Why you should NEVER hire an accountant
Your accountant is leaving, or your business is getting bigger, and you feel now is the time to hire an accountant.
Is it that simple?
You have a vision of having an experienced accountant at your side. You don’t just want an accountant who produces the numbers but an experienced accountant that understands and interprets them for you. Someone you can trust, who will advise and guide you as your business grows and become a key part of your team.
Overseeing the financials and accounting is time-consuming and taking on the role of managing an accountant can be costly and time-consuming. You are looking at recruitment, another large salary, potential HR issues if things go wrong, time to manage, motivate and appraise this new staff member.
What challenges will I face when hiring an in-house accountant?
Challenge #1 – Cost
Affording an accountant is one of the top challenges for business owners. How much do I need to pay to get the right person? The idea of adding this large cost to your business that does not actually increase your sales is a big issue.
Hiring based on cost will often leave the business owner disappointed with the result of their selection.
Challenge #2 – Previous bad experience
Having a prior bad experience may have left a bad taste in your mouth and you don’t want to go back down that road. After a trying and frustrating experience, building that trust again would be a challenge.
Many accountancy firms offer outsourced services as part of their overall service offering. However, delivering this consistently as a viable solution for business owners requires a specialist focus.
Challenge #3 – Lack of experience
Hiring an inexperienced accountant leaves opportunities for mistakes, omissions, and inefficiencies.
Challenge #4 – Knowing the difference between accounting and bookkeeping
Many business owners make the mistake of hiring an accountant to complete bookkeeping and payroll tasks as well as the accounting for their business.
Payroll should be done by a payroll expert. The bookkeeping should be completed by a bookkeeper. The accountant should be preparing the accounts and overseeing the bookkeeping (not doing it). An experienced financial controller should be advising and guiding the business owner.
The danger is that you could find yourself paying an expensive accountant to do all these tasks.
Hire your own accounts department.
Rather than one person, you get a team. Each area of your accounts is looked after by the right person, in the right seat.
The management accounts are being produced by an experienced accountant. The bookkeeping work is being produced by a skilled bookkeeper. Payroll is looked after by a payroll expert who is dealing with multiple payrolls and being continuously upskilled as legislative changes happen.
All this is being overseen by your go-to financial controller who can sit down with you on a regular basis and go through the numbers, interpreting, guiding, and advising. This has a great positive effect on you and your business in freeing up your time and getting really valuable information that can be used to facilitate better business decision making.
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