{"id":5401,"date":"2025-12-12T04:30:00","date_gmt":"2025-12-12T04:30:00","guid":{"rendered":"https:\/\/www.acobloom.com\/us\/?p=5401"},"modified":"2026-03-10T05:07:49","modified_gmt":"2026-03-10T05:07:49","slug":"what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house","status":"publish","type":"post","link":"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/","title":{"rendered":"What is the cost of outsourcing accounting vs hiring in-house\u00a0"},"content":{"rendered":"\n<p>Inflation has struck hard. Running any business&nbsp;is more&nbsp;difficult than ever.&nbsp;With rising costs, businesses are looking for alternatives that can ease the pain caused by inflation. The average cost of&nbsp;an<strong>&nbsp;<\/strong>in-house&nbsp;accounting&nbsp;can range from $60,000 to over $160,000 annually, including salary, benefits, and overhead. These have risen even further in the last few years because of a nationwide shortage of qualified accounting professionals, making it increasingly complex and expensive for small businesses to recruit and&nbsp;retain&nbsp;in-house talent.&nbsp;<\/p>\n\n\n\n<p>For many&nbsp;businesses,&nbsp;this has culminated in a&nbsp;dilemma&nbsp;deciding to&nbsp;outsource or hire an&nbsp;in-house&nbsp;accounting&nbsp;team. The question, though partially based on cost, is far less straightforward than a simple yes-or-no. Other factors, such as data security, operational control,&nbsp;expertise, scalability, and long-term business strategy, all play an integral role in&nbsp;determining&nbsp;which approach will best meet a company&#8217;s needs.&nbsp;<\/p>\n\n\n\n<p>This blog is intended to help small business owners understand&nbsp;how much&nbsp;<a href=\"https:\/\/www.acobloom.com\/us\/blog\/guide-cost-of-outsourcing-accounting-services\/\">outsourced&nbsp;accounting costs<\/a><strong>&nbsp;<\/strong>in comparison to in-house,&nbsp;the&nbsp;benefits, and&nbsp;the&nbsp;trade-offs between&nbsp;the&nbsp;cost of outsourcing accounting&nbsp;versus&nbsp;in-house&nbsp;accounting.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_50 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-69f407a59c9c9\" aria-hidden=\"true\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69f407a59c9c9\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#Cost_of_Outsourcing_Accounting_vs_In-house_Accounting\" title=\"Cost of&nbsp;Outsourcing&nbsp;Accounting&nbsp;v\/s In-house Accounting&nbsp;\">Cost of&nbsp;Outsourcing&nbsp;Accounting&nbsp;v\/s In-house Accounting&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#Other_Factors_to_Consider_When_Contemplating_Your_Next_Projects\" title=\"Other&nbsp;Factors&nbsp;to Consider&nbsp;When&nbsp;Contemplating Your Next&nbsp;Projects&nbsp;&nbsp;\">Other&nbsp;Factors&nbsp;to Consider&nbsp;When&nbsp;Contemplating Your Next&nbsp;Projects&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#1_Expertise_and_Quality_of_Work\" title=\"1.&nbsp;Expertise&nbsp;and Quality of Work&nbsp;\">1.&nbsp;Expertise&nbsp;and Quality of Work&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#2_Data_Security_and_Compliance\" title=\"2. Data Security and Compliance&nbsp;\">2. Data Security and Compliance&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#3_Operational_Control\" title=\"3. Operational Control&nbsp;\">3. Operational Control&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#4_Scalability_and_Flexibility\" title=\"4. Scalability and Flexibility&nbsp;\">4. Scalability and Flexibility&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#5_Business_Continuity_and_Risk\" title=\"5. Business Continuity and Risk&nbsp;\">5. Business Continuity and Risk&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#6_Long-term_Strategy_and_Vision\" title=\"6. Long-term&nbsp;Strategy and Vision&nbsp;\">6. Long-term&nbsp;Strategy and Vision&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.acobloom.com\/us\/blog\/what-is-the-cost-of-outsourcing-accounting-vs-hiring-in-house\/#Conclusion\" title=\"Conclusion&nbsp;\">Conclusion&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_Outsourcing_Accounting_vs_In-house_Accounting\"><\/span>Cost of&nbsp;Outsourcing&nbsp;Accounting&nbsp;v\/s In-house Accounting&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Service Type<\/strong>&nbsp;<\/th><th><strong>Typical Cost (Monthly)<\/strong>&nbsp;<\/th><th><strong>Typical Cost (Annually)<\/strong>&nbsp;<\/th><th><strong>Included Costs<\/strong>&nbsp;<\/th><\/tr><\/thead><tbody><tr><td>Outsourced (Bookkeeping Only)&nbsp;<\/td><td>$500\u2013$1,200&nbsp;<\/td><td>$6,000\u2013$14,400&nbsp;<\/td><td>Only what you use; firm handles tools &amp; training&nbsp;<\/td><\/tr><tr><td>Outsourced (Full-Service)&nbsp;<\/td><td>$1,000\u2013$5,000+&nbsp;<\/td><td>$12,000\u2013$60,000+&nbsp;<\/td><td>Payroll, bookkeeping, payroll, controller, etc.