The accounting obligations of companies
In business creation, outsource to a chartered accountant
Hire an accountant when the business grows
An accountant is not an accountant
Subcontracting fees and cost of hiring an accountant
As the manager of your small business, you are surely accompanied by a chartered accountant, whom you outsource, to check your accounting follow-up, prepare your annual accounts, and benefit from personalized advice. When should you go from outsourcing to an accountant to hiring an accountant? Finally, what is the use of recruiting an accountant? L-Expert-compatible explains when to hire an accountant for your company.
The accounting obligations of companies
Every company is obliged to keep accounts, that it can carry out itself or which it will subcontract. Its accounting obligations differ according to its tax system. Teastatus of auto-entrepreneur, for example, benefits from simplified accounting, while the real profit regime requires heavier bonds.
Thus, the law does not require you to hire or subcontract your accounting follow-up to a professional, but depending on the complexity of your obligations, you will quickly realize the need to be accompanied in this task.
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In business creation, outsource to a chartered accountant
The majority of business creators approach a chartered accountant when drawing up the business plan, in order to validate with them the economic model of their future activity and determine the appropriate legal form and tax regime. Once the registration of the company is completed, they continue to outsource the proper monitoring of their accounts, but themselves ensure the daily recording of cash flows and the management of the administrative procedures that this entails.
The primary mission of the chartered accountant is to keep and validate the company's accounts, produce the annual accounts, and make tax and social declarations. Chartered accountants meet the obligations of companies to keep accounts according to the standards in force. Their registration with the order of Chartered Accountants (OEC) allows them to certify the annual accounts in the eyes of the tax services.
Hire an accountant when the business grows
When the activity grows, the company may wish to hire assistance within its premises, in order to ensure the daily monitoring of its cash flow and its administrative management, which will require more time. Beyond his primary mission, the accountant may, depending on his level of skills, carry out an advisory andauditmission and manage the payroll of employees.
An accountant is not an accountant
The skills of an accountant are not the same as those of a chartered accountant registered with the Order of Chartered Accountants. The accountant will not be able to certify the annual accounts, for example, and will be less competent in areas such as tax optimization or strategic financial advice. However, his presence is necessary when the company records a high turnover or hires several employees if only to relieve the manager of the daily organization that accounting monitoring involves.
Subcontracting fees and cost of hiring an accountant
Note that the fees paid to account firms are based on the volume of activity of the company. Outsourcing all of its accounting to a chartered accountant can be very expensive when the company generates a high turnover or hires a certain number of people.
Hiring an accountant or an accounting secretary for the daily administrative follow-up and subcontracting the preparation of the annual accounts to a chartered accountant can therefore become financially wise. It's up to you to do the math! Hiring a low-qualified accountant costs around 30,000 euros per year, including employees' contributions.
If the fees paid to your accountant are starting to climb around 20,000 euros per year, it may be time to review your engagement letter! Why not carry out accounting monitoring and payroll management internally to offer your accountant a more punctual intervention?
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