Stuck choosing between outsourced or in-house bookkeeping? We’re here to help you make the perfect choice!
Imagine you’re running a busy café in Melbourne, juggling customer service, managing staff, and trying to stay on top of the paperwork. When tax season rolls around, you’re suddenly buried in receipts and financial reports. At that point, you might ask yourself—should I continue doing all this myself, or would outsourced bookkeeping services in Australia be the smarter option?
Outsourcing allows you to hand over the financial tasks to professionals, freeing up your time to focus on what you do best—running your business. On the flip side, keeping everything in-house gives you more control but comes with higher costs, including salaries, benefits, and training.
So, whether you’re running a small café or a growing business, which option will save you time, reduce costs, and keep things stress-free?
Let’s explore both options to help you decide what’s best for your business.
What is Outsourced and In-House Bookkeeping?
Outsourced bookkeeping is when you hire a third-party company to process day-to-day transactions, Accounts payable, receivable, payroll, invoicing, tax filing, and financial reporting. Many businesses in Australia turn to outsourced bookkeeping services to simplify their accounting and avoid the costs of hiring full-time staff.
For example, imagine you’re running a small retail shop. Trying to handle all the accounting tasks yourself while growing the business can be overwhelming. By outsourcing, you can focus on attracting more customers and leave the financial paperwork to the experts.
On the other hand, in-house bookkeeping means having someone within your business manage the finances. This person handles daily tasks like processing transactions, payroll, tax returns, and creating financial reports.
Let’s say you’re running a mid-sized tech company, and you want more direct control over your finances. Having an in-house accountant means they’re always available to provide quick updates and tailor financial reports to your needs. But while in-house bookkeeping gives you more control, it can cost you more in the long run. Managing cash flow and keeping up with Australia’s ever-changing tax laws can be pricey, whereas outsourced bookkeeping gives you flexibility and expert help without the big expenses of keeping someone in-house.
The Benefits of Outsourced Bookkeeping Services
Outsourcing your bookkeeping to a professional firm can provide several advantages, helping your business stay financially flexible and efficient. Here are some key benefits:
1. Cost Efficiency
Outsourcing can really cut down the costs of hiring, training, and managing an in-house team. Instead of dealing with the full-time salary, office space, and training expenses, you only pay for the services you actually need. Research shows that outsourced bookkeeping can save businesses anywhere from 30-50% on accounting costs.
Think about it like this: If you had a medium-sized business and hired an in-house accountant or bookkeeper, it could cost you around AUD 80,000 a year. But by outsourcing your bookkeeping, you could end up saving nearly half of that amount. Those savings can be better spent on other areas of your business.
Cost Comparison: In-House vs Outsourced Bookkeeping
Let’s talk numbers. Here’s how the cost of in-house bookkeepers stacks up against outsourcing.
| Expense | In-House Bookkeeping | Outsourced Bookkeeping |
| Salary & Benefits | AUD 60,000 – 80,000 per year | AUD 30 – 60 per hour |
| Software & Technology | AUD 5,000 – 10,000 per year | Included in service fees |
| Office Space & Equipment | AUD 3,000 – 5,000 per year | No additional cost |
| Training & Development | AUD 1,000 – 3,000 per year | No additional cost |
| Total Annual Cost | AUD 70,000 – 98,000 | AUD 20,000 – 35,000 |
As you can see, outsourcing offers a much lower overall cost compared to maintaining an in-house team, especially for small and medium-sized businesses.
2. Access to Expertise
When you outsource your bookkeeping, it’s not like you’re just bringing in one person—you’re getting an entire team of specialists. These experts know all the ins and outs of Australian tax laws, financial regulations, and the latest in financial reporting. Their expertise ensures your business stays compliant. No costly mistakes, just smooth, professional management.
For example, a recent survey found that 85% of businesses saw improved financial accuracy after switching to outsourced accounting services. Just imagine how much smoother tax season would be with a team of professionals managing your numbers instead of you trying to figure it all out on your own.
3. Scalability and Flexibility
With outsourced bookkeeping services in Australia, you can easily scale your accounting support to fit your business needs—whether you’re expanding or tightening your focus. This means you only pay for the services you use, without the added expenses of hiring and training in-house staff.
Let’s say your business experiences a sudden spike in sales during the holiday season. Instead of scrambling to hire temporary in-house staff, you can simply scale up your outsourced services to handle the extra workload.