&nbsp;<\/td><\/tr><tr><td>In-House Accountant (US avg.)&nbsp;<\/td><td>$5,693&nbsp;<\/td><td>$68,326&nbsp;<\/td><td>Salary only; excludes benefits, taxes, overhead&nbsp;<\/td><\/tr><tr><td>In-House Accountant (US top earners)&nbsp;<\/td><td>$7,916&nbsp;<\/td><td>$95,000&nbsp;<\/td><td>Salary only; excludes benefits, taxes, overhead&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Factors_to_Consider_When_Contemplating_Your_Next_Projects\"><\/span>Other&nbsp;Factors&nbsp;to Consider&nbsp;When&nbsp;Contemplating Your Next&nbsp;Projects&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Expertise_and_Quality_of_Work\"><\/span><strong>1.&nbsp;Expertise&nbsp;and Quality of Work&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The question of outsourcing versus in-house often starts with the consideration of the level of&nbsp;expertise&nbsp;each would provide.&nbsp;The comparison might&nbsp;be subjective and vary&nbsp;depending&nbsp;on&nbsp;a firm\u2019s expectations.&nbsp;<a href=\"https:\/\/www.acobloom.com\/us\/services\/outsource-accounting-services\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Outsourced accounting<\/strong><\/a>&nbsp;firms typically provide businesses with access to a team-based model, including bookkeepers, staff accountants, controllers, and even fractional CFOs-often without having to hire multiple full-time employees.&nbsp;<\/p>\n\n\n\n<p>In-house accountants have intimate familiarity with your operations and can quickly align processes with the unique needs of your business. Unless you build a full internal finance team, you may be limited to the skill set that one person can provide. That may not include areas of advanced tax planning, forecasting, or audit preparation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Data_Security_and_Compliance\"><\/span><strong>2. Data Security and Compliance&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Financial data demands robust security. Usually, outsourcing companies invest a lot in cybersecurity infrastructure, such as data encryption, secure portals, firewalls, and compliance-related tools that protect customer information.&nbsp;<strong>In-house accounting<\/strong>&nbsp;gives businesses that feeling of direct control over who has access to financial data. However, most small business owners tend to underestimate both the cost&nbsp;in comparison to&nbsp;the&nbsp;<strong>cost of outsourcing accounting&nbsp;<\/strong>and the level of&nbsp;expertise&nbsp;necessary in&nbsp;maintaining&nbsp;secure systems; hence, they become more vulnerable to internal errors or outdated tools.\u202f&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Operational_Control\"><\/span><strong>3. Operational Control&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For many entrepreneurs, operational control is key. In a typical setting, an outsourced accountant standardizes workflows at the expense of internal management&#8217;s flexibility. You will have to work according to the provider&#8217;s preferred processes and timelines. In contrast, an&nbsp;<strong>in-house&nbsp;<\/strong><strong>accounting<\/strong>&nbsp;accountant provides you with full control of operations, enabling you to quickly change priorities, request immediate updates, and further integrate accounting into other departments like sales and operations.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Scalability_and_Flexibility\"><\/span><strong>4. Scalability and Flexibility&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As businesses grow, their finances become more complicated. Scaling with the business, outsourcing means firms add payroll, reporting, tax, or CFO insights without growing headcount, which is perfect for early-stage and fast-growth firms. This type of scaling within an in-house team involves hiring, training, and increased software costs, along with management. Having an internal team will indeed bring long-term stability, but it requires more investment and greater time to develop.