Whether your business is new or you’re trying to fine-tune some financial strategies, having a professional bookkeeper or accountant is indeed a tremendous asset. The expertise of a bookkeeper spans from preparing daily expense reports to managing complicated tax forms. And when you have a specialist handling these tasks, there’s little room for error, and you get to spend more time on what matters – running your business.
There are several ways you can choose to hire a bookkeeper or bookkeeping service. In this article, we’ll discuss each of the options and compare the pros and cons.
Hire an in-house accountant
It makes sense for most business owners to hire an in-house accountant who’ll take care of all financial tasks. One of the most significant benefits of this option is the ability to control and manage employee functions. However, hiring an in-house bookkeeper is a make or break scenario. You need to follow a thorough process to screen applicants to find the most competent candidate with the right skill set required for your business. Also, you’ll need to pay wages and employee benefits even during off-peak seasons and downtimes.
Outsourcing a professional bookkeeping firm
Outsourcing bookkeeping services is a widespread practice among well-established companies today. These firms offer a variety of functions – from simple invoice management to more complex payroll tasks. Outsourcing has many benefits, including having access to a team of experts while paying only a flat fee. Moreover, you can scale up your subscription, depending on the needs of your company. Bookkeeping services also use the latest tools and software that will make tasks more efficient. They will also act as consultants that can advise how your company can improve specific financial processes.
Hiring a freelance accountant or bookkeeper
Unlike large-scale outsourcing, hiring a freelancer means you are only paying one person to complete accounting tasks. This option is ideal if you only need help with specific projects at certain times of the month or year. Small business owners usually hire freelancers because you only pay for the work done, and won’t have to worry about other employee benefits. For example, you can hire a bookkeeper to assist during tax season, or when you need to prepare books for an upcoming audit.
Hiring a certified public accountant
You don’t need to hire a CPA if you only need help with tasks a bookkeeper can manage. Otherwise, you’ll be wasting your resources and the CPA’s expertise. Working with a CPA is ideal when you need someone who’ll advise regarding critical financial decisions. Some examples of these tasks include managing company investments or filing complicated tax returns.
All of these options have distinct advantages and disadvantages to consider. Depending on your company’s size and needs, you should determine which type of bookkeeping service best fits your organisation. Ultimately, what you need to focus on is finding a solution that is cost-effective and convenient. Financial matters are vital functions for any company, and having the right bookkeeping strategy in place will guarantee a smooth operation.