5 Things To Consider When Outsourcing An Accountant

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Outsourcing an accountant is a great way to free up tasks like bookkeeping, while also ensuring that your earnings and expenses are recorded accurately. It’s cheaper than hiring an in-house accountant and often better suited to smaller businesses that don’t have the need for a full-time accountant. 

A quick Google search is likely to reveal many accounting firms in your area. You don’t even have to keep your search local - there are many virtual accountants you can hire from anywhere in the world. This means that there are thousands of options to choose from. 

Just how do you choose an accountant? To help you narrow down your options, here are just a few things that could be worth considering.

What’s Your Budget?
Accountant fees can vary a lot from firm to firm. If you are on a tight budget, it could be important to shop around for quotes and find a relatively cheap option. 

Solo accountants typically charge less than firms. Similarly, accountants with less experience will charge less. You could also find that hiring a virtual accountant is cheaper - however, if you’re hiring an accountant from another country, you must make sure that the accountant fully understands your country’s tax laws. 

Do You Need A Specialist?
Some accountants specialize in providing financial support for certain industries like healthcare, retail or construction. Some are experts in certain types of accounting like auditing or forensic accounting. There are also accountants out there that may better understand certain types of earnings like royalties, rental income or interest.

You should consider how complex and unique your company’s finances are. Many companies will do just fine hiring a general accountant. However, an international investor or a recording artist or a crypto lender may benefit from hiring a specialist. 

What Qualifications/ Experience Have They Got?
You should consider whether to hire a certified public accountant (CPA) or a general accountant. A CPA firm has to pass extra tests and meet stricter legal requirements - which typically makes them more skilled and more trustworthy. The downside is that a CPA will cost you more. 

Experience is also important to consider. What other companies has an accountant worked with? Are they within a similar industry? An accountant that has worked with many clients in the past that are similar to you may be more reliable and efficient. 

Have They Got Good Reviews?
Online reviews are always worth checking. If an accountant has lots of positive reviews, it is a sign that they are likely friendly and reliable. An accountant with lots of negative reviews may charge less, but may not be worth trusting. 

Be wary of firms that have no reviews. Such firms are likely new and inexperienced companies - without reviews to rely on, there’s no telling how reliable they may be. 

Is Scalability Important?
Is your company likely to grow in the future? If so, it could be important to hire an accountant that can grow with your company.

A large accounting firm may be a better choice than a solo accountant in this instance. Solo accountants will only be able to take on so much work, whereas large firms often have teams of accountants they can dedicate to single clients if necessary.