When you own a small business, your primary concern is to ensure that it runs smoothly and is profitable. You are also in a constant search for ways to defend your business against harm, whether that comes in the form of increased competition, stolen property or any other reason.
To run a successful business, an efficient accounting system and a strong back office are important. It should be a source of actionable insights to help you make data-driven decisions. As a business owner, you want to feel like you are in control of your company and you want to make sure everything is running smoothly. The best way for you to accomplish that is to take charge of all aspects of your business, including your bookkeeping and accounting processes. While hiring in-house workers has its benefits, the drawback cannot be avoided.
Below will discuss a few major drawbacks of considering in-house bookkeeping and accounting.
- Cost
Hiring an in-house bookkeeper or accountant is much more expensive than outsourcing, as it takes a significant amount of time to recruit, screen and train a new hire. An in-house accounting department will need office space, supplies, computers and other equipment as well as additional costs for recruiting, training and managing them. Whether you hire a full-time or part-time employee to work for you, using an in-house accounting service can be costly.
- Work Productivity
Bookkeeping and accounting are not easy tasks to perform. They require strong mathematical skills, a lot of experience and keen attention to detail. Unless you’re willing to spend a lot of money on hiring a team of accounting and bookkeeping staff, you’ll only need to hire one or two individuals to do the jobs. This causes a lot of problems in terms of work Productivity.
It is not always true that accountants working directly within the business itself produce lower quality work, but many business owners choose the easy way of employing a friend or colleague who is self-taught rather than someone properly certified. To avoid lower quality, you need a well-trained team of experts that has extensive experience.
- Old school instruction
It’s always necessary for accountants and bookkeepers to be up to date on what’s going on in their respective industries and ways to improve their skills. When you hired your accountant, you probably took great care to verify that his or her qualifications were valid and up-to-date, but even the best training can become outdated over time. Accounting professionals need to be aware of everything from new software and integrated apps for enhanced efficiency to amended regulations, changes in tax law and other significant changes in their field when they outsource their accounting. But if it is a single in-house accountant or a small team, it will be difficult for them to find time to develop their skills.
The right firm will make sure its staff is informed about all of the latest technology, rules, tax codes and other developments. That means you don’t have to worry about the quality of your accounting because that’s one of their biggest selling points.
- A lack of scaling ability
You just started your business and you think it will benefit you to just hire one in-house accountant. Don’t you think that’s not proper for your business? As your business grows, your finances won’t change much now, but what happens as your business grows? Your financial situation starts to change and the demands on your accountant increase.
This phenomenon is repeated every time your business scales up and that’s where the problem lies. If your business expands and you just decide on employing one or two bookkeepers or accountants, you won’t be able to scale. You can opt for Outsourced accounting services to take care of your business completely.
- Time
When it comes to hiring an in-house accounting department, most business owners don’t look at this intangible cost. so you must examine the time spent dealing with accounting matters against the value you receive. As a business owner, you know better than anyone that the time your team spends is valuable and costs money, so you should use it as effectively as possible. Hiring an in-house accountant and housekeeper will take your time before you can start your business.
