How Much Does It Cost to Outsource Accounting? A Complete Guide for CPAs and Businesses

If you're a business owner or CPA firm wondering, "how much does it cost to outsource accounting, outsourcing for CPAs?", you're not alone. Many companies and accounting professionals are turning to outsourcing to save time, reduce costs, and improve efficiency. But pricing can vary widely—anywhere from a few hundred to several thousand dollars per month—depending on your needs.

In this guide, we’ll break down the key factors that influence accounting outsourcing costs, compare different service models, and help you determine the best option for your business or firm.

Why Outsource Accounting? Key Benefits for Businesses & CPAs

Outsourcing accounting isn’t just about cutting costs—it’s about gaining access to expert financial services without the overhead of hiring full-time staff. Here’s why businesses and CPAs are making the shift:

✅ Cost Savings – Hiring an in-house accountant can cost $50,000+ per year (salary, benefits, training). Outsourcing often cuts expenses by 30-50%.

✅ Access to Expertise – Many outsourcing firms specialize in tax, bookkeeping, or CFO services, offering high-quality work without the need for continuous training.

✅ Scalability – Easily adjust services as your business grows or during tax season.

✅ More Focus on Growth – Free up time to focus on core business strategies instead of day-to-day bookkeeping.

For CPAs, outsourcing can help manage workload spikes, reduce burnout, and allow firms to take on more clients without hiring additional staff.

How Much Does It Cost to Outsource Accounting? Pricing Breakdown
Accounting outsourcing costs depend on several factors, including:

1. Type of Services Needed

Basic Bookkeeping – $200–$800/month (for small businesses with simple transactions)

Payroll Processing – $100–$300/month (plus per-employee fees)

Tax Preparation & Filing – $500–$3,000+ (depending on complexity)

CFO/Financial Advisory – $1,000–$10,000+/month (for strategic financial planning)

2. Business Size & Transaction Volume

Freelancers/Sole Proprietors – $150–$500/month

Small Businesses (1–10 employees) – $500–$2,000/month

Mid-Sized Companies (10–50 employees) – $2,000–$5,000/month

Large Corporations (50+ employees) – $5,000–$15,000+/month

3. Location of the Outsourcing Provider

Domestic (US/Canada/UK) – Higher costs ($50–$150/hour) but better communication.

Offshore (India, Philippines, etc.) – Lower costs ($15–$40/hour) but potential time zone challenges.

4. Pricing Models

Hourly Rates – Best for occasional needs ($25–$150/hour).

Fixed Monthly Packages – Ideal for predictable workloads (e.g., $500/month for bookkeeping).

Per-Transaction Fees – Common for payroll or invoice processing.

Outsourcing for CPAs: How Accounting Firms Benefit

Many outsourcing for cpas to handle overflow work, reduce staffing costs, and improve efficiency. Common outsourced tasks include:

Tax Return Preparation – Outsourcing can cut turnaround time by 30–50%.

Audit Support – Leverage offshore teams for data entry and compliance checks.

Bookkeeping & Reconciliation – Free up in-house CPAs for higher-value advisory work.

Cost for CPA Firms:

Entry-Level Outsourcing – $20–$40/hour (offshore)

High-End Advisory Support – $75–$200/hour (US-based specialists)

How to Choose the Right Accounting Outsourcing Partner

Not all outsourcing providers are equal. Here’s what to look for:

🔹 Industry Experience – Do they specialize in your niche (e.g., e-commerce, healthcare)?

🔹 Security & Compliance – Ensure they follow GDPR, SOC 2, or other data protection standards.

🔹 Technology & Software – Do they use QuickBooks, Xero, or other tools you prefer?

🔹 Client Reviews & References – Check testimonials or ask for case studies.

Final Thoughts: Is Outsourcing Accounting Worth It?
The answer depends on your business needs, budget, and growth goals. For most small businesses and CPA firms, outsourcing accounting is a smart move—saving money, improving accuracy, and allowing more focus on strategic growth.