Accounting is part of your business, but you don’t always have to hire your own team. These days, you have the option to outsource the task to a local accounting firm’s business accountants. Whether you build an in-house accounting team or outsource it is up to you, but there are things you should consider to ensure that you’re making the right choice.
Here’s a closer look at each option so you can compare them side by side.
How outsourced and in-house accountants work
With in-house accounting, you’re bringing people into your team to become part of your day-to-day operations and handle your finances. Outsourced accounting means you pass those financial tasks to an external firm or business accountants who manage everything remotely. While you still get experienced professionals to handle your finances, you won’t have to worry about hiring and managing an in-house full-time team.
Here’s how outsourcing and in-house accounting compare at a glance:
|
Area |
In-house accounting |
Outsourced accounting |
|
Work environment |
On-site or hybrid, and fully integrated into your daily operations |
Managed off-site using cloud-based systems |
|
Control |
Direct control over your processes and data |
Less direct control, but still transparent through shared systems |
|
Access to data |
Immediate access to financial data and team members |
Real-time access through cloud platforms |
|
Business understanding |
Deep understanding of your internal processes and company culture |
Builds understanding over time, but may not be as immersed |
|
Expertise |
Typically limited to the skills of your internal team |
Access to a wider range of specialists across different accounting areas |
|
Flexibility |
Fixed structure based on your team size |
Scalable services that adjust to your business needs |
|
Customisation |
Highly tailored to your internal workflows |
Uses adaptable systems that fit your business model |
|
Best suited for |
Businesses with complex or high-volume financial operations |
SMEs or businesses looking for flexibility and cost efficiency |
Comparing the costs
Cost is often the deciding factor when you’re choosing between in-house and outsourced business accountants. While an in-house team gives you direct control, it also comes with higher ongoing expenses. Outsourcing gives you a more flexible and predictable cost structure, which can be especially helpful when you run a small to medium-sized business.
Here’s a side-by-side comparison to help you see how the costs stack up:
|
Cost area |
In-house accounting |
Outsourced accounting |
|
Core cost |
About £35,000 to £65,000+ annual salary depending on experience |
Around £250 to £1,500+ monthly fee depending on service scope |
|
Employer obligations |
National Insurance and pension contributions required |
No employer-related contributions to manage |
|
Employee benefits |
Paid leave, sick pay, bonuses |
Not applicable |
|
Office setup |
Costs for workspace, equipment, and utilities |
No office or equipment costs |
|
Training and development |
Ongoing professional development to meet regulations |
Included as part of the provider’s expertise |
|
Software |
Separate subscriptions for tools like Xero or QuickBooks |
Often included in the service package |
|
Scalability |
Fixed cost regardless of workload changes |
Flexible pricing based on your needs |
|
Overall cost efficiency |
Higher overhead and long-term commitment |
May lower your overheads by around 30% to 70% |
Outsourcing business accountants keeps your costs more manageable, since you pay only for the services you actually need.
Who can give more value to your business?
With in-house accounting, you get a dedicated team that understands your business inside and out. They know how things run day to day and can act quickly when something comes up.
That said, you can also benefit from the wider mix of specialised skills and experience of outsourced business accountants.
|
Area |
In-house accounting |
Outsourced accounting |
|
Business familiarity |
Strong understanding of your internal processes and financial history |
Builds understanding over time but may not be as embedded in daily operations |
|
Customisation |
Processes tailored closely to your internal workflows |
Adapts systems to your needs, often using proven frameworks across industries |
|
Range of expertise |
Typically focused on general accounting unless additional training is provided |
Access to specialists in a wide range of areas, from tax planning and compliance to forecasting and audit support |
|
Industry exposure |
Limited to your business and sector |
Broad experience across multiple industries and complex financial scenarios |
|
Regulatory knowledge |
May require ongoing training to keep up with HMRC updates and UK GAAP |
Regularly updated knowledge of regulations and standards as part of the service |
|
Team depth |
Usually relies on one or a small team of individuals |
Access to a wider team with varied qualifications and experience |
|
Advanced support |
May need external consultants for complex issues |
Often includes advanced expertise without needing extra hires |
|
Flexibility |
Skills depend on current team capabilities |
Ability to tap into different specialists as your needs change |
What does your business need?
If you’re thinking about outsourcing business accountants for your small or medium-sized business in London, you can rely on our team here at Allenby Accountants. We provide practical solutions for your accounting and taxation needs, along with tailored guidance that supports your long-term goals.
To get started, call us at 0208 914 8887 to book your free initial consultation.
