Tag: In-house

Business Accounting: Pros and Cons of Keeping It In-House

Businesses need accounting. However, more and more businesses have come to depend on outsourcing their accountancy needs instead of keeping everything in-house with a salaried accountant.

Should you keep your business accounting in-house or outsourced? Insourced or out-house? The answer isn’t as simple as you’d think. Long story short, outsourcing is good for short-term growth but a bookkeeper is for life.

Outsourcing vs. In-House Accounting

The pros and cons of outsourcing and in-house accounting are as follows.

  • Keep It In-House for Established Businesses: Fledging businesses that have to penny-pinch to survive until they grow big enough to become self-sufficient would rather hire accountants on a per-case basis. Established businesses that can afford in-house accounting should go for in-house accounting.
  • A Dedicated Bookkeeper Offers Dedicated Service: Once your revenue goes past a certain point, it’s better to get a full-time bookkeeper over paying for outsourced accounting. It’s like having a family doctor who knows your history over going from doctor to doctor with only a vague idea of your medical history.
  • Get Someone Who Knows Your Track Record: A full-time bookkeeper gets to take into account your company history. Even though he’s a numbers guy, the mathematics of your business will also give him an idea of which products or services make money or not. Ditto on profitable and non-profitable marketing.
  • They’re Literally Worth Every Penny: An in-house accountant is worth their weight in gold because they help calculate financial health or give you pertinent data to ensure you’re always making your best financial or business decisions. They also keep track of profitable ideas and figure out worthwhile calculated risks.
  • A Long-Term Investment: Outsourced bookkeepers don’t see the big financial picture and can only tell you if a present project, product development overall marketing scheme, corporate identity redesign, or social media marketing investment is worthwhile or not. A full-time bookkeeper knows your history, what works, and what doesn’t.
  • The Main Reason for Hiring: The main reason you should hire someone instead of outsourcing is the same reason it’s better to not outsource the CEO. When you want your employees to be all hands on deck, you want an in-house accountant to be one of them to do specific, specialized, or even unusual accounting.

Which Should You Go For?

Outsourcing is convenient, you have a whole company of accountants doing your accounting in a per-project basis, you can easily shift from one service or another without firing one and hiring another then retraining a new accountant every time, and so forth.

Again, in-house accounting makes more sense for established businesses. A full-time bookkeeper or two ensures continuity in keeping track of the business’s financial health and making informed business decisions. They can oversee the whole economic ecosystem of your company as your accounting specialist.