The benefits of outsourcing my small business accounting vs a full-time accountant
Every business needs to have its books in order, and if you’ve ever had to deal with a SARS audit or present your financials to investors at short notice you’ll know how difficult things can be if your accounting isn’t up-to-date.
Professional accounting is an essential aspect of running your business, but what’s the best strategy when it comes to carrying out this function?
In this article, we present a strong case for outsourced accounting as the ideal solution for busy entrepreneurs who need their accounting taken care of to ensure an efficient business and full tax compliance.
Outsourcing small business accounting: it makes excellent financial sense
The in-depth knowledge required to compile professional financial statements that comply with International Financial Reporting Standards and are acceptable to SARS requires years of specialised study and training.
There are two ways that SMEs can obtain these skills: hiring a full-time accountant or opting for an outsourced solution.
Let’s take a look at the process involved in these two approaches and weigh up the benefits.
1. Hiring an accountant for your small business
This traditional approach involves many of the same steps you need to take when hiring any other employee with all the usual expenses such as benefits, insurance, payroll taxes and paid leave.
- Recruiting the right candidate. This would either need to be done in-house or by using a professional recruiting agency – and commissions can be very costly.
- Screening candidates and conducting competency interviews. This essential process would require you to test the skills, knowledge, and workplace suitability of each candidate to ensure that they are a good fit for your business
- Hiring an accountant on probation. A successful candidate would need to complete several months of supervised accounting work in your business to prove that they have the skills to handle your company’s accounting needs.
- Permanent employment. You would need to offer the accountant a full-time contract with all the responsibilities and legal obligations that go with it – including a fixed monthly salary that will add significantly to your overheads.
- Outsourcing your small business accounting needs
An outsourced accounting solution is quicker, easier, and comes with fewer risks than those involved in hiring a new member of staff. Outsourced accounting companies usually come with a team of experts, reducing the chances of financial fraud that can happen with only one person at the helm.
You can complete the outsourcing process with the following easy steps:
- Contact an outsourcing provider like Bletchleys. A team member will consult with you to understand your accounting needs and prepare a tailored quotation for the service you require.
- Test out the service. During the onboarding process you’ll enjoy the benefits of a well-kept set of books, giving you access to vital information about your business and helping to ensure that your business is tax compliant.
- Adjust the service to meet your needs. An outsourced accounting solution can be scaled up or down to fit your business requirements as time goes by. You can also explore additional services like financial consulting, tax consulting, and payroll outsourcing as needed.
Outsourced accounting is the way to go for SMEs
Hiring a full-time accountant can be a complex and protracted process with high fixed monthly costs and no guarantee that the person will be a suitable fit.
An outsourced accounting solution is simple, affordable, and offers you peace of mind thanks to the high level of expertise you will receive from a whole team of specialists. Access to your accounting records and daily reporting will help you to make better business decisions, ensuring you meet regulatory and compliance standards.
In short – outsourcing your accounting means that you will have access to the latest technology in the hands of a team of professional experts but will only be paying for the services you need.
Ready to make your life easier?
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