Are you interested in learning about the difference between an inside accountant and an outside accountant? If you are in the process of earning your degree in accounting, or you are close to finding the perfect program to enroll in, you need to discover which types of accounting positions exist and which one you would like to pursue. An outside accountant offers many different financial services at different levels of business to a large client base that can consist of start-ups, small businesses and more mature businesses that have grown in size. Rather than being employed by a single entity like an inside accountant, an outside accountant is not directly employed by the company that it services. Read on, and learn more about the roles of outside accountants in today’s private and public business sector.
Different Types of Outside Accountants
There is more than one type of outside accountant, and deciding how you would like to approach business when you are working independently is extremely important. Typically, outside accountants will either work as sole practitioners or as a member to an accounting firm that will provide its services to a large base of business clients. Sole practitioners are not employed by the company that they provide financial services for, but they do sign a contract stating that they will only provide services for the company contracting them. Members of accounting firms, on the other hand, are independent contractors and free to market their services to different businesses at once. Typically, the fees that are charged will be based on the types of financial services provided to the client.
What Types of Services Are Offered by Outside Accountants?
In addition to having your accounting degree, you will need to be experienced in accounting to become an outside accountant because of the scope of services that are offered. While some accountants within this area of accounting are specialists at various levels of business, many outside accountants offer a wide range of services at all levels of business. It is not uncommon for an outside accountant to work with a start-up to create a business financial plan one day and then work as an adviser with a mature business owner.
When you are an independent contractor in the field of accounting, you are your own manager and responsible for your own reputation. It is extremely important that the ultimate decisions that you make and the guidance that you give is well informed so that you can build your book-of-business and ultimately build the profits that you earn annually. For accountants who want to be marketers and managers as well, becoming an outside accountant is a great option.
You may have chosen the field of accounting because the demand for services within this industry is higher than most other industries. While making this choice is the first step, deciding which path you want to take is extremely important. Since the end of the recession, there has been a strong and steady demand for outside accounting services in the small business sector. Benefit from this widespread demand and work for several companies at once rather than limiting yourself. Working as an outside accountant will keep you busy, keep you passionate and keep you challenged.