| Don’t have the time to read? Listen here instead or save to your Spotify playlist.
 |
More customers mean more invoices, financial transactions and payments to manage – which can take a small business owner’s time, taking them away from the high-value tasks like planning, customer growth and decision making.
A study by Intuit QuickBooks found that growing businesses surveyed were spending an average of 25 hours per week on tedious data entry and reconciling info across applications. To no surprise – 91% said that manual data work was affecting their productivity, while 85% said it was also hitting profitability and growth.
For Ruffy Galang, CEO of Remote Employee®, the real cost of bookkeeping goes beyond what businesses spend to get the work done:
“The cost of bookkeeping isn’t just what you pay someone to do it. It’s also the time your accountants and business leaders lose doing routine work when they could be focused on financial strategy, growth, and better business decisions.”
So, would outsourcing your bookkeeping really cost less than just doing it all in-house?
It can, but it all depends on your workload, the level of expertise you need, where you are, the bookkeeping software you use, and the outsourcing model you choose.
In this blog, we’ll break down outsourced bookkeeping costs, common pricing models, what you’re getting for your money, and how to figure out whether outsourced bookkeeping is worth the investment for your business.
Outsourced Bookkeeping Cost: What Are You Actually Paying For?
There is no single outsourced bookkeeping cost that applies to every business. A company processing a few hundred straightforward transactions each month has very different requirements from a multi-entity business with multiple revenue streams, complex reconciliations, accounts payable, accounts receivable, and month-end reporting.
Your cost will depend on a few key factors.
1. Scope of Work
Start by thinking about what you actually need your bookkeeper to do. Common bookkeeping tasks include:
- Recording transactions
- Categorizing expenses
- Reconciling bank statements and credit cards
- Accounts payable
- Accounts receivable
- Handling invoice processing and bill tracking
- Bill payments
- Keeping the general ledger up to date
- Providing month-end bookkeeping support
- Preparing financial statements (and getting them reviewed)
The broader the range of responsibilities, the more experienced your bookkeeper likely needs to be. Additional accounting services, such as tax prep, sales tax, tax filing or tax planning, require a different level of expertise and impact the overall cost, but fall into more of an accountant or controller role.
2. Transaction Volume
The number of bank accounts or financial accounts, credit cards, invoices, customers, vendors, bank statements, and legal entities can all impact the amount of work required each month. Businesses with a high transaction volume or multiple revenue streams typically need more bookkeeping capacity and work hours.
3. Experience and Skills
Someone just handling basic bookkeeping and transaction entry will generally cost less than an experienced bookkeeper who does reconciliations, month-end prep and more complex financial reporting.
You should also bear in mind the difference between a bookkeeper, an accountant, and a CPA. These professionals do different jobs, and you shouldn’t pay for senior accounting expertise when all you need is bookkeeping support. If you do need specialized expertise for complex financial work, make sure you hire a qualified bookkeeper or accountant with the right experience.
4. Accounting Software
The accounting software you use in your business can also impact the type of bookkeeper you need. If you use QuickBooks Online, Xero or another Enterprise Resource Planning (ERP) system, get a bookkeeper who already has experience on that platform. That saves time on training and you can get up and running faster. Don’t forget to factor in the cost of your accounting software, like your QuickBooks Online subscription, when you’re working out your total bookkeeping cost.
5. Location
Where your bookkeeper is based also affects labor costs. If you hire a local bookkeeper, you’re competing for talent at local salary levels. If you expand your search beyond a limited local talent pool, you can tap into markets where skilled professional bookkeepers may be available at a significantly lower employment cost.
6. Employment Model
Finally, your cost will depend on the staffing model you use. You can work with a freelance bookkeeper, buy outsourced services from a bookkeeping company, use virtual bookkeeping, or hire a dedicated offshore bookkeeper who works exclusively for your business.
The lowest hourly rate isn’t always the most cost-effective option. You need to think about what you’re getting for your money and how much reliable capacity you’re getting.
Outsourced Bookkeeping Rates: Which Pricing Model Costs Less?
Outsourced bookkeeping rates vary because providers don’t charge the same way. Market pricing also varies widely by complexity. QuickBooks reports that outsourced bookkeeping for small businesses can start around $300 per month for basic needs and rise to $2,500 or more for businesses with multiple revenue streams, inventory, or complex payroll requirements.
The most common pricing models include hourly billing, fixed monthly pricing, per transaction pricing, and dedicated offshore staffing. The most common pricing models are:
Hourly Pricing
Hourly bookkeeping can make sense when you only need occasional support or have a limited amount of work. However, costs do start to get a lot less predictable as your workload really starts to grow.
Fixed Monthly Pricing
Lots of bookkeeping companies will package up a set of defined services into a fixed monthly fee or flat monthly fee. This makes budgeting a whole lot easier, but you really need to have a good idea of exactly what’s included. Any additional transactions, reports, entities, or services can start to increase the price. Some providers may also use project-based billing for one-time cleanup, migration, or catch-up bookkeeping projects.
