As a business owner, you probably want your enterprise to run efficiently. This means asking yourself questions such as which functions to outsource and which ones to keep in-house. Since all Hungarian companies must have a local accountant from day 1, this is among the first things you must make such a decision about.
Start-ups and SMEs usually have outsourced accounting. But what are the main benefits, and when does it makes sense to have accountancy in-house instead? There are three main factors to consider: the size, the activity, and the budget of your enterprise.
Arguments for outsourced accounting
The accounting needs of a start-up or an SME are not too big, especially right after company set-up. A small company with a small budget can safely choose outsourced accounting, as it is more cost-effective than hiring someone full-time. This way even a specialist may cost less, granting you the flexibility to invest your savings in other areas that require development.
Sometimes bigger companies with in-house accountancy also choose to outsource at least part of their accountancy, e.g. payroll. This way the inhouse specialists can focus on more complex processes, while the provider can take care of a well defined and specific field.
Arguments for in-house accounting
While employing an in-house, full-time accountant may be more logical for bigger companies, even start-ups may consider it if the workload is stable enough. As a start-up, however, it is more realistic to employ a full-time accountant only if they perform other related, recurring tasks as well, e.g. reporting, to justify the full-time employment.
Having a unique business activity can also be a reason to choose in-house accounting. If you have a highly specialized activity, a full-time accountant familiar with the relevant accounting methods is certainly a valuable addition to your staff, regardless whether your company is big or small.
Outsourcing vs. in-house: the verdict
In general, small companies with a small budget gain more financial flexibility from outsourced accountancy. With a steady and stable workload, you can consider hiring an in-house accountant, but that is more typical for bigger companies. At the same time, specialized activities may call for the continuous presence of the right financial expertise.
You can switch between in-house and outsourced accounting any time, just keep in mind the logistical and financial implications of doing so. While switching is legally possible, the task itself is very complex, since various functions must be handed over. Additionally, finding the right employee or provider will inevitably take time and cost money. As a result, choosing in-house or outsourced accounting is a long-term decision that should be made with care.
Need help? Contact us!
For small companies and start-ups, it usually makes more sense to opt for outsourcing instead of hiring an accountant full-time. Helpers Finance has a long track record in providing outsourced accounting to foreign owned small and medium sized companies in Hungary. If this is what you are looking for, leave your books to us and focus on your business! You can see our prices here.
If you would like to be notified about our future blog posts, like us on Facebook.