In Pursuit of Profit
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Large organizations have the advantage of being able to list numerous positions at once and let their HR teams work through a continuous pipeline of potential employees. Better cash flow and continuity planning allows large companies to both wait for the right candidates and also hire before there is a dire need for more staff. Small businesses, however, often delay hiring for as long as possible to minimize employee-related expenses.
The result is that smaller companies typically need to hire more quickly than their larger counterparts because they wait longer to begin the candidate search. This urgency can lead to hiring a candidate that is either less qualified or less committed to the company. While hiring in-house is a costly process, a bad hire is far more costly.
Smaller companies frequently overlook the benefits of outsourcing job functions instead of hiring in-house. The key advantage to outsourcing professional roles like accounting and finance is the ability to forgo the costs of recruiting, onboarding, and retaining employees.
According to Glassdoor, hiring a new employee costs an average of $4,000 and 24 days. With specialized roles like accountants these numbers may underestimate the true cost, which is likely around $5,500 instead.
However, even this figure fails to consider the risk of hiring in-house. There is a substantial cost for bad hires when employees are a mismatch for the role or the company. In a recent survey, 25% of employers reported that a bad hire cost the company more than $50,000 due to lost productivity, time needed to find a replacement, diminished workplace morale, and brand damage with customers. In the case of an accountant, this cost could be even higher due to the nature of the job. Financial errors can result in serious consequences such as cash flow issues, tax penalties, state or federal fees, and damaged vendor relationships.
Everything might be working well for you and you may feel there is no reason to change the structure or team. You get accurate, timely reports and it’s not ‘broken’, so why fix it?
If however you notice flaws, gaps or errors, you might be considering a change in the structure or adding a new (or another) accountant to our team. The costs of hiring an accountant can quickly add up. There is an option. You can outsource to our team. We can do the job remotely or onsite. Call us today!