Comparing the Costs of an In‑House Accounting Department vs. Outsourced Accounting for Real Estate Companies

Real estate owners, operators, and developers face countless strategic decisions—but few are as financially impactful as determining whether to hire an internal accounting team or outsource the accounting function to a specialized provider.

Cost (both monetary and non‑monetary) often becomes the dominant factor for real estate companies evaluating whether an in‑house team or an outsourced solution will better support their portfolio operations, investor reporting needs, and strategic goals.

Here, we break down the annual costs real estate businesses typically incur to help inform your decision‑making.

Major In‑House Accounting Costs for Real Estate Companies

Managing your accounting internally brings an entirely different cost structure than partnering with an outsourced accounting team. Below are the four largest expense categories real estate organizations must consider.

1. Employee Salaries & Benefits

Real estate accounting requires specialized knowledge—Common Area Maintenance (CAM) reconciliations, property‑level financials, construction draw oversight, entity consolidations, and more. As a result, assembling even a small internal accounting team comes with substantial salary investments:

• Senior Accountant – ~$81,500 annually
• Bookkeeper – ~$46,400 annually
• Controller - ~$161,700 annually

Just to have the minimum number of accounting professionals in-house for most businesses to function, you’re looking at $289,600 on average cost.

This does not include the cost of providing employee benefits like paid time off, insurance, retirement plans, work compensation, etc. Here is some information from the Bureau of Labor Statistics from June of 2025 on employee compensation averages. Based on a 35-hour work week, the average monthly cost of employee benefits is $2,060 for private industry workers. Based on the three necessary workers to start this in-house team, we’ll be multiplying this number by three.

2. Onboarding & Training

Onboarding and training accounting staff is not a one‑time expense—especially in real estate, where software systems, investor expectations, and reporting standards evolve frequently. To fully onboard and train one employee, it is estimated to cost the employer upwards of $4,700 on average. Accounting for the age of this information, today’s costs are likely higher. For executive positions for larger accounting departments, recruiting costs can be as much as $28,000.

Remember, these are estimates of costs per employee, so if you’re hiring a minimum of three accountants, you’ll need to manage a small and streamlined department in-house, you can multiply this number by the headcount on the team.

Recruiting, onboarding, and training two new in-house accounting department employees a year, for example, could cost your company a minimum of $10,000 for basic talent, not considering more expensive-to-recruit or onboard execs.

3. Turnover Costs

Turnover is particularly disruptive in real estate, where institutional knowledge of properties, debt structures, and ownership entities is essential.

You may spend all this time finding a team and training them only to have one of your key players leave not too long after hire. It’s estimated that losing an employee can cost a company one-half to two times the employee’s salary. While this is not a guaranteed cost, it’s definitely a level of risk to factor into your comparison of in-house vs. outsourced accounting costs.

4. Accounting & Finance Tools

Real estate accounting requires software capable of handling:

• Multiple entities
• Property‑level financials
• Tenant ledgers
• Budget‑to‑actuals
• Job costing for development projects

In many real estate organizations, this means using property‑management‑specific platforms such as Yardi, which supports complex property‑level accounting, tenant management, CAM reconciliations, and portfolio reporting.

Even at a minimum, essential tools such as QuickBooks and BILL can cost over $100 per month, and real‑estate‑focused systems like Yardi increase that investment depending on modules and user counts. A conservative estimate of necessary software totals $400 per month, or $4,800 per year, though real‑estate‑specific platforms may push this number higher for many companies.

Total Estimate of In-House Accounting Department Annual Costs

Real estate companies incur unique costs driven by the industry’s complexity. Your actual numbers will depend on talent acquisition, onboarding, training cycles, turnover, and the size of your portfolio.

Annual Costs - The Breakdown

• Senior Accountant, Bookkeeper & Controller Salaries and Benefits - $363,760
• Recruiting, Onboarding & Training 2 employees - $10,000
• Turnover - unquantifiable; depends on time invested in employees, time to hire new, etc.
• Accounting & Software - $3,600 (low estimate)

Total Estimated Annual Cost: $377,360

Outsourced Accounting Services Costs for Real Estate Companies

The flip side of this cost analysis is outsourcing your company’s accounting. This option presents both monetary and non-monetary benefits when compared to maintaining accounting in-house.

1. Finding the Right Outsourced Accountants

It’s important to note that outsourcing your accounting function is not the same as offshoring; rather, outsourcing typically provides more of a personalized touch from a local company.

Look for an outsourced team that provides a client service model that is flexible depending on your company’s needs. Here are some items to keep in mind when considering outsourcing:

• Communication: Look for a team that communicates clearly, provides updates, and is available to answer your questions. Determine if you’d like to correspond with the outsourced team on a weekly, bi-weekly, or monthly basis.
• Real Estate–Specific Expertise: Select a provider who understands property reporting requirements, investor expectations, and real estate‑specific accounting processes.
• Scalability: Your accounting support should be able to scale seamlessly as your portfolio grows and changes.
• Technology Stack: Ensure that the outsourced team uses modern, real estate‑compatible software to improve efficiency, accuracy, and visibility.

With the right partner, real estate firms gain a team that fully supports their operational and investment‑level goals.

2. Flat-fee Retainer

With an average cost of approximately $60,000 annually, depending on the size of your business, outsourced accounting provides immediate savings for a business owner who can now use those extra funds to invest in other areas of the business. A flat monthly fee also creates predictable costs, making budgeting more straightforward and reliable throughout the year.

The Bottom Line: Why Outsourced Accounting Is a Smart Move for Real Estate Firms

The most immediate benefit of outsourcing your real estate accounting is the dramatic cost savings relative to maintaining an in‑house team.

However, the advantages extend far beyond budget relief:

• You and your team regain time to focus on acquisitions, leasing, development, operations, and investor relations.
• You eliminate the overhead and administrative burden of hiring, training, and managing accounting staff.
• You gain access to scalable expertise that grows as your portfolio grows.

With a trusted outsourced accounting partner, your business gains stability, financial clarity, and long‑term support for growth.

Find Out if Outsourcing is Right for Your Real Estate Organization

At Kreischer Miller, we offer tailored outsourced accounting services that meet the needs of your business. Whether your goal is saving money, accelerating growth, or positioning your business for sale, with our expertise you can streamline your operations, reduce costs, and make smarter data-driven decisions.

Learn more about our services here.