Reviewed by Annie Yoder, CPA.
Outsourced bookkeeping is paying an outside firm or bookkeeper to record transactions, reconcile accounts, and produce monthly financial reports for you.
Outsourcing bookkeeping costs less than a full-time hire. And it keeps your books current, so you’re ready at tax time.
What is outsourced bookkeeping?
With outsourced bookkeeping, an outside bookkeeper or firm handles your books. You don’t do them yourself or hire an in-house employee.
The provider records your transactions, reconciles your accounts, and sends you regular financial reports. Most work remotely in cloud accounting software, so you can check your numbers anytime. One of the big advantages of cloud software? You can log in from your phone and get quick access to your data.
The setup is simple. You give the provider access to the records they need, like bank statements and your accounting software. The bookkeeper takes it from there.
Most follow the same monthly rhythm. They onboard your accounts, record and reconcile transactions, then close the month and send a report. Many also meet with you to walk through the numbers.
What an outsourced bookkeeper does (and doesn’t do)
An outsourced bookkeeper handles the repeating tasks that keep your records clean. But the role stops short of tax filing and financial advice.
The exact list depends on the provider. Most cover the same core work.
Tasks a bookkeeper handles:
- Recording and categorizing daily transactions
- Reconciling bank and credit card accounts each month
- Tracking income and expenses
- Preparing reports like profit and loss statements and balance sheets
- Keeping records organized and ready for tax time
What outsourced bookkeeping usually excludes:
- Filing your taxes or giving tax advice
- Paying your bills or invoicing your customers
- Payroll, which many providers treat as a separate add-on
- Invoicing customers and collecting payments
The difference between a bookkeeper and an accountant lies in what they do with the financials. As a general rule of thumb, a bookkeeper records the numbers while an accountant interprets them and advises on strategy. However, bookkeeper and accountant roles can sometimes blend together. For example, a bookkeeper with years of experience may interpret data and come up with strategies, too.
Not sure which role you need? Start with a bookkeeper for clean records. Add an accountant for tax planning and forecasting.
Pros and cons of outsourced bookkeeping
Outsourcing your books lowers cost and frees your time. But it means sharing financial data and giving up some control.
| Pros of Outsourced Bookkeeping | Cons of Outsourced Bookkeeping |
|---|---|
| Costs less than a full-time hire | You give up some day-to-day control |
| Access to trained specialists | You share sensitive financial data |
| Scales up or down with your needs | Communication can lag across time zones |
| Frees your time for running the business | A new provider may not know your industry at first |
| Keeps you ready for tax season | Add-on services can raise the monthly cost |
On the plus side, you get expert help without paying a salary, benefits, and payroll taxes. You also buy back the hours you’d spend on data entry. And because good providers work in cloud software, your reports stay current.
The downsides center on trust and fit. You’re handing financial data to someone outside your business. Look for strong security and clear communication. And review the reports yourself instead of assuming every entry is correct.
How much does outsourced bookkeeping cost?
Outsourced bookkeeping typically costs a few hundred to a few thousand dollars a month. The price depends on how complex your books are.
A solo owner with a few dozen transactions pays far less than a company with inventory, payroll, and multiple revenue streams.
Common pricing models
Providers usually charge one of three ways:
- Hourly. You pay for the time worked. This suits light or uneven workloads.
- Flat monthly fee. You pay a set amount for an agreed scope of tasks. This is the most common model, and it makes budgeting simple.
- Per transaction or by volume. Your fee scales with account activity. This fits businesses with predictable but growing volume.
Typical cost by business size
These are general market ranges; actual quotes vary by provider, region, and scope. They reflect the broader market, including full-service firms.
| Business Size | Typical Monthly Cost (Estimate) | What’s Usually Included |
|---|---|---|
| Solo or very small | $200 to $500 | Basic categorizing, monthly reconciliation, simple reports |
| Growing small business | $500 to $1,500 | Higher volume, payroll coordination, monthly financials |
| Established or complex | $1,500 to $3,000+ | Multiple accounts, inventory, custom reporting |
Hourly rates commonly run $20 to $250 an hour (market estimate). The rate depends on the provider’s experience and your book complexity.
In-house vs. outsourced bookkeeping cost
Sticker price alone understates an in-house hire. The U.S. Bureau of Labor Statistics puts the 2025 median wage for bookkeeping, accounting, and auditing clerks at $50,670. That’s about $24.36 an hour. The lowest 10% earned under $36,000, and the highest 10% earned more than $74,550. And that figure comes before benefits, payroll taxes, and equipment, which typically costs 1.25 – 1.4 times their salary.
| Cost | In-house Bookkeeper | Outsourced Bookkeeping |
|---|---|---|
| Pay | About $49,210 a year (BLS median, May 2024) | Monthly fee only |
| Payroll taxes and benefits | Yes | No |
| Software and equipment | You buy it | Often included |
| Paid time off | You cover it | Not your concern |
| Rough yearly total | $64,000 or more (estimate, with benefits) | $3,000 to $18,000 (estimate) |
For many small businesses, outsourcing costs a fraction of a full-time hire. It also skips the work of recruiting and training.
