Payroll Software vs. Accountants: What Actually Scales for Growing Businesses

Running payroll in Washington State is far more complex than issuing paychecks. Paid Family & Medical Leave (PFML) premiums, quarterly Unemployment Insurance filings, workers’ compensation classifications, and varying local minimum‑wage requirements create a compliance landscape that grows more demanding with every new hire.

As a result, many small businesses reach a common inflection point: should payroll continue to be handled by an accountant, or is it time to adopt payroll software designed for automation and scale? The question is not which option is inherently better, but which one can sustainably support growth as headcount, compliance obligations, and operational complexity increase.

Understanding Payroll Costs as You Scale

Cost is often the first consideration when choosing between payroll software and an accountant. Unfortunately, pricing models across both options are rarely simple.

Payroll Software Pricing Models

Most payroll software providers charge on a per‑employee, per‑month basis, typically ranging from $5 to $20 per employee. Pricing generally increases as businesses grow and require more advanced features, integrations, and support.

Typical pricing tiers include:

Plan Type	Average Price	Common Features
Free	$0	Basic payroll processing, employee self‑service, limited HR support
Starter / Personal	$5–$15 per employee/month	Payroll tax filing, direct deposit, time tracking, PTO management
Business	$15–$25 per employee/month	Benefits administration, compliance tools, advanced reporting
Enterprise	$25–$50+ per employee/month	Custom workflows, dedicated support, system integrations, analytics

Beyond subscription fees, businesses should account for setup costs, implementation fees, customizations, and recurring monthly or annual charges. While most payroll software providers are relatively transparent once you engage with sales, long‑term costs—and the conditions tied to promotional discounts—should be reviewed carefully.

A scalable payroll platform should grow with your business rather than penalize growth through unpredictable pricing or rigid contracts.

Working with an Accountant: Benefits and Limitations

Hiring an accountant or CPA to manage payroll remains a viable option, particularly for very small teams or businesses with limited payroll complexity.

Advantages of Using an Accountant

• Accountants bring deep expertise and can offer:

• Payroll accuracy and tax compliance

• Knowledge of regulatory requirements

• Strategic financial insight

• Broader advisory services beyond payroll

Cost Considerations

For scaling businesses, cost structure becomes critical. CPAs often charge $100–$200 per hour, with small business payroll services ranging from $20 to $250 per month depending on scope. As complexity increases—payroll combined with bookkeeping, invoicing, inventory, or multiple accounts—monthly costs rise quickly.

Typical bookkeeping costs include:

• Basic bookkeeping: $200–$500 per month

• Full‑service bookkeeping (including payroll and tax prep): $500–$2,500+ per month

Pricing varies widely based on location, certifications, service frequency, industry specialization, and whether cleanup or historical reconciliation is required.

What Actually Scales: Key Differences

When evaluating scalability, several operational factors matter more than headline pricing.

Specialization

• Payroll software is purpose‑built for payroll and HR compliance.

• Accountants manage a broader financial scope, with payroll as one of many services.

Technology and Automation

• Payroll platforms leverage automation for wage calculations, tax withholdings, filings, and benefits administration.

• Accountants may rely on manual or hybrid systems, including spreadsheets and third‑party tools.

Scalability and Speed

• Payroll software is designed to handle growing headcount with minimal additional effort.

• Accountants provide personalized service but may become a bottleneck as volume increases.

Support and Advisory Value

• Payroll software offers standardized, scalable support.

• Accountants deliver tailored guidance and strategic insight.

Total Cost of Ownership

The true cost of payroll is not just monthly fees—it includes compliance risk, processing speed, employee experience, and the internal time required to manage payroll operations.

Making the Right Choice

For early‑stage businesses, accountants can provide valuable hands‑on support. As organizations grow, however, automation, consistency, and predictable costs become essential. Payroll software is often better positioned to scale efficiently, while accountants continue to play a vital role in strategic financial planning and advisory services.

The most sustainable approach for many growing businesses is not choosing one over the other, but understanding where each delivers the most value—and aligning payroll infrastructure accordingly.

References

Chandel, M. A. (2025). How Much Do Accountants Charge for Payroll Services? Focus CPE Group.

Global FPO. (2025). How Much Do Bookkeepers Charge? A State‑by‑State Breakdown.

Wai, F. (2026). Payroll Services Pricing Guide (Updated for 2026). People Managing People.