Accounting is how your business organizes and analyses the vast amount of financial information that is recorded, to help you understand the current financial position – profit losses, cash flow, current assets, liabilities and more.
Efficient and accurate accounting is the backbone of the business strategy and management – it is not only crucial for the smooth running of the business but also is vital for making better strategic decisions. Being one of the best accounting firms in the business that regularly works with successful businesses around the globe, if we have to make one suggestion for SMBs, it is to focus on getting your accounting processes right.
Bookkeeping services, Accounts Payable, Accounts Receivable and all other accounting processes must be carefully planned and executed by experts and this brings us to the topic of this blog – who to choose among In-house accounting department, and Outsourced Bookkeeping and Accounting Services. In this blog here we give you information about both the services, weigh-in their differences and give you the right information to help you choose based on your requirements. So, read on:
In-house Accounting Department for Bookkeeping and Accounting:
Having an in-house accounting department offers better integration with your business as all your accounting processes are designed and extremely tailored for your accounting needs. You are free to assign your tasks based on your goals, it makes multitasking possible, fosters loyalty, easier to control the work and brings-in loyalty factor.
But all this is possible when you can ensemble a perfect accounting department which is not always possible without suitable expertise, proper investment, and incurring heavy costs both in money and time. Here are a few disadvantages of having an in-house accounting department:
- Not all months in a year bring-in the same business, some parts remain quieter too. And this means dedicated accountants and resources in an in-house department will be less useful as compared to other busy months, which results in high cost, low benefit and not so high ROI.
- Unless you are into booking and accounting, setting-up an expert accounting department that is tailored for our accounting requirements is a tough task. You will need stable assistance from a seasoned expert to oversee the proceedings and this will increase the overall costs.
- In addition to office space, there are many hidden and overhead costs that come with a dedicated in-house department – benefits, insurance, paid leaves, accounting software, tools, training for in-house staff that can be difficult to manage on your own.
Hiring the right resources with the right skill set to guide them towards common goals, and ensuring efficiency and accuracy of the whole department is a taxing task, to say the least. If you are a small and medium business it may not also be practicable to jump right in with an in-house accounting department without tasting the waters with outsourced bookkeeping and accounting services.
How about Outsourced Bookkeeping and Accounting Services?
Outsourced bookkeeping and accounting services strike the sweet spot between in-house accounting departments by offering customised and expert bookkeeping and accounting services at an affordable price:
- By hiring outsourced bookkeeping and accounting services you are only paying for what you need, unlike an in-house accounting department where you end-up paying irrespective of your business. You can scale-up or down based on your requirements and ay according to your requirements when you choose outsourced bookkeeping and accounting firm.
- You need not worry about the technology stack – outsourced bookkeeping and accounting firm is perfectly equipped with all the advanced accounting tools and software that gets your job done in time – everything at an affordable price.
Outsourcing your bookkeeping and accounting requirements cut down all the problems that are posed by an in-house accounting department while providing you with all benefits of having a highly productive, efficient accounting team for your business.
Choosing the right back-office accounting firm is the key:
Be it a bookkeeper, accountant, accounting manager, an outsourced bookkeeping and accounting firm assigns the required resource based on the services a business needs. For example, at Outsourced Bookkeeping, we offer a wide variety of services from Bookkeeping and accounting services, Accounts Payable, Accounts Receivable, Tax preparation, QuickBooks services and more.
We also provide any specific intermediate accounting service that can help a business plug its gaps for bookkeeping and accounting services. Outsourced Bookkeeping is also equipped with an advanced technology stack that helps businesses save time, cost while providing accurate and efficient accounting services.
In-house accounting department vs Outsourced Bookkeeping and Accounting Services: What to choose?
That said if you are a business with already have an accounting department taking help from an outsourced accounting service to fill the gaps offers better value and efficiency. If you are a small and medium business and an in-house accounting department is not practical for you at this point of time, we recommend you to outsource your accounting requirements to back-office accounting firms that offer trusted accounting services, like us at Outsourced Bookkeeping: https://outsourcedbookeeping.com/