Choosing Between a Professional Bookkeeper and an In-House Employee
- Jenny Marie
- 2 days ago
- 2 min read
Many small business owners think they should hire an employee for bookkeeping tasks. I wanted to explore this topic to discuss the pros and cons.
I will outline the benefits of each option for comparison. In certain situations, employing an in-house bookkeeper may offer more advantages, though it may not always be the most cost-effective choice. However, in these specific cases, the advantages tend to outweigh the disadvantages.
IN-HOUSE BOOKKEEPER
Pros
For larger companies with a high volume of transactions requiring daily management for reporting purposes, it is advisable to employ an in-house bookkeeper. Think 2000-3000 transactions a month and managers rely on daily reports as opposed to weekly or monthly.
Many businesses assign additional responsibilities to the individual, making the payroll cost more justifiable. However, this often means the individual may not be a professional in bookkeeping and could become distracted when handling financial data.
If a business operates using paper-based systems and is not inclined to transition to digital operations, employing an in-house bookkeeper would be more appropriate. However, it is important to consider that we are increasingly becoming a digital society. Paper records can lead to misplaced items, and accessing these records remotely is not possible.
SALARY: You are looking at about $52,000 (including payroll taxes) and this is an entry-level person.
Paper records can lead to misplaced items, and accessing these records remotely is not possible.
OUTSOURCED BOOKKEEPERS
Pros
Professionals frequently possess extensive experience and knowledge due to their work with a diverse range of clients. This expertise is particularly beneficial when troubleshooting. Additionally, they employ specialized methods for organizing data, which can be more advantageous than hiring an entry-level individual who may be unfamiliar with your specific type of business.
Their fees are determined by the work and value provided, rather than the number of hours spent appearing busy. Additionally, these fees are significantly more cost-effective compared to hiring a part-time or full-time employee.
The perspective and level of responsibility are often more closely aligned with those of a business owner.
BONUS: Collaborating with the right professional can enhance financial workflows, thereby increasing profitability. We provide this service. We can also help turn manual systems into digital ones.
BONUS: If your outsourced bookkeeper also provides Financial Strategy services or Fractional CFO Consulting, this adds significantly more value than a typical employee. Having someone who can identify red flags and analyze your business to develop growth strategies offers advantages that far exceed those of a regular employee. (we offer this service)
COST: Bookkeeping + Financial Strategy may cost $1000 / month equalling $12,000. Compare that to an entry-level employee. It's a $40K difference.
Having someone who can identify red flags and analyze your business to develop growth strategies offers advantages that far exceed those of a regular employee.
If you would like help determining whether it makes more sense to hire someone in-house or out, we can help you.
Schedule a Free Consult, CONTACT US!
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