The bookkeeping market has fractured. A decade ago, your options were hiring a local bookkeeper or doing it yourself. Now you can choose from solo practitioners, regional firms, national platforms, offshore teams, AI-powered services, and everything in between. The abundance of options makes finding outsourced bookkeeping services easier than ever—and choosing the right one harder than ever.
The stakes are higher than most business owners realize. Bookkeeping isn’t glamorous, but it’s foundational. Every financial decision you make—pricing, hiring, investing, borrowing—depends on accurate books. Bad bookkeeping doesn’t just create tax headaches. It creates business blindness.
According to QuickBooks research, 60% of small business owners feel they lack knowledge about accounting and finance. Many compensate by ignoring their books entirely, checking in only at tax time. This approach works until it doesn’t—usually when a cash crunch, audit, or growth opportunity reveals the cost of financial neglect.
This guide explains what outsourced bookkeeping actually includes, how pricing works, and what separates good providers from problematic ones.
What Outsourced Bookkeeping Services Include
“Bookkeeping” means different things to different providers. Understanding the core services helps you evaluate what you’re actually buying.
Transaction categorization is the foundation. Every bank transaction, credit card charge, and cash movement gets recorded and assigned to the appropriate account. This sounds simple but requires judgment—is that software subscription a marketing expense or an operations cost? Consistent categorization enables meaningful financial analysis later.
Bank and credit card reconciliation ensures your books match your actual accounts. The bookkeeper compares recorded transactions against bank statements, identifies discrepancies, and resolves differences. Monthly reconciliation catches errors, fraud, and missing transactions before they compound.
Accounts receivable management tracks money owed to you. This includes recording invoices, tracking payments, aging outstanding balances, and producing reports showing who owes what. Some providers also handle invoice generation and payment follow-up; others only record what you’ve already invoiced.
Accounts payable management tracks money you owe. Recording bills, tracking due dates, and ensuring payments are captured in the books. Some providers manage the full bill-pay process; others only record transactions after you’ve made payments yourself.
Monthly financial statements transform transaction data into usable reports. At minimum, expect a profit and loss statement (income statement) and balance sheet monthly. Better providers add cash flow statements, budget comparisons, and basic commentary explaining significant changes.
Payroll recording captures wages, taxes, and benefits in your books. Note that most bookkeeping services record payroll processed by a separate payroll provider—they don’t run payroll themselves. If you need payroll processing, confirm whether it’s included or requires a separate service.
What Bookkeeping Doesn’t Include
Understanding boundaries prevents disappointment. Basic bookkeeping services typically exclude several functions business owners often expect.
Strategic analysis and advice falls outside bookkeeping scope. Your bookkeeper records that marketing spend increased 40% last month. They don’t advise whether that increase was wise. Strategic guidance requires controller or CFO-level services. See our guide on the difference between CFO and controller roles for more detail.
Tax preparation and filing is usually separate. Bookkeepers maintain records that support tax preparation, but most don’t prepare returns themselves. You’ll typically need a CPA or tax preparer in addition to your bookkeeper. Some firms offer both; others specialize in one or the other.
Complex accounting judgments exceed bookkeeper expertise. Revenue recognition timing, lease accounting treatment, equity compensation recording—these require accounting knowledge beyond transaction processing. If your business involves these complexities, you need controller oversight on top of bookkeeping.
Financial forecasting and budgeting looks forward rather than backward. Bookkeeping records what happened. Forecasting projects what will happen. Different skill set, different service level, different price point.
Outsourced Bookkeeping Pricing Models
Providers structure pricing differently. Understanding the models helps you compare quotes accurately.
Monthly flat-rate pricing is the most common model. You pay a fixed monthly fee regardless of transaction volume, within defined limits. This creates predictability—you know your bookkeeping cost each month. Rates typically range from $300 to $1,500 monthly depending on complexity.
Transaction-based pricing charges per transaction processed. Expect $1 to $3 per transaction. A business with 200 monthly transactions pays $200 to $600. This model scales directly with activity but creates unpredictability—busy months cost more.
Hourly pricing charges for time spent. Rates range from $25 to $75 hourly depending on provider location and expertise. This model works for variable or project-based needs but makes budgeting difficult for ongoing relationships.