Dedicated Staffing
If you need some ongoing bookkeeping support, dedicated offshore staffing can actually be more cost-effective than having to take on another full-time hire in your local market.
You get a full-time bookkeeper who works solely for your business, learns about your systems, and becomes a part of your finance team – minus the same local employment costs. If you only need occasional help, then hourly or project-based support might be enough for you. But if you need consistent, long-term bookkeeping support, dedicated staffing might be the way to go.
How Much Does It Cost to Outsource Bookkeeping?
So, how much does outsourced bookkeeping actually cost? There isn’t one reliable number because businesses have different requirements and outsourcing arrangements.
As a local benchmark, the U.S. Bureau of Labor Statistics reported a median annual wage of $53,560 for bookkeeping, accounting, and auditing clerks in May 2025. That figure only reflects wages, not benefits, recruitment, payroll taxes, software, equipment, or other employment costs. Instead of comparing advertised rates alone, calculate the actual cost of each option.
For an in-house employee, your real cost may include:
Salary + benefits + payroll taxes + recruitment + equipment + software + office overhead + training + management time.
For an outsourced arrangement, you may pay:
Service or staffing fee + software + any services not included in the agreement.
That distinction matters.
This is why comparing a local employee’s salary with an outsourced provider’s monthly invoice doesn’t tell you the whole story. You need to consider the true cost of labor beyond salary and compare total employment and operating costs to understand the potential cost savings.
Outsourcing Bookkeepers: Is It Cheaper Than Hiring In-House?
A strategy involving outsourcing bookkeepers can cost less than hiring another local full-time bookkeeper. When you hire locally, you pay more than salary. You also have to consider benefits, recruitment, payroll, equipment, software, office space, and other employment costs.
Outsourcing gives you another option. You can expand your search beyond your local market through offshore outsourcing and gain access to qualified bookkeeping professionals in countries like the Philippines, where labor costs can be lower.
This can also help when your workload increases during tax season or when your accountants are spending too much time on routine bookkeeping and back-office tasks.
Instead of using experienced accounting professionals for work that doesn’t require their level of expertise, you can build additional bookkeeping capacity while keeping your accounting team focused on higher-value work.
How Does Outsourced Bookkeeping Work?
Outsourced bookkeeping works by moving some or all of your bookkeeping responsibilities to professionals outside your local in-house team. This may include standalone bookkeeping or broader outsourced accounting, depending on the scope of work.
The exact process depends on whether you’re purchasing outsourced bookkeeping services or hiring dedicated staff. A typical process looks like this:
- Define the work. Identify the transactions, accounts, reports, and responsibilities the bookkeeper will manage.
- Determine the required experience. Establish the accounting systems, industry complexity, and technical skills required.
- Choose your outsourcing model. Decide between freelancers, managed services, dedicated offshore staffing, or specialized bookkeeping firms.
- Evaluate candidates or providers. Review experience, software proficiency, communication, and bookkeeping accuracy, and ask for a trial or consultation before deciding.
- Set up controlled access. Provide access to the systems and financial information required for the role.
- Document your workflows. Establish processes for reconciliations, approvals, reporting, and escalation.
- Set performance expectations. Define accuracy, turnaround times, deadlines, and KPIs.
- Review performance regularly. Monitor results and adjust responsibilities as the business grows.
With dedicated offshore staffing, the structure is different from handing your books to an outside accounting firm. You can interview and select the employee yourself, train them in your processes, and manage their day-to-day responsibilities while your staffing partner handles the employment and administrative support behind the scenes.
Outsourced Bookkeeper: What Tasks Can They Handle?
An outsourced bookkeeper can support different parts of your finance operation depending on their qualifications and your business requirements.
Daily Bookkeeping
Your bookkeeper may handle financial transactions, expense categorization, invoice processing, receipt management, tracking bills, bill pay, and financial data entry.
Weekly Bookkeeping
Weekly responsibilities can include bank reconciliation, credit card reconciliations, accounts payable and receivable updates, payment tracking, and maintaining accurate records across your financial accounts.
Month-End Support
An experienced bookkeeper may assist with ledger reviews, account reconciliation, monthly financial statements, profit and loss statements, a balance sheet, cash flow statements, and organizing records for your accountant or controller. The key is matching responsibilities to qualifications.
A bookkeeper is not automatically an accountant or a CPA. Tax prep, tax strategy, audits, regulated work, complex accounting judgments, and other higher-level financial responsibilities should remain with appropriately qualified professionals. Outsourcing works best when you put the right work with the right level of talent.
Outsourced Bookkeeping Service: What Should Be Included in the Cost?
Before choosing outsourced bookkeeping services, look beyond the advertised monthly or hourly rate. Ask what you’re actually receiving for that price. Depending on the provider, your fee may or may not include:
- Candidate sourcing
- Skills assessments
- Background checks
- Payroll administration
- Employee benefits
- HR support
- Equipment
- IT support
- Office infrastructure
- Compliance support
- Replacement support
- Account management or a dedicated point person
- Employee engagement
Bookkeeping firms with experience in your industry and software stack are often a better fit because they understand the workflows and compliance requirements involved. If you’re buying broader accounting services, also confirm whether tax preparation, tax filing, job costing, or other specialized work is included or charged separately.
