In-house accountant or an external accounting firm? Which solution should you choose?

Paying taxes is far from a pleasure. However, we must do it to ensure the functioning of the state. There is no escaping the demands of the tax office: both for the average Joe and for a business owner. Not only is giving away part of your earnings unpleasant, but mistakes can also happen. These lead to fiscal penal proceedings and high fines. Is there any way to make paying taxes easier? How can you protect yourself from costly mistakes at the same time? You can hire an accountant. Cooperation with an accounting firm is also possible. We are checking which option is better.

Accountant – when is it worth hiring one?

In the past, employing an accountant was a natural matter in every company. Especially in larger enterprises. Often there was an entire accounting department there, where even dozens of people worked. The accountant has her advantagesall accounting is done on-site, making it possible to quickly make corrections, etc. However, the disadvantages must also be taken into account. Such a solution requires first and foremost the employment of a new employee. Sometimes a single accountant may not be able to handle everything. It will then be necessary to create an entire accounting department. These are costs, sometimes quite substantial. Therefore, a professional accounting firm will be best for some medium-sized and practically all large companies.

When is an accounting firm better?

Accounting office services are a newer solution. They only appeared on the market in recent decades. In a sense, they operate on the principle of outsourcing. Because accounting is conducted remotely. All tax data is transmitted electronically. Only at the accounting office headquarters do accountants perform settlements. Then, also electronically, they forward them to the appropriate tax authorities. This has undeniable advantages. Above all Costs are much lower, because we are not hiring a new employee. Therefore, accounting firms are most willingly used by small businesses. However, there is nothing preventing medium-sized and sometimes even large enterprises from using them as well. However, there are some disadvantages. This is, for example, a longer document flow route. These must first reach the office's headquarters, which is why quick corrections are not always possible.

What are the additional services of accounting offices?

When hiring an accountant, we have a person with specific competencies at our disposal. We cannot go beyond them. But what if we need something more? For example, tax and financial consulting? Here, you can use additional services from accounting offices. Not all of them offer them. However, various companies of this type employ many qualified specialists. They will be helpful not only in settling invoices. Tax consulting, analysis of ways to optimize the company. These are just some of them. Accounting firms often have their specializations. Therefore, they can provide the aforementioned services and, above all, do it well. The rule that if something is for everything, it is good for nothing does not apply here. Does this determine the superiority of an accounting firm over an individual accountant? Not necessarily. This depends on various conditions concerning a specific enterprise, and the decision must be tailored to them individually.