Published: November 2025
The decision to build an in-house finance function or outsource to an embedded team is one of the most consequential choices Australian business owners make. Get it wrong and you'll burn through $100,000+ annually on a solution that doesn't fit your needs. Get it right and you'll have the financial expertise, coverage, and cost efficiency that accelerates growth.
Here's what most Australian SMEs don't realise: hiring a finance manager with a $140,000 salary actually costs your business $196,000 in total employment expenses. And that's before you factor in the hidden costs that push the real number even higher.
This comprehensive guide breaks down the true costs of both approaches, backed by real Australian data and case studies. Whether you're running a Sydney professional services firm, a Melbourne SaaS startup, or a Brisbane retail business, you'll find the specific cost comparisons and decision framework you need to make the right choice for your company.
By the end of this article, you'll know exactly which model makes financial sense for your business stage, size, and complexity. More importantly, you'll understand the hidden costs and risks most business owners miss until it's too late.
When Australian business owners think about hiring a finance manager, they typically focus on the base salary. This is the first and most expensive mistake. The base salary represents only 60-70% of the true cost of employment in Australia.
Let's break down what a finance manager actually costs your business in 2026, using real market data from Sydney, Melbourne, and Brisbane.
Finance manager salaries vary significantly across Australian capital cities and by experience level. Here's what you'll actually need to pay to attract qualified candidates in 2026:
Sydney Finance Managers:
Melbourne Finance Managers:
Brisbane Finance Managers:
For most Australian SMEs with revenues between $5-50 million, you'll be looking at mid-level candidates. Let's use a Sydney-based mid-level finance manager at $140,000 base salary as our working example throughout this analysis.
Here's where most business owners get a rude shock. That $140,000 salary balloons significantly when you add mandatory and hidden employment costs. Let's break down every dollar you'll actually spend:
Direct Employment Costs:
Recruitment and Setup Costs:
Ongoing Management Costs:
TOTAL ANNUAL COST: $196,160
That's a 40% markup on the base salary. And we haven't even covered the hidden costs yet.
The employment cost breakdown above is just the beginning. There are several critical hidden costs that don't show up on your P&L until they hit you in the face.
Your finance manager is entitled to significant leave:
When they take leave, who covers their work? Most Australian SMEs face three bad options:
Annual coverage cost: $8,000-$15,000 in contractor fees or lost opportunity cost.
What happens when your finance manager:
You're left scrambling with expensive problems:
Average turnover cost: $60,000+ including recruitment, training, lost productivity, and emergency coverage.
A finance manager can't be an expert in everything. Most have strong capabilities in 2-3 areas and are merely competent in others. Your business needs expertise across:
Most finance managers focus on financial analysis and reporting, but lack deep expertise in payroll compliance, BAS preparation, or strategic CFO work. You'll still need to hire additional support for these functions.
Here's the reality: a finance manager doesn't eliminate your need for other finance roles. For a business with 30-100 employees, a typical in-house finance structure requires:
Total in-house team cost: $281,000-$316,000 annually.
This is the real comparison point for most Australian SMEs. You're not comparing one employee to an outsourced team. You're comparing a mini finance department to an outsourced team.
Your finance team needs software tools to do their job effectively. Even with an in-house finance manager, you'll need:
Technology stack total: $3,840-9,600 annually.
The outsourced finance team model operates fundamentally differently from traditional accounting firms or freelance bookkeepers. Rather than periodic check-ins or ad-hoc support, you get an embedded team that functions as your daily finance department.
Think of it as having a complete finance department on your org chart, except they work remotely and you share their costs across the provider's client base. This model has gained massive traction among Australian SMEs precisely because it solves the coverage, expertise, and cost problems of hiring in-house.
A quality outsourced finance team isn't just outsourcing bookkeeping. You get access to a complete finance function with specialists in each area:
Weekly Bookkeeping:
BAS Preparation & ATO Compliance:
Payroll Processing:
Financial Reporting & Analysis:
Strategic CFO Guidance:
Systems & Technology:
The embedded finance team model relies on three key structural differences from traditional accounting services:
1. Daily Integration
Rather than email or scheduled meetings, you get a dedicated platform with your finance team:
2. Specialist Coverage Model
Instead of one generalist, you get a team where each person focuses on their area of deep expertise:
3. Built-in Redundancy
When someone on your finance team takes leave or resigns:
Outsourced finance teams typically price based on transaction volume and complexity. Pricing as an example of market rates:
Micro Businesses:
Small Businesses:
Medium Businesses:
These fees typically include all services: bookkeeping, BAS preparation, payroll processing, monthly reporting, and CFO advisory. The pricing scales with your complexity, not your wallet.
Now let's put everything together with complete cost comparisons across different business sizes. These scenarios use real Australian market rates and include all costs, not just the headline numbers most people focus on.
In-House Finance Structure:
Outsourced Finance Team:
Annual Savings: $186,000-$210,000 (66-74% cost reduction)
In-House Finance Structure:
Outsourced Finance Team:
Annual Savings: $285,000-$333,000 (63-73% cost reduction)
Business Profile:
The Problem:
Switch to Outsourcing:
Added Benefits:
Business Profile:
The Problem:
Switch to Scale Suite:
Better Fit:
Business Profile:
Real Cost Analysis:
Switch to Scale Suite:
Why They Switched Despite Minimal Savings:
Beyond pure cost, understanding what you actually get matters enormously. Here's an honest capability comparison:
Daily Bookkeeping:
BAS Preparation:
Financial Reporting:
Strategic CFO Input:
Technology Stack Knowledge:
ATO Audit Support:
Leave/Sick Coverage:
Scalability:
The data clearly shows substantial cost savings with outsourced finance teams. But cost isn't the only consideration. Let's examine when each model is the right strategic choice for your business.
For the vast majority of Australian SMEs, outsourced finance teams deliver superior value. You get broader expertise, better coverage, and significant cost savings compared to building an in-house team. The typical business saves $180,000-$300,000 annually while actually improving their finance function quality.
The question isn't whether you can afford an outsourced finance team. It's whether you can afford to keep overpaying for a less capable in-house solution.
Scale Suite provides embedded finance teams to Australian SMEs, delivering bookkeeping, BAS preparation, payroll, financial reporting, and CFO guidance at a fraction of the cost of hiring in-house. Our clients typically save >$50,000 annually while improving their finance function quality.
We work with businesses across Sydney, Melbourne, Brisbane, and throughout Australia, integrating to provide the same experience as having an in-house team without the cost, risk, and management overhead.
Contact Scale Suite today to discuss your specific finance needs and receive a customized proposal showing your potential cost savings.
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses.Our Sydney-based team integrates with your daily operations through a shared platform, working like part of your internal staff but with senior-level expertise. From complete bookkeeping to strategic CFO insights, we deliver better outcomes than a single hire - without the recruitment risk, training time, or full-time salary commitment.
Considering hiring finance staff? Let's compare what you'd get with an internal hire versus our embedded team approach.
Our experts will show you the complete picture - costs, capabilities, and flexibility - so you can make the right decision for your business.
No lock-in contracts and 30 day money back guarantee.
