Outsourced Bookkeeping Vs Hiring In-House: Which Is Better For Your Small Business?

If you caught our Facebook post last week, you know we stirred up a little debate: Should you hire an in-house bookkeeper or outsource your bookkeeping to a firm like ours?

The comments were... passionate. Some folks swore by having "their person" down the hall. Others couldn't imagine paying a full-time salary for something they only think about once a month (usually in a panic).

So let's settle this once and for all. Or at least give you the information you need to make the right call for your business.

Spoiler alert: there's no one-size-fits-all answer. But there is a smarter choice for most small businesses, and it might not be what you think.

The Real Cost of an In-House Bookkeeper

Let's start with the elephant in the room: money.

Hiring an in-house bookkeeper sounds straightforward until you actually run the numbers. Here's what you're really looking at:

• Salary: The average bookkeeper salary ranges from $45,000 to $55,000 annually, depending on your location and their experience level.
• Benefits: Health insurance, PTO, retirement contributions—add another 20-30% on top of that salary.
• Payroll taxes: You're the employer now, so that's on you.
• Software and equipment: They'll need a computer, accounting software licenses, and maybe a dedicated workspace.
• Training: Accounting rules change. Software updates. Your bookkeeper needs ongoing education to stay current.

When you add it all up, a single in-house bookkeeper can easily cost $60,000 to $75,000+ per year. And that's assuming they don't call in sick, take vacation, or, heaven forbid, quit and leave you scrambling.

What Does Outsourced Bookkeeping Actually Cost?

Now let's look at the other side.

Outsourced bookkeeping services for small businesses typically range from $500 to $2,500 per month, depending on your transaction volume, complexity, and the level of service you need. For most small businesses, you're looking at somewhere in the $1,000 to $1,500 range.

That's $12,000 to $18,000 per year—roughly a quarter of what you'd pay for a full-time employee.

And here's the kicker: you're not just getting one person. You're getting a team. A team that doesn't take sick days, doesn't need benefits, and doesn't leave you high and dry when they find a "better opportunity."

The Expertise Factor

Here's something most business owners don't think about until it's too late: What happens when your bookkeeper doesn't know the answer?

An in-house bookkeeper is one person with one set of experiences. They might be great at day-to-day transaction entry but freeze up when you ask about sales tax nexus, 1099 compliance, or how to handle that weird revenue recognition issue.

When you outsource to a firm, you're tapping into collective knowledge. A good outsourced bookkeeping team has seen it all, across dozens (or hundreds) of clients in different industries. They've made mistakes on someone else's dime and learned from them.

At High Point, for example, our team undergoes continual training. We're not just keeping up with changes to tax law and accounting standards—we're sharing insights across our entire client base. When one client encounters a tricky situation, the whole team learns from it.

That's a level of expertise you simply can't get from a single hire.

Scalability: Growing Pains or Smooth Sailing?

Let's say your business takes off. Revenue doubles. Transaction volume triples. Suddenly your one bookkeeper is drowning.

What do you do?

If you went the in-house route, you're looking at another hiring process. More interviews. More training. More salary and benefits. And you're hoping you can find someone fast enough to keep things from falling apart.

With outsourced bookkeeping, scaling is usually as simple as a conversation. "Hey, we're growing, can you handle more?" A good firm can absorb increased volume without missing a beat. You might pay a bit more per month, but you're not taking on the overhead and risk of another full-time employee.

And here's the flip side that nobody talks about: What if business slows down?

With an employee, you're stuck. You can't exactly cut someone's hours in half because Q3 was rough. But with outsourced services, you have flexibility. You can scale down just as easily as you scale up.

The "Peace of Mind" Factor

This one's harder to quantify, but it might be the most important consideration of all.

When you hire an in-house bookkeeper, you're putting a lot of trust in one person. What if they make a mistake? What if they're not as detail-oriented as they seemed in the interview? What if they're doing something... less than ethical?

It happens more often than you'd think. Employee fraud is a real risk, especially in small businesses where one person controls the books with limited oversight.

Outsourcing adds a layer of accountability. At a reputable firm, there are multiple eyes on your books. There are systems and checks in place. If someone makes an error, it gets caught. And because your account isn't their only account, there's no opportunity for the kind of long-term manipulation that can occur when one person has unchecked access.

You sleep better at night. That's worth something.

Modern FinTech Tools Change the Game

Here's where things get interesting for 2026 and beyond.

The bookkeeping landscape has changed dramatically in the last few years. Cloud-based accounting software, automated bank feeds, AI-powered transaction categorization—these tools have made it possible to manage books remotely with a level of accuracy and efficiency that wasn't possible even five years ago.

A modern outsourced bookkeeping firm (like High Point) leverages these tools to deliver real-time insights, not just year-end reports. You can see your cash flow, your profitability, and your financial position whenever you want, not just when your bookkeeper gets around to updating the spreadsheet.

An in-house bookkeeper can use these tools, sure. But are they staying current on the latest integrations? Are they optimizing your tech stack? Or are they just doing things the way they've always done them because "it works"?

Outsourced firms live and breathe this stuff. It's literally our job to stay on the cutting edge so you don't have to.

When In-House Actually Makes Sense

Okay, I've been pretty pro-outsourcing so far. But let's be fair: there are situations where hiring in-house is the right call.

You might want an in-house bookkeeper if:

• You need someone physically present: Some businesses require a bookkeeper who can attend meetings, interact with customers, or handle cash and physical documents on-site.
• Your financial needs are highly specialized: If your industry has unique, complex requirements that demand deep, ongoing immersion, an embedded team member might serve you better.
• You're large enough to justify it: Once you hit a certain size (usually $5M+ in revenue), the math can start to shift in favor of building an internal accounting department.

But for most small businesses in the $500K to $5M range? Outsourcing wins on almost every metric.

The Bottom Line

Here's the truth: You didn't start your business to manage bookkeepers.

You started it because you're great at something, and you want to build something meaningful around that skill. Every hour you spend worrying about whether your books are accurate, whether your bookkeeper needs a raise, or whether you can afford to hire help during a growth spurt is an hour you're not spending on your actual business.

Outsourced bookkeeping isn't just about saving money (though it does). It's about buying back your time and your headspace. It's about having a team in your corner that handles the financial chaos so you can focus on what you do best.

Ready to See What Outsourcing Looks Like?

At High Point Accounting & Advisory, we specialize in small business bookkeeping that actually makes sense. No jargon. No judgment. Just clean books, clear reporting, and a team that speaks human.

Curious whether outsourcing is right for your business? Schedule a free consultation and let's talk through your situation. No pressure, no pitch: just an honest conversation about what would actually serve you best.

Because at the end of the day, we'd rather you make the right choice than just any choice. See how we can Support You Toward Your Financial High Point