In-house Accounting & Possible Issues
Posted On: 27/06/21 - 0

Are You Thinking About In-House Accounting? 

Accounting is a significant area of any thriving business,  more and more companies choose to outsource it to accounting firms. As a business owner, you face many challenges every day, and this never-ending list can get overwhelming. Your staff accounting team should have a strong knowledge of who owes you money, who you owe money to, and how to maximize your returns on investments.  But, if these tasks are not done accurately, this could mean big financial problems for you the business owner.

Often, many business owners cannot afford to hire a professional accountant that provides full time or even part-time experienced accounting duties.  It’s good to know that you always have an option to outsource accounting services to an accountant that specializes in small business accounting.

The good news is your accounting process doesn’t have to be a part of your daily stress. We have compiled a list of challenges that entrepreneurs experience with their staff accountant and taxation. Let’s have a look.

Insufficient Knowledge of your Industry or Business

Firstly, if your accounting team may not be industry-specific, there may be a gap in the work as a result. When entrepreneurs feel like their record keeping advisors aren’t “getting it” regarding their specific business needs, they consider outsourcing to professional accounting firms that specialize in their industry.

Inexperienced Accountant Unable to Give Proactive Financial Advice

Secondly, what is the responsibility of your  accounting staff? Firstly, a steady recording and update of accounting transactions, prepared financial statements and providing facts to key stakeholders. What about beyond this?  Your staff may not have the experience, knowledge or the education to advise you on maximizing your return on investment.  They may not know how to minimize your tax liabilities which will cost you money. Another very important part of accounting is being able to provide strategic business development plans for the future and understanding the tax implications.   Usually, it is rare to find such advice from an in-house accounting team in a small business.

Inaccuracy May Cost You 

Importantly, something else to consider is that a minor mistake in any accounting transaction has the potential to lead to a huge mess in your business. Furthermore, a lot of time and effort, goes back into correcting those same mistakes.  At times, this takes hours, or more.  Having a knowledgeable staff is one thing, but are they experienced and educated in order  to perform accounting transactions flawlessly? Did you know that entrepreneurs confess that the majority of them have an upsetting experience when it comes to staff accounting accuracy.  This could be devastating and expensive to correct and maintain with in-house accounting.

Latest Accounting Technology

Choosing which accounting software is best for your business is challenging. There are numerous options, but quite often they all look the same to the untrained eye. Moreover, training your accounting staff and making them skilled with the latest software is an additional task that you just don’t have the time for.

Finally, Lack of Business Expertise

Businesses have sensed that sometimes their financial management and taxation staff lack expertise. With the ever-changing business taxation, it’s important to send staff to regular tax update seminars.

Choose the right accounting and taxation solution for your business by being informed and deliberate when you outsource. You will gain immense productivity and cost benefits of outsourcing bookkeeping, accounting, and other related services. Accounting firms provide a variety of business service to clients, including bookkeeping, accounting, taxation, financial management, payroll, and much more.

Call us today and talk to an expert to learn more about the benefits of outsourcing accounting services for your business.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297

cheryl@padgettnw.com