The True Cost of Hiring an Accountant vs. Outsourcing with Universal Bookkeeper
Many small business owners are unaware of the true cost of employing an in-house accountant. Let’s break down the numbers so you can make an informed decision.
The Cost of In-House Accounting for Mid-Sized Companies ($500k – $10M in Revenue)
Hiring in-house staff for your accounting needs can be a significant investment. Here’s what you might expect:
- Staff Level Accountant: $45k – $65k
- Senior/Mid-Level Accountant: $60k – $100k
- CFO: $100k – $200k
For most businesses, at least a mid-level accountant is necessary, especially if there’s no CFO to oversee the financials. On average, you’re looking at a salary of $80,000. But the expenses don’t stop there:
- FICA and State Unemployment: Typically, 10% of salary, adding $8,000.
- Health Insurance: Companies often cover 50% of a single health insurance plan, costing around $650/month ($7,800/year) or $375/month ($4,500/year) if opting for a less comprehensive plan.
- 401k Contributions: Typically 3% of salary, or $2,400/year.
All in all, these costs add up to about $94,900 per year. But don’t forget other essential expenses like Workers’ Compensation Insurance, hardware, software, and IT support, which can easily push the total cost to $100,000 per year for just one mid-level employee.
Case Study: A $3M Annual Revenue Firm
Let’s assume your business brings in $3M annually. Every accounting firm prices its services differently—some charge hourly, others offer flat rates, and many are not fully transparent with their pricing.
At Universal Bookkeeper, we believe in clarity and value. For a business of this size, we recommend our CFO-level services with Accounts Payable Management. Here’s what you get:
- Weekly Accounting
- Monthly Financial Package delivered by the 15th of each month
- Monthly Meetings with Management
- Annual Budget Preparation
- 50 Checks Paid Each Month through Bill.com
Under our transparent pricing model, this comprehensive service would cost approximately $58,000 per year—just 1.9% of your revenue.
Smaller Business Example: $1M Annual Revenue
For a smaller business with $1M in annual revenue and 20 checks per month, our Premium Service is an ideal fit. For an annual investment of $17,700 (or 1.7% of revenue), you’ll receive:
- Weekly Accounting
- Monthly Financial Package delivered by the 15th of each month
- Quarterly Meetings with Management
- 20 Checks Paid Each Month through Bill.com
Even if you only need part-time accounting support, hiring in-house can still be costly. For a .5 FTE staff accountant with an equivalent salary of $55,000, you’re looking at approximately $31,000 per year.
The Benefits of Outsourcing
Outsourcing your accounting with Universal Bookkeeper offers several advantages over an in-house solution:
- No sick days, meaning no interruptions in service
- No technology breakdowns to worry about
- No benefits to administer
And the cost? Often less than what your company might spend annually on credit card processing fees. So, why not let us handle all your accounting needs, freeing you up to focus on what you do best—growing your business?
By choosing Universal Bookkeeper, you’re not just saving money; you’re gaining a trusted partner committed to your financial success. Reach out today to see how we can support your business!
