Do It In-House Or Outsource Accounting- Which Is Better?

Are you a business owner who manages his/her accounts, and you feel like it's time to hire a chartered accountant for this assignment? This is undoubtedly the right decision to make: it will allow you to concentrate on the essentials and gain peace of mind.

When are the lights green to outsource accounting? What are the are advantages and disadvantages of outsourcing? Is it better to outsource all or part of its accounting? Which expert is it more interesting to call upon depending on your situation? Here is an overview of outsourcing accounting.

Signs it's time to outsource your accounting

Calling on a chartered accountant is not a legal obligation, but many VSEs and SMEs use it. Here's why.

Your activity will change the scale

As your business grows and grows, the option of outsourcing accounting should be considered. More than 80% of American companies thus outsource their accounting, 99% of which are made up of very small businesses / SMEs. If your entity changes legal status, this is a sure sign. For example, you go from a micro-enterprise to the creation of a company.

You have created a company with a certain scale

And if you are the creator of a company, a startup that nurtures ambitions and will hire employees, think from the creation of outsourcing your accounting to benefit from a complete mastery of accounting rules, financial projections, and targeted advice.

You waste too much time and energy in accounting

Let's put aside the status and scale of your business for a moment. Beyond these considerations, your morale and your mind count. If accounting is a puzzle for you, you waste precious time on it and the work of the figures wastes your energy, you will be a wise business manager by delegating your accounting to an external service provider. Don't hesitate to try outsourcing for a year.

The special case of the auto-entrepreneur

Self-employed, it is generally not necessary to outsource your accounting. You can remain in control, given the few obligations incumbent on you. To gain all the same in simplicity and efficiency in keeping your recipe book (and if applicable, your expense book), for your estimates and invoices, we recommend using online software: many are free.. If, however, you are subject to VAT, you may be interested in the advice of a chartered accountant.

The advantages and disadvantages of outsourced accounting

Have you decided to outsource your accounting? Know that there are advantages and disadvantages to this. They should be considered carefully before taking the plunge.

The advantages of outsourcing

As an entrepreneur, you will reap three main benefits of outsourced bookkeeping. First of all, time. Accounting is a complex activity: if you are no longer responsible for it, you will free up many hours and be able to devote yourself to your core business.

The second benefit of outsourced accounting, provided you use a chartered accountant registered with the Order of Chartered Accountants, is serenity. You have the guarantee that your accounts are taken care of correctly and that you will be up to date with your obligations. Please note, your accountant must hold an official diploma and be registered in the professional register. You can verify this with the Regional Council of the Order.

Finally, you will gain in strategic vision thanks to financial forecasts established by your expert, precise indicators, and if you wish advice that your accountant can give you.

The disadvantages of outsourcing

If you keep your accounts yourself until now, the main disadvantage is the cost of the accountant. It is in a range of $50 to $100 per hour for accounting entry, and $500 and $1500 per year for an annual balance sheet for TPE but can go much higher for an SME. It may sound high, but if you think about it, you were probably wasting more money by dedicating yourself to it, without having the guarantees provided by a professional.

And if you decide, for one reason or another, to replace an internal resource with an external accountant, you will no longer have access to your accounting in real-time and will also lose the in-depth knowledge that a working expert can accumulate. the full time within your structure.

Outsource all or part of your accounting?

Depending on your situation and the legal status of your company, it may not be necessary to outsource all your accounting.

Indeed, as a manager of a very small business or a small business, you can generally take care of your daily accounting and call on an accountant for your annual balance sheet. If your accounting needs are important, there is too much complexity, or if accounting is a time-consuming or difficult workstation for you, do not hesitate to decide to outsource all of your work. your accounting.

Which chartered accountant or Company to call?

Different possibilities are available to you. You can use the services of a "classic" accountant with whom you will have regular appointments. You can also use an online accounting firm, with a digital offer and remote communication if you are familiar with new technologies and appreciate online procedures, dashboards to monitor your activities in real-time.

To gain productivity and peace of mind, outsourcing all or part of its accounting is, therefore, an interesting solution for very small businesses, SMEs, and some self-employed people. More than 2 million companies use the services of an accounting firm or a chartered accountant in the United States.

You can reach eBetterBooks that helps small businesses to have affordable Accounting and Bookkeeping Services fees that could help your business to be more transparent to you which in turn could help you to take further decisions.

Gena Sanford is a Digital Marketing professional with experience of more than 10+ years in this field and is well versed with SEO, SMM Google Ads, Bing Ads. She is currently working with eBetterBooks, an online Accounting and Bookkeeping Service com