Accounting: To outsource or to hire in-house?

Hiring an accountant is essential for most businesses as their expertise in analyzing financial data, preparing, report, and maintaining financial records, filing taxes, and doing other financial tasks help ensure the financial integrity of the business. Two of the most common ways to acquire the services of an accounting professional are to employ accountants or outsource the services. They offer distinct advantages, namely the following:

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In-house

With an in-house accountant, businesses would have more control over their financial management. This is especially advantageous for organizations that have specific or unusual accounting requirements. If the leaders desire the accountant to share in the same culture, it is better to employ one.


Hiring in-house would also result in more efficient collaboration with the accounting staff because they are always in the same vicinity, and not a phone call or email away.

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Outsource

One of the primary reasons businesses opt to outsource their accounting needs is that they are cost-effective. Rather than have more workers in the payroll and shell out additional overhead expenses, they can save money by just paying a third-party accountant to do the job. There would also be no need to train accounting employees, and instead, allot more time for value-adding activities.


Outsourcing can also help reduce the risk of fraud, as long as the right accounting professionals or companies are hired.


For more accounting articles, visit this Bharti Jogia-Sattar blog.