Tiered packaging bundles services at defined price points. A basic tier might include bookkeeping only; premium tiers add bill pay, invoicing, or reporting enhancements. This model simplifies selection but may force you to pay for services you don’t need to access ones you do.
Outsourced Bookkeeping Cost Ranges
| Business Profile | Monthly Transactions | Typical Monthly Cost |
|---|---|---|
| Freelancer/Solopreneur | Under 50 | $200–$400 |
| Small service business | 50–150 | $350–$700 |
| Growing startup | 150–300 | $600–$1,200 |
| E-commerce business | 300–1,000 | $1,000–$2,500 |
| Multi-entity or complex | 500+ | $2,000–$4,000 |
For complete pricing information across all service levels, see our detailed breakdown of outsourced accounting costs.
Types of Outsourced Bookkeeping Providers
The provider landscape offers distinct options, each with tradeoffs.
National platforms like Bench, Pilot, and inDinero offer standardized services at scale. Strengths: consistent processes, technology investment, and capacity to handle growth. Weaknesses: less personalization, potential for account manager turnover, and one-size-fits-all approaches that may not fit unusual businesses.
Regional and local firms provide more personalized service with geographic proximity. Strengths: relationship continuity, ability to customize, and local market understanding. Weaknesses: potentially higher costs, limited technology sophistication, and capacity constraints if your needs grow significantly.
Solo practitioners offer the most personalized service at often the lowest rates. Strengths: direct relationship with the person doing the work, flexibility, and potentially lower cost. Weaknesses: key-person risk (what happens if they’re sick or quit?), limited capacity, and varying quality with no organizational oversight.
Offshore providers offer significant cost savings—often 50-70% below domestic rates. Strengths: price. Weaknesses: timezone challenges, communication barriers, potential quality inconsistency, and cultural differences in business practices. Offshore can work well with proper management but requires more oversight than domestic options.
Integrated accounting firms like GetExact provide bookkeeping as part of a broader service stack including controller and CFO functions. Strengths: seamless escalation as needs grow, integrated oversight ensuring bookkeeping quality, and single-vendor simplicity. Weaknesses: potentially higher cost than bookkeeping-only providers if you truly need only basic services.
How to Evaluate Bookkeeping Providers
Not all providers are equal. These evaluation criteria separate strong options from problematic ones.
Technology compatibility matters immediately. What accounting software do they support? Can they work with your existing system or will you need to migrate? QuickBooks Online dominates small business accounting, but Xero, FreshBooks, and others have significant market share. Confirm compatibility before engaging.
Industry experience affects quality significantly. A bookkeeper familiar with your industry understands typical transactions, common account structures, and relevant compliance requirements. Ask specifically: have you worked with businesses like mine? What percentage of your clients are in my industry?
Communication practices predict relationship quality. How will you interact? Weekly calls? Monthly reports? Slack access? Email only? What’s their response time commitment? Providers who can’t articulate clear communication practices probably won’t communicate well.
Accuracy guarantees and error handling reveal confidence and accountability. What happens if they make a mistake? Do they guarantee accuracy? Will they fix errors at no charge? Providers confident in their work stand behind it.
Scalability matters if you expect growth. Can this provider handle double your current volume? Do they offer controller or CFO services you might need later? Switching providers is painful; choosing one you won’t outgrow quickly saves future transition costs.
References from similar businesses provide real-world validation. Any provider can describe their services impressively. References from businesses like yours reveal actual performance. Ask for references and actually call them.
Red Flags When Evaluating Providers
Certain patterns predict problems. Watch for these warning signs.
Prices dramatically below market suggest corner-cutting. Bookkeeping has real costs—software, labor, overhead. Providers charging half the market rate are either losing money (unsustainable) or cutting corners you’ll eventually discover. Reasonable rates indicate reasonable service.
Vague scope descriptions create future disputes. “We handle your bookkeeping” isn’t a scope definition. What specifically is included? What’s excluded? If the provider can’t clearly articulate scope, expect misunderstandings later.
No references available raises obvious questions. Any established provider should have satisfied clients willing to speak on their behalf. Inability or unwillingness to provide references suggests either inexperience or unhappy clients.
High-pressure sales tactics indicate misaligned incentives. Good providers evaluate fit before pushing for commitment. Those who pressure you to sign immediately may be more focused on closing deals than serving clients well.
