Have you noticed tighter margins and higher payroll expenses and wondering if there is a simpler method to handle your business finances at a lower cost? With inflation hitting everything from office rent to salaries, many U.S. businesses, mid-sized and small, are reviewing their accounting setups.
If you are one of them, you probably are weighing the price of having an in-house accountant versus utilizing remote accountant services. In this blog, we will describe the actual cost differences; what you should use and what you may be lacking.
How Much Does It Cost to Hire An In-House Accountant?
Begin by estimating what you usually spend when you employ an in house accountant in the U.S. This includes much more than salary, like training, benefits, tools and more.
1. Salary and Compensation
Depending on your location and company size, an in house accounting team may cost you annually:
- Bookkeeper: USD 44,000
- Staff Accountant: USD 60,000.
- Senior Accountant or Controller: USD 80,000 USD 160,000
If you run even a small company, you most likely need at least 2 of those roles to maintain your financial records, payroll, compliance and taxes. That would cost you USD 120,000 USD 200,000 annually alone, before you include some other benefits.
2. Employee Benefits
Based on the U.S. Bureau of Labor Statistics, benefits usually add 30% to 40% to salary. That includes:
- Health insurance.
- Plans for retirement.
- Paid leave.
- Workers' compensation.
- Taxes on payroll.
Thus in case your accountant makes USD 70,000 annually, you pay USD 90,000-USD 100,000 as total compensation.
3. Recruitment & Onboarding
Hiring isn't free. Posting tasks, speaking with candidates and also onboarding brand new personnel will add USD 5,000-USD 10,000 per hire.
That could easily add up to USD 20,000-USD 30,000 for senior functions or in case you make use of recruitment companies.
4. Training and Upskilling
Your accounting team needs regular training, especially as accounting standards and tax laws shift. Training expenses include another USD 1,000-USD 5,000 annually per employee, based on certifications and tools.
5. Office Space and Tools
Think about the cost of:
- Physical office space.
- Computers and equipment.
- Licensed accounting software (e.g., BILL, QuickBooks, Dext):
This amounts to USD 3,000-USD 6,000 annually per person on tools & space at the very minimum.
Total Annual Estimate for In-House Accounting
When you're hiring 2 people, your overall cost might reach USD 150,000-USD 250,000 annually. And that is not including turnover costs which can disturb your workflow and increase costs for training and re-hiring.
How Much Does It Cost to Hire Remote Accounting Staff?
Now consider the cost versus benefits of hiring a remote accountant or utilizing remote accountant services.
1. Base Salary or Hourly Rates
Remote accountants usually charge less, particularly if they are agencies or freelancers. For example:
- U.S. based remote accountant: USD 35- 75/hour.
- Offshore remote accountant (Philippines, India etc.): USD 10-USD 30/hour.
If you hire an offshore accountant that is full time, you spend USD 25,000-USD 45,000 annually.
2. No Office Overhead
When you use remote accountant services, you pay for no desks, computer or office utilities fees. That might save you a huge number of dollars every year.
3. Minimal or No Benefits
Most remote staff are contractors, not workers. That means:
- No health insurance fees.
- No retirement contributions.
- No paid time off and vacation time.
You pay for the time you work or on a monthly flat retainer.
4. Access to Global Talent
When you hire a remote accountant, there's no ZIP code limitation. You can select from experts globally with certain skills - often at a discount when compared with U.S. hires.
What Are You Actually Getting for the Cost?
Let’s compare both models in terms of value:
|
Category |
In-House Accountant |
Remote Accountant Services |
|
Cost |
$150K–$250K/year |
$30K–$80K/year |
|
Benefits Required |
Yes |
Rarely |
|
Office Space & Equipment |
Required |
Not required |
|
Flexibility |
Less flexible |
Highly flexible |
|
Scalability |
Harder to scale |
Easy to scale up/down |
|
Control & Supervision |
High control |
Lower, but manageable |
|
Response Time |
On-site availability |
May vary by time zone |
|
Specialization |
Generalist role |
Option to pick experts |
When Is an In-House Accountant a Better Option?
If in-house accounting is way better for you:
- You manage a complex or large enterprise with several revenue streams and subsidiaries.
- You want real time, person to person financial insight every day.
- You need someone to work with your executive staff or even attend meetings frequently.
- You've sensitive financial data that has got to stay on site for legal reasons or compliance.
But be prepared for increased costs, HR work and longer terms.
When Should You Hire Remote Accountant Services?
Most small and growing businesses find remote accountant services more rational if:
- You are merely getting started or cutting back on operating costs.
- You have fairly routine accounting needs (e.g., every month bookkeeping, payroll, tax filing).
- You require knowledge in the U.S. GAAP, IRS compliance and industry-specific guidelines.
- You are not prepared to hire full time employees yet need reliable support.
When you get an offshore accountant, you can perform 24 / 7 operations due to time zone benefits. That's useful for businesses that process worldwide transactions or eCommerce.
What Risk Factors Should You Consider
No solution is ideal. This is what you should be aware of.
In-House Accounting Risks
- Higher fixed cost despite very low workload.
- Dependency on little internal knowledge.
- More risk when employees leave.
Remote Accounting Risks
- Communication gaps (particularly with offshore staff).
- Potential data security concerns (not using secured tools)
- Time zone differences can delay responses.
To minimize risk, always:
- Check your remote accountants or service providers carefully.
- Use secure cloud accounting tools.
- Set deliverable expectations and clear communication.
Also Read: Freelance vs. In-House Accountant: Which Should You Hire?
Final Thoughts
Looking for cost-efficiency and flexibility in 2025? Remote accountant services could be the answer for your company. With this, you do not sacrifice quality to reduce overhead. With worldwide talent and modern cloud based resources, you can provide the same (or maybe better) service for a fraction of the price of an in-house staff.
Even though in-house accountants continue to be a necessity in certain businesses, for most small and mid sized businesses the most effective option is going remote to help save money, prevent HR issues and develop your accounting staff on demand.
