In-house or external accountant: what really pays off for a company

Small and medium-sized companies often weigh up whether to employ their own accountant or entrust their accounting to an external firm. Both options have their advantages – the deciding factors are cost, the size of the company and the level of expertise required.

Costs

An in-house accountant means a wage, social and health insurance contributions, software, training and equipment – in other words, a fixed cost regardless of seasonality. With external accounting, you pay according to the scope of the work, so the costs follow your actual needs more closely.

Expertise and scope

A single in-house accountant will find it hard to cover accounting, payroll and taxes at an expert level. An external firm has a team of specialists covering all areas, including changes in legislation.

Cover and continuity

When an in-house accountant falls ill or leaves, the company has a problem. An external provider ensures cover and continuity of processing.

Responsibility and risk

A reputable accounting firm is usually insured against errors and bears responsibility for the professional side of the work. This reduces your risk of penalties.

When an in-house accountant makes sense

With a large volume of documents and a need for the accountant to be present at the company every day, an in-house solution – or a combination of in-house and external – may pay off. For most small and medium-sized companies, however, external accounting works out more efficient.

Related articles: Single-entry vs. double-entry bookkeeping: what is the difference and which to choose, How to take over the accounts from a previous accountant without errors, Closing the accounting year: a complete checklist for entrepreneurs.

Frequently asked questions

Is external accounting safe in terms of data?

Yes, if the provider complies with the GDPR and follows secure procedures. Modern firms provide access to data through a secure app.

How are documents handed over?

Most often electronically – by uploading them to an app or through an agreed channel, which means there is no need to carry lever-arch files back and forth.