Business owners are faced with a multitude of decisions, with one of the most important being whether to invest in people or migrate to the growing trend of outsourcing their accounting department.
When analyzing the option to outsource, cost – both monetary and non-monetary – is in many cases the number one factor companies evaluate.
When dissecting the monetary costs to maintain accounting in-house, the first element is employee salaries. The size of your company will ultimately determine which positions are required for the accounting department, but most include a bookkeeper, senior accountant, and controller. On average, the yearly salary for a bookkeeper in the U.S. is approximately $45,000, while a senior accountant will cost $80,000 and a controller $105,000.
Hiring costs go beyond salaries; you also need to account for onboarding, training, benefits, and turnover risk. To fully onboard and train one employee, it is estimated to cost the employer $4,100. Benefits will cost approximately $20,000 annually, with that figure increasing or decreasing based on the benefits package offered by your business. In total, for a bookkeeper, senior accountant, and controller, a business owner can expect a total annual figure of around $300,000.
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. 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. In addition, the outsourced accounting team provides a group of dedicated professionals who have years of experience in public accounting and can navigate your company’s needs with ease. By outsourcing, business owners also get more time back in their day to focus on other critical areas of the business, which is extremely valuable. Since business owners and employees don’t have to spend their own time and money hiring and onboarding new employees, they can grow with the business while the outsourced accounting team assists with additional tasks as needed.
Outsourcing your accounting department can provide benefits of cost, time, experience, and growth opportunity. If your business finds itself pondering whether to outsource your accounting, it is crucial to consider these factors in your decision.
If you have any questions about outsourced accounting services or would like to discuss the potential benefits for your business, please reach out to Shane Donaghy, Senior Accountant, at Email or contact any member of our Outsourced Accounting Services Group.
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