What raises your price
A few factors push your fee toward the top of the range:
- High transaction volume
- Payroll for several employees
- Inventory tracking
- Multiple income sources
The more moving parts, the more time it takes to keep everything accurate.
Catch-up work is its own line item. If your books are months behind, a provider often charges a one-time catch-up fee. That covers the work to bring them current before regular service starts. Ask about it early so it doesn’t catch you off guard.
How often you want reports and meetings matters too. Weekly check-ins and custom reports cost more than a simple monthly summary.
Outsourced bookkeeping vs. offshore, onshore, and in-house
“Outsourced” is a broad term. Offshore and onshore are both types of outsourcing, split by where the provider sits.
| Option | What It Means | Best for |
|---|---|---|
| In-house | An employee on your payroll | Businesses that want daily, on-site control |
| Onshore (outsourced) | A U.S.-based outside provider | Most small businesses that want local tax knowledge |
| Offshore (outsourced) | A provider based outside the U.S. | Tight budgets and simpler books |
| Software only | You do the books with a tool | Small or early-stage businesses |
Onshore providers know U.S. tax and payroll rules, which cuts down on mistakes. Offshore providers often cost less, but they may be less familiar with those rules. Software-only works when your books are simple and you’re comfortable making the entries yourself.
Is outsourced bookkeeping right for your business?
Outsourcing pays off when your books take more time or skill than you can spare. A few signs it’s time to consider it:
- You spend nights and weekends on data entry instead of running the business.
- Your books are often behind, or you’re not sure they’re accurate.
- Your transaction volume is climbing as you grow.
- Tax season turns into a scramble every year.
- You’d rather not hire, train, and manage a bookkeeper in-house.
Once you decide to outsource, you still choose who does the work. A freelancer gives you one-on-one attention and flexible pricing, but may have limited availability. A firm brings a team and backup coverage, though it can cost more. Software with support works for the simplest books.
Match the choice to how hands-on you want to be and how complex your finances are.
How to get started with outsourced bookkeeping
Making the switch to outsourced bookkeeping is simple once you know the steps.
How to get started with outsourced bookkeeping:
- Review your current books.
Know how clean or messy they are. If they’re behind, budget for catch-up work.
- Decide what you need.
Reconciliation and reports only, or payroll coordination too? Write down your must-haves.
- Pick your model.
Choose a freelancer, a firm, an onshore or offshore provider, or software with support.
- Vet a few providers.
Ask about industry experience, the software they use, response time, and how they protect your data.
- Hand off your data safely.
Share access through secure tools, set regular check-ins, and review the first month’s reports closely.
How Patriot’s Bookkeeping Service works
Patriot’s Bookkeeping Service pairs you with a dedicated specialist. The team handles:
- Chart of Accounts setup
- Transaction categorization
- Monthly account reconciliation
- Historical data entry
- Month-end book closing
- A month-end review meeting
It syncs bank transactions through Plaid. There are no contracts, so you can cancel anytime.
Like most bookkeeping services, Patriot Software’s bookkeeping add-on doesn’t run payroll, pay bills, or invoice customers. It also doesn’t generate or e-File 1099s, file corporate taxes, or offer tax advice.
Pricing has two parts: a one-time onboarding fee and a monthly service fee. Both are tiered by your average monthly expenses. The $30-per-month Accounting Premium software fee is separate.
| Average Monthly Expenses (Including Payroll) | Onboarding Fee (One-time) | Monthly Service Fee |
|---|---|---|
| Tier I: $0–$10K | $100 per month of historical data | $100 |
| Tier II: $10K–$20K | $120 per month of historical data | $150 |
| Tier III: $20K–$50K | $130 per month of historical data | $250 |
| Tier IV: $50K–$150K | $160 per month of historical data | $450 |
| Tier V: $150K+ | $190 per month of historical data | $650 |
Does not include the $30-per-month Accounting Premium software fee.
Outsourced bookkeeping FAQs
Yes, outsourced bookkeeping is safe when you choose a reputable provider. Look for secure data sharing, clear security practices, and a written agreement on how they store and use your data. Ask whether the provider is insured or bonded.
Most outsourced bookkeeping providers have you running within a week or two. Onboarding usually means connecting your accounts, sharing recent records, and a short kickoff call. If your books need catch-up work first, plan for extra time.
Start with an outsourced bookkeeper if you mainly need clean, current records and less tax-time stress. Bring in an accountant when you need tax strategy, forecasting, or advice on bigger decisions. Many owners hire a bookkeeper first and add an accountant as the business grows.
Yes, you can outsource bookkeeping if you already use accounting software. Most providers work inside your existing cloud software. You keep the tool you know, and a specialist handles the entries and reconciliations. This often makes onboarding faster.
Yes, you can outsource only part of your bookkeeping. Many owners keep invoicing in-house and outsource the parts they dislike, like reconciliations and reports. Ask providers whether they offer a partial or hourly arrangement.
You can switch bookkeeping providers by giving notice under your current agreement. Then gather your books, access credentials, and recent reports for the new provider. A short overlap period helps the new bookkeeper get up to speed without a gap in your records.
