In-house v/s Outsourced Accounting Team: Which Should You Hire For Your eCommerce Business?

As a business owner, you have a lot on your plate. You have to ensure you’re spending time and energy on the right tasks while not overlooking anything. One crucial decision to consider is how to handle your accounting needs.

Even though professional accounting and bookkeeping increase the efficiency of your eCommerce business, without any doubt, they can be tedious. If not done correctly, the company might have to face issues later.

Many eCommerce owners find themselves overwhelmed when it comes to dealing with finances, accounts, and bookkeeping. This leads you to ask yourself questions such as whether to outsource or hire in-house.

Even though the pros and cons of each question vary based on the person or team that you chose to hire. Let’s evaluate hiring in-house vs outsourcing so you can figure out the best way to meet the accounting needs of your company.

1. Control

In-house team allows you to have direct control through the entire process. You’ll be able to monitor, ask for change, and keep track whenever you want as you’ll be able to direct and monitor it closely.

Outsourcing means loss of control which may lead to unwanted delays and wasted money.

2. Communication

Having clear and cut communication between the team and management leads to greater efficiency. The in-house team will have a better understanding of the job, they’ll cut down delays and innovate solutions.

3. Cost 

In-house accounting can be more expensive than outsourcing especially if you consider the complexity of accounting, and the cost of software, hardware, and training. 

Outsourcing is more cost effective than hiring someone full time especially if you’re a startup or an SME and have a small budget. Outsourcing can save you money, but only if you find reputable and affordable services.

4. Confidentiality and Risk mitigation

Accounting firms are required by law to maintain the confidentiality (Non-Disclosure Agreement) of their clients however with an in-house accounting department, there’s a risk that your information could be leaked if your employee doesn't comply with data security.

5. Hiring and training

Hiring and training in-house accountants could be expensive. You have to pay for their salary, benefits, and training. 

Outsourcing an accounting service is less expensive since you only pay for the service rendered.

6. Quality 

Outsourcing ensures quality as they specialize in accounting and have more experienced staff. If you are not satisfied, you can always change and chose another company.

7. Synchronizing the deliverables

Outsourced accounting and bookkeeping can give you more accurate and timely reports. They will use the latest software, and technology and will generate reports easily identifying areas of improvement. 

While in housing you may need to invest in additional software and training.

8. Expert accounting advice 

When outsourcing, you will have access to experts who will provide you with advice on financial planning, tax strategy, and more. You can benefit from their industry knowledge.

The verdict

Outsourcing allows you to focus on more complex processes while the provider can take care of a well-defined and specific field.

In general, small companies with limited budgets gain more financial flexibility from outsourced accountancy. With a steady ad stable workload, you can consider hiring an in-house accountant.

Finding the right employee or provider will inevitably take time and cost money. Choosing between in-house or outsources accounting is a long-term decision that should be made with care.

You have 3 choices

Option 1:

Inhouse hiring

For full-time in-house hiring you can post an advertisement for the available position on recruiting platforms like LinkedIn is the most common one. You can also post the ads on social media platforms.

Option 2:

Outsourcing 

When hiring a freelance individual for a certain period of time, you post your projects for free at Upwork, fiver, etc. If you are looking for a long-term commitment, you can hire a third-party agency as ‘Finance as a service’ or outsource their accounting function.

Option 3:

BeUniqueness DFY E-commerce 7 figure in a box solution 

Apart from getting the benefit of a highly experienced Accounting team catering to your finances and books, you’ll be able to cut the trial and error while setting up and scaling your e-commerce business. 

Without having to worry about dozens of crucial yet time-consuming activities, you can generate a 7 figure passive income without even lifting your finger.

Learn more about BeUniqueness DFY E-commerce 7 figure in a box solution