Part of running a successful business is keeping your expenses as low as possible. However, you do not want to cut expenses so much in certain areas that it impacts the quality of the services you receive. Accounting is one area where you may be concerned that paying less means you are getting a lower quality of service. Thankfully, you do have options for high quality accounting help that costs significantly less than having a fulltime accountant. If you suspect that you are currently paying your accountant too much, here are two ways you can be sure.
- You hired an in-house accountant.
In almost every situation it is more expensive to hire an in-house accountant than it is to outsource your accounting to a virtual accounting firm. The reason this is true is because there are a lot of ‘hidden’ costs related to having a fulltime employee. The biggest cost of a fulltime employee is obviously their salary. What level of salary you pay an in-house accountant can vary widely depending on your industry, area of the country, and other factors. In addition to salary, you will pay benefits for a fulltime employee. Things such as health insurance, sick leave, and paid time off are all possible benefits that cost you when you hire an in-house bookkeeper. Other costs of fulltime employees include the hiring process and potential turnover. It costs you both time and money to go through the hiring process for a new employee. And when that employee leaves, you will have to go through the entire process again to find a replacement. In addition to all of these costs you also have the ongoing costs of training and managing a fulltime employee.
- You are paying for services you do not need.
Have you taken the time to determine exactly what type of accounting services you need? Do you really need a person working on your accounting fulltime or can someone get it done in less time? Is your accountant providing you with reports and statements that you do not use or need? Your answers to these questions and others can help you determine if you are paying for services that you do not need or paying for more time than is necessary. In general, you are going to have a hard time finding an in-house accountant who is willing to adjust his or her time on the job based on your ever-changing bookkeeping needs. A fulltime employee will expect fulltime pay regardless of whether or not they had enough work to keep them busy the full forty hour work week. This leads to you overpaying for your accounting services. This is one of the areas where outsourcing your accounting needs can save you major money. When you use a virtual accounting firm you can customize the plan to meet your company’s needs. You only pay for the services that you actually need.
If you are looking to save money on your accounting services it is time to think outside the box of a traditional in-house accountant. A virtual accounting firm can provide you all the same services as a traditional accountant for less and has the added benefit of flexibility that can adapt and grow with your business.