Outsourcing vs. internal accounting: Which is right for your business?
Deciding whether to hire an internal accountant or engage an external accounting firm can be challenging. A growing number of businesses today are opting to outsource their financial and accounting functions, driven by the multitude of benefits this approach offers.
The factors many companies look at now when assessing this decision are:
- What are the core strengths and skills of an internal employee?
- What are the risks of an internal employee?
- How can an external employee be a more financially viable option?
In today's landscape, more power is being taken from employers and given to employees, and many large companies now view hiring as a high-risk maneuver. Employers must consider leave benefits, including; sick leave, mental health days, annual leave, bereavement leave, pandemic leave, and long covid leave. The anxiety levels of employers are through the roof. Not to mention that more and more accountants are leaving the industry while less and less are studying to become accountants.
On top of that, many internal accountants are usually so bogged down on internal procedures and protocols that they lose touch with modern advancements and tax knowledge. Leaving their employers exposed to potentially costly mistakes or oversights. When you hire internally, most of the time, they will follow a job task that they've been given in accordance with a range of KPIs. Many of these tasks are based on providing reports, telling you what's going on and what you did last month, quarter or year. This can have an impact on the ability of an employee to take proactive action.
Through hiring external sources, such as THN Samios & Partners, you can leverage the power of a more extensive network of high-level accountants and advisors with expert knowledge and years of experience in the industry. As an external partner, we are constantly looking for new ways to do things positively and proactively so that you can protect and grow your business to a new level while minimising risk.
Our accountants are constantly training and learning about new technology that can be used to help generate detailed forecasts, predict weak periods, and provide you with real-time data that ensures you can make sound decisions quickly. Not only that, but we have the commercial knowledge to provide superior guidance when making important decisions. It's like having your own internal accounting firm, but external, while also having an auditor at the same time who's ensuring your work is safe, secure, and on the right trajectory.
Pros of using a VCFO or external accounting service:
- No "personal" days off
- No sick days
- No holidays
- No "termination procedures."
- Stronger KPI's
- Higher level knowledge access
- Multi-team approach
- Up to date with the ever-changing accounting industry
Recognising your company's needs and understanding the dynamics of your industry are crucial when deciding between hiring internally or engaging an external firm. The flexibility of working with an external firm often provides an advantage, as transitioning from an external provider to an internal hire tends to be simpler and less fraught with challenges than severing ties with an employee to subsequently engage an external service.
About THN & Samios Partners
We're more than just an accounting firm. We're allies on your business journey.
Our experts have 30+ years' of experience in a wide range of financial disciplines -- tax compliance; tax planning; superannuation; business management; strategic development; mergers and acquisitions.
This lets us assign the right people for the job — not more people — adapting our approach to your goals. You get the bench strength you need without the baggage and overhead of a large consultancy.
Contact us today
