Outsourced bookkeeping services: how it works, what it costs, and what to ask
Short answer: Outsourced bookkeeping means an outside bookkeeper or firm records your transactions, reconciles your accounts, and sends you financial statements every month, usually for a flat monthly fee. You give them read access to your bank and card accounts and your accounting software; they do the categorizing, reconciling, and reporting, and ask you about anything they cannot identify.
Cost depends mostly on transaction volume, number of accounts, and whether you need extras such as bill pay, invoicing, payroll, or catch-up on past months.
How does outsourced bookkeeping work?
- Onboarding: the bookkeeper connects to your accounting software and bank and card feeds, reviews your chart of accounts, and agrees on a monthly calendar.
- Catch-up, if needed: months that are behind or messy are cleaned up first, usually for a separate one-time fee.
- Weekly or monthly processing: transactions are categorized, receipts are matched, and questions come to you in one batch instead of one at a time.
- Reconciliations: every bank, card, and loan account is matched to its statement.
- Month-end reports: you receive a profit and loss statement and balance sheet by an agreed date, often with a short note on anything unusual.
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What does an outsourced bookkeeper do, and what is outside the scope?
| Usually included | Often extra | Usually a different role |
|---|---|---|
| Categorizing transactions, bank and card reconciliations, monthly P&L and balance sheet | Bill pay, customer invoicing and collections, payroll, sales tax filings, catch-up work | Tax returns (CPA or enrolled agent), audit-ready close and controls (controller), forecasting and fundraising (CFO) |
If you need the books and the tax return done by the same team, look for an outsourced accounting firm that offers both, or ask your bookkeeper which CPAs they work with.
How much does outsourced bookkeeping cost?
Most bookkeepers quote a flat monthly fee. The factors that change the quote:
- Number of transactions per month and number of bank, card, and loan accounts
- Cash or accrual basis reporting
- Add-ons: bill pay, invoicing, payroll, sales tax, inventory
- How fast you need reports after month end
- Catch-up months, billed once
Count your monthly transactions and accounts before you ask for quotes, so each bookkeeper prices the same thing. The cost calculator turns that into a scope summary you can send.
Is outsourced bookkeeping worth it?
Compare the monthly fee with two things: the hours you or a staff member spend on the books now, and the cost of mistakes such as missed deductions, late payroll filings, or financial statements a lender will not accept. For many owners, the bigger benefit is having accurate numbers every month instead of once a year at tax time. See the Sam’s List articles on DIY vs outsourced bookkeeping and outsourcing bookkeeping for startups.
What should you ask before hiring an outsourced bookkeeper?
- Who will do my books each month, and who reviews their work?
- Which accounting software do you work in, and will I keep ownership of the file?
- By what date will I get my monthly reports?
- How do you send questions about transactions you cannot identify?
- What is in the flat fee, and what is billed separately?
- Do you work with other companies in my industry?
- How do you handle access to my bank accounts and data security?
Browse bookkeepers on Sam’s List or accounting firms that offer bookkeeping.
Frequently asked questions
What is outsourced bookkeeping?
Outsourced bookkeeping is hiring an outside bookkeeper or firm to record transactions, reconcile accounts, and produce monthly financial statements, usually for a flat monthly fee.
How does outsourced bookkeeping work?
The bookkeeper connects to your accounting software and bank feeds, catches up any past months, then categorizes transactions, reconciles accounts, and sends monthly reports by an agreed date, batching questions to you.
How much does outsourced bookkeeping cost?
Pricing is usually a flat monthly fee set by transaction volume, number of accounts, cash or accrual reporting, and add-ons like bill pay, payroll, or sales tax. Catch-up work is billed separately.
Do outsourced bookkeepers do taxes?
Some do through a CPA or enrolled agent on staff, but many do not. Ask whether tax preparation is included or whether they hand the books to your tax preparer.
Is outsourced bookkeeping safe?
Ask how the firm controls access, whether it uses read-only bank connections where possible, and who on their team can see your data. You should keep ownership of your accounting file.
What is the difference between a bookkeeper and an accountant?
A bookkeeper records and reconciles transactions. An accountant, often a CPA, reviews the books, prepares financial statements and tax returns, and advises on accounting treatment.
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