When to Outsource Accounting (and When to Keep It In-House)
For growing businesses, managing accounting in-house eventually becomes overwhelming. What starts as a few invoices and spreadsheets can quickly turn into reconciliations, payroll entries, and tax prep deadlines. At that point, accuracy and compliance depend on expertise. Outsourced accounting provides professional support at a fraction of in-house cost. This article explains when to make the switch, how outsourcing works, and what to look for in the right partner.
Explore our Accounting Services to see how we can help streamline your finances.
When In-House Accounting Works Best
If your company is small and transactions are simple, in-house accounting may suffice. It’s effective when:
- You manage fewer than 100 transactions per month.
- The owner or office manager handles the books efficiently.
- You prefer direct control and immediate access to data.
However, as volume or complexity grows, internal teams often struggle to keep up.
Signs It’s Time to Outsource Accounting
You’re ready to outsource when:
- Reconciliations fall behind each month.
- Your CPA spends extra hours cleaning up the books at tax time.
- Financial reports arrive late or contain errors.
- You need management insights, not just data entry.
- Hiring an internal accountant costs more than the benefit gained.
Outsourcing solves these by combining specialized staff, automation, and CPA oversight.
Learn how essential financial statements can provide insight into your company’s health and growth.
Benefits of Outsourced Accounting
- Cost Efficiency: Fixed monthly pricing replaces expensive salaries and benefits.
- Accuracy: Professional accountants ensure every transaction is recorded correctly.
- Speed: Automation shortens close times and eliminates backlog.
- Scalability: Add services like payroll, AR/AP, or multi-entity reporting as you grow.
- Compliance: CPAs review reports to keep your records audit-ready.
These benefits translate to consistent, clean financial data you can trust.
When You Still Need an Internal Role
Some companies blend both models-keeping a small internal team for billing or approvals while outsourcing the heavy accounting work. This hybrid model is ideal when:
- You process industry-specific billing or job costing.
- You need internal oversight of cash disbursements.
- Leadership prefers a daily point of contact.
The outsourced provider handles reconciliations and reports while your team manages front-end operations.
How RemoteBooksOnline Handles Outsourced Accounting
- Dedicated accounting team under CPA supervision
- Monthly closes completed within 10-15 days
- Clean, tax-ready reports shared through a secure client dashboard
- Predictable pricing that scales with transaction volume
Our model keeps your books accurate, compliant, and investor-ready without the expense of full-time staff.
Stay organized and stress-free by learning how to keep your finances in order with our guide on monthly accounting for tax readiness.
FAQs
What is outsourced accounting?
It’s when a professional firm manages your accounting tasks-reconciliations, reporting, and financial statements-remotely on your behalf.
How do I know if outsourcing is right for me?
If you spend more time fixing books than analyzing them or your CPA does frequent cleanup, outsourcing saves cost and time.
Does outsourcing mean losing control?
No. You maintain full data ownership and visibility through secure dashboards and shared access.
How much does outsourced accounting cost?
Typically 40-60% less than hiring an in-house accountant, depending on volume and complexity.
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