This can make two providers with similar advertised rates very different in terms of total value.
If you need a few transactions processed each month, you may not need a dedicated employee. If bookkeeping is an ongoing part of your operations, compare the cost of buying individual services with the cost of building dedicated capacity.
Why Outsource Bookkeeping Services?
One of the strongest reasons why outsourced bookkeeping services make sense is that it allows your internal finance team to spend more time on work that requires their expertise.
Your controller shouldn’t spend hours entering invoices. Your accountant shouldn’t spend most of the week categorizing routine transactions. Many business owners shouldn’t be reconciling accounts late at night because no one else has the capacity to do it.
Outsourcing can give your existing finance team additional capacity without requiring every function to be expanded locally.
That shift is already happening across finance teams. Deloitte found that 83% of surveyed tax and finance organizations cited cost reduction as a primary reason for outsourcing. The same research found that 67% considered access to advanced automation important, while 59% wanted AI-enabled solutions from day one. That means senior employees can focus more on:
- Financial analysis
- Forecasting
- Cash-flow management
- Budgeting
- Strategic planning
- Business decision-making
The goal isn’t simply to move work somewhere cheaper. It’s to make better use of the talent you’re already paying for.
When Does Outsourced Bookkeeping Become Cost-Effective?
Outsourced bookkeeping becomes worth considering when the cost of managing the work internally begins exceeding the value of keeping everything in-house. Some common warning signs include:
- Your bookkeeping backlog keeps growing.
- Month-end reporting is regularly delayed.
- Accountants spend significant time on data entry.
- Transaction volume has increased.
- Your business needs additional finance capacity.
- Local hiring costs are affecting your budget.
- Existing employees are working overtime to keep up.
- You’re repeatedly recruiting bookkeeping roles.
- Finance leaders don’t have enough time for analysis and planning.
You don’t necessarily need all these problems before outsourcing makes sense. The important question is whether bookkeeping is using resources that could generate more value elsewhere.
Local vs Offshore Outsourced Bookkeeping Costs
Where you hire can have a major impact on your total bookkeeping cost. A local employee gives you dedicated support, but you’re hiring within the same labor market as every other business in your area.
A traditional bookkeeping firm can remove much of the administrative burden, but you may have less control over who performs the work and how they fit into your organization. Dedicated offshore staffing provides another option.
The Philippines has become a particularly established market for businesses looking for offshore accounting and bookkeeping professionals.
Rather than limiting your search to the candidates available locally, you can tap into a larger talent pool while maintaining direct control over who joins your team and how their work is managed.
How to Calculate the True Cost of Outsourced Bookkeeping
Before deciding whether outsourcing will save money, calculate what you’re spending today.
A simple starting point is:
Total bookkeeping cost = labor + benefits + recruitment + software + equipment + infrastructure + management time + turnover + rework
Then compare that figure with the complete cost of your outsourcing option.
You can also look at:
Cost per productive hour = total bookkeeping cost ÷ productive bookkeeping hours
But cost alone shouldn’t determine the decision. Consider the capacity you recover as well. If outsourcing routine bookkeeping gives your accountant 15 additional hours each week for analysis, reporting, forecasting, and financial planning, that recovered capacity has business value. The same applies to scalability.
Global Fintech Series found that 94% of finance leaders surveyed saw lower operating costs as a benefit of outsourcing. This shows why more finance teams are using outsourcing to reduce costs and add capacity without expanding their entire in-house team.
Common Questions About Outsourced Bookkeeping Cost
Reduce Bookkeeping Costs Without Giving Up Control
Reducing bookkeeping costs doesn’t mean you have to hand your financial operations over to a third party and hope for the best. You can build dedicated bookkeeping capacity while keeping control over who does the work and how it gets done.
When you work with us, you interview every candidate yourself and choose who joins your team. Your bookkeeper works inside your systems, follows your workflows and KPIs, and reports directly to you.
We handle the heavy lifting behind the scenes—from custom recruiting and candidate vetting to Philippine employment, HR, payroll, benefits, compliance, equipment, IT support, and ongoing employee support.
That means you can expand your bookkeeping capacity without having to build the local employment and operational infrastructure yourself.
For businesses comparing the cost of another local hire with offshore staffing, our model can help reduce labor costs by up to 70% while giving you access to skilled professionals in the Philippines. More importantly, you remain in control. You choose the employee. You manage the work. We support the team behind the scenes.
Hire a Dedicated Offshore Bookkeeper That Fits Your Budget
Expand your talent search beyond your local market, access qualified bookkeeping professionals, free your existing finance team from routine work, and build additional capacity without taking on the full cost and complexity of expanding locally.
Visit RemoteEmployee.com to see how we help businesses hire dedicated bookkeeping professionals in the Philippines, reduce labor costs, and build finance teams that can scale with their business.
