8 Reasons to Hire an Accounting Firm Instead of a Full-Time Accountant

Accounting is the most important part of any business, on which the financial health of the company depends. Businesses need to constantly monitor their income and expenses, file tax returns, manage cash flow, and ensure legal compliance. There are two main ways to organize your accounting: hire a full-time accountant or use the services of an accounting firm. In this article, we look at eight reasons why the second option can be better for many businesses.

1. Cost savings

Hiring a full-time accountant requires a significant financial investment. Salary, taxes, social security contributions, bonuses, and sick and vacation days increase the cost of retaining an employee. In addition, there is the need to provide workstations and purchase hardware and software. The services of an accounting firm are often cheaper because companies pay a fixed fee for a package of services. This allows you to control costs and avoid unexpected staff costs.

2. Availability of highly qualified specialists

The accounting firm offers access to a team of professionals with diverse experience and knowledge. The professionals in these companies regularly undergo training to keep up to date with the latest developments in legislation and accounting standards. This is especially important with frequent changes in tax and financial legislation. It's often difficult for full-time accountants to keep up with all the news and implement it in their work. Accounting firms, on the other hand, need to be aware of all changes and implement them immediately.

3. Reduce the risk of errors and fines

Accounting errors can be costly for a business, especially when they lead to tax loopholes. Fines and penalties can be imposed for incorrectly completed reports or failure to submit them on time. The accounting firm is responsible for the quality of the services provided and is obligated to compensate for damages caused by its errors. This encourages these companies to work with the utmost precision and attention. An in-house accountant, even a highly qualified one, may have less responsibility for errors.

4. Flexibility in the scope and type of services

An accounting firm can offer clients a range of services that are flexible and adaptable to the current needs of the business. For example, you can order just tax accounting or a whole range of accounting services including reporting, payroll, etc. As workloads increase or decrease, you can easily change the service offering without hiring or firing employees. This is especially true for small and medium-sized businesses, where the amount of accounting work can vary significantly.

5. Ensuring confidentiality

Working with an accounting firm helps ensure the confidentiality of your company's financial information. A full-time accountant may accidentally or intentionally disclose confidential information. Accounting firms generally have strict confidentiality policies and are responsible for protecting their clients' trade secrets. In addition, these companies have appropriate data protection tools and technologies that reduce the risk of information leaks.

6. Make time for strategic tasks

Outsourcing accounting services to an external company allows management and key employees to focus on strategic management and business development. Managers don't have to spend time monitoring and reviewing the accountant's work, resolving current accounting issues, and performing other administrative tasks. This is especially important for entrepreneurs, who often combine multiple functions within the business. Outsourced accountants take care of all the day-to-day work so you can focus on more important tasks.

7. Ensure business continuity

Hiring an in-house accountant can lead to issues related to an employee's temporary or permanent absence. Illnesses, vacations, layoffs - all of these can lead to interruptions in the accounting department's work, which creates financial risks. The accounting firm guarantees continuity of service because the team always has employees who can replace the college. This is especially important for small businesses where one person may be responsible for all accounting.

8. Modern technology and workflows

Accounting firms actively use modern technologies and software that allow them to automate several processes and increase their efficiency. Many accountants may not have access to or know these resources well. External specialists, on the other hand, are continuously trained and use the most modern working methods. Clients thus receive fast, high-quality services that meet all modern requirements.

The? bottom line?

The decision to hire an internal auditor or to hire an auditing firm depends on many factors such as company size, volume of accounting work, budget, and specific requirements. However, an audit firm can offer several significant benefits, such as cost savings, access to highly qualified specialists, lower risk of errors and fines, flexibility in service selection, confidentiality, freedom for strategic tasks, business continuity, and using modern technologies.

For many companies, this solution is optimal as it allows them to concentrate on their core business and not be distracted by solving accounting issues. In a rapidly changing business environment, using accounting outsourcing services can help you stay competitive and flexible.