Should Your Small Biz Hire An Accountant Or Outsource Them

Sooner or later, your small business is going to need an accountant to keep up with all the receipts, bills, invoices, and other financial paperwork. Recognizing the need for an accountant is one thing, but deciding how to access one is another matter. Do you hire one for your team? Or do you outsource the work to an external service provider? There are pros and cons to both decisions, so you have to choose what will work best for your small business in the long run.

Hire Internally

Forbes points out that hiring someone internally means that they can grow with your business. You'll have access to someone on-demand that works only for you, and you can keep a close eye on their work.

However, you're going to have to pay them. You'd have to pay to outsource solutions, too, but you would pay just for the services you need. Someone internal has to get a full paycheck, and that's before you deal with paid time off, benefits, and the overhead associated with them. You'd also need to put time and energy into training them or onboarding them into your small business.

If you have worries about communication with your accounting, then an internal hire might make you feel a lot better. Also, should you have concerns about your financials being handled off-site, someone internal can also alleviate your concerns. Having said that, with so much data being digital these days, it's honestly just as secure or vulnerable inside your company as it is on a CPA's server.

If your small business is getting to the point where a consistent accounting presence is necessary for managing compliance and front office needs, then an internal hire might also be a better move than outsourcing these needs.

Consider Outsourcing the Recruitment

If you do decide to hire internally, then it might still be practical to outsource part of the process. That part would be the talent search and recruitment. Headhunters in Tulsa or other cities nationwide may have the expertise, experience, and connections to find ideal candidates for your finance and accounting positions. Let them handle doing the headhunting so you can stay focused on your small business. When they find candidates that are a great match to your needs, they'll send them your way for a final decision.

Outsourcing the Accounting

When you consider adding another employee, and the overhead costs associated with another person on your payroll, then you might cringe at the thought of the additional strain it puts on your small business. If so, then you might want to consider outsourcing. You can do this in two different ways based on your specific needs.

The first way is to outsource your bookkeeping and accounting to a CPA or certified public accounting firm. If you are interested in high levels of advisory help while you make crucial decisions that grow your business, this might be a good way to go. They might even wind up a valuable partner in your daily activities.

If you outsource the bookkeeping, you get more energy and time back you can focus more on your core business activities. You'll also have access to a pool of experience. Any accountant is theoretically better than none, but if you can find one with experience relevant to your industry, then that can be a big plus to your business.

Alternatively, if a whole firm is too much, you might just outsource to an independent accountant or CPA professional. The level of service might be scaled down, but the costs might be more affordable, too. However, you might find yourself briefly without their services in the event of unexpected absences or vacations, whereas a larger firm might have substitute personnel on hand.

Finding the Right One

Once you make a decision about hiring an accountant internally for your team or outsourcing your accounting needs to a third-party vendor, make sure you take steps to find a great accountant. The right one won't just make sure you avoid audits but will also maximize your deductions and tax breaks to help your small business keep as much of its profits as possible.