Outsourced Accounting – The Pros and Cons

Outsourced accounting has been an option used by businesses and start-ups for years. Unless you offer accounting services, a highly-qualified, in-house accountant can be incredibly expensive. If you’re bootstrapping for your start-up, it may be tempting to take on your accounting yourself; is this going to be efficient for you?

It’s not a new idea to outsource your accounting department. Chances are pretty good you’ve thought about it or are actively considering this option. Wherever your business stands with it’s accounting and payroll efforts, take a look at the following pros and cons before you pull the trigger.

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Advantages of Outsourced Accounting

In short, outsourced accounting means saving your company time, money and headaches. Outsourced accounting also means you’re gaining access to a fully qualified accountant, without paying a $40,000+ salary. You don’t need to supply an outsourced service with health insurance, vacation pay or any other benefits. An outsourced accounting service does it’s own hiring. No need to find that perfect fit for your business; the service you use has all of that covered. It can be daunting finding that perfect team player that understands your business.

Experts On-Call

It’s an outsourced accounting firm’s job (and in their best interest) to find qualified, high-quality accountants. As mentioned earlier, you won’t be spending your own time and resources finding the perfect accountant for your team.

An outsourced accounting firm is entirely made up of professional accountants that deal with accounting all day, every day. There’s also a lot of competition in the field of outsourced accounting. What this means for your business is the service you use will always be keeping up with the latest trends and techniques to keep your accounting on the cutting edge.

Save Time

If you’re the one currently taking on your accounting, outsourcing will clearly save you that time. Staying on top of your businesses accounting and payroll is a constant drain on your time and resources. There are probably different areas where you should be spending your time and energy in your company. If you’re not an accountant you may also be getting overwhelmed just by keeping track of these things. Chances are you won’t be spending extra time researching what’s new in the world of accounting.

Save Money

A professional accountant’s salary starts out right around $40,000 and climbs with greater experience and responsibilities; and, this isn’t including benefits like health insurance. Outsourced accounting services, in general, are a tiny fraction of this. Every business enjoys saving money and investing in parts of the business that isn’t an accounting department. You also will be saving the money you would be spending on equipment and new software for the department. You won’t be paying for the training of your new recruits or their vacation.

Outsourced Accounting Weaknesses

Even though outsourced accounting has many benefits, some companies decide to keep their departments under one roof. There are great services that address these following issues. But, for some lesser quality outsourced accounting services these issues persist.

Security

Every business should make a high priority of their security. Protecting your sensitive data is in the best interest of your company for obvious reasons. When considering different options, make sure the provider you choose respects the security of your data just as much as you do.

Location and Language

If you’re in the USA, you might want to make sure operations actually happen in the USA. Some accounting companies have offices all over the world. It’s must more efficient to talk to an accountant that natively speaks your language.

Less Control

A high-quality accounting service will place training of accountants at the top of their list of priorities. Sometimes companies do enjoy having very particular training, and the ability to oversee operations first hand.

Whatever course you decide to take for your business, go over the pros and cons. Do your research, and find the company that fits your operation best.

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