Outsourced Accounting vs In-House Teams: A Cost & Risk Comparison for Australian Businesses

Australian small and mid-sized businesses are facing increasing pressure to control costs while meeting growing accounting and compliance demands. Rising salaries, ongoing skills shortages, and stricter regulatory requirements have made it harder for businesses to rely solely on traditional in-house accounting teams.

With the average accountant salary in Australia exceeding AUD 95,000 (Jobs and Skills Australia), many businesses are questioning whether maintaining an internal team still makes commercial sense, particularly when recruitment, superannuation, training, and turnover costs are factored in.

At the same time, compliance obligations around BAS, GST, payroll, and financial reporting leave little room for error. For businesses with lean teams, key-person dependency and review bottlenecks can quickly turn into financial and operational risks.

This has led to a growing shift towards outsourced accounting models that combine scalable offshore talent with strong compliance oversight.

In this article, we compare outsourced accounting vs in-house teams for Australian businesses, focusing on cost, risk, and scalability, so you can determine which model best supports your business growth.

The True Cost of an In-House Accounting Team in Australia

For many Australian SMEs, the cost of an in-house accounting team extends far beyond base salaries. Once statutory on-costs, recruitment, and operational overheads are included, the total expense can be significantly higher than expected.

Based on Australian labour market data (Jobs and Skills Australia), qualified accountants in Australia typically earn between AUD 85,000 and AUD 105,000 per year, excluding superannuation and other employment costs.

Typical Annual Cost of an In-House Accountant in Australia

*Figures are indicative and may vary by state, seniority, and business size.

The Hidden Cost Drivers SMEs Often Miss

Beyond direct costs, in-house accounting teams introduce structural risks that disproportionately affect small and mid-sized businesses:

• Key-person dependency: Knowledge concentrated with one employee creates continuity risk.
• Fixed cost exposure: Salaries remain constant even when workloads fluctuate.
• Limited review depth: Lean teams often lack layered checks, increasing compliance exposure.
• Turnover disruption: Replacing accounting staff can take months, affecting reporting timelines and regulatory obligations.

For businesses focused on cost control and compliance certainty, these hidden factors can turn in-house accounting into a growing operational risk rather than a strategic advantage.

Discover how automation improves accuracy and prevents financial errors and fraud risks for both in-house and outsourced accounting teams. Read our guide on Automated Reconciliation for Modern Accounting & Fraud Prevention.

What Does Outsourced Accounting Really Cost?

Outsourced accounting costs are typically more predictable and scalable than in-house teams — particularly when delivered through a structured offshore model with Australian compliance oversight.

For Australian SMEs, outsourced accounting is commonly priced on a monthly fixed-fee or volume-based model, aligned to transaction volumes and reporting complexity. This allows businesses to pay only for the capacity they need, without carrying fixed employment costs.

Typical Outsourced Accounting Costs in Australia*

*Indicative market benchmarks based on prevailing Australian industry data and service provider pricing. Actual costs may vary depending on business size, transaction volume, and service scope.

What’s Included That In-House Teams Often Don’t Cover

Unlike individual hires, an outsourced accounting model typically includes:

• Team-Based Support: Access to a pool of talent, eliminating key-person risk.
• Australian Compliance Alignment: Specialist oversight for BAS, GST, and local payroll.
• Built-in Quality Control: Multiple layers of review as standard practice.
• Scalability: The ability to ramp up capacity during EOFY without incremental hiring.

From a financial perspective, outsourced accounting converts accounting from a fixed employment cost into a variable, controllable operating expense. For many businesses, this flexibility is often the difference between maintaining compliance comfortably and constantly operating under pressure.

In-House vs Outsourced Accounting – The Cost Reality

When Australian SMEs compare in-house and outsourced accounting side by side, the cost difference is rarely marginal. In most cases, it is substantive.

An in-house accountant represents a fixed annual commitment of approximately AUD 120,000–130,000, once salary, superannuation, recruitment, and operating costs are included. This cost remains constant regardless of fluctuations in workload.

By contrast, outsourced accounting converts this fixed expense into a scalable operating cost, typically ranging between AUD 40,000 and AUD 66,000 per year for comprehensive support, depending on volume and complexity.

Cost Comparison: In-House vs Outsourced Accounting in Australia

For most SMEs, this translates into annual savings of 40–60%, without reducing accounting coverage. From a purely financial standpoint, the question is no longer whether outsourcing saves money, but whether maintaining a fully in-house accounting function is the most efficient use of capital for a growing business.

Risk Comparison – The Hidden Exposure of In-House Teams

For Australian SMEs, the biggest risk of in-house accounting is not cost; it is the concentration of responsibility.

Compliance Risk

In small teams, accounting knowledge often rests with one person, increasing BAS, GST, or payroll errors and ATO penalties. Outsourced, compliance-led accounting spreads responsibility, uses structured reviews, and ensures documented processes to reduce risk.

Continuity & Control Risk

In-house teams are vulnerable to turnover or absence, disrupting reporting and compliance. Outsourced accounting uses team-based delivery, continuity planning, and standardised controls to ensure consistent, reliable output regardless of individual availability.

Risk Comparison: In-House vs Outsourced Accounting

For businesses, outsourced accounting is not just a cost-saving option but a practical way to reduce compliance and operational risk.

Final Thoughts: Make Accounting a Strength, Not a Cost Centre

The choice between in-house and outsourced accounting is about more than the bottom line; it’s about risk control and confidence. While in-house teams lock you into fixed costs and dependency on individuals, a compliance-led outsourced model delivers the flexibility to scale as you grow.

Talk to an accounting outsourcing expert at Befree to understand how a scalable, compliance-driven model can reduce costs, strengthen controls, and future-proof your finance function.