Every business’ success hinges on the proper financial management of all its accounts, assets, liabilities, and equity. As a business owner, it is vital to have quality accounting measures in place to properly keep tabs on your company’s financial health. You must be diligent in doing this to see your company flourish. It is only through solid accounting, bookkeeping, and auditing practices that you will be able to assess financial risks and rewards that will ensue from every business decision you make or plan to make. After all, the financial reports that are a result of the accounting process are intended to guide you into making the best and most profitable decisions for your business.
If you are a new business or have been in business for a while, it might be a good idea to consult with professional accountants. This is to limit the possibility of error that may arise should you try to do your own books. This is especially difficult if math is not your cup of tea or you’re not abreast of regulations and tax codes that are constantly updated by the BIR. In this case, it is best to leave it up to the pros. Should you be interested in seeking professional financial help, you may hire an in-house accountant or avail of the services of outsourced accounting firms. What are the differences and the pros and cons? Read more to find out.
What are the differences?
In-house accountants are called such as they work inside and are directly hired by your business, and they often are capable of overseeing the entire financial operation. Outsourced accountants and accounting services on the other hand are firms that act like BPOs. You essentially field all the accounting work to these firms and pay the service fee. Here, you do not hire them to be employed under your business.
1. Management of internal controls
Since in-house accountants are directly employed in your company, they can keep track and monitor the daily transactions with the ease of access. Additionally, they are able to expediently and effectively carry out management and internal controls procedures to safeguard your company assets. Since they are under your employ, they can readily access all company transactions and financial information, saving time.
2. Quality assurance
Since in-house accountants will be working with you in your business, you can see their work and double-check on its quality at any time. You can readily audit the work and ask details or any questions if you need to.
3. Quick and easy feedback loop
Since in-house accountants will be working within the same office, the feedback loop is shortened and made more efficient. This way, you will be able to hear immediately if there are any discrepancies in your accounts and will be quickly advised on the measures to take against them.
Outsourcing accounting services are cost-efficient. Moreover, you can opt to avail of certain packages, like the simple preparation of financial reports if that is all that you need, instead of paying for full service, which you can do if that is what you prefer and need.
- Flexible work hours
Outsourcing accountants provide flexible work hours. They will cater to what you need just like an in-house accountant, whenever you need help.
- Expert Help
If you work with a reputable firm, you will receive the same expert help as having an in-house accountant. You get the same benefits at a fraction of the price. What’s not to love?
The primary disadvantage of hiring an in-house accountant is the cost. You have to pay the full professional fees and benefits like sick leaves, vacations leaves, SSS, Phil Health, 13th-month pay, etc.
Outsource Accounting Services
Meanwhile, the main downside of outsourcing is that it takes a lot more effort to communicate when you need your accountant. They will likely have other clients so you’ll have to schedule an appointment. The feedback loop is a bit slower than having a direct hire. The key is finding a reputable team to work with so you will feel at ease.
Both in-house and outsourced accounting services will do wonders for your company’s financial management and overall efficiency. They may have their pros and cons, but one thing is for sure: none is above the other. At the end of the day, the best choice is the one that you think suits your business best. Whether that be in-house accounting or outsource accounting is for you to decide. Like people, different companies require different needs. If you need help but don’t have the funds for a full in-house employee, give our team a call.