Technology that seems dated signals broader operational issues. If their systems look like 2010, their processes probably do too. Modern bookkeeping leverages automation, integrations, and cloud-based workflows. Providers still working from spreadsheets and manual data entry will struggle to deliver efficiently.
Making the Transition to Outsourced Bookkeeping
Switching to outsourced bookkeeping requires preparation. A structured transition prevents gaps and errors.
Gather your financial records. Bank statements, credit card statements, prior financial reports, tax returns, and access credentials for existing accounting software. Your new provider needs historical context to serve you effectively.
Clean up obvious issues. Unreconciled accounts, missing transactions, and outstanding questions slow onboarding. Resolve what you can before transition. You don’t need perfect books—that’s why you’re outsourcing—but reducing chaos accelerates the engagement.
Define the cutover point. Most transitions happen at month-end or quarter-end. Pick a clean break point and ensure both old and new systems are clear on who owns what during transition.
Expect a learning curve. Even excellent providers need 60 to 90 days to fully understand your business and establish smooth processes. Reserve judgment until the relationship has time to stabilize.
For a complete guide to transitioning, see our article on when to outsource accounting.
When to Add Services Beyond Bookkeeping
Basic bookkeeping serves many businesses well. But certain signals indicate you need more.
You need financials you can share confidently. If investors, lenders, or board members will see your financial statements, you need controller-level oversight ensuring accuracy. Bookkeepers record transactions; controllers ensure the resulting statements are reliable.
You have complex accounting situations. Deferred revenue, multi-entity consolidation, inventory costing, equity compensation—these require expertise beyond basic bookkeeping. If your business involves accounting complexity, add controller services.
You need strategic financial guidance. What should we price the new product? Can we afford this hire? How should we structure the financing? These questions require fractional CFO services, not bookkeeping.
You’re preparing for a major event. Fundraising, acquisition, audit, or rapid scaling all demand financial sophistication that basic bookkeeping can’t provide. Upgrade before the event, not during it.
Frequently Asked Questions
What do outsourced bookkeeping services include?
Core services include transaction categorization, bank and credit card reconciliation, accounts receivable and payable tracking, and monthly financial statement preparation. Some providers also offer bill pay, invoicing, and payroll recording. Strategic analysis, tax preparation, and financial forecasting typically require additional service levels beyond basic bookkeeping.
How much do outsourced bookkeeping services cost?
Most small businesses pay $300 to $1,500 monthly for outsourced bookkeeping, depending on transaction volume and complexity. Simple businesses with under 100 monthly transactions typically fall in the $300 to $600 range. Growing businesses with higher volume or complexity pay $800 to $1,500 or more.
Is outsourced bookkeeping better than hiring a bookkeeper?
For most small businesses, yes. Outsourced bookkeeping typically costs $400 to $1,200 monthly versus $4,000 to $6,000 monthly for an in-house bookkeeper (salary plus taxes and benefits). Outsourcing also eliminates turnover risk, HR burden, and management overhead. In-house makes more sense only at very high transaction volumes.
How do I choose an outsourced bookkeeping provider?
Evaluate technology compatibility, industry experience, communication practices, accuracy guarantees, scalability, and references from similar businesses. Avoid providers with dramatically below-market pricing, vague scope descriptions, or inability to provide references. Choose based on fit and capability, not lowest price alone.
What’s the difference between bookkeeping and accounting?
Bookkeeping is the recording and categorization of financial transactions—the raw data entry. Accounting is the broader function that includes bookkeeping plus analysis, reporting, compliance, and strategic interpretation. Bookkeeping is a subset of accounting. Most “outsourced accounting” services include bookkeeping as the foundation.
Finding the Right Fit
Outsourced bookkeeping services range from basic transaction processing to comprehensive financial management. The right choice depends on your complexity, your growth trajectory, and how much you want to think about finance versus focus on your actual business.
For most small businesses, the goal is simple: accurate books, delivered reliably, at reasonable cost, from a provider you won’t outgrow too quickly. Find that, and bookkeeping becomes invisible infrastructure rather than a recurring headache.
GetExact provides outsourced bookkeeping as part of an integrated service model that includes controller oversight and fractional CFO access as you need them. If you’re evaluating options, schedule a conversation to discuss your needs and see whether our approach fits your situation.
