least, accounting firms will help you prepare clean and credible statements. This will be essential if you’re ever looking for financing or to bring an investor in.
Why You Should Keep Things In-House
However, there are cases when staying in-house might feel better for you. Maybe your company has unique needs. You might be in an ultra-specialised industry with different rules and different ways to approach bookkeeping and accounting. If you’re having difficulty finding a firm that fits your business, then you might have to look elsewhere.
There are also cases when you might have people who can fill multiple roles. It’s not uncommon for start-ups to have people working in two departments at once. Some might work on both marketing and product development, for instance. Others might work in customer service or sales. If you have an employee that can handle both bookkeeping and other functions and your needs are limited, then you might want to take advantage of this opportunity. Note that you may still need the help of an expert accountant for things such as preparing financial documents and raising capital.
So, Which Option is the Best for You?
If you believe you won’t be prone to errors from time to time or missing some crucial benefits and deductions, then going with an in-house accounting department might not be an issue for you. The reality is that an expert accounting firm will simply have more resources on hand. They will also handle the whole HR part for you.
If you don’t understand accounting yourself and your HR staff don’t either, it’s difficult to tell how good an accountant will be. Outsourcing will take the headache out of finding and retaining top talent. Since reputational risk will be paramount, they will be also less prone to making mistakes and omissions.
So, if you were still wondering whether you should hire your accountant or outsource, we hope we were able to help. Make sure that you weigh both options and choose the best one for your organisation in its current state.