The Cost of Keeping Finance In-House vs. Outsourcing (2025 Analysis)
- RemotelyScale Editorial
- Sep 12
- 5 min read
In 2025, running a business means juggling rising payroll costs, tighter profit margins, and the ongoing challenge of keeping up with financial regulations. Finance is one of those areas that demands precision—payroll has to run on time, taxes must be filed accurately, and financial reports need to tell the truth about performance. Yet the big question remains:
Should finance be managed in-house, or is outsourcing the smarter move?
At first glance, keeping finance in-house feels like the natural choice. The team is close by, decisions can be made quickly, and sensitive data doesn’t leave the office. But the reality is that in-house finance carries hidden costs: high salaries, recruitment challenges, software expenses, turnover risks, and compliance penalties. These costs can pile up silently until they eat away at growth.
Outsourcing, on the other hand, has become more appealing than ever. It promises cost savings, scalability, and access to expert talent that smaller teams can’t always provide. Still, questions linger—will outsourcing truly deliver value? And does it fit every business model?
This analysis breaks down the true cost of In-House vs. Outsourcing, showing what it really looks like in 2025 and helping leaders make the best financial choice for their organization.
Why Business Owners Need to Revisit the Finance Question
Running a business isn’t just about growth—it’s about sustainability. Every dollar you spend on salaries, software, or recruitment is money that could have been reinvested into product development, marketing, or scaling operations.
Finance is non-negotiable—you need accurate books, timely payroll, and compliance to stay afloat. But how you manage this function directly impacts your bottom line. That’s why more and more business owners are asking: Do I really need a full in-house team, or can I get the same (or better) results with outsourcing?
The Real Cost of Keeping Finance In-House
It’s easy to underestimate the cost of an internal finance team. Beyond monthly salaries, there are less obvious expenses that steadily add up.
1. Salaries and Benefits Add Up Fast
The average salary for a mid-level accountant in the U.S. now ranges from $70,000 to $95,000 per year. Once benefits, healthcare, retirement contributions, and payroll taxes are included, the true cost rises by 25–35% per employee. Multiply this by the need for bookkeepers, payroll specialists, and financial managers, and the annual spend for a mid-sized company can exceed $400,000 to $600,000.
2. Recruitment and Training Drain Resources
Hiring finance professionals is competitive—and expensive. Recruitment fees, onboarding, and the time invested in training can cost thousands per hire. On top of that, ongoing professional development is necessary to keep staff updated on ever-changing compliance and tax regulations.
3. Software and Infrastructure
Modern finance runs on tools: QuickBooks, NetSuite, payroll platforms, and compliance software. Licenses, upgrades, and IT support can easily add $20,000 to $50,000 annually, depending on complexity.
4. Turnover Risk
Turnover is a growing issue in 2025. Losing a key finance employee doesn’t just mean recruiting again—it creates knowledge gaps, delays in reporting, and potential compliance risks.
5. Compliance Penalties
An overlooked deadline or reporting error can trigger significant penalties. Unless highly specialized staff are on hand, compliance risk remains one of the most expensive hidden costs of in-house finance.
The Cost of Outsourcing Finance
Outsourcing shifts many of these challenges off the business owner’s shoulders. Instead of shouldering payroll for a full team, companies can tap into specialized providers offering predictable costs and expertise.
1. Predictable Pricing Models
Most outsourcing firms work on flat monthly fees or scalable service packages. Outsourcing bookkeeping can cost as little as $500 per month, while CFO-level services typically range from $3,000 to $8,000 monthly—a fraction of hiring a senior finance executive in-house.
2. Access to a Broader Skillset
Outsourced teams bring specialists in bookkeeping, compliance, tax, and strategy. Instead of one or two employees wearing multiple hats, companies gain access to an entire bench of experts.
3. Technology Included
Many outsourcing providers bundle advanced software, reporting dashboards, and compliance tools into their fees. That means no additional software or IT investment is needed.
4. Scalability and Flexibility
Finance needs often change—during tax season, rapid growth, or international expansion. Outsourcing services can quickly scale up or down, offering flexibility that an in-house team struggles to match.
5. Reduced Compliance Risks
Established outsourcing providers stay on top of evolving tax laws and international standards, significantly lowering the risk of penalties or errors.
In-House vs. Outsourcing: Cost Comparison
To put the numbers into perspective, here’s what it looks like for a mid-sized company with $10M in annual revenue: In-House vs. Outsourcing: Cost Comparison
To put the numbers into perspective, here’s what it looks like for a mid-sized company with $10M in annual revenue:
Cost Category | In-House (Annual) | Outsourced (Annual) |
Salaries & Benefits | $500,000+ | $100,000-$200,000 |
Software & Licenses | $30,000 | Included in Service |
Recruitment & Training | $20,0000+ | Minimal/None |
Compliance & Risk | $15,000+ | Included in Service |
Total | $565,000+ | $120,000-$200,000 |
The gap is striking—outsourcing can reduce finance costs by 60–70%, while also boosting access to technology and expertise.
Where In-House Finance Still Works
While outsourcing has clear advantages, in-house finance is still valuable for:
Businesses in heavily regulated industries requiring strict data control.
Large corporations with complex structures needing daily on-site oversight.
Leaders who prioritize full cultural alignment and face-to-face collaboration.
In many cases, a hybrid approach—keeping strategic roles in-house and outsourcing transactional work—provides the best of both worlds.
A Smarter Way to Scale
For most small to mid-sized businesses, outsourcing finance is not just about cost-cutting. It’s about freeing leadership from day-to-day tasks, reducing compliance risks, and gaining access to tools and expertise normally out of reach.
That’s where RemotelyScale.com makes a difference. By connecting businesses with vetted, skilled remote finance professionals, RemotelyScale delivers cost-effective solutions that adapt as you grow. From bookkeeping to payroll to CFO-level support, they provide a scalable way to strengthen financial operations while keeping overhead lean.
The Bottom Line: In-House vs. Outsourcing
The choice between In-House vs. Outsourcing comes down to priorities.
In-house finance offers more control but demands a heavy investment in salaries, software, and compliance.
Outsourcing reduces costs, expands expertise, and provides agility, but requires trust in external providers and comfort with remote collaboration.
In 2025, the businesses that thrive will be those that balance control with efficiency. For many, outsourcing finance is no longer just an option—it’s the strategic move that unlocks resources, reduces stress, and drives growth.
📘 Want to Go Deeper?
If you’re serious about building stronger remote teams and outsourcing relationships, don’t miss our book: No Office, No Limits: Build and Lead Remote Teams on Your Terms.
This book shares proven strategies, real-world experiences, and actionable insights to help business owners like you create thriving remote and outsourced teams—while avoiding common pitfalls.
References:
GlobalFPO: https://www.globalfpo.com/blog/cost-of-hiring-an-in-house-accountant-vs-outsourcing-accounting