Many CEO's and business owners have the tough decision to compare in-House vs Outsourced Bookkeeping & Accounting.

1. In-House vs
Outsourced
Bookkeeping

2. Many CEOs and business owners rely on in-house
bookkeeping and accounting to receive their financial
statements each month because it’s what they’re used
to. However, with technology advancements in recent
years, traditional is not always best when it comes to
managing your company’s financial standing.
In-house and outsourced bookkeeping services offer
different workflows when managing the bookkeeping
and accounting for your company. While we
understand that outsourced bookkeeping and
accounting is not right for every business, if it does fit
your business’s needs, it can often cost less and provide
more expertise than a traditional in-house accounting
department.

3. Below we outline a few differences between what in-
house and outsourced bookkeeping services and
accounting services can offer your business.

4. Quality and Training for In-House vs Outsourced
Bookkeeping and Accounting
When hiring for in-house bookkeepers and
accountants, you want to look for experience and
proven track records at other businesses. Screening is
important when hiring for a bookkeeping and
accounting position because you could end up with a
self-taught employee. This isn’t always a negative,
however, you might have a greater risk of receiving
below par processing and month-end reporting.

5. Outsourced bookkeeping and accounting services often
provide higher quality and expertise. Employees of
outsourced services are usually experts who undergo
continual training in accounting and technology.
Whether you choose in-house employees or an
outsourced service, making sure they are trained on an
ongoing basis will help ensure you get timely, accurate
financials.

6. Internal Controls for In-House vs Outsourced
Bookkeeping and Accounting
Proper internal controls ensure that the flow of
information into the accounting system is accurate,
timely and classified correctly during the right period. It
also provides a series of checks and balances that help
reduce the risk of getting ripped off.

7. When you have just one or two employees handling
your books, your company has a higher risk of fraud.
The person paying the bills might be the one
reconciling the bank account, and because there isn’t
separation of duties, you have just given them the keys
to the bank. They can steal from you and cover their
tracks. And you won’t find out until it’s too late.

8. Outsourcing helps reduce the risk of fraud associated
with your business’s accounting because there are
separation of duties and ore rigorous steps taken when
providing financial statements for the business. Most
outsourced companies have two sets of eyes reviewing
each step with different levels of staff working on one
account. There are steps taken for one employee to
review the others work to ensure there aren’t any
discrepancies or errors.

9. Financial Reporting Process Done In-House vs.
Outsourced
The financial reporting process will look different for
each business depending on specific needs, number of
transactions each month, industry considerations and
many other factors. In-house bookkeepers, accountants
or controllers can provide reports for your business;
however, you need to ensure that they have the right
education, training and skill sets to provide a quality
month-end close and accurate reporting.

10. Many times in-house bookkeepers and accountants
have other responsibilities, such as human resources,
that can take time away from their core duty of
accounting. When this happens, collections and
financial reporting can get pushed aside because data
entry, recording invoices and paying bills takes priority.
For a CEO or owner, these reports are vital to cash flow
and to help make decisions that impact the business.
Outsourcing your bookkeeping and accounting can help
alleviate late, inaccurate or meaningless financial
reporting. When you decide to outsource, you can pick
and choose exactly what you need for your business. If
you have a bookkeeper in-house, you usually wouldn’t
have to fire them.

11. In fact, working with an outsourced service can often
make existing employees more effective by establishing
streamlined procedures and training them in the best-
in class policies. They can then report to an Outsourced
Controller who provides oversight and can produce the
financial reporting your business needs. Financial
reporting will be on time and accurate when
outsourcing because employees are trained,
experienced and only focus on their core job
descriptions.

12. Cost Difference Between In-House and Outsourced
Bookkeeping and Accounting
For many small and medium businesses, cost is a big
determining factor when choosing a bookkeeping and
accounting service. A full-time in-house bookkeeper’s
annual salary is roughly $45,000 and a full-time
accountant’s salary is $60,000. Together, two
employees cost over $100,000 which doesn’t take into
account for overhead costs.
Overhead costs add an additional 20% on top of an
employee’s base salary and consist of:

13. • Payroll Taxes
• Superannuation
• Vacation/Sick Days
• Placing Ads, Screening Interviews, Testing and
Training of Employees
• Your business won’t pay overhead costs when using
an outsourced service. Outsourced bookkeeping
costs start at $350 and VCFO services cost between
$2,500 - $5,000 a month for small and medium
businesses depending on the services you require.
Even at the top of the range, at $5,000 per month, it
would cost your business $60,000 a year, which is
substantially less than a bookkeeper and accountant.

14. Which Bookkeeping and Accounting Service Should
Your Business Choose?
Choosing a bookkeeping and accounting service for
your business depends on which can support the needs
of your business the most. In-house bookkeeping and
accounting might be right for some businesses,
however, many businesses find outsourcing their
financial needs is easier and more cost effective.

15. Unlike most outsourced companies, iKeep Bookkeeping
a Xero bookkeeper is Australian based and offers a
dedicated team of a bookkeeper, staff accountant and
accounting manager, working out of our office in
Sydney, who provide the expertise you need to run
your business. We have strict guidelines in place to
ensure that there is no risk of fraud and our staff goes
through continual training so they are up-to-date on
accounting best practices.

16. iKeep Bookkeeping is Xero Platinum partners and
delivers our clients actionable financials that they can
count on. We are experts in bookkeeping, accounting
and VCFO services and provide businesses timely and
accurate financial statements from a team you can
trust.
While we do much more than just the essentials, the
core of our service is solid, reliable bookkeeping and
accounting services that keep your business on track.
We help companies take control of their finances and
deliver actionable financial intelligence designed to
help grow your business. Put your numbers to work!
Book a call with one of our experts.