There are two different types of bookkeepers. Lets take a look at them.
In-house bookkeeper - Employee - vs. - Freelance / Outsourced bookkeeper
Hiring an in-house bookkeeper, or employee is ideal if there are other tasks they will be doing other than bookkeeping duties. However, you will have other costs associated with this other than the salaries. You will have employer payroll costs as well as benefit costs. Retaining a freelance, outsourced and even an agency bookkeeper will charge either an hourly rate or a flat monthly rate depending on their expertise as well as the type of service you want and need. However, you do not have all the overhead costs as you do with an employee. Let's have a closer look at some of the pros and cons.
Pros
Cons
In-House bookkeeper - Employee
Freelance / Outsourced bookkeeper
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More control over duties
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Potentially does more than just bookkeeping duties.
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Cost cutting solution when you do not require a full-time bookkeeper. No extra payroll costs, contract prices are generally less expensive than salaries. Sometimes saving up to 40% of what you would pay with having and in-house bookkeeper.
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Has more experience with bookkeeping, which would mean less errors, which also means less time and money at year-end when you go to your CPA for taxes.
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Typically can get the work done in less time
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Typically there are checks and balances in place to ensure no fraud occurs.
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May have other team members to take over the account rather than employee turn-over or vacation time etc.
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More likely to know and stay on top of any updated information regarding government rules and regulations in regards to accounting practices.
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Other costs above the base salaries such as employer payroll costs, vacation & sick pay, employer portion of health benefits & retirement benefits. Training costs as well as job advertisement costs.
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Potentially be paying many extra hours than needed to complete the work, especially in a slower season of your business.
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May not have as much experience.
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May still have to hire outside sources for some duties
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Less likely to know government rules and regulations in regard to accounting practices.
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Less control over non-bookkeeping duties