A bad accountant is bad for business. Accountants are actually more important than lawyers, bankers, IT managers, sales managers, and other business staff. Bookkeepers and accountants take care of an organization’s finances and taxes. They are responsible for making sure that the business’ finances are on track with its profit goals. They also make sure that the business isn’t spending too much on unnecessary things.
This is a contributed post and does not necessarily reflect the opinions of Meet The Harris Family.
The question is whether you need an in-house accountant or outsource accountancy services for dentists and other professions. It depends on how big of an organization you are. Smaller businesses don’t need in-house accounting departments. Bigger businesses need one because they have more financial transactions. There are other reasons you would choose one over the other.
Privacy
Your business transactions need to be private. Many organizations prefer having their own accounting department. This way, they can control the flow of information. If you are outsourcing accounting services, you need to provide them with your financial records in a secure manner. That means using encrypted messaging platforms. You also have to use only trusted couriers that can handle confidential documents. While the risk of getting hacked and losing data is still high, there are many precautionary measures that you can take.
Expenses and Benefits
With an in-house team, you need to spend on their salaries, health insurance, and other benefits. Outsourcing would be a smarter move for startups and small businesses. With outsourced bookkeeping and accounting services, you pay for only the services you use. This way, you can avoid long-term commitments such as paying for your employees’ health insurance. This will minimize the logistical cost of running and managing your business.
Expertise
An accounting firm trains their accountants and bookkeepers. They make sure that their knowledge is up to date. They send them to seminars, workshops, and training to update their knowledge about industry trends and tax reforms. Because accounting firms deal with different types of businesses and industries, you can be sure that bookkeepers and accountants have a wide range of knowledge about how organizations work. A group of talented and skillful bookkeepers and accountants can spell the difference between success and failure.
Credibility
Investors look at a business’ financial records before they put their money in it. Don’t think you need investors? How will you raise capital? A credible accounting firm will attract investors. When they know that they can trust the accounting firm you have partnered with, they will be more confident in investing in your company. A good accounting firm can also act as a consultant. They can advise you on raising funds and capital and attracting investors. They can also guide you on how to reduce expenses and take care of your employees.
Whether you outsource your accounting needs or you build an in-house accounting team, make sure that you are being provided for by the best accounting services. The success of your business depends on this. It may not look like much, and you may even think that you can do it yourself. But there’s a reason it takes years and a board exam to be a certified accountant.
