Why An Accounting Firm Is Better Than Hiring An Accountant
Most companies reach a point in their growth where they need to hire someone to manage the finances of their business. Usually, this person is an accountant who performs a variety of accounting functions, such as auditing, account analysis, and financial statement analysis. However, these days, the question is no longer, “Does the company require an accountant?” but rather, “Should the company bring someone into the team or outsource accounting services for the business?”
Although hiring an in-house accountant has been the standard choice for many companies in the past, times are changing these days. If you still need clarification about whether to hire an in-house accountant or outsource the services of an accounting firm for your business, this article might help you! Here are some essential reasons why hiring an accounting firm is better than getting an in-house accountant.
1. Less costly
There are various costs associated with hiring an accounting firm and having an in-house accountant. Usually, an accounting firm charges more per hour, which can result in ‘sticker shock’ upfront costs. However, it is necessary to remember that with in-house accounting, there can be extra costs you do not always think of during the hiring process. Specifically, you will need to take into consideration the cost of salary increments, benefits, and bonuses.
In essence, while you may be paying less per hour with an in-house accountant, they will still be on a salary basis of payment during slower seasons, like at the end of the tax season, when the business’s accounting department slows down significantly.
During these slow periods, an in-house accountant remains on salary and is required to come to the office every day. On the other hand, when you engage in the services of an accounting firm in Singapore, you may pay a higher hourly rate, but when there is no work to perform, there are no bills for accounting services.
2. Materials and programmes are prepared
Another factor that many businesses tend to forget is that there are materials and programmes necessary to handle the finances of a company. For an in-house accountant to complete their job, a company must pay for the software they need. This is on top of the expenses on supplies and furniture for their workplace. Meanwhile, an accounting firm will already have all these materials and programmes in place, and they usually have subscriptions to the most updated and in-demand software.
3. More scalability
Having an in-house accountant who knows and understands your personnel, product, and business can be pretty valuable. However, when your business starts to develop, a small in-house accounting team can rapidly become overwhelmed. Once this occurs, you will be required to expand your accounting department, which increases the department’s cost.
When your company is experiencing rapid development, the last thing you want to be burdened with is hiring the necessary people to manage your business finances, especially when the tax season is approaching. Engaging the services of an accounting firm for your business can provide scalability.
When you have a whole team at your fingertips, you have access to a variety of individuals with various skill sets that could benefit your business beyond its accounting needs during cycles of growth. Moreover, you will no longer have to worry about hiring, looking for talents with particular industry skill sets, and extra training. All of these stressful tasks will be dealt with by the accounting firm.
Every business is unique in its needs and objectives. As such, choosing between hiring an in-house accountant or engaging the services of an accounting firm takes time and effort. You will need to consider where you want your company to be in a year or so. That said, if you want your business’s accounting aspect to incur fewer expenses, be less stressful, and have more scalability, hiring an accounting firm is your best option.
Should you need reliable and efficient accounting services, OneStop Professional is here to help! We are a leading accounting and audit firm in Singapore offering the most high-quality audit and accounting services for a variety of businesses. Aside from this, we also provide a plethora of other excellent corporate services, such as company incorporation, nominee director search, and company secretary services. Do not hesitate to reach out to us today to find out more.