Three Main Options
When it comes to accounting, there are three main avenues of egress you can pursue. You can either hire a company accountant full-time, and expand as you need to from there, you can contract an individual contractor at subcontractor rates, or you can outsource your accounting services. Actually, there may be a fourth: you can do it yourself; but this is probably unwise.
Unless you have the professional acumen to complete the accounting work yourself, it’s more than likely you’ll be using one of these three options. They all have their benefits and detriments, which will briefly be explored here.
Hiring A Full-Time Accountant
If you hire an accountant full-time, you’ll have the advantage of maintaining proprietary information in-house, and always having that individual at your beck and call in a professional sense. But unless you have some substantial accounting work, you’ll probably end up paying him more than his services are worth. You’ll have to provide a benefits package, etc.
If you do have enough work for the gentleman starting out, then as you continue to profit, your workload will over-reach his ability to perform, forcing that accountant to requisition additional assistance. In the end, you’ll have your very own accounting department; complete with all the associated costs. This will work, but you’ll end up paying more in all likelihood.
The Contracted Option
On the other hand, you could out accountants as you need them contract. The difficulty here is that those accountants operating as their own independent entity will have clients with differing degrees of importance. While the prerogative of a good contract-based CPA should be to meet all client needs, sometimes an emergency issue may not find their support.
This is because not all clients have the same value. The business that can afford to pay three times what you can will naturally get precedence. After all: accountants know how to crunch the numbers.
Outsourcing Your Accounting Needs
According to Basis365.com, an outsourced accounting services agency, “You should be innovating, not building an accounting department.” They make a valid point. You’ll likely lose assets on an internal department which restrict innovation. With a contracted option, you may lose more if your favorite accountant is unavailable.
Meanwhile, an outsourced agency will always have CPAs on call, as it’s their prerogative to do this exact thing. Not only that, the available CPAs may be more qualitative than a hired accountant or one working contracting gigs. This is because, to remain employed with the outsourcing agency, individual CPAs must remain competitive when it comes to their peers.
The better CPAs make such agencies look more professional, ergo they’ll get more work. There’s an inbuilt incentive to continual personal growth with an outsourcing agency that doesn’t exist in the same capacity through other means of accountancy.
Whatever you choose, you’ll need some accounting service if you want to exist in cooperation with law. So choose wisely, and don’t spend unnecessarily.