This is one of the most crucial decisions in today’s fast-changing business landscape – to hire an in-house accountant or a virtual one. Technology and automation have made it possible for businesses to have a flexible and cost-effective financial management system. The choice between having either an in-house or virtual accountant would have significant implications for your company’s efficiency and financial health as well as its overall cost structure.

In-house accountants work on the premises of the business, full-time employees engaged in numerous responsibilities, such as bookkeeping, payroll management, ensuring compliance with tax regulations, and preparing the financial statements .They tend to be close to the company and are thus able to grasp even the most minute operations of the business. This is helpful for immediate decisions and tailor-made services.

On the contrary, virtual accountants would perform their business from remote places mostly as an outsourced service. That is, they would engage in the same activities, tax preparing and financial reporting, but not from the offices themselves. Virtual accountants bank on cloud-based accounting software for viewing your finances from wherever place in the world.

Location Gets the work done sitting at a desk in your business office Get their work done online from the location of their choice.

Recruitment Process: The recruitment process for an in-house accountant is your responsibility, and to do so efficiently, you must screen them properly. But if you are not an accounting expert, this process will be a problematic one. If you are hiring a virtual accountant service from an outsourced accounting services provider, they will be responsible for the selection of the right virtual accountant for you. Service providers are a better judge of the expertise of accountants as they have extensive experience in doing so.

Quality The quality of work is dependent on your recruiting skills. Just in case you hire someone who lacks any skills that you need in your accountancy, you cannot expect high-quality work and, at some point, may witness some inefficiency. After the right selection of accounting service provider, you will rarely find any issue with quality as long as you communicate your requirements accurately.

Accounting on-the-go

There is accounting software that makes the accounting process a breeze for most businesses. However, due to some reason, if businesses can’t invest in software, it is difficult to get access to accounting information. Virtual accountants always work on cloud-based software, which makes it easier to access financial data from any device and any location.

Paperwork Conducting accounting traditionally by an in-house accountant without accounting software leads to a mountain of paperwork to work with. Keeping track of all this paperwork and maintaining the physical books can turn out to be challenging and time-consuming. Virtual accountants conduct accounting using popular accounting software. This makes it easier to maintain and update all financial details easily with minimum use of paperwork.

Growth & Downsizing Hiring or firing human resources is easier said than done, and there are restrictions in terms of other variables that can’t be downsized or increased as per the dynamic requirement. Growth or downsizing is an ease in terms of a virtual accountant. Here, you can increase or decrease the number of virtual accountants working for you without the stress of infrastructure needs.

Industry Knowledge When hiring an in-house accountant, you must ensure that they have prior work experience in the same industry; otherwise, the expense and time invested in training will be significant. You can choose from a wide array of virtual accountants who have worked for diverse industries or virtual accountants who specialize in your industry.

Training It is your responsibility to ensure that your accountant is regularly trained to help you stay current and meet your financial requirements. Virtual accountants generally work with different businesses, and it becomes their responsibility always to be trained, as this makes them more demandable for companies.

Cost A full-time in-house accountant can cost you about $70,000 for a year, which is exclusive of overhead costs. Superannuation, contributions to employee retirement schemes, fringe tax, child support, employee income tax, office space, IT system, and similar overhead costs can add up to about 20% of the base salary. Virtual accountants are not your employees; instead, they are contractors providing accounting services, and thus, overhead expenses are not incurred when you hire a virtual accountant. You can hire virtual accountants from Whiz Consulting for as low as A$3000 a month.

Confidentiality Accounting involves a lot of sensitive financial information. With an in-house accountant, you have better accountability if there is a leak in any financial information. It is crucial to hire a trustworthy and reliable virtual accountant whom you can trust. Also, don’t forget to sign a non-disclosure agreement to safeguard your business’ financial information.

