For large corporations, their in-house finance team will usually consist of some or all of the following - finance director, financial controller, management accountants, financial accountants, assistance accountants, payroll team, accounts payable team and accounts receivable team. While that's all well and good and often necessary for a company of that size, it's not always practical for smaller businesses with smaller budgets.
If your budget allows, you can always opt for a scaled-down accounting team that covers all of the essential finance functions, but you also have the option to outsource.
Here are some of the main benefits of in-house accounting vs. outsourced accounting to help you to make up your mind.
Having an in-house accounting team means that you're not paying for outside contractors, and if you have staff with combined roles, you're saving even more.
They work solely for your business
Your in-house team will be totally focused on your business, compared to an outsourced function which will probably have a number of other clients to deal with.
Business owners can be more hands-on
With an in-house team you can be as hands-on as you need to be, If you have any urgent requests or queries, your team will be there to ask straight away.
Full time accounting services
Unless you decide that part-time employees are suitable for your business, you'll have accounting staff who are present and working for the entire working week.
Some small business owners have concerns about sensitive or confidential information being shared with a third party, so keeping that side of things in-house gives you more reassurance that data remains confidential.
Accessibility to information
Again, if you need some financial data as a matter of urgency, having an in-house team with your own financial systems means that it's at your fingertips.
Outsourced Accounting for SMEs
Saves money on employee benefits
Not having a full-time accounting staff means that you save money on employee benefits such as insurance, training fees, paid holidays.
Fewer requirements for equipment and software
An outsourced accounting function means that you won't need to spend money on expensive system packages or more basic needs like office space, computers or even desks.
Training doesn't come from your budget
If you decide to go in-house with existing staff, they'll need to be trained up in the various finance functions. Some may even need to get the relevant qualifications, which can be an avoidable cost with outsourcing.
You can focus on core business and revenue generating tasks
Rather than being involved in the day-to-day issues within finance, you and your employees will have the time to focus on the things that make you money.
Cost savings on legal fees and fines
Having an experienced and qualified team of accounting specialists means that there's less of a risk of mistakes being made, which could cost your business a lot of money.
They're the specialists
Your outsourced accounting function will have specialist knowledge in their field, and you won't run the risk of using a 'jack of all trades', which you might have to if you're keeping your finance team in-house on a small budget.
Less management needed
An outsourced accounting team won't be in your direct chain of command, so you'll save precious time that could be better spent working on other things.
Fully qualified staff
With outsourced staff you don't need to worry about whether the knowledge is there, as they'll be fully qualified in their field.
There are a number of considerations to take into account when you're deciding between in-house and outsourced accounting services, and it will often come down to what's best for your business. It's also something that can evolve as your business grows, so while you may start out by outsourcing your finance and accounting function, you can always set up an in-house team at a later date. © Zawya BusinessPulse QATAR 2016