The True Cost of an Accounting & Bookkeeping Department

What if I told you your in-house accounting team is costing you more than you think—and delivering less?

When it comes to small business accounting, many owners believe having an in-house team is the most effective solution. But once you dig into the real costs and compare them to outsourcing, the math tells a different story.

Let’s take a closer look at what an in-house accounting department really costs, the inefficiencies you might not have considered, and why outsourcing might just be the smarter choice for your business.

What Does an In-House Accounting Team Actually Cost?

If you’re running a small business, chances are you need at least two people in your accounting department. 

Let’s Start with Salaries (They’re Not Cheap)

First, you’ll need someone to oversee your accounting functions—let’s call this Accountant One. 

Accountant One: This is your go-to person for overseeing the whole accounting function. They’ll teach your team how to invoice customers, manage accounts receivable and payable, keep the company checkbook updated, and make sure financial statements get delivered. This role alone runs you $60,000 to $90,000 per year.

Depending on your business's volume, you’ll probably need an additional hire to assist with these tasks. 

Support Staff: Depending on your transaction volume (e.g., if you’re above $750,000 annually), you’ll likely need someone to assist Accountant One. That might be a bookkeeper, accounts payable clerk, or an administrative helper. Salaries here range between $40,000 and $60,000.

Just like that, you’re looking at $100,000 in payroll—and we’re not even talking about benefits, payroll taxes, or bonuses yet.

Now Add the Hidden Costs

It’s not just about salaries. Managing an in-house team comes with a laundry list of hidden expenses.

These costs can seem small compared to salaries, but they add up quickly, especially when you’re scaling your team. 

• Oversight: Someone needs to supervise these people. That’s either you, a senior leader, or a manager (and guess what—they’re busy, too).
• Turnover: Employees leave. They get sick. They take vacations. And when they quit, you’re stuck recruiting, hiring, and training their replacements.
• Space and Equipment: Where are these people working? If it’s in your office, that’s extra square footage, desks, computers, and software you’re footing the bill for.

If your business is making $2–$5 million annually, it gets even more complicated. You might need to hire a controller—someone who’s responsible for managing your accounting team, handling budgets, tightening up your cash flow, and making sure your software and processes actually work together. Controllers cost between $80,000 and $120,000 annually.

By the time you add everything up, your total spend for an in-house team can easily climb to $200,000 or more annually. That’s a lot of money for a team that still might not meet all your needs.

Why Outsourcing Makes Sense (For Most Businesses)

You Get a Full Team (Without the Full Cost)

Instead of managing everything in-house, outsourcing gives you access to an ENTIRE team of experts without the hassle of payroll taxes, sick days, or office space.
For example, we typically start with two to three people handling your accounting function, sometimes even four, depending on what you need. That team might include:

• An accounts payable clerk to handle bills and payments.
• A bookkeeper to manage reconciliations and daily tasks.
• A senior accountant with 5–25 years of experience to offer strategic insights.

Built-in expertise and Collaboration

What’s great about outsourcing is that you’re not just hiring people—you’re hiring expertise. Our team knows how to integrate your financial systems, from payroll to HR to benefits, creating a seamless back-office operation. 

And we’re not operating in a vacuum. We’ll work collaboratively with any existing staff you have, whether that’s an office manager or an in-house bookkeeper, to make sure you're getting what you need out of your back-office function. 

A Layer of Security You Can Count On

When it comes to managing money, having a second set of eyes is invaluable. With an in-house team, mistakes can slip through the cracks—or worse, money can “walk out the door.” 
With outsourcing, we’re here to make sure deposits aren’t missed, invoices go to the right vendors, and your entire process stays clean, transparent, and secure.
Think of us as your financial safety net. We’re here to catch the things you don’t even know you need to worry about.

Taxes? We’ve Got That Covered, Too

Taxes can be one of the biggest expenses for any business. Our team includes CPAs (Certified Public Accountants) and EAs (Enrolled Agents)—people who know tax laws inside and out. We work to make sure you’re paying as little as legally possible.

We don’t just handle your tax filings; we actively work to optimize your cash flow, tighten up accounts receivable, and establish efficient financial processes. With smarter budgeting and forecasting, we help you stay ahead of tax season instead of scrambling when deadlines hit.
This gives you the confidence that your finances are being managed strategically, allowing you to focus on growing your business.

Comparing the Numbers: In-House vs. Outsourcing

Let’s do the math:

In-House Accounting & Bookkeeping: Building an in-house team adds up fast. You’re looking at $200,000+ annually for salaries, taxes, benefits, and overhead.

Outsourced: For the cost of just one in-house employee, you can get a full team of experts handling your accounting, without all the extra expenses. Most small businesses can expect outsourcing costs to range from $1,750 to $5,000 per month, or about $21,000 to $60,000 annually, depending on the level of complexity and support needed.

And remember, if someone quits in your in-house team, you’re stuck finding a replacement. With outsourcing, your service doesn’t skip a beat. With outsourcing, those problems don’t exist. If a team member leaves, your service doesn’t skip a beat. The provider takes care of training and onboarding their replacement without you ever feeling the impact. 

Worried About Losing Control? Don't Be. 

When you outsource, you still have full visibility into your finances. In fact, you’ll probably have more control because the processes are cleaner and more transparent.

And no, outsourcing doesn’t mean cookie-cutter solutions. We tailor our services to fit your business, whether you’re a one-person shop or pulling in millions a year.

Is Outsourcing Right for Your Business?

Managing an in-house accounting team can quickly become an expensive and time-consuming challenge. Between salaries, benefits, training, and turnover, the costs add up fast—and that’s before you factor in the hidden inefficiencies of managing it all yourself.

Outsourcing provides a smarter solution. You get the expertise of a full team, the continuity of a reliable partner, and significant cost savings—all without the headaches of handling it in-house.

At Patrick Accounting, we believe in making the decision as straightforward as possible. 
Check out our pricing page and compare the numbers yourself. See how our services stack up against your current setup and discover how much time, money, and energy you could save by outsourcing your accounting.