Should My Business Hire a Full-Time or Part-Time Accountant?

As your business operations grow in complexity, so do your financial decisions. If your accounting has grown past the scope of software and spreadsheets, it may be time to consider bringing an accountant onto your team.

But should you hire someone full-time or part-time?

Each option has its pros and cons, and for many businesses, neither is a perfect fit. The good news? There are flexible alternatives, like outsourced accounting services, that can give you the expertise you need without the overhead.

Let’s break down the pros and cons of hiring full-time versus part-time and explore other flexible alternatives that deliver the expertise your business needs to grow.

Assessing Your Business Needs

The first step in choosing the right type of small business accountant is evaluating where your business stands today.

Business Size and Complexity

Start by looking at the size of your business. We’re not just talking staff numbers here, but the amount of revenue it earns each month. For instance, businesses with high sales volumes often face more complex accounting requirements.

Consider the types of transactions too. Are they straightforward sales or do your products have complex contracts with intricate payment structures?

For example, some industries like e-commerce have specific accounting requirements, such as inventory tracking. Other industries like construction might require project-based billing or percentage-of-completion revenue recognition.

Industry and Geography

What industry does your business operate in? Tightly regulated fields, such as government contracting and healthcare, have strict compliance requirements that shape your financial processes. 

Also consider your geographical reach. If you operate in just one or two states, your accounting requirements will be more straightforward than a business that makes sales in multiple states or countries.

Current Pain Points

Next, pinpoint all the reasons why you believe you need an accountant. These are your pain points, the things that keep you up at night.

Are you scrambling during tax season? Falling behind on bookkeeping? Struggling with reporting errors that could trigger audit risks?

Understanding all of these factors will help you uncover the scope of work that your accountant will be required to undertake. This can help you make that final decision whether or not you need a full-time accountant.

Pros & Cons of Hiring a Full-Time Accountant

A full-time accountant can be highly beneficial for some small businesses, but there are a few downsides to consider as well.

Pros

• Full availability: The biggest benefit of full-time accountants for small companies is that they are always available during your business hours, giving you immediate access to their expertise whenever needed. If you have an urgent situation, you don’t have to waste time waiting for them to “clock in.” Problems can be resolved more rapidly.
• Industry knowledge: Hiring a full-time accountant onto your team means that this person will quickly gain a deep familiarity with your business, your industry and all the nuances that come with it. This is key for transforming your accountant into an integrated member of your team rather than simply acting as a service provider.
• Strategic planning: With this deep industry knowledge comes the ability to help you plan strategically for the short and long-term future. Whether it’s budgeting, forecasting or financial modeling, a full-time accountant can serve as a trusted advisor and help you grow your business in the right way.

Cons

• Cost: The main downside to hiring someone full-time is the cost. Not only are you paying for their salary, but you also have to consider the cost of their benefits package, office space and the actual recruitment process itself.
• Competitive hiring: Experienced accountants are in hot demand, so you have to be offering an attractive package to make them want to work for you. This is especially true if you work in a niche or tightly regulated industry that requires specialized knowledge.
• Downtime: For many small businesses, the workload is likely to fluctuate. While some periods like tax season will keep your accountant busy, other periods may not provide enough work to sustain full-time workloads. This means you end up paying a full-time salary when there isn’t a full-time workload.

Pros & Cons of Hiring a Part-Time Accountant

Given the downsides associated with hiring a full-time accountant, are part-time in-house accountants a better choice? There are benefits and drawbacks to consider here, too.

Pros

• Pay only for what you need: Hiring someone part-time obviously comes at a lower cost. Yes, they still require a salary, but you’ll only need to pay for the hours you need. This reduces overheads while still giving you access to professional help.
• Scale as needed: As your business grows, you can scale up the number of hours, move to more frequent support and even help transition into a full-time accounting role. This flexibility makes the part-time option particularly suitable for startups or seasonal businesses that fluctuate in need.
• Industry knowledge: Part-time accountants will still give you the same quality of work and service as a full-time employee. You can find accountants who specialize in your industry or who can tailor their services to your needs.

Cons

• Availability: The main issue with hiring a part-time accountant is that they may not be available when you need them most. If it’s their day off, it’s possible that you will find yourself waiting a day or two to get answers or a solution to an urgent situation.
• Limited visibility: As a part-time accountant isn’t spending 40 hours a week working with you, they might have limited visibility of your business, which means they might not understand it as thoroughly as a full-timer. However, this isn’t necessarily an issue if you’re only looking for help with basic accounting tasks.
• Divided attention: It’s likely that you won’t be your accountant’s only client. Part-timers often serve several clients simultaneously, and while this isn’t inherently bad, it does mean their attention is divided and they won’t be as immersed in your business.

Here’s a comparison chart outlining the pros and cons of hiring full-time versus part-time accountants:

Key Decision Factors

Now let’s take a closer look at your current business operations and ask some key questions to help you make the big hiring decision.

