Outsourcing Your

Accounting Could
Save Your Business
$30,000
MAY 1, 2018

As your business grows, there are a multitude of new

problems you’re going to face. The most obvious are
time management, maintaining client satisfaction
and staying organized. For most business owners,
though, staffing is the biggest hurdle he/she will
face while running their business. One of the most
important areas of any company is the accounting
and finance team.

Although hiring an in-house accountant is a common

choice, it may not be the best option for your
company, especially when you consider that many
tasks can now be done remotely, at any time and
any place.

Here are three reasons outsourcing your accounting

work makes more sense than keeping the job in-
house:

#1: Outsourcing Actually Costs Less

Let’s look at a scenario where a company hires an

accounts payable clerk for $50k/year base salary
instead of outsourcing the role for $60k/year.
Assume the company also pays a recruiter to find
top talent. At first, it seems logical to go with an in-
house employee instead of outsourcing. However,
there are many additional costs associated with an
in-house employee (please refer to the chart
below).

As you can see, hiring an in-house employee for

your company can cost you up to $30,000 more
per year than what you would spend by outsourcing
the role. Also, hiring in-house won’t just take a
massive hit on your pocket book, you will also have
to consider the time you will spend on an employee.
Payroll administration, HR, training, etc.; these are
all things you have to worry about when you hire
your own employee.

By outsourcing, all you pay for is the work—nothing

else.

#2: Outsourcing Provides Continuity

Consider the following example: You’ve hired the

perfect candidate for your position and, at first,
they’re everything you thought they could be (and
more). Your customers love them, they do great work
and you have time to focus on growing your
business even more (instead of being bogged down
by the day-to-day minutiae of running a business).
Sure, you’ve spent a lot of time and money on them,
but it seems like it was worth it.

Then, one day, your employee quits. All of that time,

money and effort you’ve invested in them is gone
and you now have to go out and hire a new person
to fill their shoes. It may take weeks (or even months)
to hire someone else and you’ll have to train them.
What sort of effect is this going to have on your
operations? How long is it going to take your new
employee to be as competent in their role and
familiar with your clients as their predecessor?

By outsourcing, you have moved the burden from

you to the contractor. The majority of outsourcing
companies will have more than one employee
working on your job. So, if one of their employees
quits, they have others who are equally as
comfortable with your needs to fill in and take their
place. The knowledge of your company’s needs
won’t disappear if one of their employees decides to
quit.

#3: Outsourcing Keeps You Competitive

Let’s say you’re lucky and are able to keep an

employee with you for 10+ years. Sounds great,
right? Maybe not.

Although you’ve avoided the problem of employee

turnover, you’ve opened yourself up to a different
one entirely. See, because your employee has
stayed at the same job for over a decade, they will
most likely know only one way of doing things: the
way he/she has been doing them for the 10+ years
they’ve been working for you. Even though things
inside your office have remained constant for over a
decade, things outside your office have likely
changed dramatically. Technology has evolved and
better, more efficient processes have surely been
developed. By not keeping up with a forever-
evolving world, you’ve sacrificed your company’s
ability to remain competitive.

Any worthwhile contractor will see a wide array of

businesses and stay up-to-date in their field through
continuing education and conferences. Because of
this, it’s in their best interest to constantly implement
the best technology and systems available for your
company. It’s impossible for a business to stay
competitive if it is using antiquated systems and
processes. Luckily, a contractor will handle this for
you, meaning you will be able to concentrate on
“the big picture.”

PREVIOUS

5 Ways to Solve Your Company’s Cash

Flow Problems
NEXT

Should Your California Professional

Corporation Elect To Be Taxed As An S-
Corp? A Discussion with Doug Bend

Home Industries Blog Contact

OUR OFFICE

San Francisco Bay Area, CA

(415) 723-1544
info@momentumcpa.com