There are many benefits, both financial and non-financial, to outsourcing your business’ accounting operations. The debate as to whether a business should employ its own full-time accountant or outsource the function to a third party, such as an accounting firm, has been going on ever since accountancy became a separate profession.
Outsourcing can be an appealing option in periods of economic downturn and in times of financial difficulty. Outsourcing gives you the flexibility to increase workloads during certain periods, such as EOFY, whilst minimising accounting costs during quieter periods. Outsourcing is also a good option if you don’t have enough work to justify hiring an in-house accountant, such as the case for many start-ups, small businesses, or those with large fluctuations in revenue.
Some small business owners argue that until a business has grown large and complex enough it doesn’t need to employ its own full-time accountant or bookkeeper. Whilst size is one of the most obvious determinants of whether or not to opt for in-house over outsourcing, the skill set of each also plays a role. Enlisting a third-party accountant allows you to take advantage of accounting experience across a wider industry base, as opposed to accounting experience in just one industry.
Whilst an outsourced accountant can still gain a deep understanding of your business’s operations, just as an in-house accountant would, they provide a more objective, unbiased opinion on business decisions and cost-cutting measures. An outsourced accountant can bring a fresh perspective to the table, which is especially useful if you are experiencing issues in your business that you cannot work out for yourself.
Of course, when it comes to third-party accountants, outsourcing allows for significant cost savings over in-house hiring. Because they work in multiple companies and industries simultaneously. Here at TW Accounting, we provide our clients not just with an accountant, but the support of an entire accounting firm, dedicated to growing your business. Offering everything from bookkeeping to business structuring advice, let us tailor a service to meet your unique accounting needs.