Outsourcing vs. In-House Accounting: Which Is Right for Your Business?

Every business needs to know how much money it makes, how much it spends, and what’s left over. That’s what accounting is all about. Good accounting helps business owners make smart choices, pay the right taxes, and avoid big problems.

But there’s an important choice to make: should you hire an accountant to work inside your company, or should you pay an outside company to do it for you?

In this blog, we’ll talk about both options. You’ll learn how much each one costs, what you get for the money, and which one might work best for your business.

What is an In-House Accountant?

An in-house accountant is someone who works directly for your company. They are your employee. They work with your team, attend your meetings, and help you make decisions.

What Do In-House Accountants Do?

• Keep daily records of income and spending
• Create financial reports
• Manage payroll and tax payments
• Work with auditors when needed
• Offer advice on business decisions
• Stay up to date on new rules and laws

This person can become a trusted advisor in your business. Since they’re part of your team, they may notice small issues before they become big problems.

What Does It Cost to Hire In-House?

Let’s break down what it really costs to have someone on your team full-time:

1. Salary

This is the biggest expense. In the U.S., accountants earn:

• $50,000–$70,000 per year for beginners
• $75,000–$100,000 for experienced accountants
• $100,000–$130,000+ for senior professionals

2. Benefits

These are the extra costs that come with hiring employees. Most employers pay:

• Health insurance
• Paid time off
• Retirement plan contributions
• Bonuses and incentives

Together, these can add 20% to 35% to the base salary. For example, a $90,000 salary could cost you up to $121,500 when benefits are included.

3. Training and Development

Accountants need to learn new rules each year. Sending them to courses or seminars could cost another $2,000–$5,000 annually.

4. Office Space and Equipment

You’ll also need to give them a computer, software, desk, and internet access. This might cost $700 to $1,400 per month in office expenses alone.

5. Accounting Software

You’ll need to buy and maintain accounting software like QuickBooks, Xero, or NetSuite. These can cost $5,000 to $10,000 per year or more depending on your company’s size and needs.

What is Outsourced Accounting?

Outsourced accounting means you pay a company or freelancer outside of your business to handle your accounting. They aren’t your employees, so you don’t have to manage them day to day.

These professionals often work with many businesses and have a team of experts in tax, payroll, and financial reporting.

What Do Outsourced Accountants Do?

• Keep financial records up to date
• Manage your payroll and benefits
• Prepare and file your taxes
• Provide monthly financial reports
• Help with budgeting and forecasting
• Offer financial advice and support

Some firms also offer CFO services, where an expert helps you plan for growth and raise money from investors.

What Does Outsourcing Cost?

Costs for outsourced accounting can vary, but here are some common numbers:

1. Monthly Fee

Small businesses might pay as little as $300 to $500 per month. Medium businesses may pay $1,000 to $2,000 or more per month, especially if they need payroll, tax planning, and forecasting.

This adds up to $3,600 to $25,000 per year.

2. No Benefits or Payroll Taxes

You only pay the agreed fee. You don’t need to cover health insurance, time off, or retirement benefits.

3. Software Is Often Included

Many accounting firms include their own tools in the price. This can save your business thousands of dollars per year.

4. No Office or Equipment Costs

Outsourced teams work remotely. You don’t need to give them office space, computers, or supplies.

Key Cost Comparison

Cost Item	In-House Accountant	Outsourced Accountant
Base Salary	$75,000–$130,000/year	N/A
Benefits	$15,000–$45,000/year	None
Training Costs	$2,000–$5,000/year	Usually included
Software/Tools	$5,000–$10,000/year	Usually included
Office Setup	$8,400–$16,800/year	None
Monthly Fee	N/A	$3,600–$25,000/year
Total Cost Estimate	$100,000–$160,000+	$3,600–$25,000

As you can see, outsourcing can be much more cost-effective—especially for small or medium businesses.

Pros and Cons of In-House Accounting

Pros:

• Full-time focus on your business
• Can provide instant support
• Better understanding of your daily operations
• Easier to develop long-term strategies

Cons:

• Expensive to hire and keep
• Harder to scale if your needs change
• You may need to manage their work closely
• Risk of employee turnover or burnout

Pros and Cons of Outsourcing

Pros:

• Cost savings on salary, benefits, and office costs
• Access to a team of experts, not just one person
• Easy to scale up or down as needed
• Latest tools and software included
• Reliable processes and reporting

Cons:

• Less control over daily work
• May not respond as quickly as an in-house person
• Less personal connection with your team
• Takes time to explain your business needs upfront

When Should You Choose Each Option?

Choose In-House If:

• Your company has complex financial needs
• You prefer having someone always available
• You want hands-on control
• You have the budget to afford a full team

Choose Outsourcing If:

• You want to reduce overhead costs
• You’re a startup or small business
• You need part-time accounting support
• You want flexibility and expert-level help

Some companies even mix both options. For example, they may keep a junior bookkeeper in-house and outsource tax planning to a CPA firm.

The Big Picture: Cost vs Value

Yes, hiring in-house gives you more control—but it comes at a high price. You might end up spending over $100,000 a year on one employee. That doesn’t even include risks like turnover or sick leave.

Outsourcing gives you flexibility, savings, and access to a broader team of experts. It lets you focus on growing your business without being bogged down by financial paperwork.

In today’s world, more companies are choosing to outsource—not just to save money, but to stay lean and competitive.

Make the Smart Choice with Global FPO

Accounting is the backbone of every successful business. Whether you're a small startup or an established company, you need accurate books, timely reports, and smart financial advice.

In-house accountants can offer great support, but at a high cost. Outsourcing gives you expert-level service without the burden of salary, benefits, and office expenses.

The best choice depends on your size, budget, and future plans. If you want to grow while staying efficient, outsourcing could be the better path.

If you're thinking about outsourcing your accounting, Global FPO is here to help. We offer expert bookkeeping, payroll, tax planning, and CFO services to businesses of all sizes.

Our team works closely with you to understand your goals and handle the numbers, so you can focus on growth.

Want to see how much you could save? Reach out to Global FPO today for a free consultation. Let’s build a smarter, stronger financial future for your business—together.

FAQs

1. What is the biggest difference between in-house and outsourced accounting?

An in-house accountant works directly for your company, while outsourced accountants work from outside and often support many businesses.

2. Is outsourcing safe for handling my business finances?

Yes, most outsourcing firms use secure systems and follow strict rules to keep your data safe. Always choose a trusted firm with good reviews and experience.

3. How much money can I save by outsourcing accounting?

You could save anywhere from $50,000 to $100,000 per year, depending on the size of your business and how much accounting help you need.

4. Can I outsource just part of my accounting work?

Yes, many businesses outsource tasks like payroll, tax filing, or monthly reports while keeping basic bookkeeping in-house.

5. When should I switch from outsourcing to in-house accounting?

Consider hiring in-house when your finances become more complex, you need full-time help, or your company is growing fast and needs quick decisions daily.