In the business world, financial management is an essential component of a company’s success. However, for many small businesses, the cost of a salaried accountant can prove too high. This is where the use of a freelance accountant comes in. However, the choice between a salaried accountant and a freelance can be a difficult one for business owners, as there are pros and cons to consider for both options. In this article, we will look at the advantages of each option, to help you make an informed decision for your business.
The importance of accounting in running a business
Accounting is a key element in the management of a company, as it enables the company’s financial movements to be monitored and controlled. It provides essential information for strategic and operational financial decision-making. Accounting is used to determine a company’s sales, expenses and profits, as well as to measure the profitability of different projects and activities.
Accounting is also important for the company’s tax and legal management. It enables mandatory tax returns to be filed and legal bookkeeping obligations to be met. It also provides information for financial risk management and fraud prevention.
Finally, accounting is a communication tool for the company’s external and internal stakeholders. The financial reports produced by accounting are used by banks, investors and regulators to assess a company’s financial health. Internally, accounting reports are used by management to assess the company’s performance and make strategic decisions.
Advantages of hiring a staff accountant
Hiring a staff accountant has several advantages for a company.
Employment contract and job security
First and foremost, it provides an employment contract and job security for the accountant, which can improve the quality of the service provided.
Permanent presence and availability
The staff accountant will also be permanently present in the company, which facilitates exchanges and real-time communication.
Investment in training and career progression
In addition, a staff accountant can benefit from investment in training and career progression from the company. This may include training in new accounting regulations, the use of new software or improving financial analysis skills. These investments can improve the quality of the services provided and the satisfaction of the staff accountant, who can feel valued and motivated in his or her work.
Better integration into the company and corporate culture
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Finally, a salaried accountant can integrate more easily into the company and its corporate culture. They can better understand the company’s challenges and priorities, as well as internal processes. This can facilitate exchanges and collaborations with the company’s other departments, which can improve the company’s overall efficiency.
The benefits of using a freelance accountant
Hiring a freelance accountant also has several advantages for a company.
Flexible working hours and assignments
First of all, this offers great flexibility in terms of schedules and assignments. Companies can call on a freelance accountant for one-off assignments or for specific periods of the year, depending on their needs. This can be particularly useful for companies with seasonal fluctuations in activity.
Specialized expertise and regular knowledge updates
In addition, freelance accountants are generally experts in their field and regularly keep up to date with new regulations and market developments. They can therefore offer specialized expertise to the company, which can benefit from cutting-edge skills in accounting and financial analysis.
Lower costs and no social security or tax charges
Another advantage of using a freelance accountant is that it can be less costly for the company than hiring a salaried accountant. In fact, freelancers are not subject to the same social security and tax charges as employees, which can reduce costs for the company.
Simplified management of professional relationships
Finally, managing professional relationships with a freelance accountant is often simpler than with an employee. Companies don’t have to worry about managing payroll, vacations or other aspects of the employment contract, which can simplify the professional relationship.
Criteria to consider when making your choice
The choice between a salaried or freelance accountant depends on several criteria to consider.
Company size and structure
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First of all, the size and structure of the company are important. A small business may have more limited needs in terms of accounting skills, which can be covered by a freelance accountant. On the other hand, a larger company may require a salaried accountant to ensure a permanent presence and more complex management of accounting operations.
Volume of activity and need for accounting skills
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The volume of the company’s activity is also an important criterion. If the business has occasional accounting needs, a freelance accountant can offer the flexibility to meet those needs. If the company’s business volume is large and regular, a salaried accountant may be necessary to ensure continuous, high-quality accounting management.
Availability and budget
Availability and budget are also criteria to consider. Freelance accountants can offer greater flexibility in terms of hours and assignments, but their availability may be limited depending on their workload. Salaried accountants can be available at all times, but their cost is generally higher due to the social security and tax charges associated with hiring.
Preferences and expectations for professional relationship management
Finally, preferences and expectations in terms of professional relationship management are also important. Companies that prefer simpler, more flexible management may opt for a freelance accountant. Companies looking for a more complete integration of the accountant into the business can choose a salaried accountant.
