Outsourced Bookkeeping vs Hiring In-House
Finance and bookkeeping are steadily moving out of the building. Owners who once assumed the work had to sit at a desk down the hall now buy it the same way they buy payroll software or legal advice, because the accounting file lives in a browser and the person keeping it no longer has to be anywhere in particular. That change is what makes the comparison worth doing properly, and most people still do it as a cost comparison. It is only half one. A salary is a number you can look up. What it actually buys is one person's time, one person's skill level and one person's availability, and those three things, not the number, decide whether your books are current in any given month.
What's included
- More than one person who knows your file, so holidays, illness and notice periods are ours to absorb rather than yours
- A partner reviewing completed work, rather than the person doing the books being the only person who sees them
- The range of work one hire rarely covers alone: reconciliation, payroll recorded, sales tax, reporting and the specialist files
- No second software seat and no new system to onboard, because we work inside the platforms you already run, on named user access you provision for us
- A fee agreed before the work starts, against a scope, rather than a salary plus an employer cost you find out about later
- Capacity that moves with your volume, so a busy quarter is a conversation about scope rather than a second hire and a second onboarding
Who it's for
- Owners about to post a bookkeeping job and wanting to know what the alternative looks like
- Businesses that have had a bookkeeper leave and are deciding whether to replace the seat
- Companies where the books stop whenever one person is on holiday or off sick
- Anyone comparing a monthly fee against a salary without the employer cost added to the salary
How it runs
The actual sequence, start to finish.
- 01
Work out what the seat actually costs
Base salary is the floor. On top of it sit the statutory employer costs, vacation pay, benefits, a laptop, the software licences and the desk, and none of those appear in the number on the job posting.
- 02
Count the months before it is useful
Posting, shortlisting, interviewing and a notice period come before day one, and day one is not the day somebody is productive on books they have never seen. Unfamiliar books take a while whoever is reading them.
- 03
Ask who checks the work
A bookkeeper working alone in a small business usually has nobody reviewing what they produce, and the owner is rarely in a position to. That is not a comment on anybody's competence. It is a structural gap, and it is the one an outside firm closes by default.
- 04
Compare what each one actually buys
A salary against a fee is the easy half of it and the half that misleads. The rest is what sits behind each number: one person's time and skills against a team's, one calendar against several, and nobody reviewing the work against a partner who does. Worth holding those side by side before the job goes up, because a seat is considerably harder to close than it is to open.
The two things you are actually choosing between.
Market figures for hiring a person, from each market's own sources. Not our fees.
Hire someone in-house
- Ontario
- $42,000 to $62,000 a year
- United States
- $37,000 to $63,000 a year
That is the base salary for a full-time bookkeeper in Ontario, entry level at the bottom and eight years in at the top, against an average of about $55,000. It is the floor, not the total. On top of it come CPP, EI, vacation pay, benefits, software licences and a laptop. It also buys one person's time, so holidays and sick days are yours to cover.
That is the base salary for a full-time bookkeeper in the US, entry level at the bottom and experienced at the top, against a median of $49,210 reported by the Bureau of Labor Statistics. It is the floor. On top of it come the employer share of Social Security and Medicare, federal and state unemployment tax, workers' compensation, benefits, software licences and a laptop. It also buys one person's time, so holidays and sick days are yours to cover.
Pay a freelancer by the hour
- Ontario
- $30 to $60 an hour
- United States
- $25 to $50 an hour
Rates vary with experience, and a certified or specialist bookkeeper sits above the top of that range. Because it is hourly, a busy month costs more than a quiet one and you find out what it cost once the month is over, which makes it hard to budget a year ahead.
Rates vary with experience, and a full-charge or specialist bookkeeper sits above the top of that range. Because it is hourly, a busy month costs more than a quiet one and you find out what it cost once the month is over, which makes it hard to budget a year ahead.
Ontario figures are in Canadian dollars and US figures in US dollars, each from its own market rather than converted from the other. Shown for comparison only.
What it costs
A flat monthly fee agreed against a scope before anything starts, which is the part a salary cannot be. Set by transaction volume rather than by revenue or headcount, and confirmed after a look at your existing books.
Questions about outsourced bookkeeping vs hiring in-house
What are the main advantages?
Hiring gets you one person. Outsourcing gets you a team, and almost everything else follows from that single difference. One person takes holidays, gets sick, has a life that occasionally needs attending to, and eventually hands in notice. While any of that is happening the books are not being kept, and the knowledge of how your file actually works is walking around inside somebody who is not at their desk. A team absorbs all of it, because more than one person here knows your file and the work carries on without anybody having to arrange cover. Second, somebody checks the work. A bookkeeper working alone in a small business usually has nobody reviewing what they produce, and an owner is rarely placed to catch an error in their own ledger. Here a partner reviews completed work before it reaches you or a tax authority. That is structural rather than a comment on anybody's ability: one person cannot review themselves. Third is range. Reconciliation, accounts payable and receivable, payroll recorded and reconciled, sales tax, month-end close, reporting, and the specialist files a brokerage or a practice needs. One hire rarely covers all of that well, so most businesses either hire for the largest piece and improvise the rest or end up hiring twice. On a team, the person doing each part is the person who does that part. Then the money, which is where most people start and which is the least interesting of the four. A salary is the floor rather than the total: on top of it sit the statutory employer costs, vacation pay, benefits, software licences, a laptop and a desk. A fee is agreed against a scope before anything starts, it does not move because a month was busy, and there is no employer cost to discover later. And it flexes. Volume that doubles is a conversation about scope rather than a second hire, a second onboarding and a second notice period.
Does outsourced mean offshore?
Not here. The work is done by the people named on this site, working remotely across Canada and the United States rather than in your office. Remote and offshore are different things and the word gets used for both, which is why it is worth saying plainly.
What happens to our current bookkeeper?
That is your decision and not one we push. Plenty of arrangements keep an in-house person doing receipt capture and invoicing while the categorisation, reconciliation and reporting come here, which removes the part that causes the delays without removing anybody.
How long does it take to get started compared with hiring?
Onboarding is measured in weeks rather than in the months a hire takes end to end, because there is no posting, no shortlist and no notice period. The work that does take time is the same either way: somebody has to get familiar with your books.
More questions answered on the FAQ page.
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