Full Cost of an In-House Bookkeeper
| Cost Component | Full-Time (40 hrs/wk) | Part-Time (20 hrs/wk) |
|---|---|---|
| Base salary | $45,000–$70,000/yr | $22,500–$35,000/yr |
| Employer FICA (7.65%) | $3,440–$5,355/yr | $1,720–$2,678/yr |
| Health insurance (employer share) | $5,000–$15,000/yr | $2,500–$7,500/yr |
| Paid time off (15 days) | $2,600–$4,040/yr | $1,300–$2,020/yr |
| 401(k) match (typical 3%) | $1,350–$2,100/yr | $675–$1,050/yr |
| QuickBooks license | $600–$1,800/yr | $600–$1,800/yr |
| Recruiting (one-time, amortized) | $1,000–$2,700/yr | $500–$1,350/yr |
| Total all-in cost | $59,000–$101,000/yr | $29,800–$51,400/yr |
Full Cost of Outsourced Bookkeeping — Sharma Jyoti and Co
| Business Type | Monthly Fee | Annual Cost | Equivalent In-House Saving |
|---|---|---|---|
| Sole proprietor / SMLLC | $200–$250/mo | $2,400–$3,000/yr | $27,000–$98,000/yr |
| LLC, mid volume | $300–$400/mo | $3,600–$4,800/yr | $25,000–$96,000/yr |
| S-corp with payroll | $400–$600/mo | $4,800–$7,200/yr | $23,000–$94,000/yr |
When In-House Makes Sense
In-house bookkeeping starts to make financial sense when:
- You have 500+ monthly transactions and daily bookkeeping is needed (not monthly)
- You need a bookkeeper to manage AP/AR in real time with vendors and customers
- Revenue exceeds $5–10M and you have a full accounting function (controller, AP clerk, bookkeeper)
- You are in an industry with high daily cash handling (restaurant, retail) where same-day reconciliation is critical
For the vast majority of US small businesses — sole proprietors, LLCs, S-corps under $5M revenue — an in-house bookkeeper is idle for 60–70% of their paid hours. Outsourcing scales with your actual work.
Hidden Costs of In-House That Are Rarely Factored In
- Turnover risk: The average US bookkeeper stays 2–3 years. Each departure means 4–8 weeks of lost productivity and $3,000–$8,000 in recruiting costs.
- Sick leave and vacation coverage: Who reconciles the accounts when your bookkeeper is out for a week? Outsourced firms have backup coverage built in.
- Training for new rules: Tax law changes require ongoing education. A firm like Sharma Jyoti and Co maintains team-wide continuing education; a solo in-house bookkeeper may not.
- One-person single-point-of-failure: If your bookkeeper is the only person who knows your books, their absence is a crisis. At Sharma Jyoti and Co, at least two team members know your account.
Frequently Asked Questions
A full-time US bookkeeper costs $59,000–$101,000/year all-in (salary, taxes, benefits, PTO, recruiting). A part-time bookkeeper costs $30,000–$51,000/year. Outsourcing to Sharma Jyoti and Co costs $2,400–$7,200/year for the same bookkeeping scope — a saving of $23,000–$93,000/year.
In-house makes financial sense above $5–10M annual revenue with 500+ monthly transactions requiring daily bookkeeping. Below that threshold, an in-house bookkeeper is idle for most of their paid hours. Outsourcing to Sharma Jyoti and Co scales exactly with your transaction volume.
Turnover ($3,000–$8,000 per hire), sick leave coverage gaps, training for new tax rules, and single-point-of-failure risk. Outsourced firms like Sharma Jyoti and Co have backup coverage, team-wide training, and multiple people familiar with your account — none of which add to your monthly fee.