Reasons Why Outsourcing Accounting is Better Than Doing It In-House

 There are a couple of arguments in favor of hiring in-house accountants. Most are associated with the company’s need to have every aspect of every operation under one roof. Outsourcing is a more new-age strategy. Your small business accountant in Santa Monica will not be based onsite, but they will focus fully on the tasks you assign to them. Here are a few reasons why it is a worthwhile idea.

1. It Frees Up Time

Managing an in-house employee or a team of specialists requires more of your time than outsourcing does. In-person interactions alone can take up to an hour or two per day, and that is without the added time required for hiring, training, evaluating, and actual managing. You can assign some of those tasks to others, but it wastes their time, too.

2. Full-Time Employees Cost More

This is an extension of the previous point. Add up the expenses of hiring, training, evaluating, and managing! In-house employees are more expensive than outsourced accounting firms. You also do not need to provide outsourced accountants with healthcare, retirement savings accounts, or sick days.

3. Professional Expertise on Demand

In-house accountants can oversee accounts payable and accounts receivable. They may even prepare your taxes for you. However, they cannot provide the on-demand professional expertise that a full-service small business accountant in Santa Monica can give you. These people have more resources than an individual. Third-party accountants also keep tabs on current accounting trends and regulations.

4. More Efficiency in Other Areas

Taking the accounting responsibilities out of your hands will make you more efficient in other areas. If you own a business, an outsourced accountant will free you up enough to allow you to focus on other aspects of your business. Outsourced accountants can manage payroll, budgeting, expense management, and other accounting tasks that you and your management team do not have time for.

5. The Firm Assumes Liability

The matter of liability is one of the most compelling arguments for outsourcing accounting services. Using an in-house employee to create financial statements and taxes makes you liable for your mistakes. There will be no one between you and the Internal Revenue Service (IRS) and the Securities Exchange Commission (SEC).

6. Better Software Solutions

In-house accountants do not have time to look for better software solutions. Accounting firms need to have the latest technology available to be able to keep up with their competitors. This means updating existing software regularly and evaluating new fintech solutions created specifically for accountants.

Easy to Scale

In-house accountants are paid employees who need to work a specific amount of time. They could be on a part-time schedule or a full-time schedule. The constant with either is that you need to pay them even when there is nothing to do. An outsourced small business accountant in Santa Monica does not work like that. You pay them only when you need them, making their services more scalable.