In-House or Outsource: Accountants & Bookkeepers

For plenty of businesses, their financial needs are met by in-house employees that will handle accounting related tasks. Is it cost-effective to have in house accountants and bookkeepers?

The answer to this question will vary on multiple factors. Business type, size, goals and revenue are all driving factors when determining if your financial management needs can be met with in-house professionals or if an external professional may be the answer. When working with business owners, it is important to recognize goals and expectations from the services received regardless if you are in-house or outsourced.

In a 2021 survey conducted by Clutch.co, they found as time of ownership progressed, more businesses resorted to outsourcing their accounting tasks. In a total of 335 US businesses involved in the survey, 49% of small businesses with the same management for 5 or more years used in-house accountants. A significant decrease from the 67% of businesses with in house accounting with the same management at 1-2 years. When businesses grow in any respect, the need for personalized, thorough and detailed information grows as well. One of the largest differences between in-house accountants and bookkeepers in comparison to outsourced is cost.

According to the US Bureau of Labor Statistics, the average cost for a bookkeeper is $49,210 annually. With accountants, this average rises to $81,680. The cost of outsourced bookkeeping services normally range from $300-$3,000 monthly, heavily dependent on the kinds of services utilized and expertise of the professional. In summary, the difference in cost alone is significant. This does not include cost to recruit, train or pay employer related taxes and benefits.

Value can mean something different depending on the specific business owner you are discussing with. Some owners may find substantial value in comprehensive and detailed financial analysis, while others may prefer consistent and regular check-ins on various aspects of their business operations. Despite your individual preference, finding the right professional who truly understands your needs and will work closely with you to provide personalized value through their work is a heavily contributing factor in success. Asking the right questions that are specifically related to your industry, thoroughly vetting your professionals prior to entering into any working relationship with them, and setting clear expectations are just a few effective ways to ensure a positive and fruitful outcome.

Mikaesbooks works with your tax expert or team to keep you informed and compliant all year. Want to know more? Schedule your free consultation here today!

This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional. Seek an Enrolled Agent, EA or a Certified Public Accountant, CPA, or other tax professional for more information.