Accounting outsourcing vs. in-house accountant

To decide whether it's better to have an in-house accountant or outsource, you need to understand what exactly an accountant does.

Here are the main tasks:

• Accounting of income and expenses
• Preparation and submission of reports
• Settlements with employees
• Personnel records
• Assistance with taxes and payments

However, the scope and complexity of the work depend heavily on the size of the business and the form of taxation.

If you have a JDG or a small company, the accountant usually keeps a KPiR or a ewidencja przychodów under ryczałt, pays ZUS and tax advances, and for a VAT payer also files JPK_V7. The most common mistakes here concern deadlines, so these tasks are usually handed to an accounting office. It costs less than hiring an in-house employee and is easier to manage.

Here there are more documents, employees appear, along with VAT and payroll, and a sp. z o.o. keeps full accounting books and files annual financial statements (art. 2 ust. 1 of the Accounting Act). Sometimes one strong in-house accountant is enough, sometimes an accounting office with a separate HR specialist is more convenient. The choice depends on the number of documents and employees.

Large companies almost always need their own accounting department. It requires full involvement in the life of the company, communication with other departments and support in day-to-day matters. An external office complements the in-house department here. You can hand it, for example, payroll or JPK, while the main work stays in-house.

Pros:

• Our accountant is in the office and always available. We can quickly discuss a situation or clarify anything.
• He knows all the details of your company: from regular expenses to customer habits.
• It's easy to change tasks, distribute the workload, and connect to new processes.

Cons:

• It's expensive. You pay the salary, employer contributions, leave, software and equipment.
• If the accountant quits or goes on sick leave, nobody will move the ZUS and tax deadlines.
• We need to make sure he knows the new rules and keeps his knowledge up to date. This also incurs costs.

Pros:

• Lower costs. The office pays for its own leave, accounting software and training, it is already in the price.
• You're working with professionals. They have many clients and are constantly working with various tasks and laws.
• The office is liable to you for its own mistakes under the contract, and OC liability insurance is mandatory for it (art. 76h of the Accounting Act).
• The scope of services is easy to expand or reduce depending on the season and the growth of the company.

Cons:

• There is no accountant in the office. To clarify something, you have to write or call.
• Not all contractors are equally meticulous. You need to choose those who do everything on time and correctly.
• Sometimes work is done "from a template," without understanding the specifics of your business.

When choosing an outsourced or in-house accountant, it's important to consider the costs, especially if the company is small or just starting out.

On top of the gross salary, the employer pays:

• its share of ZUS contributions, including 9.76% for pension and 6.5% for disability insurance (art. 16 ust. 1 and 1b of the Social Insurance System Act), plus contributions for accident insurance, Fundusz Pracy and FGŚP;
• paid leave of 20 or 26 days a year (art. 154 of the Labor Code), a workstation, accounting software and training.

That is why an in-house accountant costs noticeably more than their gross salary.

Prices depend on the volume of work:

• for a JDG without employees, the price depends on the number of invoices and the form of taxation;
• a VAT payer adds JPK_V7, and a company with employees adds payroll and HR;
• a sp. z o.o. keeps full books, so its accounting costs more;
• for a large business, the price is set individually.

For a JDG or a small company, an accounting office usually costs less than one in-house accountant, because you only pay for your own volume of documents. Our prices by number of invoices for JDG and sp. z o.o. can be found on our accounting services page.

If you have an in-house accountant, all responsibility falls on the company. Even if the accountant is responsible for the error, you will be held accountable to the tax authorities.

With an accounting office, you are still the one liable to the tax office, because a taxpayer is liable for their taxes with all their assets (art. 26 of the Tax Ordinance). The office is liable to you under the contract, and if its mistake led to a penalty or interest, you are entitled to claim compensation, including from its mandatory OC insurance.

To protect yourself:

• Sign a clear contract
• Check the availability of liability insurance
• Find out how long the company has been in business and who it collaborates with

To decide whether to choose an in-house accountant or outsourcing, consider:

• What form you have, JDG or sp. z o.o., and how many employees
• How many documents are processed each month?
• Are there any particular aspects of the work that are important to consider?

If you choose an accounting office, check:

• Reputation
• Experience in your type of business
• Terms of the agreement
• Availability of insurance against errors

Accounting outsourcing vs. an in-house accountant is not a question of "which is better," but rather "which is more convenient and beneficial for you."

For JDGs and small companies, working with an accounting office is usually simpler and cheaper

Medium-sized businesses should consider both options, depending on their objectives.

Large companies often create their own accounting departments, but may outsource certain functions.

It is worth making the decision based on your own numbers, that is, the number of documents and employees, and also on who will be responsible for deadlines.