Most companies are outsourcing their accounting to reduce the extra burden that is vested on operating the business. In-house accounting is a traditional method of bookkeeping and accounting.
Difference between outsourcing and in-house accounting
Quality of work
An in-house accountant could be a certified public accountant with a thorough knowledge on accounting principles or a person who is self-taught and given the task of accounting by the CEO. These two are extreme situations.
On the other hand when you outsource your accounting, consistently high quality of work is achieved. Such firms appoint certified public accountants who are exceptionally good at accounting
An in-house accountant works from 9-5. They offer to help whenever they are available at work. You’ll be left helpless when they’re not available at office.
When you outsource your accounting, you’ll be working with a group of accountants who are dedicated to work for you. They will also work extended hours. This will be helpful for businesses that do not work on fixed hours like restaurants, hair and beauty services, web-based businesses and entertainment sectors.
Prevention of fraud
You’re more likely to face the issue of fraud when you use in-house accounting rather than outsourcing your accounting. This is because when you follow the in-house accounting method, employees have access to confidential information about your business.
Always ensure to balance the cost of in-house accounting vs outsourcing. Also keep in mind the other benefits that are given to the employees like health insurance and other benefits other than just the annual income.
If your accountant is low paid but highly skilled, it’s an advantage for you. If not outsourcing your accounting is the best option to choose.
Outsourcing your accounting and bookkeeping services will help you concentrate better on your business. Call us to find out more about accounting and bookkeeping services. Our experts are always here to help.