Accountants are in charge of keeping abreast of all records. They track and monitor all the financial transactions that your business incurs. Through the financial data they collect, as well as the financial statements and reports they create, you will be able to make informed business decisions.
If you want to know how your business is doing financially, accountants are the key as they will be able to provide you with the necessary financial information to determine the financial health of your business. You have the choice of either hiring in-house accountants or outsourcing accountants. Still not sure? Here are their pros and cons.
Cost
The hiring cost is one of the factors that you will have to look into in deciding between hiring in-source accountants or outsourced accountants. In-house accountants are more costly than outsourced accountants. According to professional accounting services in the Philippines, an accountant who has less than 1 year of experience will expectedly earn an average salary of ₱224,916. An accountant with 1-4 years of experience can expect to earn an average salary of ₱289,267. An accountant with 5-9 years of experience can expect to earn an average total salary of ₱458,492 while accountants with 20 years’ experience or more can expect to earn an average total salary of ₱478,895.
Note that here in the Philippines, there is a salary gap between those who are certified by the Philippine Institute of Certified Public Accountants and those who are not. Those accountants who are certified public accountants are seen to have a higher standard since they have gone through sets of training and accreditations for them to pass and become CPAs. CPAs have higher salary rates than other accountants.
Compared to in-house accountants, accountants you outsource from reputable firms will have lower fees since you will only pay them for the services that they will render. For example, if you just need tax services in Manila, they can audit your books and check for compliance. You can get decades of experience for a fraction of the price. You also don’t have to pay any employee benefits like sick leaves, 13th month pay, SSS, etc.
Work Quality
In-house accountants will vary in terms of their backgrounds and the set of skills that they have. Having in-house accountants will allow you to consistently track the financial health of your business, allowing you to focus more on other aspects of your business.
On the other hand, outsourced accountants are consistent in giving a high quality of work. These tax and accounting services in the Philippines firms require their employees to be updated with training and certifications. They can also assist you in making a business plan that will help your business stay within your budget. Unlike in-house accountants, they will be able to act as your financial advisors and provide services that would be hard for general accountants to do.
Internal Controls
Preventing fraud in your organization is a must. It is sad to say but you are more likely to experience fraud when you hire in-house accountants. An in-house accountant might be more tempted in committing embezzlement or other kinds of fraud since they have immediate access to confidential information.
Take the embezzlement case that happened in ING, a financial services company as an example. An in-house accountant, Nathan J. Mueller was able to steal $8.5 million by rerouting the checks and other funds to his account. An investigation into that case revealed that. Mueller was able to steal that much by simply tinkering with the payroll and mail systems of the company.
Outsourced accountants would not be able to do that since they don’t have access to most of the company’s systems. In addition, outsourced accountants will be able to help you in creating anti-fraud controls for your business to ensure that the controls and processes are up to date with the current fraud schemes.
Deciding Between Hiring In-House or Outsourcing Accountants
If you want a team to handle your accounting processes on a long-term basis, hiring in-house accountants would be ideal for you. If you have a company or scale-up, this would be the best option for you.
However, if you only need certain services for a short-term basis, hiring outsourced accountants would be an ideal option. They specialize in accounting processes that would usually be hard for general accountants to do. If you are looking for good quality services with a tight budget, outsourcing would be a better option. If you need tax and accounting services in Pasig, give our team at UNA a call.
