How Much Does It Cost to Outsource Accounting? A Clear Breakdown for Small and Mid-Sized Businesses

How Much Does It Cost to Outsource Accounting? A Clear Breakdown for Small and Mid-Sized Businesses

Managing your books takes time, patience, and financial know-how. If you’ve ever asked yourself, “How much does it cost to outsource accounting?” you’re asking a question thousands of U.S. business owners face. Outsourcing has become one of the most popular solutions for keeping finances accurate, compliant, and stress-free—but understanding the costs is the first step.

This guide will walk you through the typical price ranges, factors that influence what you’ll pay, and whether outsourcing makes sense for your company.

Why Outsourcing Accounting Is So Popular

Entrepreneurs and small business owners have plenty on their plates. Adding complex accounting duties often stretches resources thin. Outsourcing solves common problems like:

• Time drain: Freeing up hours spent on bookkeeping.

• Tax confusion: Professionals keep track of ever-changing tax laws.

• Payroll errors: Employees get paid on time and accurately.

• Lack of strategy: Experienced firms offer forecasting and budgeting support.

• Technology gaps: Outsourced firms often include modern cloud-based systems.

For many companies, outsourcing is less about replacing in-house staff and more about creating efficiency.

Typical Outsourcing Costs in the U.S.

Costs vary widely, but here’s what you can generally expect to spend:

• Basic bookkeeping services: $250–$600/month

• Standard packages (bookkeeping, payroll, tax prep): $1,000–$5,000/month

• Advanced packages (including CFO-level support): $5,000–$10,000/month

By comparison, an in-house accountant costs an average of $65,000–$80,000 per year, not counting benefits, office space, and training.

Pricing Models You’ll Encounter

Outsourced accounting providers use several different pricing models:

1. Hourly Rates

• Bookkeepers: $30–$60/hour

• CPAs: $100–$150/hour
  Best if you only need occasional help, like quarterly reporting.

2. Flat Monthly Packages

A predictable monthly fee bundles bookkeeping, reconciliations, payroll, and reports. Most packages run from $500 to $3,000/month, depending on size.

3. Project-Based Pricing

Perfect for one-off needs like tax filing or system cleanup. Costs can range from $500 to $5,000 per project.

4. Hybrid Options

Some firms mix models, offering a base monthly package with additional hourly or project fees.