In-House vs Outsourced – What’s the best option for Your SME?

 Accounting is vital for any business. There are many ways to find the right services to keep your business afloat. What is the best approach if you are just starting out or if your accounting systems have been neglected? Either hire an outside specialist or recruit an accountant in-house.

There are pros and cons to each option, depending on who you hire. We are going to share some information today about how to hire an in-house accountant vs. outsourced accounting staff so that you can meet your company's needs.

There are many benefits to having a bookkeeper or accountant on-site. This approach is preferred by business owners because it gives them control over how their staff works. Business owners need to be aware of what is happening within their company, particularly when it comes down to finances. It's a good idea to leave the financial responsibility to an industry expert.

Although there are many benefits to having an in-house finance department, you may also be facing serious problems. These are the top problems that businesses face when they hire in-house finance on accounting staff.

1. High costs: Look at the numbers and you'll see that it is much more costly to add another full-time employee to your payroll. You will need to pay the salary of your staff member, but you should also consider overhead expenses. Insurance coverage, holiday pay and office space are all included in the fully-burdened cost for another employee. This includes ongoing training and continuing education, as well as insurance coverage. These costs are much less than the cost of outsourcing a specialist accounting team.
2. The Recruitment Process: How much effort and time goes into recruiting when you're looking to hire a new accountant. It can be difficult to post a job, interview candidates, bring them in, and train the person on the system and procedures. An outsourced team of financial specialists has already established proven systems. These services are a great option for businesses that don't have to worry about ongoing training or onboarding
3. Wasted Work Time: Every business owner wants their employees to perform well throughout the day. Water-cooler conversations will always happen. This means you're paying someone for their time even if they are not working. Outsourced finance managers, on the other hand, only charge for time spent working for your company. This means you don't have to worry about extra costs for lost work time.
4. Low quality of work: Accounting is not an easy task. They must be able to keep track of all accounts and pay attention to details. An in-house accountant or bookkeeper doesn't have as much experience as an outsourced team. You could end up with quality problems and costly errors that go unnoticed. Outsourcing allows you to have the services of experts who are knowledgeable about accounting in many situations and sectors.

You can see that hiring an accountant in-house can cause a financial burden for your company. An outsourced accounting group may be the best option for you if you want to reduce costs and improve the quality of your financial services.

The Benefits of Outsourcing

Outsourcing can solve many problems that are common with in-house employees, as mentioned previously. Outsourcing offers many other benefits than those already mentioned. These are just a few of the benefits that you can enjoy when you invest in an offshore finance team.

• You only pay for what you get: Outsourced accounting lets you choose to not commit to a full-time salaried position, but instead, you can pay for the services you actually need. You might opt for a monthly service plan which includes cash flow management, bookkeeping, payroll processing and other accounting tasks. You can also pay for additional services if they are not included in the standard offering. This outsourcing strategy will save you thousands of dollars every year. Outsourcing allows you to know exactly what you are paying for and eliminates the need for you to pay extra for services or time that you don't use every month.
• Access to Tools and Systems: Think about the benefits of working with a proven finance team or accounting firm. Your accounting team will be familiar with all the most important tools in the financial sector so you can feel confident. These software programs are a great way to simplify your bookkeeping and reporting. The best way to improve your company's financial management is to combine quality software with high-quality accounting services.
• Expertise and Knowledge: An outsourced accounting firm will have many specialists with a variety of industry expertise. You can't get the same level of expertise from one employee with all the years of experience. These skills require a lot of time and t. Training staff in-house can prove to be difficult to acquire the financial skills you need.
• Scale Option: It is possible to scale your financial management system as your business grows. You will eventually exhaust the capabilities of an in-house employee. They only have so many hours in a day. It is important to have an entire team of outsourced financial professionals to assist with your company's growth.
• There is less risk of down time If an in-house financial staff member is on vacation or sick, this means you are no longer able to rely on them for advice. When you work with an external finance team, however, you don’t need to worry about downtime. You can always count on other members of your team to assist you with your financial reports or accounts if one person is unable to access the computer.

Financial Management Is Essential for Your Business

It can feel like accountants and bookkeepers are an added burden in your day-to-day business operations. These finance professionals shouldn't be considered a burden. If you want to see strong business growth and future success, you need a well-organized financial system.

To be prepared for any unexpected circumstances that may arise in your business, you need the right system. An outsourced finance team can provide a strong financial foundation for your business. Many business owners don’t have the formal accounting or bookkeeping training they need. This is why it makes sense for them to seek out accredited expertise.

Fin-eX Outsourcing can provide the customized support that business owners need to outsource their accounting and finance services