How to know when it's time to recruit
Many small businesses and entrepreneurs tend to rely on outsourcing services such as accounting and bookkeeping, until it gets to the point that they really require an in-house accountant to look after their books full-time. But how do you decide if it’s time to call in an in-house accountant?
Typically, as an average business you can outsource most of your financial tasks until you’ve over 30 employees or your revenues hit over half a million per year. Usually, anything under that won’t be enough to keep a full-time accountant busy, but for peace of mind, you could always consider hiring a part-time accountant and financial administrator to make sure everything’s in order.
Outsourcing vs in-house
Having an in-house accountant to sort through your invoices and receipts, whilst keeping all your expenses and accounts up-to-date, can be reassuring when it comes to tax season. Plus you’ll always have help when you need it, which is why many businesses swear by them.
However, if you stick to outsourcing your accountancy tasks for the time being, you’ll certainly know when it’s time to hire an in-house accountant. It will get to the point that you’re continually calling up for accountancy services and wishing your accountant was a full-time member of staff.
Most small business owners are able to find an accountancy solution that fits them. It really depends on the individual business and what you can afford versus what you really need.
Increasingly, there are some wonderful cloud-based accounting solutions. Businesses like Freeagent and Xero can simplify a small business owner’s, or bookkeeper’s, life dramatically by providing an easy-to-use, powerful accounting platform hosted in the ‘cloud’.
In particular, inputting, reconciling accounts and generating and tracking invoices is made much easier. There are a number of these solutions out there, so have a look to see if one is for you. Look at our Knowledge Hub article on online accounting software if you’re looking for a place to start.