What is the Charge for Hiring an In-House Bookkeeper?
Hiring an in-house bookkeeper may seem like a natural step as your business grows, but the true cost goes far beyond the monthly salary. Once you factor in benefits, overhead, training, and lost productivity from turnover, the actual cost of a full-time in-house bookkeeper can be 1.25x to 1.5x their base salary.
For most small businesses in the U.S., an in-house bookkeeper earns between $42,000 and $65,000 per year, translating to $3,500-$5,400/month in total compensation.
Breaking Down the Costs
Let’s look at where the money really goes:
- Base Salary
- Entry-Level Bookkeeper: $40,000/year
- Experienced Full-Charge Bookkeeper: $55,000-$70,000/year
- Benefits & Taxes (25-30%)
- Health insurance
- Payroll taxes
- Vacation/sick time
- Retirement contributions
- Office Space & Equipment
- Computer, software licenses, desk space
- Estimated $1,000-$2,000 annually
- Recruitment & Training
- Onboarding, initial ramp-up time
- Ongoing training on software, compliance
- Turnover & Downtime Costs
- Average turnover rate for bookkeeping roles: 27%
- It can take 6-8 weeks to hire and train a replacement
Estimated Total Monthly Cost:
Anywhere from $4,500 to $7,000/month depending on experience, location, and business complexity.
Test Case Example
A construction company hires an in-house bookkeeper for $60K/year. After factoring in benefits and downtime from training and sick leave, the total cost exceeds $6,000/month. When that employee resigns unexpectedly, the company scrambles for 8 weeks and misses vendor payments.
They switch to RemoteBooksOnline for $300/month. The outsourced team is available year-round, handles reconciliations and reports on time, and there’s no risk of downtime.
Is Hiring In-House Ever Worth It?
Hiring in-house makes sense for:
- Large companies with complex accounting needs
- Businesses requiring daily on-site presence
- Firms already managing multiple internal finance staff
But for most small to midsize businesses, outsourcing bookkeeping is:
- More affordable
- More reliable
- Less risky
FAQs
Can an in-house bookkeeper do payroll too?
Often yes, but it depends on experience. You may still need to train them or use a separate payroll provider.
What’s the risk of hiring someone underqualified?
Incorrect books lead to IRS penalties, poor business decisions, and higher CPA costs during tax time.
Is outsourcing less secure than hiring in-house?
No. With the right provider, outsourcing includes secure access, audit trails, and 24/7 portal access.
What if my in-house bookkeeper quits?
You’ll need to manage the gap in service, train a new hire, and potentially clean up inconsistencies in the books.
Final Thoughts
Hiring an in-house bookkeeper comes with a high price tag – one that many small businesses underestimate. Outsourced bookkeeping services like RemoteBooksOnline offer a reliable, affordable alternative that keeps your books accurate, secure, and CPA-ready – without the headache of managing payroll, benefits, or turnover.
Looking to cut costs without compromising on quality?
Start your free month with RemoteBooksOnline and leave the books to us
Want to understand what a full-charge bookkeeper does? Our Full‑Charge Bookkeeper guide explains their role-from managing daily finances to preparing reports-for seamless financial control.
Wondering about remote bookkeeping rates? Our guide to remote bookkeeper pricing breaks down typical costs and value-so you can budget with confidence.
Thinking about outsourcing your financials? Our Why Hire a Bookkeeping Service blog explains the top benefits-from expert accuracy to serious time savings.
