Every growing business reaches the point where the owner can’t keep doing the books alone. The usual choice is between hiring a bookkeeper in-house or outsourcing to a professional firm. Salary is the number most people compare, but it’s only part of the real cost.

What an in-house bookkeeper really costs

When you hire an employee, the salary is just the starting point. You’ll also typically pay for:

• Employer payroll costs: CPP and EI contributions, vacation pay and, in many cases, health benefits.
• Software and equipment: accounting and payroll software licences, a computer and workspace.
• Recruiting and training: time spent hiring, onboarding and getting them up to speed on your systems.
• Coverage gaps: vacations, sick days and turnover can leave your books untouched for weeks, often at the worst possible time.
• Supervision and review: someone still needs to check the work, and a single bookkeeper may not have the depth to handle payroll, HST and year-end issues confidently.

What outsourced bookkeeping looks like

With outsourced bookkeeping, you pay a predictable monthly fee for the work your business actually needs. A professional firm typically handles:

• Recording transactions and reconciling bank and credit card accounts every month
• Managing receivables and payables
• Tracking HST and preparing for filings
• Producing monthly or quarterly financial reports
• Handing clean, organized books to your accountant at year-end, or handling year-end directly if the same firm does your taxes

Because a team is behind the work, there’s no gap when someone is on vacation, and your books are reviewed by people who deal with the CRA every day.

When in-house makes sense

An in-house bookkeeper can be the right choice when your business has a high volume of daily transactions, needs someone on-site for tasks like invoicing, purchasing or cash handling, or is large enough to support a full finance function. Even then, many businesses pair an in-house person with an outside firm for review, payroll and year-end.

When outsourcing makes more sense

• Your bookkeeping needs are a few hours a week rather than full-time
• You want predictable costs without payroll overhead
• You’ve fallen behind and need a clean-up before year-end
• You want bookkeeping, payroll, HST and tax handled in one place

For most small and medium businesses, including professional practices such as clinics, pharmacies and dental offices, outsourcing delivers more expertise for less than the full cost of an employee.

A simple way to compare

Add up the full annual cost of an employee, including salary, payroll costs, benefits, software and the time you spend managing them, and compare it with a monthly outsourced fee. Then factor in continuity and accuracy. The difference is often larger than expected.

Talk to us

Our monthly bookkeeping for small and medium businesses in Mississauga and the GTA starts from $300. We’ll assess what you need and give you a clear quote. Learn more about our bookkeeping services, or call 905-279-6367 for a free consultation.

This article provides general information. Costs vary by business; contact us for a quote based on your needs.