Offshore accounting vs in-house hiring – the actual decision framework.

True cost of in-house vs offshore

In-house true cost

A $65k salary bookkeeper doesn't cost $65k. Total loaded cost breakdown:

• Base salary: $65,000
• Payroll tax (employer portion FICA + Medicare + FUTA + SUTA): ~$5,500
• Health insurance (employer contribution): $6,000–$15,000
• Retirement match (if offered): $1,950 at 3% match
• Workers comp: $150–$400
• Equipment (laptop, monitor, setup): $1,500–$2,500 amortized
• Office space (if office-based): $3,000–$6,000/year
• Software licenses (accounting software user, utilities): $1,200–$3,000
• Training and professional development: $500–$2,000
• Recruiting cost (amortized over typical 24–36 month tenure): $2,000–$6,000/year equivalent

Total loaded cost: $85,800–$106,350 for a $65k base bookkeeper. Monthly equivalent: $7,150–$8,860.

Offshore true cost

Offshore senior bookkeeper at $2,800/month headline. Add:

• Monthly fee: $2,800
• US supervision time (4 hrs/week × $75/hr loaded): $1,300/month (for small engagements; scales down with larger engagements)
• Additional software licenses on your platform: $50–$200/month
• Coordination and sync calls: $300–$500/month value of your time

Total effective cost: $4,450–$4,800/month. Still 40–55% less than loaded in-house cost.

Which work fits which model

Work that tends to fit in-house best

• Highly client-facing roles. AR collections calls requiring nuanced customer management, sensitive client communications, in-person relationship work.
• Urgent unpredictable needs. When a bank examiner walks in unexpectedly, US-based staff respond faster than offshore.
• Judgment-heavy roles at executive level. CFO-level strategic finance where in-person board meetings and on-site leadership matter.
• Regulated industries with domicile requirements. Certain defense, government contractor, or healthcare contexts with data residency requirements.
• Small businesses under $500k revenue. Coordination overhead of offshore engagement may exceed cost savings.

Work that tends to fit offshore best

• Structured production work. Bookkeeping, transactional AP/AR, payroll processing, tax preparation with defined scope, audit PBC preparation.
• Volume work. High transaction volumes where dedicated attention on routine work matters.
• Specialty work requiring hard-to-find skills. NetSuite implementation, Sage Intacct controller work, specific industry expertise (dealership, construction, dental) where US talent pool is tight.
• Seasonal capacity. Tax season, audit busy season where US market can't scale with demand.
• Non-client-facing analytical work. Financial modeling, reporting, analysis where quality of output matters more than synchronous interaction.

Hybrid is common

Most mid-market businesses end up with hybrid structures: US-based senior/leadership + offshore production. This captures the benefits of both models: US judgment and client relationships at the top, offshore efficiency and scalability for volume work.

For detailed cost comparison see offshore accounting cost guide. For hiring evaluation see how to hire offshore.