Burkland Brief:
- In-house accounting can work well at certain stages, but it has limits.
- Outsourcing brings structure and depth, but it isn’t always the best first move.
- The tradeoffs are about control, risk, flexibility, and focus.
- Many small businesses land somewhere in the middle with a hybrid approach.
If you’re a business owner handling accounting internally, either yourself or with a small team, you’ve likely reached a point where the outsourcing question comes up. The books are getting done, but maybe not as cleanly, quickly, or confidently as you’d like. Or maybe they work fine today, but you’re not sure they’ll hold up as the business grows. Deciding between in-house and outsourced accounting is less about right or wrong and more about fit for your current stage.
Here are six key issues to consider.
1. Control vs. Coverage
In-house accounting offers closeness to the business. Your team understands context, history, and the nuances behind transactions. Questions can be answered quickly, and informal conversations often fill in gaps that systems don’t capture.
The tradeoff is coverage. When knowledge lives with one or two people, vacations, turnover, or competing priorities can slow things down or create risk. Outsourced accounting typically replaces that closeness with broader coverage and continuity, though it can feel less personal day to day.
2. Fixed Costs vs. Flexible Capacity
An internal accounting team comes with predictable costs. Salaries, benefits, payroll taxes, and other compensation-related expenses are known quantities, and for businesses with stable operations, that consistency can be comforting.
Outsourced accounting introduces flexibility without adding headcount. Costs tend to scale with complexity and workload, and there are no additional expenses for benefits, employer payroll taxes, or recruiting. While outsourcing fees can feel less fixed and harder to compare directly to a payroll line item, they often reflect the true cost of the work being done, especially during periods of growth, transition, or change.
3. Institutional Knowledge vs. Process Discipline
Internal teams build institutional knowledge over time. They know why things are done a certain way and how to navigate exceptions. That knowledge can be extremely valuable when it is shared and documented.
Outsourced teams rely more heavily on defined processes and documentation. This can feel more formal, but it reduces dependency on individual memory and creates consistency. The tradeoff is giving up some flexibility in how things get done in exchange for repeatability and clarity.
4. Responsiveness vs. Rigor
In-house teams are often more immediately responsive. Quick questions can be answered in real time by walking down the hallway, even if the answer is preliminary.
Outsourced accounting tends to prioritize rigor. Requests usually follow structured workflows, and responses are reviewed and documented. That structure reduces errors and surprises, though it can mean fewer off-the-cuff answers.
5. Talent Depth vs. Talent Risk
Hiring internally allows you to build a team tailored to your business. A strong controller or senior accountant can be a long-term asset.
At the same time, relying on a small internal team concentrates risk. Outsourced accounting spreads responsibilities across multiple people and specialties, reducing dependence on any single individual. The tradeoff is less customization in exchange for stability.
6. Cost Visibility vs. Decision Confidence
In-house accounting costs are straightforward to understand. Outsourced fees can require more upfront explanation and alignment.
What often matters more than either is confidence in the numbers. When financials are timely, consistent, and trusted, owners can make decisions faster and with less second-guessing. When they are not, even low-cost accounting becomes expensive in indirect ways.
In-House vs. Outsourced Accounting at a Glance
| Area | In-House Accounting | Outsourced Accounting |
| Control | High day-to-day control | Less direct control, more structure |
| Cost Structure | Fixed salaries and benefits | Variable, scales with complexity |
| Knowledge | Deep business-specific context | Broad experience across businesses |
| Coverage | Limited by headcount | Team-based with built-in redundancy |
| Responsiveness | Fast, informal | Structured, documented |
| Risk | Concentrated in individuals | Spread across systems and teams |
| Scalability | Requires new hires | Easier to scale up or down |
Are You Ready for Outsourced Accounting Support?
Ask yourself the following questions to evaluate whether your current accounting setup is starting to strain:
- Does the month-end close routinely take more than ten calendar days?
- Do financials require heavy cleanup before tax season or lender reviews?
- Does key accounting knowledge sit with one person?
- Do you review reports mainly to catch errors, not to make decisions?
- Are growth or complexity increasing faster than your finance team?
- Do you ever delay financial decisions because the numbers aren’t ready?
If any of these sound familiar, it may be worth exploring some level of outsourced accounting support.
For many small businesses, the answer doesn’t have to be a full switch. Hybrid models are common, keeping internal support for day-to-day activities while outsourcing areas that benefit from extra depth, process, or continuity.
If you’re weighing options, a firm like Burkland can help you evaluate what makes sense to outsource, what to keep in-house, and how to do it without disrupting operations. The goal isn’t to outsource for its own sake, but to build a finance function that fits the business you’re running today and the one you’re growing toward.
The best accounting setup is the one that gives you clear, reliable information and lets you focus on running the business.
Contact Burkland to arrange a consultation with a business accounting expert who can help determine whether in-house, outsourced, or hybrid accounting support is the right fit for your business.