Budget

Your budget is going to be an overarching factor in whether you choose part-time or full-time. 

Many small businesses operate on tight margins, which often limits the choice.

What can you realistically afford to spend on accounting help?

If the budget doesn’t stretch to accommodate a full-time individual, you may have to go with part-time help. If that is the case, how many hours per month can you afford to pay?

You can also think creatively here. Perhaps a remote or virtual accountant could fit into the budget because you don’t have to pay for office space.

Workload

How much accounting work is there, and how often does it need to be completed? Do you need more help with daily bookkeeping transactions or more advanced accounting tasks?

More complex financial management will require the expertise of an accountant, but do you have enough work to sustain them full-time? If the answer is no, then part-time is likely to be the best solution.

Growth Plans

How large do you expect your organization to become over the following weeks, months and years? Are you in an aggressive growth stage, or are you scaling more gradually?

While you may only have enough work for a part-time accountant right now, it’s no good hiring one if you’re going to need full-time support three months down the line. You might save a bit of money upfront, but you’ll be left without vital support and expertise when you need it most.

Tactical Support Versus Strategy Support

Do you just need someone to enter receipts and reconcile accounts, or do you need advice on tax strategy, cash flow projections and investment decisions? 

A tactical role can easily be filled part-time or outsourced, while a strategic role often requires a deep understanding and commitment to your business. For many companies, strategic roles are filled on a full-time basis.

Alternatives to Hiring In-House

It’s important to keep in mind that in-house part-time or full-time accountants are not the only option for small businesses. There are other ways to get expert accountancy support without going down the traditional hiring route.

Outsourced Accounting Firms

Outsourcing gives you the best of both worlds. These firms will provide a dedicated business accountant without the high overheads of taking on someone full-time.

These individuals work remotely and you only pay for the level of service you require, when you require it. You can scale the service up or down to meet the needs of your business.

Most outsourced providers operate on a rolling contract basis, payable annually or monthly. 

Plus, you’re only paying for the service. You’re not required to pay for equipment, office space or any benefits, making them a very affordable choice.

Another key advantage is expertise. You can typically find an outsourced accountant with experience in your business type and industry, so they can hit the ground running and won’t require extensive training.

They also tend to use cloud-based software that integrates seamlessly with your existing systems. This allows the data to flow securely, even if your outsourced accountant is not based nearby.

One consideration: outsourced accountants may not be available full-time, depending on your service level. However, you can establish reliable means of communication, including a way to get hold of them quickly if an urgent situation arises.

Freelance CPAs

Freelance Certified Public Accountants (CPAs) offer a middle ground between hiring an in-house accountant and working with a larger firm. They are typically self-employed professionals who work independently or as part of a small network.

Most, if not all, freelance CPAs serve multiple clients on a flexible schedule.

One of the biggest advantages of working with a freelance CPA is personalized service. 

They often take the time to understand your specific business model, goals and challenges, and will respond with a tailored approach to your accounting needs.

On the downside, they can have higher rates than outsourcing and may not be as flexible or available, given that they are juggling multiple clients.

Cloud Accounting Software With Light Oversight

Cloud-based accounting software can help you automate your day-to-day accounting tasks. With occasional oversight from a qualified CPA, you can stay compliant and ensure your reporting is on track. 

This choice is one of the most affordable, especially if your accounting needs are minimal, but it’s not for everyone. It requires you to get hands-on with tools like QuickBooks, Xero or Zoho Books. While these platforms are user-friendly, they still demand a basic understanding of financial management.

Tread carefully with this option. 

Yes, it can save you a lot of money, but the time commitment and learning curve are much greater. While a simple solution like this can initially serve your business well, when things start to scale, it can quickly become unmanageable if you lack accounting expertise.

Final Recommendations

There’s no one-size-fits-all solution when it comes to managing your business’s finances. Therefore, the best approach is to carefully assess where your business is today and where you expect it to be in the future.

Although every business is different, these solutions might work for you:

• Solo entrepreneur or micro-business: Cloud accounting software with occasional CPA check-ins.
• Stable business with moderate complexity: A part-time or outsourced accountant could offer the perfect balance of cost and expertise.
• Rapidly growing or complex business: A full-time accountant might be necessary to manage finances strategically.

If you’re looking for scalability and expertise without the high cost, we recommend looking into outsourcing or hybrid models.

Finvisor specializes in providing tailored accounting solutions specifically for startups and small businesses. From bookkeeping and payroll to CFO-level strategy, our team understands the unique needs and challenges that small business owners face daily.

What sets us apart is our affordable and flexible pricing structure. You get a dedicated financial team that grows with your business, without the cost and complexity of managing an internal department.

We use secure cloud technology, offer personalized support and provide proactive financial guidance. You’ll be matched with a professional who has deep knowledge of your specific industry.

If you can’t decide between a full-time or part-time accountant, perhaps using our outsourced services is the perfect solution.

Reach out today for a free consultation and discover how Finvisor can support your next stage of growth.