In-House Bookkeeper vs Outsourced Bookkeeping: Cost Savings Explained for Small Businesses

I know you’re wrestling with a big decision right now. Your business is growing, and you’re realizing that keeping track of your finances on your own just isn’t working anymore. You need professional help, but you’re worried about the cost. Should you hire a full-time bookkeeper, or should you outsource to a service like ours?

Let me walk you through the real numbers, because I think you’ll be surprised at what you discover.

The True Cost of Hiring an In-House Bookkeeper

When most business owners think about hiring a bookkeeper, they focus on the salary. You might see job postings for $45,000 to $55,000 per year and think, “Okay, I can budget for that.” But here’s what I want you to understand: that salary is just the beginning.

Let me break down what hiring an employee actually costs you:

Base Salary: $45,000 – $55,000 annually

Payroll Taxes and Benefits: Add another 25-30% on top of that salary

• Social Security and Medicare taxes
• Unemployment insurance
• Workers’ compensation
• Health insurance (if you provide it)
• Retirement contributions
• Paid time off and sick leave

Overhead Costs: These add up faster than you think

• Office space and utilities
• Computer, desk, and office supplies
• Accounting software licenses
• Training and continuing education
• Recruitment and hiring costs
• Management time (yes, your time counts as a cost)

When you add it all up, that $50,000 salary becomes closer to $75,000 to $89,000 in total annual costs. And that’s assuming everything goes smoothly.  That salary will like be even be much higher if your company needs a full Accountant or Certified Public Accountant as your employee.

The most attractive scenario is utilizing a Bookkeeper (or Bookkeeping service like AKOR Services Bookkeeping) for monthly bookkeeping duties and then utilizing the Accountant or CPA only as needed for taxes, analysis, or even CFO consulting, at a much higher rate, but only as needed.  Remember, an Accountant or CPA will work seamlessly with the work your Bookkeeper is doing.

The Hidden Costs You Might Not Consider

There are some expenses that many business owners don’t think about until they’re dealing with them:

Turnover Risk: What happens when your bookkeeper quits? You’re back to square one, plus you have to cover the work yourself while you search for a replacement.

Coverage Gaps: When your employee is sick, on vacation, or takes maternity leave, who’s doing the books?

Limited Expertise: Most individual bookkeepers have experience with certain types of businesses or specific software. What if your needs change?

Scalability Issues: During busy seasons, one person can only do so much. During slow periods, you’re still paying that full salary.

I’ve seen too many small business owners get overwhelmed by these unexpected challenges. That’s exactly why we created AKOR Services Bookkeeping – to give you a better option.

How Outsourced Bookkeeping Works (And What It Really Costs)

When you work with us, you’re not just getting one person – you’re getting a team with diverse expertise and the flexibility to scale with your business needs. Here’s how we structure our pricing to work with your budget:

Flexible Fee Structures:

• Flat-fee arrangements for predictable monthly costs
• Retainer-based services for ongoing support
• Hourly billing for specific projects or seasonal help

We tailor our services and pricing structure to fit your specific needs. Everyone doesn’t need every type of service, and we’re not going to charge you for things you don’t use.

Software Flexibility:

• We can include accounting software costs in our monthly fee
• Or you can purchase your own software, and we’ll just bill for services
• We work with QuickBooks, Xero, and other popular platforms

Real Cost Comparison: The Numbers Don’t Lie

Let me show you what this looks like in practice with some real examples:

Small Retail Business (20-30 transactions per week):

• In-house bookkeeper total cost: $75,000+ annually
• AKOR Services flat-fee: $500-$2,500 per month ($21,600-$28,800 annually)
• Your savings: $46,200-$53,400 per year

Service-Based Business (40-50 transactions per week):

• In-house bookkeeper total cost: $85,000+ annually
• AKOR Services retainer: $2,200-$3,200 per month ($26,400-$38,400 annually)
• Your savings: $46,600-$58,600 per year

Manufacturing Business (complex inventory, multiple locations):

• In-house bookkeeper + additional help: $100,000+ annually
• AKOR Services comprehensive package: $3,500-$4,500 per month ($42,000-$54,000 annually)
• Your savings: $46,000-$58,000 per year

Even at our highest service levels, you’re typically saving 40-60% compared to hiring in-house.

(All pricing is estimated, and depending on the exact services you need.)  Before we do business, you will receive an estimate based on your exact situation).

The Additional Benefits You Get With Outsourcing

Beyond the cost savings, there are advantages that you simply can’t get with an in-house employee:

No Hiring Headaches: We handle all the recruitment, training, and management. You never have to worry about finding qualified candidates or dealing with employee issues.

Continuous Coverage: Your books get done whether someone’s sick, on vacation, or decides to quit. We have backup systems in place.

Expertise When You Need It: Tax season? Year-end closing? Audit preparation? We’ve seen it all before, and we know exactly what to do.

Scalable Services: Growing fast? We can ramp up quickly. Seasonal business? We adjust our services to match your needs.

What About Software and Technology?

This is one area where outsourcing really shines. When you hire an in-house bookkeeper, you’re responsible for:

• Purchasing and maintaining software licenses
• Ensuring data security and backups
• Keeping software updated
• Training your employee on new features
• Technical support issues

When you work with us, we can handle all of that. We’re certified in multiple accounting platforms, we maintain our own software licenses, and we have robust security and backup systems in place. Or, if you prefer to maintain control over your own software, that’s fine too – we’ll work with whatever system you choose.

Making the Right Choice for Your Business

I know this is a big decision, and I want you to feel confident about whatever choice you make. Here are some questions to ask yourself:

Consider outsourcing if:

• You want predictable monthly costs
• You need coverage during vacations/sick days
• You want access to expertise beyond basic bookkeeping
• You’re growing quickly or have seasonal fluctuations
• You don’t want to manage another employee

In-house might work if:

• You have very specialized industry requirements
• You need someone on-site daily for other tasks
• You have consistent, high-volume transaction processing
• You prefer direct control over all business functions

The truth is, most small and medium businesses find that outsourcing gives them better service at a lower cost. But every situation is unique, and we’re happy to help you think through what makes sense for your specific circumstances.

How We Customize Our Approach

When you call us, we’re not going to try to sell you a one-size-fits-all package. Instead, we’ll ask about your business, your current processes, and your specific challenges. Then we’ll recommend a service level that fits your needs and budget.

We might suggest:

• Basic monthly services for straightforward businesses
• Enhanced packages for companies with inventory or multiple locations
• Full-service bookkeeping for businesses that want us to handle everything
• Project-based help for specific needs like clean-up or system implementation

It will all be spelled out clearly in our engagement letter, so you know exactly what you’re getting and what it costs.

Ready to Explore Your Options?

If you’re tired of worrying about whether you’re making the right financial decisions for your business, let’s have a conversation. We offer free consultations (phone or online, in-person by appointment only) where we can look at your specific situation and help you understand your options.

We’re not going to pressure you into anything – our goal is to help you make the best decision for your business, even if that means we’re not the right fit.

To get started, just give us a call or visit us at https://akorservices.com/thebooks to learn more about our services. We’ll schedule a time that works for you, and we can discuss how we might be able to help.

Your business deserves professional financial management, and you deserve to know that it’s being handled correctly without breaking your budget. Let’s work together to make that happen.