Hiring an in-house bookkeeper is a major decision for small businesses. While it provides personalised service and control, it comes with significant costs.
This article breaks down the in-house bookkeeper costs Australia, compares it with outsourcing options, and explores alternatives like monthly bookkeeping packages.
What is the purpose of hiring a bookkeeper in Australia 2025
Small businesses often start by managing their own bookkeeping or assigning it to administrative staff. As the business grows, the need for dedicated financial management arises.
An in-house bookkeeper offers:
- They understand your business inside out.
- They are on-site for urgent tasks.
- You have full control over their work.
Despite these benefits, the costs can be substantial. Now, let us move ahead and discuss Salary, benefits, and overheads of in-house bookkeepers.
The cost of hiring an in-house bookkeeper in Australia
The total cost of hiring an in-house bookkeeper includes salary, benefits, office space, and equipment. Here’s a detailed breakdown:
1. Bookkeeper salary in Australia 2025
In 2025, the average annual salary for an Australian bookkeeper ranges from AU$60,000 to AU$80,000, depending on experience and location.
| Experience Level | Annual Salary (AUD) |
| Entry-Level (0-2 years) | AU$60,000 |
| Experienced (10+ years) | AU$80,000 |
2. Benefits
Employers must cover superannuation contributions (10.5%), paid leave, and other perks like health insurance. These add approximately 20%-30% to the base salary.
3. Recruitment Costs
Finding the right candidate involves advertising jobs, conducting interviews, and onboarding. Recruitment costs can range from AU$5,000 to AU$10,000, depending on the hiring process.
4. Training Costs
Training ensures your bookkeeper is up-to-date with software like MYOB or Xero and GST compliance. This can cost around AU$1,000 to AU$3,000 annually.
5. Office Space & Equipment
Providing office space, computers, and accounting software adds another AU$2,000 to AU$5,000 annually.
6. Miscellaneous Expenses
Legal fees for contracts and other unforeseen costs can add up to AU$1,000 annually.
Total annual cost of hiring an in-house bookkeeper in Australia: AU$60,000 – AU$100,000
Monthly Cost: AU$5,000 – AU$8,300
This is the In-house bookkeeping expenses.
Is Hiring an In-House Bookkeeper Worth It?
While having a dedicated employee is beneficial for personalised service and control over processes, it may not be cost-effective for small businesses with limited budgets.
Outsourcing Bookkeeping Services: A Cost-Effective Alternative
Outsourcing bookkeeping eliminates many overhead costs associated with hiring an in-house employee. Here’s how it compares:
Hourly Rates for Outsourced Services
- Overseas services: AU$25 – AU$60 per hour (but may have issues like time zone differences or unfamiliarity with Australian laws).
- Australian services: AU$40 – AU$70 per hour.
Monthly Fixed Fee Packages
Many Australian bookkeeping firms offer fixed pricing models ranging from AU$500 to AU$2,500 per month for basic services. This is significantly lower than the monthly cost of employing an in-house bookkeeper.
Additional Services Impacting Costs
Outsourced bookkeeping services often offer add-ons that increase costs but provide greater value:
| Service | Average Monthly Cost (AUD) |
| Tax Preparation | AU$250 – AU$500 |
| Payroll Processing | AU$150 – AU$300 |
| Financial Reporting | Included |
These additional services make outsourcing appealing for small businesses seeking flexibility without high overheads. Outsourced bookkeeping cost savings is a plus point for small busineses.
Monthly Accounting Services: A Comprehensive Solution
Monthly accounting services bundle bookkeeping and tax advisory under one roof. They provide year-round support tailored to your business needs. Benefits include:
- Minimising tax liability through proactive planning.
- Analysing financial statements to maximise revenue and control expenses.
- Advising on growth opportunities or exit strategies.
Monthly accounting services typically cost between AU$2,500 and AU$5,000 per month but combine multiple functions into one package.
Cost comparison: In-house Vs Outsourced bookkeeper
Below is the comparision of In-house vs outsourced bookkeeper Australia:
| Cost Factor | In-House Bookkeeper | Outsourced Service | Monthly Accounting Service |
| Salary/Fees | AU$60k – AU$80k annually | AU$500 – AU$2,500/month | AU$2,500 – AU$5,000/month |
| Benefits | Included | Not applicable | Not applicable |
| Recruitment Costs | AU$5k – AU$10k | None | None |
| Training | AU$1k – AU$3k annually | None | Included |
| Office Space & Equipment | AU$2k – AU$5k annually | None | None |
FAQs
1. What is the cost to hire an in-house bookkeeper in Australia?
The cost to hire an in-house bookkeeper in Australia typically includes the bookkeeper’s salary, which ranges from $65,000 to $80,000 per year, plus additional costs like training, equipment, and benefits.
2. What is the true cost of a bookkeeper in 2025?
In 2025, the true cost of a bookkeeper includes not only their salary (averaging $70,596 annually) but also overheads such as office space, software, and potential bonuses.
3. What is the bookkeeper salary breakdown in Australia for 2025?
The bookkeeper salary breakdown in Australia for 2025 includes an average annual salary of around $70,596. This can vary by location, with cities like Sydney and Melbourne offering higher salaries than regional areas.
4. How do I conduct an in-house bookkeeping cost analysis?
To conduct an in-house bookkeeping cost analysis, consider factors such as salary, training costs, software expenses, and office overheads. Compare these costs with outsourcing options to determine the most cost-effective approach.
5. What are the benefits of hiring an in-house bookkeeper versus outsourcing?
Hiring an in-house bookkeeper provides direct control over financial operations and can enhance data security. However, outsourcing may offer cost savings and access to specialized skills without long-term employment commitments.
6. How can I optimize the cost of hiring an in-house bookkeeper?
To optimize costs, consider hiring entry-level bookkeepers and investing in training, or leveraging technology to streamline tasks and reduce manual labor. Additionally, negotiating salaries based on local market rates can help manage expenses.
Conclusion
Hiring an in-house bookkeeper provides personalised service but comes with high costs that may not suit small businesses.
Outsourcing bookkeeping offers affordability and flexibility without the overhead expenses of full-time staff.
Monthly accounting services provide a comprehensive solution for businesses seeking year-round financial management and tax advisory.
Evaluate your business needs carefully before deciding which option works best for you to incur bookkeeping costs for Australian businesses in 2025.
Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.