In-House Accounting vs Outsourcing: The Key Comparison

For obvious reasons, cost is a major factor in business decisions. Hiring an employee requires substantial funds and assurance of a return on investment. 

Bookkeeping services in countries like the US and Canada typically charge $20-$50 per hour. Even a business with minimal accounting needs may have to spend $100-$150 a month.

Hiring a full-time accountant is even more costly, including salary, benefits like health insurance and pension, and other perks. Finding a skilled, affordable accountant can be difficult.  

In this scenario, outsourced accounting services may be more cost-efficient. Some providers charge hourly rates while others provide a monthly flat fee with clear billing. As many companies provide these services, one can likely search for a competent, affordable provider. We as an affordable accounting services provider offer cost effective services as well. Accounting outsourcing in places with lower labour costs, such as India and the Philippines, is around $10-$15 per hour.

2. Quality Assurance

Having in-house accountants has advantages like meeting them anytime and getting urgent work done instantly. However, deficiencies in accounting resources can limit benefits. 

With outsourcing, you gain access to entire teams of experts with ample knowledge, skills, experience, and attention to detail. This results in much higher quality of work.

3. Inconsistent vs. Steady Efficiency 

Having an in-house accountant may be comforting, but mistakes can go undetected, as organizations are responsible for inaccurate financials and taxes prepared by their accountants per IRS norms. We as outsourcing companies generally have supervisors evaluating work, eliminating errors, and providing accurate, consistent reports.

If your sole accountant leaves without notice, you'd likely scramble to find a replacement and spend time and energy getting them up to speed. This can impact efficiency. 

Outsourcing eliminates these risks. If one employee leaves, work can be assigned to another expert. Outsourcing provides assured operational consistency.  

4. Loyalty

This is one of the most overlooked factors in business.  

Research shows 22-28% of businesses have experienced employee fraud, with older employees more likely to commit larger fraud in complex processes. 

Such instances are far less common with outsourcing for several reasons. Auditors ensure no fraud, credibility is paramount, and involvement in scams could destroy their business.

Thus, loyalty and reliability strongly favor outsourcing over in-house staff. In-house vs outsourced accounting offers clear trade-offs in cost, control, and expertise.

5. Working Hours

In-house accountants typically work 9-5, 40 hours a week. When they leave, urgent accounting needs to wait until the next day.

Accounting outsourcers often work 24/7 or extended hours. This appeal to non-traditional businesses like restaurants, web services, theaters, etc.  

Outsourcing may help if your situation includes:

- Spending too much time on bookkeeping while neglecting other aspects 

- Completing accounting without expertise  

- Needing professionals but finding them too costly

- Wanting reliable professionals to manage books remotely

Before deciding, thoroughly understand your specific business needs. Every business is unique, so no single solution addresses all issues. Carefully assess operations and get professional advice on where outside help is needed most.

In-House Accounting VS Virtual: The Key Comparison

These days every company is required to be ahead of the competition. One of the most effective ways to achieve this is by hiring virtual professional accountants to assist with financial planning. These instructors can carefully review a company's financial records to make sure that they are accurate, up-to-date, and comply with all the laws and regulations. 

Benefits of Virtual Accounting-

Virtual/online/Remote accountants are becoming more popular because they offer many benefits. For example, they can work from anywhere using cloud-based accounting software. This means they can access a company's financial data quickly and easily, especially if the business has multiple locations or remote teams. 

Hiring a virtual accountant can also be more cost-effective than hiring an in-house accountant because they can be engaged on an as-needed basis. This can save a business a lot of money on overhead costs. Additionally, virtual accountants often have their own tools and software licenses, which can further reduce expenses for the business. 

Finally, our financial experts provide access to expertise that may be difficult or expensive to secure in-house. Whether businesses need help with taxes, audits, or complex financial analysis, they can find a professional accountant with the skills and experience needed. This ensures that businesses get the best financial services that meet their unique needs.

Here are some significant advantages of using Virtual/Online/Remote accounting services in India from Lekhakar:

1. With technology, you have access to an expert team of accountants at your fingertips.

2. The accounting team has more knowledge and expertise that manage all accounting transactions, budget management, and publish financial statement in time. 

3. Multiple eyes on the data and financial transactions that are in balance sheets and reduce the chances of fraud and security breaches.

4. This accounting enables more advanced and effective decision-making.

5. You get more time to focus on strategic and high-priority tasks for your business plus these accounts help you to handle monthly, quarterly and annual closings.

6. Your staff members won't let you down with manual data entry and collection and they will reconcile your account payables and account receivables on time.

7. You don't have to worry about scalability because you have remote teams covered.

The best part of using an Online financing solution is to save a lot of extra money and get other important benefits that you want to give to your team.

Our services-

We Provide a Qualified accounting team for you. We offer In house or Virtual accounting services in Delhi NCR that are easily accessible from anywhere in the world Because as an accounts outsourcing firm in India, we have to provide the affordable accounting services to our clients.