Is your finance function better in or out?
Think it’s cheaper to keep your finance department in-house?
Think again.
As part of our myth-busting mission for 2026, we reveal how an outsourced finance function could help you save time and money.
The company is growing, but you don’t want to grow the finance function. We get it – times are tough. Keep finance in-house and you’ll save money, right?
The bookkeeper can step up to become the Finance Director.
Spoiler: they can’t without some skills development.
That’s OK, the new software will provide additional insights.
Spoiler: it won’t – there’s no replacement for strategic financial expertise.
Keeping the finance function in-house can seem like the easiest and cheapest option, but it comes with hidden overheads and added risks. Growth can stall. Cashflow can bomb. And compliance can falter.
So, what’s the alternative? An outsourced finance department: it’s more cost-effective than you think.
Counting the cost of an in-house finance function
An effective financial management structure requires three distinct levels of expertise: a reliable bookkeeper for accurate transaction processing, a proactive management accountant for analysis and reporting, and a forward-thinking finance director to support business strategy.
The annual salary bill for these roles can range from £145,000 to £215,000. But that’s just the tip of the iceberg. There are also recruitment overheads every time a team member leaves, which can be up to 30% of the individual’s annual salary – especially when using an external recruiter.
Staff absences come with an additional cost too – and that cost is rising. UK employees were off sick for an average of 9.4 days in 2025 up from 7.8 days in 2023. It’s estimated ill health currently costs the UK economy £150 billion annually.
Then there’s staff training: that will set you back around another £1,500 every year for every team member. With costs like these, it’s not surprising that many organisations attempt to make do with existing in-house resources and skills – only to regret it later. But it doesn’t have to be this way.
Flexible resource at an affordable rate
A lot of growing businesses don’t need to employ a full-time bookkeeper, accountant and finance director. And with an outsourced finance function, they don’t have to. Instead, they can tap into the right resources at the right time, paying for what they need when they need it.
“We enable companies to access finance expertise in a flexible and affordable way,” commented Simon Hammond, Client Services Director for Insight Associates. “For example, a client might only need support at finance director level for three hours a month. With an outsourced service, the client can access the strategic input needed to grow their business without having to pay for a permanent member of staff.”
As an organisation’s needs evolve, an outsourced service can be scaled up – or down – quickly and seamlessly without any recruitment delays, so there are no missed growth opportunities.
Broader experience equals greater efficiency
When you outsource your finance function, you get to share more than just skills and resources. Best practices, software subscriptions and efficiencies are also shared across multiple clients. This means smarter processes, fewer errors, stronger controls and better outcomes.
“Experienced outsourced teams can complete month-end processes up to 40% faster than in-house teams unfamiliar with best practices,” explained Shirley Hoy, Associate Director at Insight Associates. “First-time accuracy rates for common financial tasks are also much higher: 95% for a specialist external provider versus 70% to 80% for in-house teams managing multiple responsibilities.”
Additional time spent completing tasks, fixing errors and navigating new software systems increases the in-house cost burden further. An outsourced provider is also more likely to spot inefficiencies and question existing processes. For example, Insight Associates identified that one client was spending hours generating reports that were no longer needed.
Hidden costs and intangible benefits: how to justify the switch
Making the transition from an in-house team to outsourced provider can feel daunting, especially if you are struggling to compare like-for-like costs. But there are numbers to help you make that decision.
An outsourced service delivering bookkeeping, accounting and strategic expertise will typically cost between £42,000 to £100,000 annually1, depending on the business size and complexity. An in-house finance function will set you back around £189,000 in salaries per year2 – that’s before hidden costs, such as staff benefits, software packages and technology upgrades.
Then there are the intangible benefits that come with an outsourced package, which add value not just to the business but customers and colleagues too. Don’t take our word for it: this is what the Swarovski Foundation has to say about its outsourced service with Insight Associates.
“Working with professionals who genuinely care about making our jobs easier has been invaluable, fostering a collaborative and supportive relationship that greatly enhances our operational efficiency and confidence in our finances.”
So next time someone says they don’t need an outsourced finance department because they can do it cheaper in-house, you might want to don your myth-busting superhero cape…
2 Based on average Essex salaries as detailed in the Rutherford Briant Salary Guide 2026