 In-house accountants bring expensive overhead, such as salary, benefits, office space, equipment, and training. A virtual accountant is often a contractor; businesses pay only for the services required, significantly reducing costs. Virtual accountants also do not require a separate office space along with all those expenses.

2. Flexibility & Accessibility:
Virtual accountants are very flexible, working from anywhere, and using cloud-based tools. This means that financial data can be accessed anywhere, and your accountant will easily adapt his working hours to fit into your business’s schedule. This is contrary to in-house accountants who are bound by office hours and may not be easily available in case urgent financial matters crop up after their office hours.

3. Scalability :
As your company grows, the same does your accounting needs. Virtual accountants can scale their services up or down quickly so you only pay for what you need at any point in time. Hiring or firing in-house accountants, on the other hand, is usually a time-consuming and quite HR- and law-sensitive process.

4. Industry Expertise:
Virtual accounting firms usually have a team of professionals with expertise across various industries. Whether you are in retail, manufacturing, or technology, you can find a virtual accountant with experience in your field. This is particularly useful for businesses that require specialized accounting skills.

5. Less Paperwork & Automated:
Virtual accountants will employ cloud-based accounting software with minimum paper and updated records in real time, leaving no chance of human mistakes that may lead to loss and disorganization in a firm. In-house accountants, particularly those using more than basic software, can often process and perform tasks using paper.

 

When Would You Choose an In-House Accountant?

 

1. Individual Business Advice: If your company requires a person offering advice customized to a specific situation, an in-house accountant may serve your business more efficiently. Their continual presence allows them to gain an in-depth understanding of your operations, which can lead to more customized and informed financial advice.

2. Data Security Issues: Even if virtual accountants are trustable, there are still apprehensions about data security and privacy. If you have confidential information in your business, maintaining an in-house accountant could be more preferable for security over data, in case one is not very comfortable sending financial information over a remote interface.

3. Control Over the Process: An in-house accountant provides a sense of control. They are on-site and can attend to urgent financial matters quickly. Businesses that require constant interaction and immediate access to financial documents might prefer an in-house accountant for their accessibility.

The cost of hiring an in-house accountant can be highly financial in nature. An in-house full-time, salaried accountant working in the U.S. could range for a company from $50,000 to $100,000 per annum. Then there are healthcare, benefit, office space, equipment, and training costs.

Virtual accountants, such as Mehasa Consulting, charge in the range of $3,000 per month or even a little lower and therefore stand out as one of the competitive options available to small or medium-sized enterprises in accounting services.

The experts of Mehasa Consulting find understanding for the needs of innovative and changing modern businesses. Our in-house accountant services as well as virtual accounting will definitely suit your specific business model. Our entire dedicated virtual accountants team guarantees to ensure that the proper running of the financial aspect works within such increased levels of topnotch professionals without the drawback that involves having in-house workers on payroll.

Enjoy scalable, flexible, and secure accounting solutions with our partnership, help streamlining your financial processes, and improve the overall efficiency of your business. We let you take care of scaling your business while we take care of your financial health.

The choice between hiring an in-house accountant or a virtual accountant depends on the unique needs of your business. In-house accountants are perfect for companies that need constant, hands-on financial management, and these services are personalized. Virtual accountants offer flexibility, cost-efficiency, and access to a broad range of expertise. Knowing what each type of accountant has to offer and considering your business’s long-term goals will help you make the right choice for your accounting needs.

For more about how Mehasa Consulting can facilitate the optimization of your accounting processes, then feel free to reach us today.

They are just as capable and efficient compared to accountants in your company. All that is actually different from them is your remote work setup or the technology systems they use as they serve everyone around the world.

Of course, it is possible. Most businesses go from using an in-house accountant to virtual accountants when the business grows bigger. Virtual accountants are at par with the business needs in financial aspects, and they are quite simple to fit into your system.

If you can choose a reliable and respectable virtual accounting firm, risks in terms of data security will be minimal. We at Mehasa Consulting will assure the data as regards financial is always highly secure.