Hiring an accountant can be wise when a business grows, especially when it comes to performing administrative tasks or recording the company’s daily accounting needs. An Accountant in Palm Desert CA may also carry out audits or payroll if they are competent in these areas. The cost of hiring an accountant obviously depends on his or her level of qualification (diploma and experience).
Costs associated with hiring an accountant
Businesses should set aside a certain amount of money per year (including employer fees); For an inexperienced and low-qualified accountant, costs could be around $40,000 and up to $70,000 per year for an experienced accountant. Accounting students are significantly cheaper but they have no qualifications, so take that into account as well. Note that Accountant in Palm Desert CA may have less experience and expertise in advising the business executives in areas such as tax or financial optimization.
Hiring an internal and external accountant
Starting from a certain level of activity, it might be interesting to mix the hiring of an accountant with a subcontractor for more specific needs, annual account production, etc. If the fees paid to an accountant are around $45,000 a year, it may be a good idea to review the terms of the contract and consider hiring an accountant to cover tasks such as administrative management or the recording various accounting entries.
An accountant is not the same thing as a CPA
The qualifications of an accountant are not the same as those of a certified public accountant. Accountants will not be able to certify annual accounts, for example, and will be less competent in areas such as tax optimization or strategic financial advice. Nevertheless, their presence is necessary when the company records a high turnover or hires several employees, and so on.
Subcontracting fees and other costs
Note that the fees paid to public accounting firms are based on the volume of business activity. Subcontracting all accounting needs to a public accountant can be very costly when the company generates a high turnover or hires a lot of people. Therefore, hiring an accountant to handle the daily administrative follow-up needs along with annual accounts can be financially wise. Visit millermehr.com for further information.
