The first question that arises for an entrepreneur immediately after registering a company is: how to keep records - on your own, hire an accountant or use accounting outsourcing? The choice of the most profitable and convenient option depends on many factors that should be taken into account at the initial stage.
Each option - independent accounting, full-time accountant, and accounting outsourcing - has both pros and cons. But cons, as a rule, arise only in one case - when your expectations don’t match the result that you want to get. To avoid such a situation, it is worth understanding the features of each option.
It should be noted right away that accounting work can be outsourced to small firms. As for medium and large businesses, they cannot do without a separate person. If a small company has an average of 300 transactions per month, then a large company has so many transactions per day. Therefore, they need a person who will keep abreast and solve problems here and now.
At the initial stages of business development, it often makes sense to contact a firm that provides outsourced accounting services. Since a small business has a small turnover, an accountant can connect to work once a week or even once a month. They don't need to be involved in the process from morning to evening every day, so the outsourcing option in this case is best suited.
However, it is worth immediately considering the specifics of accounting outsourcing:
You are not purchasing a specific remote accountant, but a service. This may be a payment service, a record-keeping service, etc.
Outsourcing companies usually strictly limit the list of obligations that they perform under the contract. Additional services are paid separately.
Most often, the work is arranged in such a way that the client provides all the information: an outsourced accountant does not call contractors and does not ask for documents from them, they contact the director and ask for primary documents from them. The director must provide all the information so that the outsourcing company has a reason to keep records. If the director wants an outsourcing firm to do this work for them, then they will most likely have to pay extra money.
Outsourcing companies are liable under the contract for all their mistakes, which is a definite plus compared to a full-time accountant, from whom it is quite difficult to recover any penalties. Moreover, if an employee who made a mistake suddenly quits, then the entrepreneur will have to deal with all their problems - find another accountant, and delve into the intricacies of accounting.
As a rule, outsourcing firms prescribe a measure of responsibility. Moreover, many of them even insure their liability. In any case, carefully read the contract for the provision of services, for the presence of clauses on the responsibility of the accountant, on the replacement of the accountant, and on non-disclosure of information.
Outsourcers ensure uninterrupted work: they do not need a vacation, sick leave, or all that is required by law for a full-time accountant.
An outsourcing company, as a rule, costs much less than hiring a full-time accountant. But a full-time accountant, unlike an outsourcing company, is entirely your person, who can be loaded with additional functions.
Large organizations sometimes combine two formats: full-time accountant + outsourced accounting. They need a professional who can evaluate the activities of a full-time accountant, for this purpose they buy the function of a chief accountant on an outsource basis.
Thus, all mechanical operations (receipt of documents, entering these documents into the system, etc.) are done by a full-time accountant, and the outsourced chief accountant is responsible for summarizing information and checking.