One of the most significant decisions you’ll make as a business owner is how to manage your finances. Handling them yourself by hiring an in-house accountant or partnering with a professional firm both have their advantages and disadvantages and you need to fully understand them so you can make the best decision for your business. Here is more information on how to decide whether hiring in-house or working with a firm is right for you.
Why to Hire an Accountant Firm
An accountant firm is an external service provider that offers a range of accounting services including tax preparation, auditing, financial consulting, and bookkeeping. Firms have a team of experienced professionals which provides businesses with expertise across various accounting disciplines. Here are some benefits of partnering with a firm.
They Are Cost-Effective for Small Businesses
While it might seem like hiring an accounting firm would be more expensive, this is not the case for smaller companies. Small businesses and startups often don’t need a full-time accountant and paying for a specialized accounting firm on a part-time or as-needed basis can be far more affordable. Small businesses will also be able to leverage a team’s knowledge, which will help them save money by identifying tax savings and streamlining processes.
They Have Experts with a Variety of Specialties
One of the most significant advantages of using an accounting firm is the depth and variety of expertise they offer. Larger firms employ specialists in different areas of finance, such as tax law, auditing, and financial consulting. If your business faces a particularly complex tax situation, for an example, a firm can provide access to specialists who are up-to-date with the latest regulations and tax strategies. This level of expertise might not be available with a single in-house accountant.
They Are Objective
Using an external firm can provide an objective perspective on your business finances. Internal staff may have biases or conflicts of interest, but external accountants bring a fresh, impartial viewpoint. This could be especially important during audits or when you need to make tough financial decisions.
They Have Access to the Right Tools and Tech
As a business owner, you likely don’t have the budget to invest in state-of-the art technology that gives you access to sophisticated financial tools such as cloud accounting platforms and analysis tools. Accounting firms make these investments and are able to utilize them to provide you with the best possible financial services.
Why to Hire In-House
Though there are plenty of good reasons to partner with an accounting firm, there are also a number of reasons why hiring in-house could be the right solution for you. Here are some of the most important.
They Will Always Be Available
No need to wait for scheduled meetings or rely on external communication channels when you hire an accountant in-house. They will always be available to answer your questions or to perform financial tasks as you are their only ‘client’.
They Will Have Full-Time Dedication
One of the major benefits of having an in-house accountant is that they are entirely dedicated to your company’s financial well-being. They will be familiar with the specific financial situation, goals, and challenges of your business on a day-to-day basis. This personal knowledge can lead to more tailored financial strategies and quicker responses to emerging issues.
They Will Have In-Depth Knowledge About Your Business
An in-house accountant becomes a part of your team and gains an in-depth understanding of your company’s culture, goals, and ongoing projects. This long-term relationship can improve decision-making and financial planning. They are also more likely to understand your overall business strategy better than someone outside the organization.
They Will Be Able to Integrate with Other Departments
Your in-house accountant will be part of your culture and will physically be in your office on a daily basis. This allows them to easily work and collaborate with your other teams including marketing, HR, and operations to boost productivity and assist with strategic planning.
How to Decide Which is Right for You
When deciding between hiring an accountant firm and bringing someone in-house, consider the following factors:
Budget
How much money can you put toward an accountant? If you hire in-house, you will need to pay a salary and benefits. If you partner with an accounting firm, you will likely be paying less as you only pay for their services when they are needed. However, if it turns out you need the accounting firm on a nearly full-time basis, you will likely save money in the long run by hiring your own expert.
The Size and Complexity of Your Business
Smaller businesses or startups with relatively simple accounting needs might find an accounting firm more flexible and cost-effective. Larger businesses or those with complex financial requirements may benefit from the stability and continuity of an in-house accountant.
Your Industry-Specific Needs
Certain industries may require specialized knowledge in areas like tax law, regulatory compliance, or industry-specific accounting standards. In these cases, working with an accountant firm may provide the expertise necessary to navigate those challenges effectively as you can find a team with specialists in the needed areas.
There are no ‘right’ answers when it comes to deciding whether to hire in-house or work with a firm—there is only the right answer for you! If you’d like to talk with a team to see if partnering with a firm is the right option for your business, feel free to reach out to experts at Hayes & Associates. We’d be happy to learn about your business needs and offer insight to help you make the right decision.
