Top 5 Hidden Costs of Inhouse Accounting and How Outsourced Services Can Help

Traditionally, the trend that most businesses have followed till the present is to hire in-house accountants for their finance and accounting needs. However, changing trends due to technological advances and a growing economy have opened up many options for employers, including the cost-effective option of outsourcing the accounting and bookkeeping functions.

Also, businesses face several hidden expenses while hiring in-house accountants, which can be daunting and spiral beyond control if appropriate measures are not taken to stem them. In this blog, let us examine some of the areas that can cause hidden expenses to the employer (you) and propose why outsourced accounting services can help cut such costs:

1. Hiring Costs:

When hiring an in-house accountant, one of the biggest challenges you could face is properly evaluating a potential hire for the job. Also, you might have to choose someone underqualified to save on hiring costs.

Additionally, it costs to post a job, sort through a heap of resumes, interview candidates, and make a decision. In 2023, the average accountant earned $ 74,240. In addition to this amount, you will also need to consider the costs of employee benefits to attract capable professionals.

Related Post: Hiring Staff In-house VS Offshoring

Some of the employee benefits you will need to consider are health insurance, retirement plans, paid leaves, workers’ compensation, and more. Instead, you can outsource your accounting function to an experienced accounting firm like KMK Ventures and experience more efficiency and professionalism in the accounting process.

2. Training Costs:

Spending time to train in-house employees also incurs hidden costs. Time is money in the business world, and spending time in training is akin to spending money. If you choose an in-house accountant, it will take up a significant amount of time in training you probably will not be able to afford.

Additionally, you will need infrastructure like a computer, office space, and other equipment. And if the new hire is not a good fit, you must repeat the process. Contrarily, partnering with an outsourced accounting firm like KMK Ventures means you will have access to trained accountants immediately. Such firms can onboard quickly, so you can allow the experts to handle the rest.

3. Costs Associated with Time:

A LinkedIn survey pointed out that only 30% of organizations could close a vacancy within 30 days. The other 70% took anywhere from a month to four months to process a new hire. This lengthy and time-consuming process involves a hidden cost, as you might discover for yourself.

Instead of going through the rigmarole of this lengthy and time-consuming process, you can be business-savvy and outsource your accounting. Thus, you can choose to have your accounting done professionally in a matter of days instead of waiting for several weeks or months to know the outcome of the hiring process.

4. Costs Concerning Absences:

If your in-house accountant is sick or away from office, you will have to bear a hidden cost through a temporary hire or replacement. You will be left without an accountant if they are away on vacation.

These real scenarios can create a significant hurdle for your business, especially during busy periods. However, if you partner with a reputable firm such as KMK Ventures, you can enjoy seamless and professional outsourced accounting solutions.

5. Productivity-Related Costs:

Since your in-house accountants may have other responsibilities, this might keep them from paying attention to their actual tasks. For example, there might be too much paperwork for them to clear or even too many invoices that need correction.

All of this eats into productivity, which comes across as hidden costs. On the contrary, when you outsource your accounting function to KMK Ventures, you can use the extra time to introduce new aspects to your business, thus solving your conundrum.

Contact KMK Ventures for Expert Accounting Solutions

Regarding accounting, you will know that a one-size-fits-all approach hardly works. KMK Ventures offers a full suite of accounting, bookkeeping, and tax solutions. By partnering with us, you gain access to a team of professionals updated on the latest regulations and industry practices.

Outsourced accounting also offers the flexibility to scale services according to your business needs, ensuring you only pay for what you require. These services are designed to be more cost-effective and efficient than hiring an in-house accountant. Contact us today to learn how we can help you with your business.