Pros and Cons of a Full-Time Accountant and an Outsourced Accountant
Some managers don’t actually see any other way of conducting bookkeeping at their enterprise, besides hiring an accountant in the staff while others prefer outsourced accountants. Both options have their pros and cons. In order to understand and draw final conclusions (which one is more profitable for small businesses), it is important to compare the abilities and flaws of different accountants. In this article, we gathered the most common pros and cons of a full-time accountant and an outsourced accountant you should know.
Pros of a full-time accountant
Managers who prefer to take full-time accountants to the staff most often argue this with the following statements:
A full-time accountant is “at hand” (in the office) most of the time. He or she can carry out immediate orders from management, while an outsourced employee in another company can’t do the same.
A trusted specialist in the state inspires more confidence than a representative of some third-party organization. That’s why many business owners prefer full-time accountants. They can be sure that information that constitutes a trade secret will remain confident.
Cons of a full-time accountant
Despite the fact that a full-time accountant is a good choice, work with such a specialist can have the following disadvantages.
An accountant of the highest qualification (and all managers strive to get just that) is quite rare However, there are few free high-class specialists in the labor market. If it takes half a year to search for an employee, who will conduct your business at this time?
Maintaining a high-class accountant can cost the company a significant amount of money. In addition to a solid salary, the company should pay for annual continuing education courses and various incentive allowances.
3. Human factor
Any employee is a person. He or she needs holidays, can get sick, or quit unexpectedly. In this case, you will have to urgently look for an accountant or a person who can help perform bookkeeping. In addition, the head of the company is financially responsible for the errors of the full-time accountant. You should also know that any conflict with a specialist casts doubt on the trust and security of trade secrets.
4. Extra spendings
If the accountant will work in the office, you will have to arrange a workplace for him or her. Moreover, you will pay for stationery, office equipment, and rent of expensive software.
5. Incomplete work
The managers of small firms (in an effort to save money) sometimes take part-time accountants on staff. However, they don’t take into account that many people don’t consider part-time work as a serious occupation. At the same time, the risks of failure to meet the deadline and the sudden disappearance of an employee are added to all the shortcomings.
Pros of an outsourced accountant
If you are going to hire an outsourced accountant, you should read this list of advantages:
The main plus is a significant reduction in costs for accounting services. You pay only for the necessary work.
2. Saving time
You don’t waste time looking for the best specialist. You will be able to choose an accountant whose qualifications and experience are most precisely suited to solve your problems.
3. No office needed
All organizational issues (the office, the arrangement of the workplace, sick leave, vacations, layoffs, etc.) disappear by themselves. An accountant on outsourcing works remotely but maintains constant contact with you.
Confidentiality and safety of commercial information, as well as meeting deadlines, are guaranteed. In case of negligence of these conditions, the contractor should compensate for the penalty.
Cons of an outsourced accountant
There is only one disadvantage in work with an outsourced accountant:
1. Difficult to choose
Due to the fact that there re a lot of firms that provide bookkeeping services, it may be quite difficult to choose the only one. You should remember that it is better to choose a company that works for several years and has positive reviews.