4. Access to the Latest Technology
When you outsource your bookkeeping, most firms use cloud systems like Xero or QuickBooks, letting you check your financial data anytime, from anywhere. For example, a tech startup might find that cloud-based bookkeeping solutions provide top-level security and faster reporting, helping them make quicker financial decisions.
The best-outsourced bookkeeping services also provide top-level security, lower the chance of errors, and speed up reporting, making them a great choice for growing businesses.
| Benefit | In-House (Basic Software) | Outsourced (Cloud-Based) |
| Real-Time Data Access | Limited | 24/7 Access Anywhere |
| Automated Bank Reconciliation | Not Always Available | Included |
| Secure Data Storage | Additional IT Costs | Built-In Security Protocols |
| Integration with Other Tools | Limited | Seamless Integration |
Chart: Benefits of Cloud-Based Accounting Software
Cloud-based systems provide better security, fewer errors, and quicker reporting, making them a great choice for growing businesses.
The Benefits of Hiring In-House Bookkeeping
If having control and quick access to your financial data is a top priority, hiring an in-house bookkeeper might be the better option for your business. Let’s look at the advantages of keeping your bookkeeping team within your company.
1. Immediate Access and Control
One big advantage of in-house bookkeeping is immediate access. Need to check your numbers? You can get them straight from your team, without waiting. In industries where quick financial decisions are very important, having an in-house team offers a clear benefit.
| Action | In-House Bookkeeping | Outsourced Bookkeeping |
| Access to Financial Data | Instant, immediate access | Depends on communication speed |
| Reporting and Analysis | Immediate | May take longer (up to 1-2 days) |
| Custom Financial Requests | Can be processed immediately | Requires external coordination |
Table: Response Time Comparison
2. Customisation and Flexibility
When we manage bookkeeping in-house, it’s easy to tailor financial processes specifically to how our business operates.
For example, imagine you are running a boutique marketing agency and need a detailed report on campaign expenses broken down by client and region. An in-house team would be familiar with this type of workflow and could quickly generate this type of custom report for you. Plus, they’d have a solid grasp of your company’s culture, goals, and priorities, offering a more hands-on, personal touch to your financial management.
3. Direct Control Over Data Security
In-house bookkeeping gives your business complete control over the security of sensitive financial information. You can set up your own cybersecurity measures, which is especially important for companies that handle confidential financial records.
Outsourcing Bookkeeping Services in Australia: A Growing Trend
The market for accounting outsourcing in Australia is growing fast, and it’s easy to see why. Studies show that the global market for outsourced accounting services is expected to grow by 6.2% annually between 2020 and 2025. What’s driving this? It’s the rising demand for cost-effective financial solutions.
Think about your own business. Are you spending hours dealing with invoices? Imagine freeing up that time by outsourcing to professionals. By outsourcing small business bookkeeping, you can save on the costs of hiring a full-time accountant and use that extra money to stock more products or improve your services. Rather than drowning in paperwork, you can put your time and energy into growing the pharmacy and serving the community.
Graph: Projected Growth of Outsourced Accounting Services (2020-2025)
Source: Grand View Research, “Accounting Services Market Size & Growth Report 2020-2025”
Source: Statista, “Global Outsourcing Market Size Projections”
Comparison Why Outsourced Bookkeeping is the Best Choice for Your Business
| Factor | In-House Bookkeeping | Outsourced Bookkeeping |
| Cost | High due to salaries, benefits, and office space | Lower, flexible service fees—pay only for what you need |
| Control Over Finances | Full control, but comes with high operational costs | Less direct control, but detailed reporting ensures transparency |
| Scalability | Limited—requires more staff and training as you grow | Highly scalable—easily adjust services to match business growth |
| Access to Expertise | Limited—dependent on one or two internal hires | Access to a team of specialists in Australian tax laws and financial management |
| Real-Time Data Access | Immediate, but often limited by internal software capabilities | 24/7 access to cloud-based platforms like Xero and QuickBooks |
| Technology and Software | Businesses responsible for software updates and security | Latest technology included—fully managed by the service provider |
| Flexibility | Inflexible—hiring and scaling takes time and resources | Extremely flexible—scale up or down as your business needs change |
| Compliance & Risk | Higher risk of compliance errors—relies on internal knowledge | Ensured compliance with up-to-date knowledge of tax laws and financial regulations |
By outsourcing our bookkeeping, you can scale easily, save on costs, and always have expert support available—letting you focus on growth and strategy without the overheads.