As businesses grow, managing financial records becomes increasingly time-consuming.
What once involved a few transactions each month can quickly evolve into a complex financial process involving:
- accounts payable and receivable
- payroll processing
- GST reporting
- BAS preparation
- expense management
- financial reporting
At this stage, many business owners begin asking an important question:
Should we hire an internal bookkeeper, or outsource the role?
Both options have advantages, but the right choice often depends on the size and complexity of the business.
What an In-House Bookkeeper Does
An internal bookkeeper is responsible for managing day-to-day financial transactions within the business.
Typical responsibilities include:
- recording financial transactions
- reconciling bank accounts
- managing accounts payable and receivable
- processing payroll
- preparing BAS information
- maintaining financial records
Having an in-house bookkeeper can provide immediate access to financial support during business hours.
However, hiring internal staff also comes with employment costs and management responsibilities.
The Cost of Hiring an In-House Bookkeeper
In Australia, the average salary for an experienced bookkeeper typically ranges between $70,000 and $95,000 per year.
When additional employment costs are included, the real cost becomes significantly higher.
These costs may include:
- superannuation contributions
- payroll tax
- recruitment and onboarding
- employee benefits
- leave entitlements
- training and management time
For many small and medium-sized businesses, this level of internal staffing may not always be necessary.
How Outsourced Bookkeeping Works
Outsourced bookkeeping allows businesses to work with an external accounting team that manages financial records remotely.
Instead of hiring an employee, businesses pay for bookkeeping services based on their transaction volume and reporting needs.
Typical outsourced bookkeeping services include:
- transaction processing
- bank reconciliation
- accounts payable and receivable
- payroll processing
- BAS preparation
- financial reporting
- software integrations and automation
Modern bookkeeping services typically operate using cloud accounting platforms such as Xero combined with tools like Dext, Hubdoc and ApprovalMax.
These systems automate many financial processes and improve reporting accuracy.
Advantages of Outsourced Bookkeeping
Many businesses choose outsourced bookkeeping because it offers greater flexibility.
Common advantages include:
Lower Overhead Costs
Businesses avoid employment costs associated with hiring internal staff. Instead, they pay for the level of bookkeeping support they actually require.
Access to an Experienced Team
Outsourced bookkeeping services often involve multiple finance professionals working together. This provides broader expertise than relying on a single internal employee.
Scalable Financial Support
As businesses grow, their bookkeeping requirements also increase. Outsourced bookkeeping allows services to scale with the business without needing to hire additional internal staff.
Improved Financial Systems
Outsourced bookkeeping teams often help businesses implement modern accounting systems using platforms such as Xero. These systems improve automation, reporting accuracy and financial visibility.
When Hiring an In-House Bookkeeper Makes Sense
While outsourcing works well for many businesses, there are situations where hiring internally may be appropriate.
Businesses may consider an internal bookkeeper when:
- transaction volumes are extremely high
- financial administration requires constant in-office support
- the company operates with a large internal finance department
In many cases, businesses combine internal administration staff with outsourced accounting support to achieve the right balance.
Building a Modern Finance Function
For many growing businesses, bookkeeping is only the first layer of financial management.
As companies expand, they often introduce additional financial oversight such as:
- finance manager reporting
- financial forecasting
- strategic CFO advisory
This layered financial structure allows businesses to access the financial expertise they need without hiring a full internal finance department.
Speak to a Bookkeeping Specialist
If your business is considering whether to outsource bookkeeping or hire internally, professional advice can help determine the best financial structure.
Our team supports businesses with:
- outsourced bookkeeping services
- financial reporting and reconciliation
- payroll and BAS preparation
- financial system implementation
- finance manager and CFO advisory support
With the right financial systems and support in place, businesses gain clearer financial visibility and more time to focus on growth.
At The Pen Accounting, we specialise in helping creative businesses like yours achieve financial success. From bookkeeping to tax advisory and business strategy, our services are tailored to the unique needs of the creative sector in Australia. If you’re ready to take control of your financial records, contact us today and discover how we can help your business grow.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by The Pen Accounting as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.
