As businesses grow, managing accounting in-house can become costly and complex. That is where outsourced accounting services step in. Instead of hiring a full-time internal team, companies can delegate their entire accounting department's role to a trusted external provider.
This article covers what outsourced accounting services are, the benefits, how outsourcing compares to in-house, typical costs, who benefits most, and how to choose the right provider.
Key Takeaways
- Outsourced accounting services manage bookkeeping, A/P, A/R, payroll, monthly close, and financial reporting.
- Providers implement the processes and technology required for efficient, user-friendly workflows.
- Businesses gain cost savings, scalability, and expert support without full-time overhead.
- Virtual accounting tools provide real-time insights and streamline financial management.
- Outsourcing improves accuracy, helps maintain compliance, and frees time to focus on growth.
What Are Outsourced Accounting Services?
Outsourced accounting services involve delegating financial tasks to an external accounting firm or virtual provider. These firms manage core functions and provide system guidance so leaders can rely on timely, accurate financials.
| Function | What It Covers |
|---|---|
| Bookkeeping | Daily transaction entry, reconciliations, general ledger |
| Payroll | Wages, tax withholdings, contractor payments |
| Accounts Payable & Receivable | Vendor bill processing, invoicing, collections |
| Financial Reporting | Monthly and quarterly reports, KPIs, dashboards |
| Virtual CFO/Controller | Strategic oversight, budgeting, cash flow management |
With the rise of cloud tools like QuickBooks Online, many providers offer virtual accounting services that deliver secure, real-time access to financial data from anywhere.
Benefits of Outsourced Accounting
- Cost savings: Avoid salaries, benefits, overhead, and HR costs tied to full-time staff.
- Access to expertise and technology: Gain specialized industry knowledge and modern cloud systems.
- Scalability: Adjust service levels as you grow or during seasonal shifts.
- Improved accuracy and compliance: Reduce errors and stay aligned with changing tax rules.
- Time savings: Free owners and managers to focus on strategy and customers.
Related resource: Why Small Businesses Benefit from Cloud Accounting
Small Business Outsourced Accounting Services
For small businesses, outsourcing is often the most cost-effective way to manage finances. Typical scope includes:
- Bookkeeping and payroll
- Invoicing and cash flow management
- Basic financial reporting and compliance
Instead of hiring a Controller and junior accounting staff, a small business can consolidate finance operations with one outsourced partner and save time and money.
Outsourced vs. In-House Accounting
| Factor | In-House Accounting | Outsourced Accounting |
|---|---|---|
| Cost | High overhead (salaries, benefits) | Lower, flexible pricing |
| Expertise | Limited to staff skills | Broader industry and firm-wide expertise |
| Technology | May lag behind | Advanced, cloud-based tools |
| Scalability | Requires new hires | Easily adjustable |
| Management | Direct daily oversight required | No client oversight required |
Takeaway: In-house offers control, while outsourcing delivers flexibility and cost savings.
Virtual Accounting Services and Cloud Tools
Many firms now offer virtual accounting services that store records, invoices, and reports securely in the cloud.
- Access data anytime, anywhere
- Integrate seamlessly with banking and payroll systems
- Monitor real-time dashboards and financial insights
Popular tools: QuickBooks Online, Bill.com, Gusto
For remote teams and fast-growing startups, virtual services can replace on-site staff while maintaining visibility and control.
Cost of Outsourced Accounting Services
Pricing depends on complexity, transaction volume, and required support.
Pricing Models
- Hourly: Flexible, but costs may vary.
- Monthly retainer: Predictable billing for bundled services.
- Tiered packages: Pre-set levels such as bookkeeping, payroll, CFO oversight.
Average Costs
- Under $1 million revenue: bookkeeping-only may be the best fit
- $1–3 million: $1,500–$3,000 per month
- $3–10 million: $3,000–$8,000 per month
- $10–20+ million: $8,000–$20,000+
Cost Drivers
- Transaction volume
- Industry-specific compliance
- Service level (bookkeeper vs. controller vs. CFO)
Although outsourcing is an added expense, many businesses find it more economical than hiring and retaining an in-house team.
Who Should Consider Outsourcing?
- Organizations that do not want the cost and complexity of an internal finance team
- Rapidly scaling teams
- Professional services firms (law, medical, consulting, creative)
- Companies reducing overhead to reinvest in growth
How to Choose an Outsourced Accounting Partner
- Credentials and certifications: CPA and relevant industry experience
- Technology stack: QuickBooks, BILL, Gusto, and integrations
- Reviews and case studies: Demonstrated results with similar businesses
- Security standards: SOC 2 and encryption practices
- Industry knowledge: Sector-specific expertise
- Communication and reporting: Responsiveness, dashboards, and access
Conclusion
Outsourced accounting services deliver cost savings, expert support, and scalability. From outsourced bookkeeping and payroll to virtual CFO services, outsourcing allows small and mid-sized businesses to focus on growth instead of administrative work.
Thinking about outsourcing your accounting? Accountix specializes in small business outsourced accounting services that save time, reduce costs, and keep you compliant. Contact us for a free consultation.
FAQs
What are outsourced accounting services?
Third-party providers that handle bookkeeping, payroll, reporting, and tax preparation, often delivered via secure cloud platforms.
How much do outsourced accounting services cost?
Typically $1,500–$8,000 per month depending on size, complexity, and service level.
What is the difference between outsourced and in-house accounting?
In-house offers direct control but higher costs. Outsourced provides scalability, expertise, and cost savings.
What services are included in outsourced accounting?
Bookkeeping, payroll, accounts payable and receivable, financial reporting, and sometimes CFO-level support.
Are outsourced accounting services secure?
Yes. Reputable firms use SOC 2 controls, encryption, and secure cloud systems.
