In- House Vs Outsourced Accounting Services
We have mentioned time to time how important it is for a business entity to have a good accounting department and have up to date and accurate accounting books. A business entity will require an accounting information so as to enable it manage and control its finances and resources. It also needs it for it to be able to improve on its level of profit earning, should it realizes it is declining in its profitability level. But most small to midsized companies either because of shortage of capital, right resource or other reasons fails to have excellent accounting records. Here is where accounting outsourcing comes into play.
I have listed some of the benefits Outsourcing firms enjoy over maintaining an in-house accounting staff:
1. Cost: Accounting outsourcing can save you between 30% to 60% than maintaining an in house accountant. Eg. Average salary of a bookkeeper in US is $ 32,000 plus overheads cost plus payroll taxes plus other misc. benefits (medical, conveyance etc). All included will cost you around $40,000-45,000. But an outsourced bookkeeper would cost you anywhere around $12,000-15,000. 2. Outsourcing Companies are much less exposed to employee absences and illnesses because they employ more accounting and bookkeeping personnel than any small- to mid-size business. 3. Outsourcing companies invests in quality control to retain clients, so their work is highly accurate. They also maintain ongoing training for their staffs. 4. These outsourcing service providers provide a full range of required skills, from the clerical to the controller level. 5. Staffing: One of the benefits outsourcing services has over in-house accountants is the power of flexible staffing. Hire the outsourcing services only when you have work whereas this is not possible in case of an in-house accountant. Hire, Train, and manage staff: For an in-house accountant hiring and training full-time accounting staff or...
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