Outsourced staff accountant or accounting firm

What to choose?

Any company needs accountant support, regardless of the specific of the work. Today, our sourcing of accounting services is gaining more and more popularity. It consists of conducting accounting by an external organization, and not by a full-time employee. What is better for an entrepreneur: hire a full-time accountant or trust an outsourcing company? Now let’s figure it out.

Staff accountant: advantages and disadvantages

Bookkeeping is an important aspect of the existence of any company. In order for “paper affairs” to be conducted at the highest level, special attention must be paid to the selection of an accountant. The qualification of a specialist should not be lower than the level required for the bookkeeping of a particular company.

Benefits of Hiring a Staff Accountant

Hiring a full-time accountant for vat agent UAE has only one advantage: a specialist on a daily basis in the workplace. That is, all emerging issues can be quickly resolved. But the disadvantages, unfortunately, more.

Disadvantages of hiring a full-time accountant

Costs of equipment and maintenance of a specialist’s workplace. The entrepreneur is obliged to provide the accountant with an office, to provide conditions vat consultant for normal work. This entails a number of costs for renting a room, paying for electricity, the Internet, etc. Often, in large companies, the services of one accountant are not enough, you have to hire several, which is very costly for the company.

The employee does not always fulfill his duties “perfectly”. An accountant with a fixed monthly salary has no desire to do more work per day, etc. In addition, errors may be made for which the entrepreneur himself bears financial responsibility. The accountant in such cases may lose his salary, bonus, or workplace, but sometimes losses exceed these amounts by several times;

With the expansion of production, the entrepreneur will have to send an accountant to refresher courses at his own expense.

The risk of doing “black bookkeeping”. The welfare of the company depends on the competence of the employee. An accountant pursuing selfish goals can bring a company to bankruptcy. Moreover, he is not liable for the losses of the company.

Thus, full-time accounting support is convenient on the one hand and costly and risky on the other.

Benefits of Accounting Outsourcing

Saving. An item that is especially important for newly-minted and small firms, where every penny counts. An entrepreneur does not have to spend money on an accountant’s office, moreover, the cost of outsourcing accounting is several times less than the work of a full-time accountant;

Professionalism. Outsourcing companies employ exclusively experienced professionals whose competence can be assured. Therefore, accounting services are provided in full accordance with applicable law and accounting standards.

Permanent access to new technologies and knowledge. Any changes, both technological and informational, are immediately taken into account by outsourcing firms. When a full-time accountant is working, for example, an entrepreneur or a special department is engaged in changing an outdated accounting program, not for free, of course.

Minimizing the risk of property loss. Prior to the start of cooperation, the entrepreneur concludes an appropriate service agreement. So, the remote accountants bear full financial responsibility, if they make mistakes, they undertake to fully compensate for the material damage.

Liability Insurance. Yes, an outsourcing company is responsible for the results of its work, but what about an entrepreneur if she suddenly declares herself bankrupt? The answer is simple: you need to be safe and require documentary evidence of the solvency of a third-party organization. For example, in the West, any reliable outsourcing company is ready to ensure its liability in the amount of $ 1,000,000.

Focusing on other, equally important matters. When dealing with an outsourcing company, an entrepreneur does not worry about the quality of work, so he can do other important things;

Outsourcing accounting services to organizations - improve the reputation of the client company. Entrusting such responsible work as bookkeeping to a third-party company can only be an honest entrepreneur working in a transparent manner. Therefore, this serious step will certainly be appreciated by both customers and competitors.

Disadvantages of Accounting Outsourcing

Some consider the disadvantage that the specialist does not visit the company every day. The days of his presence are specified in the contract, but if a difficult situation arises, the accountant will definitely come and solve the problem.

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