Typically, the expense of hiring a full time bookkeeper will far exceed outsourcing this task.  Businesses pay more for employees by not only paying wages but also the employer portion of Social Security, Medicare; there may be additional state and local tax responsibilities.  Sick and vacation time take not only money, but physical resources lost.  There is also worker’s compensation insurance, unemployment taxes, bonuses, etc.  There is the hiring element which takes a tremendous amount of time, effort and diligence that many small business owners do not have the resources to spare.  There is also physical space cost (better be ergonomic!), computers, equipment, high turnover in this day and age.  With all the technology available today, full time bookkeepers for small to medium sized businesses (if their only task is keeping the books) is no longer necessary.  Bookkeepers as employees also provide no guarantee for work.  For most companies it is more cost effective to outsource this critical segment of the business.