In-House vs Outsourced Bookkeeping: Cost, Control, and Risk
The Bookkeeping Decision That Shapes Your Entire Back Office
Every growing business eventually faces this choice: hire a bookkeeper in-house or outsource the entire function.
Both paths can work – but one eats payroll, and the other scales effortlessly.
This guide compares costs, control, and risk so you can choose the model that fits your business stage.
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The Quick Verdict
| Factor | In-House | Outsourced (RBO Model) |
|---|---|---|
| Monthly Cost | $4,000–$6,000 (FT) | $250–$900 flat rate |
| Accuracy | Varies by person | CPA-reviewed, audited |
| Continuity | At risk if staff quits | Bench depth, SOPs |
| Technology | Depends on hire | Included (QuickBooks/Xero, AI tools) |
| Scalability | Hire & train | Add capacity instantly |
| Oversight | manual | Layered QA + CPA check |
| Security | Internal policies | SOC-aligned, role-based |
Most small businesses overpay for control they don’t use. Outsourced bookkeeping gives accuracy, accountability, and availability – without the payroll drag.
Understanding Each Model
1. In-House Bookkeeping
How it works: you hire an employee or part-timer to manage day-to-day accounting.
Advantages
- Real-time access to physical files & team
- Deep familiarity with company ops
- Immediate response to ad-hoc questions
Drawbacks
- Salary + payroll taxes + benefits (30–40% overhead)
- Limited bench depth – sick days = delay
- Hard to keep up with tech, training, and compliance
- Security gaps if one person holds all access
Typical cost breakdown
| Expense | Monthly | Annual |
|---|---|---|
| Salary | $4,000–$6,000 | $48k–$72k |
| Payroll taxes/benefits | $1,000+ | $12k+ |
| Software & training | $200+ | $2.4k+ |
| Total | $5,200-$7,200 | $62k–$86k |
2. Outsourced Bookkeeping
How it works: you partner with a professional firm that manages bookkeeping remotely on fixed monthly plans.
Advantages
- Flat, predictable pricing ($250–$900)
- Multi-layer review: Preparer → Reviewer → CPA
- Automated reconciliations & AI-driven anomaly checks
- SLA-based turnaround (Day 7–10 close)
- Scalable – add entities, channels, or reports instantly
- Zero hiring, training, or turnover risk
Drawbacks
- Less physical presence (remote)
- Communication via portal/email (standardized cadence)
Best for: SMBs, agencies, eCommerce, professional services, franchises, and multi-location brands.
See Outsourced Bookkeeping for full service architecture.
Cost Comparison (2025 Real-World)
| Business Type | In-House Cost | RBO Flat-Rate Plan | Savings |
|---|---|---|---|
| Solo Consultant | $4,800/mo | $300/mo | 94% |
| Retail Store | $5,200/mo | $550/mo | 89% |
| Multi-Entity Agency | $6,500/mo | $900/mo | 86% |
Even after factoring occasional CPA reviews, outsourced bookkeeping averages 30–40 % cheaper overall.
Control vs Continuity
| Concern | In-House | Outsourced |
|---|---|---|
| What if someone quits? | You start over. | RBO has bench coverage. |
| Can I see my data anytime? | Yes. | Yes-real-time portal access. |
| Who owns the data? | You. | You-stored in your QuickBooks/Xero. |
| How do I track progress? | Manual check-ins. | SLA dashboard + deliverables. |
Outsourced ≠ out-of-sight. You keep data ownership and visibility, we supply process and QA.
Security & Compliance
- In-House: depends on employee habits (USBs, shared passwords).
- Outsourced: MFA, least-privilege roles, SOC compliance, encrypted backups.
You can’t audit a solo bookkeeper, but you can audit an outsourced process.
Learn how AI-Powered Monthly Bookkeeping combines automation + SOC security.
When In-House Still Makes Sense
- You process cash or checks daily
- You need onsite AP check printing
- You’re a >$10 M company with ERP integration needs
Otherwise, outsourcing wins on ROI and continuity.
Hybrid Models
Many clients blend both:
- Onsite admin: collects receipts, approvals
- Outsourced team: handles posting, reconciliation, reporting
This gives the “human touch” plus professional accuracy.
Real Client Snapshot
“We replaced two internal bookkeepers with RBO’s Growth Plan-same reports, 60 % lower cost, zero missed closes.”
— COO, Construction Services, AZ
FAQs
Is outsourcing bookkeeping safe?
Yes-data is stored in your QuickBooks/Xero under your ownership; we operate under SOC-aligned protocols.
Can I still talk to a person?
Absolutely. You’ll have a dedicated account lead + CPA reviewer.
What if I need documents same-day?
Portal access gives you real-time data; urgent requests flagged within hours.
Can you work with my CPA?
Yes-our team coordinates directly during tax season.
Is switching hard?
Not at all-average onboarding takes 3-5 days. We import COA, connect accounts, and deliver your first close in 30 days.
Stop paying payroll for predictable work.
Get CPA-reviewed monthly books at a flat price-no turnover, no surprises.
See Outsourced Plans →
Compare Monthly Plans →
