Outsourcing: Should You Select an Accounting Services Provider or a Freelancer?

With business growth, the need for more manpower is always there, particularly in areas such as accounting and bookkeeping. There is a scarcity of qualified accountants. It is a difficult task for global companies to lure in the perfect accounting workforce.

This situation is driving business leaders to look for solutions in the external market to support staffing levels and cater to growing demand. With this decision, enterprises have primarily two options: either to hire freelance accountants or opt for the support of a specialized accounting services provider. By diversifying the outsourcing possibilities available, business owners can select the method of execution that best suits their company.

This can be a tough and personal question to answer, but I think it is necessary in some scenarios when you have 2 alternatives like this one, and if you are still not committed to either option, it is essential that we carefully evaluate the pros and cons of each. As a business owner, you must determine what influences your service quality and weigh the potential benefits of each option.

In this article, let us dive right into these two facets and get an in-depth insight into why freelance accountants, as well as accounting services providers, have their respective set of pros and cons. After reading through this analysis, you will be in a much stronger position to determine which option offers the most benefits for the long-term growth and development of your business.

Which is better, outsourced accounting for your business or global?

Choosing whether to outsource accounting services or hire freelance accountants for your global business is crucial. Before we dive into the difference between a freelancer accountant and a professional dedicated accounting service provider, there are several factors you should consider when thinking about whether outsourcing accounting is right for your global business.

As a business owner growing your organization, you need to focus on growing staff members who are able to control the tasks required. This generally entails hiring more staffing, most frequently ones who have skills in navigating the kind of compliance and financial, as well as accounting-oriented labor that is often incumbent upon companies. As a result, business owners face the daunting task of making more with less and start to look at outsourcing as a possible solution.

Despite a myth that pegs these obstacles only with big corporations, companies of all sizes outsourced accounting services, making it among the most outsourced functions for global businesses.

When considering turning to outsourcing as a solution, ask yourself—ťdoes this fit into my global business ecosystem?

Inadequate capacity

Although it is the objective of every business proprietor to establish a successful enterprise, the inability to satisfy client expectations may result as an unexpected consequence of that success. Upon this occurrence, it is imperative to investigate strategies that will guarantee that your organization has the production capacity to satisfy demand. This is most effectively accomplished by ensuring that the appropriate individuals are in the appropriate positions to meet the business’s needs.

Your initial reaction may be to recruit new personnel, which will lead us to our next point.

High costs and time constraints

The expansion of your business will inevitably necessitate the allocation of both time and resources to the development of viable solutions to facilitate the management of your organization’s growth. It may take some time to attract the appropriate personnel for your business if you search for new permanent employees, which can impede your growth.

High staff attrition and productivity issues

The hiring process’s length can also impede productivity, in addition to stalling your development. The inability of team members to handle all client requests leads to a reduction in the amount of work they can accomplish. It also means that your employees may struggle to focus on fundamental tasks that help your business grow. As a business executive, you desire your team to contribute value to your organization rather than squandering time on administrative tasks.

Insufficient resources and a shortage of skills

It is an open secret that the current skills scarcity presents a challenge in terms of attracting and retaining qualified accountants. To ensure that their clients’ confidence remains unshaken, business proprietors must ensure that their team members have the necessary expertise and experience. This increases the level of stress associated with the recruitment of new employees.

Accounting service providers or freelancers?

Considering these factors, multinational businesses have no other choice but to outsource their accounting requirements to an international accounting service provider or opt for a freelance accountant in the USA. Though these two options may sound similar in what they deliver, there are still some distinctive differences that make it easier for you to decide.

Outsource your accounting services and receive a complete package (an individual accountant or team of accountants/bookkeepers) to boost productivity within the firm. They also serve to provide requisite resources, equipment, and office spaces and offer all facilities typical of an office that include managing different aspects associated with its employees, hence reducing the burden on HR managers.

This choice gives you power over your lineup by allowing you to talk to and interview applicants before deciding. They even help clients with most HR functions, payroll, and managing employee-related issues, leading to a more economical way to pool funds to drive growth rather than diluting work quality.

The ability to hire accountants around the world ensures you have control over your financial investment in the team, enabling strategic growth without going over budget. Having a truly international team keeps an onion that can be peeled, restructuring roles and responsibilities as the company grows and changes in the direction needed to scale your business quickly.

Freelance Accountants

Hiring a freelance accountant usually means hiring an independent contractor for short-term or part-time work. A few of the other platforms to help you find and connect with freelancers include posting your project on professional platforms or with a marketplace where companies or individuals can offer their services. Hiring for one-time projects or recurring contracts is quick and simple with this approach.

Instead, choose a freelancer because you will get great pricing because individual people or companies are bidding on projects, so it’s a competitive market. Yet the drawback is that there are no quality checks, and it could easily be done from one freelancer to another, which may not meet the required standard and experience. This loss of control could be dangerous and, in the worst scenario, cause you to spend more money if the work delivered is below par and ends up needing other people or companies.

To get the most out of either option,

You may need to hire a freelancer or a third-party firm, or perhaps even take on a full-time controller depending on your organization’s size and the number of services you require.

Questions you want to be asking when interviewing them.

Are they successful?

Do they have experience working with other companies in your niche?

Well, are they trained and certified?

Do they know a training program for your cloud accounting software?

Are there defined processes and workflows?

Key takeaways:

• These providers offer you the ability to outsource your time-consuming workload to a global team, helping to liberate your time and focus on the high-impact work in your business.
• Employing a global team of accountants with exceptional skills can facilitate the efficient scaling of your business throughout all stages of its lifecycle.
• Outsourcing your accounting function can result in an increase in your billable hours, which will enable you to consistently provide exceptional service to your clients.
• Adding one or more global team members is a time-saving solution that not only increases your billable hours but also ensures quality assurance and compliance.

Why do you need to select Velan as your accounting service partner?

More and more company owners are identifying the building of international teams as a top talent retention priority to experience impressive growth and increased profitability. This trend is especially intensified as more than 50 per cent of businesses have decided to cut costs by a lot by outsourcing.

We are one of the leading global accounting service providers in Velan, dedicated to offering a complete suite of business process outsourcing solutions tailored to cater to the needs of small, medium, and large accounting firms. We are staffed by experienced accountants and CPAs, who are rigorously trained to provide top-notch tax solutions.

When you choose us, you get to work with highly experienced, well-trained professionals from all over the world who are focused on getting things right for your business. This collaboration is a meaningful step towards efficiency, and your local team can now focus on the more important items.

The company is excited to become the champion of driving success for leaders, offering dedicated teams for each firm and enabling fast-scaling that uncovers their real business ambitions. Do you want to strengthen your business with Velan? Scale Efficient Today!