managed IT vs in-house IT CPA firm comparison
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Managed IT vs. In-House IT: Which Fits Your CPA Firm?

Decision Guide · Dallas–Fort Worth

Managed IT vs. In-House IT: Which Is Right for Your CPA Firm?

The answer usually comes down to firm size — and it’s not as close as most owners assume.

Quick Answer
A single qualified in-house IT hire typically costs $85,000–$120,000 per year in salary alone, before benefits, tools, and training — and one person rarely covers help desk, security, cloud administration, and compliance equally well. Managed IT for accounting firms typically runs $100–$200 per user/month, bundling monitoring, help desk, security, backups, and FTC Safeguards/WISP compliance support into one predictable fee. Industry benchmarking puts the breakeven point around 12–15 staff: below that, fully managed IT is almost always the more cost-effective and better-covered option; above it, a co-managed model (an internal hire supplemented by an MSP) often starts to make sense.

Why This Isn’t Just a Salary-vs-Contract Comparison

The real question isn’t “what does an IT person cost” — it’s whether one person can actually cover everything a modern accounting firm needs. A capable in-house hire needs network administration, cybersecurity, cloud services management, and help desk skills simultaneously, typically requiring 5–10 years of broad experience. In practice, technology has gotten specialized enough that someone strong in security often isn’t strong in cloud architecture, and vice versa — meaning a single generalist hire frequently leaves real gaps, even at a $100K+ salary.

What total cost of ownership actually includes: recruitment, benefits, ongoing training, software licenses, backup coverage for vacations and sick days, and the fact that same-day support and 24/7 monitoring become cost-prohibitive to staff internally, while they’re standard with most managed providers.
This isn’t just an operational decision, either — the FTC’s own guidance explicitly lists tax preparation firms among the “financial institutions” covered by the Safeguards Rule, meaning whichever IT model a firm chooses, it still has to satisfy the same compliance program requirements.

Side-by-Side: What Each Model Actually Delivers

Factor In-House IT Managed IT
Annual cost $85K–$120K+ per hire, before benefits $100–$200/user/month, predictable
Coverage during tax season Limited by one person’s bandwidth and hours Built-in escalation and after-hours support
Coverage during PTO/illness Gap in coverage unless a backup is hired Whole team, no single point of failure
Breadth of expertise Limited to one person’s specialties Security, cloud, compliance specialists on one team
FTC/WISP compliance support Depends entirely on that person’s knowledge Typically built into the service, by design
Direct oversight and control Full, immediate, in the building Managed through the provider relationship

The Breakeven Point: Around 12–15 Staff

Industry cost modeling consistently lands on a similar answer: below roughly 12–15 staff, fully managed IT is almost always the more cost-effective choice, because there simply isn’t enough day-to-day work to justify a full-time salary, and a managed provider’s bundled security and compliance coverage costs less than trying to build the same breadth internally. Above that size, firms often have enough ongoing work to keep an internal person genuinely busy, which is when a co-managed model — an in-house hire handling daily support, backed by an MSP for security depth, compliance, and after-hours coverage — frequently becomes the better fit.

A useful gut-check: most firms revisit this decision after growing past 4–5 staff, losing a key IT person unexpectedly, or failing a security questionnaire from a larger client or lender — all signs the current setup has outgrown what one person (or no dedicated IT at all) can reliably cover.

What to Actually Compare When Evaluating Managed IT Quotes

The lowest per-user price isn’t useful if your firm still owns the risk. When comparing managed IT proposals specifically for an accounting practice, look past the monthly number and check:

Tax software vendor support — does the provider actually know Drake, Lacerte, UltraTax, or QuickBooks, or just generic IT?
Client portal and secure file sharing ownership — who’s responsible if a client can’t securely upload documents?
Busy-season escalation — is there a defined faster-response tier during filing season, or the same response time year-round?
FTC Safeguards/WISP documentation support — is this genuinely included, or a separate add-on billed later?
What’s excluded — most managed IT pricing excludes major projects, new hardware, onsite installs, and advanced incident response by default; know what’s not covered before signing.

Why CPA Firms Choose SilverStorm Solutions

Cybersecurity-first approach FTC Safeguards Rule / WISP support built in
Predictable, transparent pricing Tax-season-ready escalation support

We build managed IT plans around what accounting firms actually need — tax software support, secure client portals, and compliance documentation — not a generic small-business package.

Frequently Asked Questions

Is break/fix IT a reasonable third option instead of managed or in-house?

Break/fix (paying hourly only when something breaks) can look cheaper on paper, but it typically includes no proactive monitoring, no security tooling, and no compliance documentation — which rarely satisfies FTC Safeguards Rule or IRS expectations, and offers no protection against unplanned downtime during filing season.

What is co-managed IT, exactly?

Co-managed IT combines an internal IT hire with an outside provider — the internal person typically handles day-to-day support, while the MSP fills gaps in security depth, after-hours coverage, and specialized compliance work.

Does managed IT pricing usually include FTC Safeguards Rule compliance work?

It varies significantly by provider. Some bundle WISP and compliance documentation support into their standard tiers; others treat it as a separate consulting engagement. This is one of the most important things to clarify before comparing prices across proposals.

What size firm should still consider an in-house IT hire?

Firms above roughly 12–15 staff often have enough consistent day-to-day IT need to justify an internal hire, typically paired with an MSP in a co-managed arrangement rather than going fully in-house alone.

Not Sure Which Model Fits Your Firm?

SilverStorm Solutions can walk through your firm’s size, growth plans, and compliance needs to find the right fit.

Schedule a Technology Assessment

Related resources:
Ransomware Risk During Tax Season: What CPA Firms Need to Know ·

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