The Benefits of Outsourcing
The biggest determination of whether to hire an in-house accountant or to outsource comes down to price. The salary of a full-time accountant is roughly $60,000 a year. The salary of a full-time bookkeeper is around $45,000 a year. So, hiring two employees to take over a business’s books will cost around $100,000 and this doesn’t even account for overhead costs. Whereas, outsourcing accounting usually costs between $2,500-5,000 a month depending on the services you need (Note: for Andrews Tax Accounting, our monthly cost per client is lower than $2,500. The cost really depends on the services you need. If you only need payroll, the cost of outsourcing will be pretty minimal. On the other hand, if you want to outsource all your accounting needs that’s when the costs go up). If you assume outsourcing will cost $5,000 a month then yearly that is only $60,000. Compared to spending over $100,000 yearly, $60,000 saves a lot of money for the business. Only considering costs, it is clear that small businesses should outsource their accounting needs.
Besides just cost, outsourcing is also beneficial in the following ways:
- It saves time-spend your time growing your business instead of worrying about taxes
- It gives business owners access to accounting experts-reduce the risk of audits or fraudulent claims and feel confident in your company’s books
You can learn about all 10 benefits to outsourcing in My Accounting Team’s article.
You can read Stephen King’s whole article on GrowthForce.
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