How much does it cost to hire an accounting team? What does it cost to hire staff and administer a benefits program? Do you have resources to establish and maintain a compliance program properly? For a small business, these are very important questions with very expensive answers.
Accounting: Option #1 Hire in-house accounting team
You may need from 1 - 5 people.
Average annual salaries based on role:
Staff accountant: $57,000
CFO: $150,000 to $200,000
Don't forget to add:
Benefits including health insurance, PTO, payroll tax, worker's compensation, and retirement benefits: +$13,000 per person
Supplies / Equipment / Systems & Support: +$10,000 to $20,000 per year
Potential cost ranges from $250,000 (team of 3 / no CFO) to $450,000 (full staff)
Option #2 Outsourced accounting team
Staff accountant, Controller, and CFO: $50,000 to $60,000 per year all-in
Human Resources: Option #1 Hire HR Director
An HR Director's responsibilities include:
HR system administration
Compliance with regulations
Recruiting, on-boarding new employees, and separations
Developing compensation plans
Average annual salary of an HR Director: $119,000. Adding benefits, it grows to $132,000.
Option #2 Outsourced HR Director: $50,000 to $60,000 per year all-in
Compliance: Option #1 Hire Chief Compliance Officer (CCO)
A CCO's responsiblities include:
Developing, implementing and managing compliance program
Coordinating with regulators
Overseeing risk-related programs
Creating and coordinating proper reporting channels for compliance issues
Average annual salary of a CCO (small firm): $150,000. Adding benefits, it grows to $163,000.
Option #2 Outsourced CCO: $60,000 to $75,000 per year all-in
The bottom line..
Outsourcing your accounting, HR, and compliance can potentially save your firm hundreds of thousands of dollars each year. The flat monthly fees are easy to budget, and the services are scalable to meet your business needs.