As a small or medium-sized business owner, trying to decide whether to hire an in-house team of accounting professionals or hire an outsourced accounting services provider can sometimes be difficult. To some, just hiring a person to come into the office to handle the books seems like an easier option, but it may not be the best option.
We've pulled together these 3 things that business owners should take into consideration while trying to decide between an in-house accounting department or an outsourced accounting service provider.
Are Your Accounts Receivables Manageable?
Being able to track and predict cash flow is paramount to efficiently running your business. About 82% of young businesses end up going under because of cash flow issues, so having good management of your accounts receivables will help prevent this.
When customers lapse on their payments or delay paying you, it will negatively affect cash flow. Sometimes it may require consistent follow-up by your team to collect payments and how quickly invoices are sent out will also play a role. With a smaller in-house team, it may be easy to become overwhelmed with invoicing, follow-ups, payment collection, and other AR tasks. An outsourced accounting firm will have the team needed to stay on top of your receivables, no matter the size, so that you as a business owner can worry less about
Are You Prepared to Scale Your Accounting?
Every company is a little different from the next in terms of its accounting. Having an in-house accounting team keeps everything under one roof, but it may be lacking efficiencies. When working with an outsourced accounting services provider like AccountingDepartment.com, there is a set of procedures that our accounting team sticks to that is clear and uniform across all of our clients. It ensures a high level of accuracy and efficiency for both parties.
This is useful when a business begins to grow rapidly or unexpectedly. Will your in-house team be able to handle a growth burst? Outsourced accounting service providers are ready to scale with a business. There is no need to scramble to hire more employees and deal with the headaches of hiring and training. Going with an outsourced accounting service provider will give you the ability to add services and instantly adapt and scale with ease.
Do You Have the Proper Checks and Balances?
Checks and balances are essential to catching any types of clerical errors or other accounting errors, along with more serious things like theft and fraud. When there is a small internal team taking care of your accounting, you probably trust them to handle it, right? There is no unbiased outside party there to review the books and protect your business.
Internal theft happens was more than you'd think and bringing in an outsourced accounting services provider is one way to bypass this potential problem. The checks and balances provided by an outsourced firm will give business owners the assurance they need that their books, entries, reporting, and more are all accurate.
It is also crucial that an in-house team is highly skilled in accounting to catch the potential mistakes that could be made. New businesses will typically launch with just a few employees and each employee will wear many different hats. Ending up with an employee handling the business's accounting, that isn't thoroughly trained in accounting or possesses any certifications, is ultimately leaving the business open to potential accounting errors.
Outsourced accounting services are an easy way to employ some of the top trained accountants out there to handle a business's accounting from start to finish. AccountingDepartment.com's team of controllers and accounting specialists is what a business owner needs to have full confidence that their accounting is getting done and done right. Reach out to AccountingDepartment.com today to see how our client accounting services can help you.