Many businesses struggle to decide between hiring an in-house bookkeeper or using outsourced bookkeeping services. This decision affects everything from cash flow and efficiency to compliance and reporting. Understanding the difference can help you make the right call for your business stage and structure.
What does in-house mean in accounting?
In-house accounting means your bookkeeping, payroll, and financial reporting are handled internally by employees. This could be a single staff member managing multiple responsibilities or a small finance team.
In small to medium-sized businesses, in-house accounting staff are often expected to wear many hats. They handle HR admin to payroll or vendor communication. While this approach gives the business direct oversight, it can lead to burnout, misclassification errors, or inconsistent financial reporting if the team lacks specialist training.
What does outsourced accounting and bookkeeping services mean?
Outsourced bookkeeping is when a company hires an external service provider to handle some or all of its accounting functions. This might include bank reconciliations, accounts payable/receivable, payroll, tax prep, or financial reporting.
Outsourcing gives businesses access to qualified professionals without the cost of full-time hires. With firms like NTC Accounting Firm, you’re supported by a team, not just one person who is covering everything from bookkeeping to CFO-level oversight.
Sourcing & Training With In‑House VS Outsourced Accounting
Hiring & Training In‑House Accountants
When hiring in-house, you’re responsible for recruiting, onboarding, and training. That takes time, money, and consistent oversight. Training often falls on existing staff, which diverts focus from core operations. If the business grows quickly or turnover is high, the in-house team can become overwhelmed.
Hiring & Training with Accounting Outsourcing Companies
By contrast, accounting outsourcing companies already have experienced, fully trained professionals. Their team stays up to date with regulatory changes, accounting software, and tax deadlines. You don’t need to train them, they come prepared and supervised. That’s a major time and cost advantage for small or mid-size businesses.
Quality Control With In‑House VS Outsourced Accounting Services
Quality Control for In‑House Accountants
Small internal teams often work with limited checks and balances. When the same person is responsible for bookkeeping, payroll, and reporting, there’s a higher risk of human error or even fraud. Segregation of duties is hard to implement when one person does it all.
Quality Controlling with CPA Outsourcing Companies
Outsourced accounting firms often build internal control processes into their workflows. Tasks are split between team members and reviewed by managers. This separation of duties increases accuracy and reduces fraud risk. With firms like NTC, your books are reviewed regularly by multiple professionals, not left to one overworked staffer.
Financial Reporting in Outsourced VS In‑House Financial Services
Financial Reporting by In‑House Accountants
In-house teams may struggle to provide timely, accurate reporting, especially during peak periods or if they’re balancing other admin tasks. When reporting is delayed or incomplete, decision-making suffers.
Financial Reporting by Accounts Payable Outsourcing Companies
Outsourced teams focus exclusively on your financial data. They work with purpose-built systems, offer timely monthly reporting, and help you understand trends and KPIs. With dedicated accounts payable outsourcing companies, reporting is structured, consistent, and designed to support business growth.
Productivity & Efficiency With In‑House VS Outsourced Accounting Services
Productivity of In‑House Accountants
In-house accountants often juggle multiple tasks unrelated to finance, from HR queries to admin. This splits their attention and limits their ability to dive deep into your financials or flag issues early. Absences, turnover, or limited system access can further reduce productivity.
Productivity of Outsourced Accounting Firms
Outsourced firms are designed for efficiency. They use the latest cloud-based tools to automate reconciliations, reporting, and invoice management. With dedicated specialists for each function, tasks are completed faster and with fewer errors. Your team stays lean, while your finance operations stay strong.
Cost Difference Between In‑House VS Outsourced Bookkeeping & Accounting Services
Cost of In‑House Accounting
Hiring a full-time bookkeeper or accountant comes with more than just salary. Factor in recruitment, benefits, office space, software, and training. A bookkeeper might cost $50K–$60K, while an accountant adds another $70K+, plus employer taxes and benefits.
And that’s assuming one person is qualified to handle everything. Often, it takes two hires, at six figures total, to meet a growing business’s needs. These costs can weigh heavily, especially on smaller teams.
Cost of Outsourced Accounting Firms
Outsourced bookkeeping services offer predictable, scalable pricing. Small businesses can start from £2,000–£4,000/month depending on their needs, which is far less than hiring full-time staff. You also get access to a whole team, including senior oversight, instead of paying for individual salaries.
This flexibility allows you to scale up or down without the fixed overhead. It’s especially useful for seasonal businesses, start-ups, or those in growth mode.
Should I Choose In-House or Outsourced Bookkeeping and Accounting Service for My Business?
Every business is different. Some may need in-house control due to complexity, company culture, or compliance. But for many, outsourced bookkeeping and accounting offer better value, more expertise, and greater efficiency, especially if your internal team is stretched thin.
At NTC Accounting Firm, we specialise in outsourced bookkeeping and accounting for small businesses, self-employed professionals, and service-based companies. Our team includes a dedicated bookkeeper, an accountant, and a financial manager, all working together to keep your books accurate, up-to-date, and compliant.
We also offer strategic advisory, helping you make smart financial decisions year-round, not just at tax time.
Ready to get support with your books?
Book a no-pressure call with our team today. We’ll help you decide if an outsourced or in-house solution works best for your goals, and how we can support your next phase of growth.