Accounting is crucial for all businesses, big or small. Traditionally, in-house accounting and bookkeeping were the norm. CEOs and business owners felt this method gave them better control over their financial processes. However, with technological advancements, outsource accounting services has emerged as a popular alternative for companies aiming to scale efficiently. Are you paying 65-150% more for your in-house bookkeeper compared to an outsourced solution? Let’s dive into the details.
A recent client of ours, after joining Decimal, remarked, “Finding a single person that knows all of the accounting needs we have, the guidance needed, and someone that understands the software and all the technology that goes into that, plus setting it up and then running it. I'll just say, that’s a needle in the haystack.”
Challenges with In-House Accounting
Hiring an in-house bookkeeper might seem sensible initially. But as your organization grows, the complexities of accounting processes, technology needs, and process improvements become challenging. Often, a significant amount of work still falls on owners and CEOs to verify, check, and follow up on necessary information. It usually takes more than one person to accomplish this, requiring multiple full-time employees.
Why Even Boeing Outsourced Their Accounting
Recently, Boeing shifted their accounting operations to USA. They aimed to improve their process, save costs, and offload manual work so their remaining staff could focus on more critical priorities. When one of the most complex businesses globally realizes the benefits of outsourcing, it raises the question: Why continue with in-house accounting? What cost efficiencies can be gained from outsourcing?
What Does In-House Mean in Accounting?
In-house accounting involves internal employees handling your accounting services. They deal with a broad range of financial operations, technical support, human resources, and bookkeeping services. Finding one person to manage all these tasks efficiently is incredibly challenging. Many companies prefer having an in-house team for their insider knowledge. However, this often leads to employees being bogged down with manual activities, leading to high turnover and employee burnout.
Is In-House Accounting Cheaper?
Cost is a significant factor when deciding whether to hire an in-house accountant. The U.S. Bureau of Labor Statistics reports the median salary of accountants at $45,560 a year. Benefits add another 31% to this cost, bringing the total to $59,683 annually. This equates to $4,973.58 per month. Additionally, there are costs from mistakes or clean-ups during tax preparation.
Growing Pains and Turnover Costs
The Outsourcing Advantage
Outsourcing offers access to top-notch professionals who can perform the job efficiently and at a better price. Many business owners feel trapped by in-house bookkeepers who set up their processes, own the data, and limit access to necessary team members. Outsourcing eliminates these issues, providing a scalable solution that grows with your business needs.
Conclusion
Both in-house and outsourced accounting services have their merits. By understanding the differences, you can make an informed decision that best suits your business. At Monk Tax Solutions, we provide expert outsourced accounting services to help you achieve financial success. Contact Monktaxsolutions today at +1–844–318–7221 to start your journey towards accounting success. Let us help you optimize your financial performance and secure your future.
