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Choosing the Right Accountant: When Is It Time?

Writer's picture: Galt AccountingGalt Accounting

Updated: Mar 19, 2019


Many small businesses don't have the volume of financial transactions that necessitate hiring a full-time -- or even part-time -- bookkeeper or accountant on staff. Then again, the financial situation of their business is such that they could benefit from more regular financial review and planning and up-to-date accounting -- instead of leaving every invoice, receipt, and ledger to hand off to the tax preparer at the close of the fiscal year.

Hiring an outside accountant or accounting firm on a consulting basis is a good first step for a growing business. The outside firm can often cost less than the salary and benefits of a full-time employee and, at

the same time, you may be getting a higher level of advice from a CPA or a tax accountant, the latter of whom usually is a licensed CPA and a lawyer specializing in tax law. Even with the latest and greatest accounting and tax software, it still may be easier to farm out your financials to a CPA firm that can manage your books online through secure software-as-a-service programs than to maintain those software programs in-house.

Outside accountant

An accounting firm usually handles the following accounting functions:

  • Tax return preparation

  • Preparing financial statements, including the balance sheet, income statement, and statement of cash

  • Analysis or problem-solving advice


Inside accountant

When the business grows in revenue and the transactions become more complicated, it is time to consider hiring a full- or part-time inside accountant. Since the outside accountant's fee grows with the size of the business, the owner may see some cost savings by bringing some of the work in-house.


Duties and responsibilities of an in-house accountant usually include:

  • General ledger/chart of account maintenance

  • Responsibility for daily transactions

  • Financial statement preparation and analysis

  • Cost accounting and variance analysis

  • Treasury and cash management including bank reconciliations

  • Payroll and fixed asset accounting


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