A lot of those who own a small business or startup think they can save money when they have one in-house accountant managing their accounts. But accounting functions are time-consuming and complex. Because of this, working with a CPA in Houston, TX, employed by an accounting firm, will free up precious time that can be spent on important business functions such as generating sales and revenues. Whether you have decided to outsource your accounting operations or are still undecided, you may be wondering whether doing so will save your company money.
When Outsourcing Makes Sense
Before you choose an outsourced accounting firm, think about why you want to outsource your accounting functions. By getting outside help, your employees can focus on the core functions of your organization and your control costs. To make your final decision, you should consider how your company is dealing with accounting-related costs, the availability of resources, and the expertise of your financial team. If you think your company is not operating optimally, you may want to outsource your accounting functions. This relieves the stress of exhausting and time-consuming actions, as well as reduces the need for staff and technology. As an accounting firm manages its own employees, it incurs employment-related costs such as training and payroll.
What is the Cost of Hiring In-House Accountants
Depending on how big your business is and its overall performance, you may want to hire a full-time accountant or establish an accounting department. Typically, small to mid-sized businesses distribute financial functions among a few employees that have individual roles, including a CFO, staff accountant, accounting manager, controller, and financial analyst.
The cost of hiring these employees does just include salaries. You should also take into account benefits and taxes, turnover costs, and bonuses. Such indirect costs can quickly add up and create a burden on the income of your business. You could be spending at least a million dollars on salaries and costs when you hire a full-time team of finance and accounting experts. Meanwhile, the average cost of an outsourced team can range from $5k-$12k per month.
Other Benefits of Outsourcing Your Accounting Functions
An outsourced firm is responsible for the costs associated with hiring its own people. And you only spend money on the services you need. Such savings alone is already convincing, but there are other benefits you can enjoy. By partnering with a firm, you can be sure that your accounting is done right.