Any small business owner will soon realize the need to become the financial accountant and bookkeeper for your business on top of all of your other tasks. However, it can become difficult to provide superb small business services while simultaneously staying on top of the financial aspects of running your business. Is it time to hire outsourced accounting services? Or how much does hiring an in-house accountant cost?
There are several perks to hiring an in-house accountant but various others for hiring an outsourced accounting service. Which is best for your small business?
Option 1: Hiring an In-House Accountant
The accounting requirements for your small business may be unusual or individualized, which means it could benefit your bottom-line to employ your own accountant.
By having a financial expert on staff, you determine the work they perform and when they perform it. Hiring a private accountant also means that the accountant is loyal to your practice and won’t spend time on any other clients they might have previously had. An in-house accountant typically works a 9-to-5, 40-hours-a-week schedule. When they’re available, they’re probably just stepping away and eager to help – but when they’re out of the office, you’re left hanging.
In-house accounting is the traditional form of business bookkeeping, but companies are increasingly turning to outsourced accounting solutions. Here is why…
Benefits of Outsourced Accounting Services
• Exceptional Quality of Work: Outsourced accounting offers a consistently high quality of work. These firms exclusively employ exceptionally skilled CPAs, so their clients get the benefit of quality accounting services. Plus, accounting firms require their employees to stay 100% up to date on training and certifications.
• Eliminate Training Needs: Outsourced accounting firms are already staffed with knowledgeable and experienced professionals who specialize in high-level accounting, eliminating most training needs. While an onboarding process will still be required for even the best-outsourced accounting firms, this time period is minimized by their experience with being a professional vendor of services.
• Longer Hours of Operation: By outsourcing accounting to a local CPA firm, you usually work with a team of accountants that offers extended hours. This is particularly important for companies where typical business hours don’t apply, like restaurants, entertainment, web-based businesses, and hair and beauty services.
• Prevent Fraud: Here’s an accounting-related issue you might not have considered: preventing fraud within your organization. It’s an unfortunate fact that you’re much more likely to experience fraud when you use in-house accounting rather than outsourcing.
The reason is that an employee can be far more tempted to “cook the books,” embezzle, or commit other types of fraud. Employees have more access to confidential information and can more easily persuade others to go along with a scheme.
• Reduce Costs: Hiring and managing an in-house accounting department is a costly distraction in both time and money. With cloud-based bookkeeping and accounting, you’ll typically spend less and get back more time to grow your business.
• Understand Your Business: The key is knowing which reports will help you make intelligent business decisions for your company. And, to know that the financial data feeding the reports is accurate, up-to-date and properly accrued. You need to understand how to use reports to better run your business through financial reporting and analysis.
How Much Does an In-House Accountant Cost?
In-house bookkeeping and accountants could actually cost you more while delivering less. On top of a full-time salary, you will be required to offer benefits such as PTO, health insurance, Payroll Tax and Works Compensation, and Retirement Benefits. In fact, the base salary of a staff accountant can be an estimated total of $72,000 per year!
When you outsource accounting needs, you will need to pay for the services but all of the overhead costs are left out of the equation. Outsourced accounting services are an efficient and cost-effective alternative that could cost your business anywhere from $25,000- $60,000 per year. The cost of outsourced accounting services usually goes up based on complexity, but it is usually still far more affordable for small businesses to outsource accounting than it is to hire a full-time accountant internally. Additionally, when you outsource your accounting obligations, you don’t have to worry about turnover.
The Bottom Line
Outsourced accounting services are an excellent option for small businesses in Denver. Outsourcing your accounting eliminates the burden of hiring and managing an in-house accounting department while providing expertise in a scalable accounting solution that can grow with your business. Outsourced accounting services will deliver greater efficiency, financial intelligence, and peace of mind.
Limitless Investment and Capital Small Business Outsourced Accounting Services in Denver
Limitless Investment and Capital is a full-service Denver and Detroit CPA firm specializing in outsourced accounting, bookkeeping, business management, and tax services. We offer an unprecedented level of quality for a monthly feee, allowing companies to focus on growing their revenue while we handle all the daily, monthly, and annual financial work. Let’s get started, TODAY!