Accounting - should one do it oneself or outsource it?

Accounting plays a central role in the business world. It reveals how a company is doing economically, where money is being earned or spent, and provides indications on where to invest and where to save money. However, accounting can also become very complicated quickly. Especially for SMEs, it is worth considering whether to keep accounting in-house or to outsource it?

Decision Factors

‍Whether outsourcing accounting is the right solution always depends on the respective company. Here are factors such as the size of the company, the complexity of the bookings, and staffing resources are decisive. If there are few bookings and someone in the company has the necessary knowledge and continues to educate themselves regularly, keeping accounting in-house can indeed be sensible. However, it is necessary to weigh whether focusing on the core business might be more efficient. Regularly, a hybrid form might be the most profitable choice. This is also the official statement of the SME Portal of the Confederation. In this case, time-consuming but rather simple bookings are handled internally. The more challenging aspects of accounting such as closing, payroll, or VAT settlements, however, are handed over to an external expert. The choice of this fiduciary is of great importance. Not infrequently, these business relationships last for years.

Criminal Relevance of Accounting

‍Another aspect that speaks more for outsourcing are the criminal aspects. If a company's accounting is not properly maintained or certain obligations are not met, this can result in a penalty, usually a fine. Even the erroneous recording of inventory establishes such a breach of duty. The same applies to tax evasion. This offense can also be committed negligently. For example, if one forgets to declare an account or a cash register (completely), one becomes liable to prosecution. In such cases, in addition to back taxes, a fine must also be paid.