A business owner told us recently, "I am thinking about hiring a bookkeeper. I found someone for $50,000 a year."
"Great," we said. "Your actual cost will be closer to $75,000."
She looked surprised. Most people are. The salary on a job listing is only part of the story. Let us walk through the real numbers.
The True Cost of an In-House Hire
Start with the salary. For a competent bookkeeper in most US markets, you are looking at $45,000-$60,000 per year. Now add the costs nobody mentions in the job listing:
Payroll taxes add 7.65% for the employer share of FICA. Health insurance, PTO, and retirement contributions add another $8,000-$15,000 annually. Workers comp insurance runs $500-$1,500.
Then there are the soft costs. Recruiting takes time and money. Training takes 2-4 weeks of reduced productivity. You need an extra software license, a desk, a computer. And every hour you spend managing, reviewing, and answering questions is an hour you are not spending on your business.
And here is the big one: what happens when they go on vacation? Call in sick? Quit?
Total real cost of a full-time bookkeeper: $65,000-$90,000 per year.
The Cost of Outsourcing
An outsourced bookkeeping firm typically charges $1,500-$4,000 per month, which works out to $18,000-$48,000 per year. For that, you get a full team rather than a single person. Controller-level review of your books. Coverage for vacations, sick days, and turnover. Software and technology included. Often advisory services on top of the bookkeeping itself.
Beyond the Dollar Comparison
Cost is important, but it is not the only factor. Here is what we think matters just as much:
Depth of expertise. One person has one set of skills and one set of experiences. An outsourced team brings diverse industry knowledge, exposure to best practices across dozens of businesses, and continuous professional development.
Resilience. When your bookkeeper quits, and eventually they will, you start from scratch. An outsourced firm has built-in redundancy. Your books do not skip a beat.
Scalability. Busy season? An outsourced team ramps up with you. Slow season? You are not paying a full salary for someone with not enough to do.
When In-House Still Makes Sense
We are not going to pretend outsourcing is always the answer. If you need someone physically present every day handling cash, processing walk-in payments, or managing a high-volume AP desk that requires 40-plus hours a week, an in-house hire might be the right call.
When Outsourcing Wins
For most small and mid-size businesses, outsourcing delivers more value at lower cost with less risk. You get a team instead of a single point of failure. You get oversight and quality control built in. And you get your time back.
The question is not really "outsourced versus in-house." It is "what does my business actually need, and what is the smartest way to get it?"