There is a lot of buzzing around the Outsourcing of accounting and bookkeeping. Especially after the Covid-19 pandemic, businesses are looking to reduce their expenses, and Outsourcing is a way to go.
But depending on size, nature and goals of your business, the choice may vary. For some businesses, in-house can be a great option, but for some, it may not be the case. Read more about Signs that indicate you need an accounting agency here.
In this piece, I will be talking about the basic difference between Outsourcing and in-house accounting. This will help you understand which services suit your business better.
So let’s get started.
Key Differences between Outsourcing and In-house accounting
- Safety and Security
When you hire an in-house accounting team, you will be exposed to the greater risk of getting duped. The reason is simple; your accounting team has access to all financial details of your business. This makes you vulnerable to potential accounting fraud.
Outsourcing protects you from such frauds as you have to provide only the necessary financial information to the accounting agency. They do not have access to your confidential data, and hence the risk of fraud is very low.
- Quality of service
With an in-house accounting team, you can expect the average quality of service as they are motivated by the salary you pay them and not due to passion! It’s possible that they are not certified accountants and have learnt everything from experience. For a successful business, hiring an uncertified professional is not a healthy practice.
On the contrary, at an accounting agency, you are served by a certified and motivated group of professionals. These professionals are expert at what they do. They tend to go every length to deliver you top-notch services.
You cannot expect your in-house accounting team to work round the clock for you. Even if some team-members do work for extra hours on their own, you cannot rely on their good-will. So in the worst-case scenario, it’s possible that you might not get what you need and when you need from your in-house team.
Accounting agency, on the other hand, has a pool of talent that is available to you round the clock. They are always ready to assist you whenever you need help. Once you hire them, they will be just a phone call away. You will get whatever you need and whenever you need.
Hiring an accounting team is no easy task. You need infrastructure, a team of accounting executives, cutting-edge hardware and software. Such an arrangement will cost you dearly. Neither qualified workforce nor cutting-edge tools come cheap. So if you are tight on budget, hiring an in-house team will put a lot of strain on your business.
But hiring an accounting agency is cheap. With limited investment, you can avail services from A-grade professionals hired by the agency. You won’t have to pay for subscriptions of software and hardware.
- On-time work
In-house accounting team will always need supervision to operate at an optimum level. If you are not available to supervise them, it is possible that they will miss certain deadlines. Such deadlines can cost you a fortune in some cases.
But when you outsource your accounting, you can relax about the on-time delivery of your task. Employees in these agencies are trained to work in the limited time-frame. So they can deliver quality work on time.
In-house and Outsourcing both have their own features. So it is vital to understand which process will suit your business the best.
But in my long career, I have come across a range of businesses that perform their accounting in-house. Almost all of them struggle to meet deadlines, pay more tax than they should and still doesn’t have 100% efficiency.
So, I would recommend you to search for a suitable Accounting and Outsourcing agency that will simplify your work.
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Probal Consulting Group is a leading Taxation, Accounting and Compliance firm that helps individuals, MSMEs and other businesses manage their accounting, taxation regulatory compliance affordably.