We are now living in a globalized world, and with the rise in technology comes the increase of options for entrepreneurs to thrive on. From marketing, managing, to accounting, business owners now have a lot of options to improve their enterprise. One of the widely diversified fields these days is accounting, thanks to the rise of apps and outsourcing options online.
Accounting is an integral part of any business as it proves to be its lifeblood. Without it, a company cannot thrive to its fullest. Without proper accounting, the owner is not given a real picture of what’s going on. If lousy accounting methods are used, the owner may not know if the business is going over or under. And when you don’t have a good picture of your enterprise, it can ruin the very foundations of your business.
The problem with accounting is it is time and energy-consuming to do. A new business owner may choose to do the accounting on his/her own since there aren’t many accounts to check in the first place. But as your business grows, you will quickly realize that you can’t do everything on your own any longer. You now need to delegate tasks, even if that means investing resources to people who will help you grow your business. It is not possible to be the jack of all trades if you are running a business, because for sure, you will leave out other important things that you need to consider. You may end up focusing too much on one aspect, and then leave out all the rest.
Missing out on other aspects of the business can be dangerous, especially if you are putting accounting on the wayside. As mentioned, accounting is the lifeblood of any enterprise. It is because, without it, the business cannot run efficiently. Even if you have the best services and marketing efforts, if you have sloppy accounting, then you are wasting all the effort that you place on other parts of your enterprise. All departments work together to keep it whole, but it is the accounting that sticks the business together. Without it, the entire enterprise goes down the drain.
If you are looking for the best accounting options for your business, here are some of the most popular that can help you decide. Remember, there is no right or wrong answer. The choice ultimately depends on what your goals are and what your budget is. Do not put this part of the business as your last priority, because accounting is an incredibly important part of your business.
Here are the most popular accounting options that you can consider for your business:
1. In-house accountant
An in-house accountant is best if you need to have things done with the shortest turnover time. Since he/she will be in your office during business hours, you can monitor the work and check its progress immediately. You can also work closely with the accountant when there are significant tasks to consider.
The downside is, hiring an in-house accountant can be expensive. It is more expensive to hire an in-house one compared to having an outsourced or offshore accountant. However, there is a good reason why the rate is expensive. There are the experience and industry expertise that may be difficult to find anywhere else. So, even with the high price, you are also paying for these skills that he/she will put on the table.
Also, nothing beats being able to work side-by-side with someone who works with you in the office. Especially during tax season where you have to check every detail, working with the accountant can be highly beneficial for your business.
2. Outsourced accountant
Outsourcing your accountant is way cheaper than hiring an in-house one. It is because you only have to pay for the services. Since he/she is hired by a third party, you don’t have to think of employee benefits because that is the job of his/her main company. Avoiding these extra costs can be a massive saving for you.
The problem when you outsource your accountant is the turnover time for jobs may be at least 24 hours. It is because there are many layers of contact before he/she gets to start with the job. Communication can also be a big deterrent, with the gap in time and distance between you and the contractor.
There is also a reason why outsourced accounting & bookkeeping department is cheaper to hire: they usually have fewer work experiences compared with an in-house accountant. Therefore, for tricky accounting needs, he/she may not be able to deliver what is expected.
3. Offshore accountant
An offshore accountant is usually hired from countries with cheaper labor costs compared to the US. Countries include Eastern European countries, the Philippines, India, and Vietnam, among others. You can hire a skilled accountant at a fraction of the price, given that the median salary in low-income countries is lower than high-income countries.
While offshore accountants are cheaper to hire, there’s the time zone difference that makes the work challenging. Usually, there is a 12-hour difference between these countries, and it can pose a big problem with efficiency. The offshore accountant may also not know the laws in your area, which can cause problems if you are not careful with your hire.
Accounting should not be left by the wayside. It is a crucial aspect of your business. There are many options to choose from, and it is up to you on what you select based on your budget and needs.