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.acobloom.com\/us\/contact-us\/?utm_medium=orgnc&amp;utm_source=blog&amp;utm_campaign=us&amp;utm_content=consulting&amp;utm_term=in-content-cta-blog-banner\" target=\"_blank\" rel=\" noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"367\" src=\"https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA-1024x367.jpg\" alt=\"Outsourcing Revenue Cycle Management\" class=\"wp-image-2783\" srcset=\"https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA-1024x367.jpg 1024w, https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA-300x108.jpg 300w, https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA-768x276.jpg 768w, https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA-1536x551.jpg 1536w, https:\/\/www.acobloom.com\/us\/wp-content\/uploads\/2024\/07\/Outsource-Accounting-Services-CTA.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Business_Continuity_and_Risk\"><\/span><strong>5. Business Continuity and Risk&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Continuity is a behind-the-scenes yet critical aspect of accounting. Outsourced firms usually function with team-based support; this means that your financial work may continue regardless of such eventualities as illness, turnover, or vacation days. You are never left without any coverage. If that single&nbsp;<strong>in-house&nbsp;<\/strong><strong>accounting<\/strong>&nbsp;ever decides to leave or otherwise becomes unavailable, though, the business is usually much more vulnerable to interruption. Knowledge gaps will slow operations down, and hiring replacements may take&nbsp;a number of&nbsp;weeks or even months, many times at great cost.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Long-term_Strategy_and_Vision\"><\/span><strong>6. Long-term&nbsp;Strategy and Vision&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Accounting is not just about recording transactions;&nbsp;it&#8217;s&nbsp;a way to strategize over overall finance. Outsourcing can provide access to high-level strategic professionals, such as fractional CFOs, at a fraction of the cost of a full-time hire. In turn, larger or more mature businesses may need an in-house accountant or finance team that works closely with leadership and&nbsp;participates&nbsp;in planning meetings&nbsp;in order to&nbsp;develop a deep understanding of the company&#8217;s vision. Still, building such a department requires higher investment and long-term commitment.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is no one-size-fits-all decision when it comes to a choice between outsourcing your accounting and hiring an in-house accountant. Each&nbsp;option&nbsp;proffers some unique advantages and potential drawbacks, with the right choice depending on your business&#8217;s size, growth stage, budget, and strategic goals.\u202f&nbsp;<\/p>\n\n\n\n<p><strong>The&nbsp;<\/strong><strong>cost of outsourcing accounting<\/strong>&nbsp;tends to be a more&nbsp;cost-effective, expert, and flexible platform that best suits the needs of startups and small businesses looking to manage finances without&nbsp;bringing on&nbsp;high overhead. Building your accounting team in-house offers greater control, integration, and long-term strategic benefits as your business grows.&nbsp;Essentially, the&nbsp;final decision should always balance immediate needs with future growth.&nbsp;<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation has struck hard. Running any business&nbsp;is more&nbsp;difficult than ever.&nbsp;With rising costs, businesses are looking for alternatives that can ease the pain caused by inflation. The average cost of&nbsp;an&nbsp;in-house&nbsp;accounting&nbsp;can range from $60,000 to over $160,000 annually, including salary, benefits, and overhead. These have risen even further in the last few years because of a nationwide [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5403,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[186,183,185,182,184],"class_list":["post-5401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-accounting-outsourcing-pricing","tag-cost-of-outsourced-accounting","tag-in-house-vs-outsourced-accounting","tag-outsourcing-accounting-cost","tag-outsourcing-accounting-vs-in-house"],"_links":{"self":[{"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/posts\/5401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/comments?post=5401"}],"version-history":[{"count":1,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/posts\/5401\/revisions"}],"predecessor-version":[{"id":6091,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/posts\/5401\/revisions\/6091"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/media\/5403"}],"wp:attachment":[{"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/media?parent=5401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/categories?post=5401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.acobloom.com\/us\/wp-json\/wp\/v2\/tags?post=5401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}