As your business grows you find yourself being stretched thin. Bringing on another pair of hands can help alleviate the stress and take on more clients to increase sales. The challenge many business owners face is how should they expand their team?
One of the proven ways to generate more income is for business owners to spend more time on income-generating activities, not on supportive services. For example, as the business owner, you should be out there making connections, growing your business, and doing the tasks only you can do.
Everything else that can be handed off, should be handed off. One of the areas business owners are quick to pass on is their accounting.
Why an Accountant?
When you are starting, you have a lot of big business decisions to make. From how to structure your business to what invoicing application to use, they can all drastically affect how your business operates.
Accountants are experienced in handling these situations and can provide you with the pros and cons of the choices available. This will provide your business with the resources it needs to get things right - the first time.
Outsource Vs. In-House
Let’s say you are sold on bringing an accountant into your team - do you employ one or outsource the work? There are certainly pros and cons of each, but there is strong support for why outsourcing your accounting can save you money. Which is the entire point!
If you can expand your team efficiently and cost-effectively, you will find outsourcing an accountant as your next hire is the right choice.
The 4 Ways Outsourcing Your Accounting Saves You Money
1. Employee vs. Contractor
There is a big difference between hiring in-house and outsourcing the work. Specifically the payroll costs. When you bring on another employee you likely need to pay:
Unemployment taxes
Health care benefits
Paid-time-off
Workers Compensation
These employee expenses can quickly add up over time. When it comes to contractor expenses, it is much more straightforward.
Outsourced accountants typically operate by the hour or with a flat fee. Either option is very straightforward and does not come with additional fees. For this reason, many employers find contracting a cheaper way to expand their team.
2. Reduced Labor Costs
While you do need to pay an outsourced accountant for their work, they will be able to perform the tasks much more efficiently and quickly than if you DIY your books. So you can have your financials delivered to you quickly. This can be essential when making big business decisions.
Another point that is important to consider bringing in an accountant is while they can perform the tasks accurately, there will be labor costs in hiring, training, and managing the additional employees. These may not seem like much at first but employers know an additional employee is much more hands-on than passing the work to a third party.
3. Asset Costs
When you employ an accountant you can expect other costs besides payroll, benefits, and labor. You will need to consider workspace costs like desks, computers, and office supplies. The little things that go into our day-to-day jobs are where the costs are often hidden.
In comparison, many outsourced accountants work virtually. When working with an outsourced accountant all you need is your phone or computer to stay in touch, conduct meetings, and analyze reports.
4. Hire for Experience, Not Location
When you outsource an accounting firm you are opening yourself up to experienced workers who already have established processes in place. This differs from hiring in-house where you need to work to establish processes, discover applications, and implement procedures.
Outsourced accounting firms are also throughout the country. These firms have processes established to make virtual working possible. Whereas if you are looking to hire an accountant for your local office, you are limited to those in your area.
Your business is growing, it is time to start expanding your team with professionals who are experienced in the areas that you need. No longer rely on administrative assistants, friends, or family, to help you with the tasks that require a professional set of hands.
While hiring an accountant in-house does have its benefits, there is no doubt that outsourcing these tasks is a less expensive and more efficient way to go. Outsourced accountants are experienced in working with all types of businesses and handling situations, just like yours, on a daily basis.
If you are ready to expand your team with professionals then we recommend scheduling a call with one of our accountants. We would be happy to spend the time to learn about your business and its needs to see if we would be a good fit.
Give us a call at 407-999-2644
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