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Outsourcing to accounting firms vs freelancers are two of the most popular options for businesses looking to expand their team without breaking the bank. Outsourcing is a great way to access a large pool of talent from around the world. This allows companies to find the right person for the job right away.
At the same time, Freelancing platforms provide an easy-to-use platform that allows businesses to connect with freelancers who specialize in specific skill sets. This can be beneficial for business owners that need short-term or project-based help.
If you want to outsource your accounting needs, do you choose a firm or freelance? Knowing the advantages and disadvantages of each option is key in determining which works best for your business.
So, you’ve decided to outsource your business’s accounting needs. Whether you are looking for more professional advice or looking to lighten the load on your internal staff, to find the right fit, it is important to understand the difference between a freelancer and an accounting firm.
In this blog post, we’ll be comparing the two choices, examining their pros and cons so that your decision-making process can be easier. Let’s begin!
What is Outsourcing, and How Does It Work?
Outsourcing is the process of hiring an outside company or individual to perform services that you would normally provide to an in-house team. This is especially useful when dealing with specialized tasks, where finding and training a qualified person may be too difficult or expensive.
When it comes to choosing between a freelancer and an accounting firm, there are a few things to consider.
A freelancer could potentially have less overhead costs since they usually work out of their home office and when hiring a company, there is less red tape. However, they may also be less experienced than an accounting firm who can handle more complex tasks as well as ensure accuracy within your records.
On the other hand, larger Outsourcing accounting and Tax preparation firms typically require higher fees because of their in-depth understanding of finances and tax law. Ultimately, it comes down to what best fits your needs!
What is Freelancing, and How Does It Work?
Freelancing is a work arrangement in which an individual provides their services to businesses without having to formally join their organization. Generally, freelancers are self-employed contractors who offer their services on a per-project basis and are responsible for paying their own taxes. They also have to pay business insurance and other business costs.
Few things to consider while working with a freelance accountant:
Flexibility – Freelancers have more control over when and how they work, allowing them to take on projects when it fits into their schedule.
Cost savings – Freelancers do not get benefits or pay extra; they usually cost less on hourly rates than if they were working for a company.
Lack of responsibility – Since there is usually no official contract between you and the company, there is no guarantee that the work will be done on time.
Difficult to Find the Right Person – It can be hard to find the right person, because some freelancers do not have experience or specialized skills, so a rate agreement can be difficult to work out.
Admin burden – Working with multiple freelancers can be difficult if you do not have a system or strategy in place to handle the work.
Advantages of Outsourcing with accounting firms
What are the advantages of outsourcing accounting to a professional CPA firm?
Outsourcing your business’s accounting needs to an accounting professional CPA firm provides several advantages. Here are just a few:
1. Professional Expertise: Professional CPA firms have more expertise in their practice areas and can provide superior, specialized advice than an individual freelance accountant. They often offer a wider range of services than an individual accountant since they will have practitioners specialized in each specific area. This gives your business access to the most up-to-date financial statements.
2. Automation and High Security Standards: Many small businesses don’t have enough resources to invest in digital infrastructure that is essential for secure record-keeping and management. By working with a CPA firm, businesses can rest assured that their financial records are protected by the latest encryption mechanisms and stored in secure networks, as well as benefit from customized schedule integration.
3. Tax Optimization Assistance: One of the key benefits you get from working with professional accountants is tax optimization strategies. An experienced CPA firm will analyze your financial situation before you file taxes to help you make the most possible tax savings on tax day.
Outsourcing with Safebooks Global:
|Timely delivery of work committed: Safebooks Global is a professional accounting firm that provides timely delivery of work committed to. We understand the importance of deadlines and strive to meet them without compromising on quality.
|Untimely delivery and over commitment: Freelancers may not have enough time to complete the project within the agreed upon timeline. This can delay getting your financials, which can have serious consequences for business.
|Clear & timely communication: Safebooks Global understands the importance of clear and timely communication. We make sure to keep our clients updated on the progress of their projects and provide them with regular updates.
|Limited communication due to full-time job: Freelancers may not have the time or resources to provide regular updates, which can lead to delays in business decisions. Also, freelancers may not be available when urgent matters arise.
|Sense of responsibility towards work: We know that our customers expect us to provide them with accurate and timely financial information, so we take every step to ensure the work is done right and on time.
|Freelancer accountants Work happens on their time: They are not bound to a specific timeline, so they can work on projects when it is convenient for them. They also have the flexibility to take on multiple projects at once, which can be risky.
|Direct Contracting: It allows you to have a more direct relationship with the accounting firm, allowing for better communication and understanding of the project. This can help ensure that deadlines are met and that the quality of work is up to your standards.
|Commission to be paid by both client & freelancer: When hiring a freelance accountant, both the freelancer and the client must agree on the amount of money to be paid. The commission should be based on the scope of work and the amount of time it will take to complete the project.
|Long term relationship: This allows them to build trust and understanding with the firm, which can lead to better communication and more efficient workflows. Working with a CPA firm also provides businesses with direct contracting opportunities, allowing them to control the quality of work and the project timeline.
|One-time job: It is important to note that freelancers do not have long-term contracts and may not be available when something important comes up. Also, there is no guarantee of timely delivery or clear communication with freelancers, which can lead to delays in business decisions.
In conclusion, the decision between outsourcing to an accounting firm or hiring a freelance accountant is ultimately up to you and your business needs. If you’re looking for consistency, an emphasis on compliance and long-term relationships, then an outsourced accounting firm might be the right choice.
Safebooks Global Offers accounting and tax preparation outsourcing services to CPA firms. Just make sure you evaluate the costs and benefits of each option before making a decision. With the right research and understanding, this can be an easy decision that will save your organization time, money and stress in the long run.