How much does it cost to outsource bookkeeping?

For small organizations, the cost of outsourcing accounting and outsource bookkeeping can range from $500 to $5,000 per month. There are numerous things to consider when determining the cost of outsourcing accounting for every company. Although this may appear complicated or frightening, the accounting partner you’re speaking with performs this daily and should be able to simplify and perhaps even make the scoping process enjoyable. For some, change can be frightening, while for others, it can be exciting.

The obvious objectives are to acquire new skills, save money, and strengthen systems and internal controls.

Your ultimate goal should be to locate the ideal partner for you, one who shares your values and is a good fit for your company.

“Outsourcing your accounting can save you 40% – 60%.”

WHAT FACTORS AFFECT THE OUTSOURCING COST?

Profitability

For some industries, revenue may be one of the most important measures of price potential. The more your sales, the more work your accounting team will have to do. This isn’t always the case; consider a pre-sales backed startup. There may still be a lot of work to be done with no money in the bank.

INDUSTRY

The business model of most industries has inherent complexities and common demands. Professional services must fully comprehend work costing to flourish in an industry with specialized accounting needs. Inventory-based accounting is necessary for ecommerce enterprises, and they must be built to scale.

HEADCOUNT

Employees can indicate the amount or complexity of a project. Some firms require a large number of people to expand, while others may expand quickly with few human resources.
Cash flow

HOD

Although the goal is to automate as much of the accounting process as possible, it is still a human-based service. The more effort required, the longer it will take to accomplish. Your fee may be determined by your team’s location. Onshore, offshore, or a combination of both outsourcing options are available.

An onshore team will, of course, be more expensive than an offshore team.

A mixed partner, who combines the advantages of both while addressing the majority of the worries about off-shoring, will deliver the best of both worlds. For what you get, this is usually the most cost-effective option.

SOUGHT-AFTER SERVICES

Taking care of a customer’s outsource bookkeeping is not a one-size-fits-all solution. Understanding what you want your accounting partner to perform for you will be necessary for pricing. Aside from bank activity code, you may choose to outsource stand-alone functions such as:

Invoicing for Sales

Accounts Receivable

Processing of Payroll

Budgeting and forecasting are two terms that are used interchangeably

Analysis of the Financial Situation

How Much Should Bookkeeping Services Cost?

The costing process is usually determined by several factors, including the size of the organization, the number of monthly transactions completed, payroll processing techniques, the number of invoices sent out, and the number of ledgers to reconcile.

It also relies on both the employing company’s and the hired service’s policies and processes.

It’s also worth noting that the cost of bookkeeping services varies from one location to the next. For instance, bookkeeping services for small businesses in Pune will be far more expensive than those in Mumbai.

They will not, however, go below the minimum or above the maximum specified rates.

– If a company hires a part-time bookkeeper, the monthly cost will range between 5,000 and 15,000 INR.

A part-time bookkeeper is usually advised if the company can handle most of the bookkeeping responsibilities on its own and simply needs support with routine tasks like filing papers and document management.

– If the company decides to hire a full-time bookkeeper, the cost per month will be between 25,000 and 50,000 INR.

When a company has a steady customer base and has been in operation for at least three to five years, hiring a full-time bookkeeper is suggested. This ensures that the benefits a company receives from hiring more people outweigh the costs of doing so.

– If none of these techniques work, bookkeeping services can be outsourced for a small fee, which typically ranges from 15,000 to 30,000 INR. Outsourcing, especially when done online, not only makes financial sense but also gives a company access to a wide range of skill sets.

FAQs 

1. Why do outsourced bookkeeping fees vary so much?
   The cost shifts due to sales size, staff count, cash flow, and work scope. Some firms need deep reports, while others only need help with base tasks like billing or payroll.
2. Is outsourcing cheaper than hiring in-house staff?
   Yes, in many cases. Outsourcing saves on pay, perks, and setup costs linked with full-time staff. Many firms save 40%–60% by going with an outside team.
3. Do small firms pay less for outsourced bookkeeping?
   Most small firms pay less, but the fee still links to work hours, task type, and skill need. A lean startup may still need wide help, even with low sales.
4. How does the type of trade or field impact cost?
   Each field has its own rules. For example, an e-commerce firm may need stock checks, while a law firm needs cost tracking by case. More complex rules can raise the price.
5. Does the choice of local vs offshore teams affect cost?
   Yes. Onshore teams cost more due to high pay rates. Offshore teams cost less but may raise trust or time-zone issues. A mixed plan often gives the best deal.
6. What tasks can I pick when I outsource?
   You can choose core or add-on tasks. Core tasks may be sales bills, payroll, or bank checks. Add-ons may be budget plans, cash flow watch, or full reports.
7. Can I start small with outsourcing and scale later?
   Yes. Many firms start with base jobs like pay runs or bill posts. As needs grow, they add more tasks, which keeps costs in check while still gaining professional help.