Accounting and bookkeeping services are necessary for all types of organizations to perform efficiently and encourage financial investment.
Large corporations primarily employ internal solutions, which are often unaffordable for smaller businesses. The majority of SMEs prefer to outsource accounting as a result.
Here are some questions that may arise: What is the cost of hiring an internal controller, accountant, or bookkeeper? How much does outsourcing an accounting department cost? Which is best for my industry?
Depending on the size and phase of the lifecycle of your firm, you might need to engage a comprehensive accounting department.
The financial departments of small and medium-sized businesses (SMBs) typically contain 1 to 5 people, each of whom has a specific job function, such as accountant, bookkeeper, accounting supervisor, CFO, and controller.
Without further ado, get the answers first!
Estimated Cost of Accounting Outsourcing in 2023
Many small and medium-sized enterprises prioritize cost when choosing an accounting and bookkeeping service.
Full-time internal accountants make roughly $60,000 annually compared to bookkeepers, who make $45,000.
The combined cost of two employees, excluding overhead, is greater than $100,000.
Cost of Outsourcing Accounting: For small and medium-sized businesses, monthly prices for outsourced controller and accounting services can range from $2,500 to $5,000, depending on the services required.
Even at the top of the range, $5,000 a month will still cost your company $60,000 per year, which is significantly less than the price of hiring both an accountant and a bookkeeper.
Cost Difference Of Accountant Vs. Bookkeeper
There are considerable price disparities between an internal accounting team and an outsourcing firm. But the chart below shows the basic pay for a full in-house accounting team.
In-house Team Member’s Base Salary (Minimum)
According to studies, an internal bookkeeper makes an average of $74,000 every year. Additionally, more than $250,000 is spent annually on the entire internal accounting team. However, you can employ a full accounting team, which consists of a controller, staff accountant, and bookkeeper, for just $50,000 to $60,000 per year.
Which One Would Be Best For You ?
We are aware that internal accounting is far more expensive than using an outsourcing service. However, if you are in charge of a sizable business, in-solution would be advantageous for you.
On the other hand, if you run a startup, freelance, or own a small business, outsourcing accounting is the best option for you. Because it will be more economical for you and more cost-effective. A poll revealed that the following aspects influenced business owners’ choices:
- Cost-cutting: 70% of organizations mentioned cost-cutting as the primary motivation for outsourcing.
- Scalability: 40% of organizations choose outsourcing as a scalable strategy. Outsourced accounting services can develop and evolve alongside your business.
- Speed of Market: Using an outsourced staff was the primary argument given by 20% of organizations for doing so.
Let’s Outsource Accounting Together
At BPO BD, bookkeeping services are available for $62 per hour. Our adaptable Accounting Foundations Package, which costs $240 per month, consists of a range of services like bookkeeping, bank/credit card merges, and payroll.
BPO BD is able to handle all of your accounting records by taking on the outsourcing of invoice computation. If you have any further questions, ask our professionals.