Qualified accountants perform critical financial functions in business. They collect, analyze, and report a business' financial operations, develop, maintain and implement financial databases, and offer advice on issues such as revenue trends, commitments, and future expectations. Every business needs a specialist who can perform these functions. However, should the accountant be hired permanently or on contract? How do you determine the best solution for your business? This article will address some of the critical issues that you should have in mind when deciding whether to hire an accountant on a contractual or full-time basis.
Size of the business
The most critical aspect to consider is the size and nature of your business. Ideally, most startups and small businesses have fewer accounting operations as compared to medium-sized and large enterprises. In fact, most small companies may not need an accountant but would function well with a bookkeeping expert. If you run such a business, hiring an accountant on contract would be efficient and cost-effective in the long-run. All you need is to keep all your records and receipts to allow for accurate analysis of your business' financial status.
On the other hand, a medium-sized or large business has more complex operations. For such an enterprise, hiring a permanent accountant would be ideal. This is because the company deals with numerous payments, receipts, employees, clients, and even service provider. There is a need to monitor the accounts on a daily basis to have an accurate view of the company's financial status.
Availability of a training process
Businesses spend a significant amount of resources on employee training. When you hire permanent employees, you need to have a well-developed training process to ensure that they gain the necessary skill and proficiency to perform their tasks. However, if you don't have such systems in place, you should consider hiring on contract. This is because most accountants who work on contract are already proficient in the field. When recruiting on contract, ensure that the accountant is already experienced so that they can dive right into work without going through a training process.
Sensitivity of your projects
Do you have tax reports that need to be filed or financial statements that should be compiled immediately? If the financial year is coming to a close and you haven't put your accounts in order, you should consider hiring a temporary accountant. You can easily find a staffing firm who will provide an experienced accountant within even a day. This will allow you to finalize any time-sensitive project before their deadline. The process of hiring a full-time employee is quite lengthy, and you should only consider it if you don't have any urgent projects.
Follow these tips to determine whether you need a permanent or temporary accountant in your business.