Businesses have to keep track of how much money they spend and earn. Keeping a full-time accountant on staff, however, isn't realistic for many companies. Instead, it makes more sense to outsource your accounting needs to a firm that has deeper experience in the field and can be available to take the burden from the business owner at a fraction of the cost of a full-time employee.
Hiring a full-time accountant will cost your company a lot of money. According to the Bureau of Labor Statistics (BLS), the 2017 median pay for an accountant or auditor was more than $69,000 per year. The BLS also expects accounting jobs to grow faster than most other industries between 2016 and 2026, which could mean that professionals can demand even more money in the near future. The base salary is just a portion of the true cost of an internal accountant. When looking at the true cost to hire an internal employee to do the accounting, business owners need to factor in payroll tax, workers compensation, cost of overhead usage for things like supplies, the portion of the office used by the employee, and on top of all of this - the employee will also likely require benefits. At the end of the day, the $69,000 average is just a portion of the true cost to hire an internal accountant. In higher cost areas such as New York and San Francisco or similar the $69,000 is drastically increased. Most employers in those areas budget anywhere from $120,000 to $200,000+ per internal accountant with all things considered.
By outsourcing, it is an opportunity for businesses to only pay for the accounting services that they actually need. As all business owners know time is money and outsourced efficiency in terms of accounting translates to a greater value use of their dollars and time.
Outsourcing to Experienced Accountants Improves Accuracy
Outsourcing can also help improve the accuracy of your accounting. Many accounting firms have their employees work in groups or have review standards. That means your projects get checked by experienced accountants who know how to spot common and not so common errors. Have you ever looked at something so long even if you knew the error you wouldn’t be able to find it? It’s a common control in many accounting firms to require 2 sets of eyes on every engagement. When two accountants work on the same data or financials this will always result in a higher potential accuracy level than even the most skilled accountant working on the same data or financials without a secondary review. Make sure your accounting firm has this internal policy in place, it is always a good thing for the business owner to know their financials have achieved the highest potential level of accuracy.
By improving the accuracy of the accounting, you gain a clearer view of your business's performance and get to plan for the future.
You Can Access Niche Experts by Outsourcing
One person can't cover all types of accounting. When you outsource, you can access niche experts in areas like forensic accounting, estate and trust accounting, international taxation, accounting information technology, and mergers and acquisitions, or find accountants that specialize in your industry vertical.
Instead of a trusted "jack of all trades" accountant, you get to select the best person for each job. If you only have one accountant on your team, you will likely fall short of your goals or end up outsourcing some projects, anyway.
It makes more sense to build a relationship with an accounting firm you trust to finish all of your jobs expertly.
Outsourcing Assures Your Business Continuity
Accounting firms have their employees work in teams and follow standard practices. If one person on the team can't work on your project, another person can take over easily. This practice gives you excellent business continuity.
You don't necessarily get the same level of business continuity when you hire an internal accountant. The person may not follow a standard filing system, which makes it difficult for your next accountant to complete forms and track money. If your accountant quit suddenly or got too sick to work, continuing that person's work could pose a serious challenge.
You have plenty of options when outsourcing your business's accounting needs. Make sure you talk to several firms so you can choose one with the right level of experience and rates that match your budget.
Altius CPA prides itself in being a top outsourcing firm in the industry and we always encourage you to review our services along with any competing firms. We think you will find that our superior online experience combined with the highest quality standards will be a great fit for your business.