In-House Bookkeeper vs. Outsourced Bookkeeping: How to Choose

Should you hire your own bookkeeper or outsource bookkeeping to an outside bookkeeper or bookkeeping firm? For most small businesses, outsourcing costs less and covers more, as long as you don't need someone in the office every day. An in-house hire makes more sense once you have enough daily, on-site work to fill a real job, like handling paper checks, running a front desk register or chasing invoices by phone.

Here's a fair look at both, across four things that matter: cost, control, coverage and skills.

Cost: what each option really costs

In-house bookkeeper

According to the U.S. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook, the median annual wage for the occupation group that includes bookkeeping clerks was $50,670 in May 2025 (about $24.36 per hour). The lowest-paid 10% earned less than $36,000, and the highest-paid 10% earned more than $74,550.

That's wages only. As an employer, you'd also typically pay for:

• Your share of payroll taxes
• Benefits, if you offer them (health insurance, paid time off, retirement)
• Bookkeeping software and a computer
• Training and time to get them up to speed
• Recruiting and hiring time
• Cover when they're sick or on vacation

A part-time hire lowers the wage, but most of the other costs and the management time stay.

Outsourced bookkeeper or bookkeeping firm

Outsourced bookkeeping is usually a flat monthly fee based on how many accounts and transactions you have. Prices vary widely by provider and by how much work your books need, so get a written quote that spells out what's included.

For reference, SteadyBooks' plans are $300, $500 and $800 per month. You don't pay payroll taxes or benefits, and software costs depend on your setup.

Bottom line on cost: if your books don't need 20 to 40 hours a week of work, you're likely paying for time you don't use with an in-house hire.

Control: who's in the room

In-house wins on day-to-day control. You can walk over and ask a question, change priorities on the spot and have someone handle physical tasks like opening mail, depositing checks or filing paper.

Outsourcing gives you control in a different way. You set the scope, the reporting schedule and the deadlines in writing. You see the same reports every month. If it's not working, you can change providers without the stress of letting an employee go.

A few control questions to ask any outsourced provider:

• Do I own my bookkeeping file and logins?
• Who has access to my bank accounts, and at what level?
• How do you deliver reports, and on what day of the month?
• How fast do you reply to questions?

Always keep ownership of your software subscription and give view-only bank access where possible.

Coverage: what happens when someone is out

With a single in-house bookkeeper, your books depend on one person. Vacations, illness and turnover can leave you with months of catch-up work.

Outsourcing doesn't erase that risk entirely, especially with a solo bookkeeper. But a good provider will have documented processes, cloud-based files you own and clear monthly deadlines, so the work can be picked up if anything changes.

Questions to ask either way:

• What's the backup plan if this person is unavailable for two weeks?
• Are the steps for month-end written down?
• Can I get into my books without them?

Skills: what you're actually getting

An in-house hire brings one person's skill set. That can be great, or it can mean gaps, such as someone who is strong at data entry but has never cleaned up a messy balance sheet.

An outsourced bookkeeper usually works across many sets of books and keeps up with software changes as part of the job. Look for credentials you can verify, such as a QuickBooks Certified ProAdvisor listing.

Either way, a bookkeeper is not a tax preparer. Bookkeeping keeps records organized and accurate. Tax questions, like deductions, estimated payments or entity choices, belong with your tax preparer. The best setup is a bookkeeper who keeps your books clean and works well alongside your tax pro.

Side-by-side comparison

When to hire in-house

• You have enough work to fill a part-time or full-time role
• A lot of the work is physical: paper checks, cash, mail, a front desk
• You want the same person to handle other office tasks too
• You have time to train and manage an employee

When to outsource

• Your books need a few hours to a couple of days of work a month
• You want monthly reports without managing a hire
• You've fallen behind and need a cleanup first
• Your team already works mostly online

Questions to ask before you decide

1. How many hours a month do my books really take?
2. What tasks have to happen on-site?
3. What would it cost, all-in, to hire and keep someone?
4. Who covers when that person is out?
5. Do I want to manage this role, or just get reliable reports?