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In-House vs. Outsourced: The REAL Costs

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:

  • Bookkeeper: $40,000

  • Staff accountant: $57,000

  • Controller: $105,000

  • 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

  • Employee relations

  • Compliance with regulations

  • Recruiting, on-boarding new employees, and separations

  • Training programs

  • 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.

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