Hiring vs. Outsourcing Your Accounting: Which Is Right for Your Business?

Accounting is the backbone of every business—whether you’re a small startup or a growing enterprise. When it comes to managing your financials, one of the most important decisions you'll face is whether to hire an in-house accountant or outsource your accounting needs. Each option has its advantages, and the best choice depends on your business size, complexity, and growth goals. In this post, I’ll break down the pros and cons of both approaches to help you decide which model fits your needs.

Hiring an In-House Accountant

An in-house accountant is a direct employee who handles your financial operations from within your organization.

Pros:

• Dedicated Support: Full-time attention on your business’s financials.

• Immediate Access: You can walk down the hall and get quick answers.

• Deep Internal Knowledge: In-house staff become familiar with your systems, culture, and specific challenges.

Cons:

• Higher Costs: You’ll pay salary, benefits, payroll taxes, training, etc.

• Resource Limits: One person may not cover all aspects (e.g., bookkeeping, tax, payroll, financial analysis).

• Recruitment and Retention: Finding and keeping top talent can be time-consuming and expensive.

Outsourcing Your Accounting

Outsourced accounting involves hiring a third-party service provider to manage some or all of your accounting functions.

Pros:

• Cost Efficiency: Pay only for the services you need—no overhead, benefits, or training costs.

• Access to Expertise: Gain a full team of professionals with specialized skills.

• Scalability: Easily adjust services as your business grows or changes.

• Technology & Compliance: Outsourced firms often use top-tier software and stay current on tax and compliance laws.

Cons:

• Less Immediate Availability: Communication may be slower than with an in-house hire.

• Less Control: You’ll need to trust an external team with sensitive financial information.

• Limited Personalization: Some providers may not fully tailor their approach to your unique business needs.

Which Should You Choose?

Consideration	Hire In-House	Outsource Accounting
Business size	Medium to large	Small to mid-sized
Budget	Higher fixed costs	Lower variable costs
Accounting needs	Day-to-day, hands-on tasks	Specialized or scalable tasks
Growth plans	Stable, long-term structure	Rapid or flexible expansion

Final Thoughts

If you need daily financial oversight and have the budget to support a full-time role, hiring in-house may be right for you. However, if you're looking for cost-effective, expert-level support with room to grow, outsourcing your accounting is an innovative and increasingly popular choice. In addition, many businesses today are choosing a hybrid model—keeping some financial tasks in-house (like billing or payroll) while outsourcing tax prep, financial reporting, or compliance to experts.

At Andrew Schliesman Tax & Accounting LLC, we specialize in outsourced accounting solutions tailored to your business size, industry, and goals. Contact us today to schedule a consultation and discover how we can streamline your accounting, allowing you to focus on growing your business.