How to staff the books
An in house bookkeeper against outsourced bookkeeping
The real cost of each, including the parts that do not appear on a salary line. Outsourced monthly bookkeeping from $500/mo.
Prepared by HBT Accounting, a CPA led firm in CalgaryUpdated 5.0 on Google, 59 reviews
The salary is not the comparison
Businesses compare a bookkeeper's salary against a monthly fee and conclude hiring is cheaper. The salary is not the cost. Employer CPP and EI, vacation, software licences, the time spent supervising someone whose work nobody else can check, and the month everything stops when they are away all belong in the same column.
Against that, an employee is there every day, learns the business properly and can chase a customer invoice at four in the afternoon. Outsourcing gives continuity, a second set of eyes and no single point of failure, at a known monthly number. Many businesses end up splitting it, keeping daily entry in house and the close, sales tax and year end outside.
Staffing the books compared
| Compared on | In house bookkeeper | Outsourced |
|---|---|---|
| What you pay | In house bookkeeperSalary plus employer CPP and EI, vacation and software | OutsourcedA monthly fee, from $500 at HBT |
| Who reviews the work | In house bookkeeperOnly if someone is assigned to | OutsourcedAt HBT, a CPA reviews the work |
| Knowledge of the business | In house bookkeeperDeep, learns it daily | OutsourcedGood, built from the records and regular contact |
| Scales with volume | In house bookkeeperHiring or overtime | OutsourcedScope and fee adjusted |
| Best suited to | In house bookkeeperHigh daily transaction volume, or a need for someone on site | OutsourcedSteady monthly volume without a full time need |
What actually belongs in the comparison
Total employment cost
Salary plus employer CPP and EI, vacation, software and the time spent supervising.
Cover and continuity
What happens during holiday, illness or notice. A single bookkeeper is a single point of failure.
Who reviews the work
An employee's work is often unchecked. An outsourced close includes a second set of eyes by design.
How the work begins
Step 1: Count the real volume
Transactions, accounts and employees decide how much work there genuinely is.
Step 2: Compare like for like
Total cost of employment against a monthly fee, with both written down.
Step 3: Split it if that fits
Daily entry in house, close and sales tax outside, is a common and sensible arrangement.
Is it cheaper to hire a bookkeeper or outsource the bookkeeping?
Compare total cost rather than salary against fee. An employee carries employer CPP and EI, vacation, software licences, supervision time and no cover when they are away. Outsourced bookkeeping starts at $500 per month with continuity and review built in. Businesses with high daily transaction volume often justify an employee. Most owner managed businesses do not, and many split the work, keeping daily entry in house and the close outside.
Official sources
Monthly bookkeeping from $500/mo+. Monthly payroll from $150/mo+. Amounts are starting prices plus GST or HST where it applies. Final fees depend on scope, and we quote a fixed fee once the work is clear. See starting fees. The first conversation is free and takes about 10 to 15 minutes.