Outsourced accountant or full-time accountant: what to choose for a small business

When starting and developing a business, an entrepreneur has to decide who to entrust accounting to. You can hire an accountant or transfer the accounting department to a specialized company. Both options have their own characteristics, so the choice should be made taking into account the amount of work, the number of employees and the tasks of the company.

Full-time accountant

A full-time specialist is constantly at the company and deals with accounting issues as part of his job responsibilities. This option may be convenient for businesses with a large number of daily operations, a large staff, and a complex accounting system.

However, maintaining your own accountant is not just about salary. The company also incurs the costs of taxes and mandatory payments for the employee, workplace, software and professional development. In addition, if an accountant is on vacation, ill, or dismissed, it is necessary to resolve the issue of a temporary replacement.

For a small company, this format is not always economically feasible. If accounting operations are performed several times a week, it may be unprofitable to pay for a full-time staff unit.

Outsourced accountant

When outsourcing, the company outsources accounting to external specialists. An entrepreneur gets not just one employee, but a team that can handle tax and accounting, reporting, payroll, and other tasks.

The main advantage of this approach is the opportunity to receive professional service without maintaining a full—fledged accounting department. The cost of services is determined in advance by the contract and depends on the amount of work, the number of operations, employees and the specifics of the business.

If necessary, specialists can not only keep current records, but also advise the entrepreneur on tax issues, check documents, help with the restoration of accounting and preparation of reports.

What is more profitable for a small business?

For a small business, not only the cost of accounting is important, but also its reliability. When hiring one specialist, the company becomes dependent on a specific person. If an employee gets sick or leaves the company, the entrepreneur will have to urgently look for a replacement.

In outsourcing, the accounting company takes over this problem. The work should not stop due to the absence of one specialist, as the service is organized within the team.

In addition, an entrepreneur does not have to independently monitor the professional development of an accountant, purchase separate software or organize a workplace.

However, outsourcing does not mean that an entrepreneur loses control of his accounting. On the contrary, with properly organized work, the client receives information about taxes, reporting and accounting status, and all the main processes are recorded in the contract.

When should I choose outsourcing?

Outsourcing is especially convenient for small LLCs and sole proprietors who require regular accounting support, but there is no need to maintain a separate full-time specialist.

If the company is just starting work, the number of operations is still small, and the head needs to control costs, outsourcing accounting allows you not to create unnecessary fixed costs.

Outsourcing can also be a solution for an existing business when an accountant is fired, accounting problems, or the need to reduce accounting costs.

Before choosing a format, it is worth estimating the actual amount of accounting work and the cost of maintaining a full-time specialist. In many cases, accounting outsourcing for small businesses allows you to get comprehensive services for a fixed cost and at the same time free the head from a significant part of administrative tasks.

If you want to transfer accounting to specialists, you can choose a service format that takes into account the specifics of your company, the number of transactions and the taxation system.