One of the most common financial mistakes entrepreneurs make is evaluating the cost of an employee solely by their net salary.

For instance, if you pay an in-house accountant 1,000 AZN, you might think that is the total cost to your company. However, the financial reality is entirely different.

Let’s calculate the unseen “hidden” expenses together:

  1. Taxes and Social Liabilities: On top of the net salary, the employer’s share of DSMF (Social Protection Fund) and Mandatory Health Insurance must be added.
  2. Workplace Setup: You need to allocate office space, purchase a desk, an ergonomic chair, a powerful computer, and account for their depreciation.
  3. Software: Professional operations require 1C software, licenses, updates, and e-signature fees.
  4. Social Package and Risks: Legally mandated paid leaves, sick leaves, and severance pay.

When you add up all these expenses, a 1,000 AZN accountant actually costs your company around 1,800–2,000 AZN per month. Furthermore, when that employee gets sick or goes on vacation, operations grind to a halt, and if they make a mistake on a tax return, the company pays the fines.

What is the alternative?

Outsourcing your accounting allows you to completely (100%) eliminate these hidden costs. You do not pay for office space, hardware, or social benefits.

FGAC Recommendation: For the cost of a single in-house employee, you can leverage an entire team of experts. At Finance Group Accounting and Consulting, we cut your expenses in half and legally insure your financial risks under a formal contract. Choose savings over unnecessary expenses.