Detailed Analysis: Virtual Accountant Vs In-House Accountant
Their are many businesses who requires in house accountant and can also afford higher salary. Apart from this many small and medium sized businesses don’t want to spend the cash required to employ a full-time accountant. They’re often reluctant to make the investment in hiring in house accountant. There are different benefits to hiring an In house accountant & hiring an outside virtual accountant depending on business needs.
Here in this article we have given many different reasons why you might want to consider virtual accountant instead of in house accountant. An virtual accountant is simply an accountant who works online rather than in a traditional office and virtual accountant is provided by third party firm who provides online accounting services to different companies.
If you are small or medium sized business then virtual accountants are becoming increasingly popular in today’s business world. Virtual accountant have become an effective way to save money, time and also allows you to focus on other important work. A good virtual accountant will help you understand how to manage your finances better.
What are the benefits of having an In-House Accountant?
There are many benefits of having a full-time accountant working for your business. They are available 24 hours a day and can assist with any accounting issue that arises. Their knowledge of the business allows them to understand the numbers better and make them more effective. They can develop strong relationships with the owners, investors, lenders and customers. If there are disruptions to operations, it could mean losing clients or missing out on revenue opportunities.
Finding qualified staff can be difficult. You want someone who is reliable, trustworthy and knowledgeable about your industry. So having an accountant on board can help ensure your books are kept up to date, transactions are done correctly and tax returns are filed on time.
Hiring an accountant will give your business peace of mind knowing all financial matters are being taken care of.
Benefits of having an Virtual Accountant?
Here are just a few reasons why you might consider outsourcing your accounting needs.
- Cost Savings If you don’t have the financial resources to hire an internal accountant, it makes sense to outsource your accounting services. You’ll save money because you won’t have to pay salaries and benefits.
- Better Quality Control By outsourcing your accounting services, you’re able to focus on what you do best – running your business. Your outsourcer will handle everything else.
- More Time Freedom With an external accountant, you’ll have more time to spend doing what you love most – growing your business
- Professionalism Because you’ll be working with an expert, you’ll receive professional advice and guidance.
- Expertise of Virtual accountant in areas such as bookkeeping, payroll, tax preparation, and much more.
Things to consider before doing Transition from In-House Accounting to Virtual Accounting
We want to help you find the right accountant who will fit into your existing team. Here are some things to consider when looking for an virtual accountant:
- Will you be able to communicate effectively with your accountant?
- How much experience does he/she have working with small businesses?
- Can you trust him/her to keep your information confidential?
- Does he/she specialize in certain areas such as payroll, taxes, etc.?
- What is his/her hourly rate?
- Is there a fee for each transaction?
Why should I hire a virtual accountant?
Virtual accountants are experts in financial management who work remotely. You don’t have to worry about finding the perfect office space for your accountant; you can do it virtually anywhere. And because there’s no physical interaction required, you won’t have to deal with the stress of scheduling regular meetings.
Outsourcing your accounting will save money in the long run. When you outsource your bookkeeping, you’re able to focus on what matters most: growing your business. Your accountant will handle all the different stuffs like taxes, payroll, and filing paperwork.
You can use a virtual accountant to help you manage your finances. A virtual accountant will make sure you pay off your debt, keep track of investments, and plan ahead for retirement. They’ll take care of everything including payroll, taxes, and even helping you set up an retirement planning if needed.
Cost Difference Between In-House and Outsourced Bookkeeping and Accounting
Small and medium sized businesses often struggle to find qualified bookkeepers and accountants. This makes it difficult to keep up with all the tasks involved in managing finances. If you’re one of those companies, you might want to think about outsourcing your bookkeeping and accounting needs to a professional firm.
Overhead costs are much lower if you hire an virtual accountant from outside firm. For example, if you pay $50 per hour to an in house accountant, you could spend minimum around $1,500 – $3,000 per month just paying for their hourly or two hours of labor which can easily go higher depending on numbers of hours. But if you outsource your accounting to a reputable firm, you’ll likely end up spending less than half that amount. Plus, you won’t have to worry about finding someone to fill in for you while you take a vacation.
You’ll save even more money if you outsource both your bookkeeping and accounting functions. When you use an outsourced firm, you don’t have to invest in training employees to do the job. And since most firms charge monthly fees rather than hourly rates, you’ll avoid having to pay for additional overhead expenses like payroll taxes.
If you decide to go with an external bookkeeper or accountant, make sure to choose a firm that provides quality work and offers excellent customer support. Make sure to ask prospective vendors how long they’ve been doing bookkeeping and accounting for small businesses. Also, check online reviews to see what clients say about the firm
