Key Takeaways
- Outsourced accounting typically costs $500-$5,000+/month depending on services
- Rule of thumb: accounting costs should be 1-4% of annual revenue
- Outsourcing saves 40-60% compared to in-house staff
- S-Corps and partnerships often pay more due to entity complexity
- What’s included matters more than the headline price
“How much does outsourced accounting cost?”
The honest answer: it depends. But that’s not helpful when you’re trying to budget.
This guide gives you specific numbers. We’ll cover what you can expect to pay at each service level, what drives costs up or down, and how to compare outsourcing to hiring in-house. No vague ranges. No “contact us for pricing” cop-outs.
Table of Contents
The Short Answer: $500-$5,000+ Per Month
Here’s the realistic range for most small to mid-sized businesses:
- Basic bookkeeping: $500-$1,500/month
- Full outsourced accounting (AP/AR/payroll coordination): $1,500-$3,500/month
- Controller-level with CFO support: $3,500-$7,500/month
Where you land depends on transaction volume, business complexity, and what services you need. Let’s break that down.
Pricing Models Explained
Outsourced accounting providers price their services differently. Understanding the models helps you compare quotes accurately.
Monthly Retainer (Most Common)
You pay a flat monthly fee for a defined scope of work. This is the most predictable model and works well for businesses with consistent needs.
Best for: Ongoing accounting needs with relatively stable transaction volume
Typical range: $1,000-$5,000/month
Pros: Predictable budgeting, aligned incentives (provider isn’t incentivized to pad hours)
Cons: Scope creep requires renegotiation
Hourly Rate
You pay for time used. Some providers offer this for variable or project-based work.
Best for: Uncertain scope, project work, or businesses with highly variable needs
Typical range: $75-$200/hour depending on expertise level
Pros: Pay only for what you use
Cons: Unpredictable costs, potential for scope inflation
Per-Transaction Pricing
You pay based on volume (invoices processed, bills paid, transactions categorized).
Best for: High-volume, standardized processing
Example: $2-$5 per invoice processed
Pros: Scales directly with business activity
Cons: Can become expensive as volume grows
What’s Included at Each Price Point
Understanding what you get at different price levels helps you compare apples to apples.
| Monthly Cost | Services Typically Included |
|---|---|
| $500-$1,000 | Basic bookkeeping, bank reconciliation, monthly reports |
| $1,000-$2,000 | + Bill pay, invoicing, payroll recording |
| $2,000-$3,500 | + Full AP/AR management, cash flow monitoring |
| $3,500-$5,000 | + Controller oversight, financial analysis |
| $5,000+ | + CFO-level strategy, board reporting, budgeting |
At the lower end, you’re getting transaction processing and basic reports. At the higher end, you’re getting strategic financial guidance.
Most small businesses processing 50-200 transactions monthly land in the $1,500-$3,000 range for comprehensive outsourced accounting.
Outsourced vs. In-House: The Real Comparison
The true cost of in-house accounting is more than salary. Here’s the realistic math:
In-house full-time accountant:
- Salary: $55,000-$75,000
- Benefits (25-30%): $14,000-$22,500
- Payroll taxes (7.65%): $4,200-$5,700
- Software and equipment: $3,000-$5,000/year
- Training and development: $2,000-$3,000/year
- Management time: $5,000-$10,000/year (your time)
- Total annual cost: $83,000-$121,000+
Outsourced accounting at $2,500/month:
- Annual cost: $30,000
- Savings: 60-75%
The outsourcing option also includes built-in redundancy (no coverage gap if your person is sick or quits), access to multiple expertise levels, and no recruiting headaches.
Of course, one in-house person might do work that requires a higher-tier outsourcing engagement. But the math still usually favors outsourcing for businesses under $5M in revenue.
For businesses considering CFO-level support, our Fractional CFO services provide strategic guidance at a fraction of a full-time hire.
What Increases Outsourced Accounting Cost
Several factors push costs toward the higher end of the range:
Transaction Volume
More bills, invoices, and bank transactions means more work. A business with 50 transactions per month costs less to service than one with 300.
The good news: per-transaction cost typically drops as volume increases due to efficiencies.
Entity Complexity
Your business structure significantly affects accounting complexity:
- Single-member LLC: Simplest. One entity, often Schedule C reporting.
- S-Corporation: More complex. Reasonable salary requirements, payroll, shareholder distributions, basis tracking.
- Partnership: Most complex. Partner capital accounts, allocation calculations, guaranteed payments, K-1 preparation support.
- Multiple entities: Each additional entity adds complexity and cost.
For S-Corp owners, understanding the specific requirements helps explain the cost. See our S-Corporation tax guide for details.
Partnership owners face similar complexity. Our partnership taxation guide covers what’s involved.
Multi-State Operations
Operating or selling across state lines adds complexity:
- Sales tax registration and filing in multiple states
- State-specific payroll requirements
- Apportionment calculations for income tax
- Nexus tracking and compliance
A single-state business is simpler (and cheaper) to service than one with presence in eight states.
Industry Complexity
Some industries have inherently complex accounting:
- Construction: Job costing, retention, percentage-of-completion accounting
- E-commerce: High transaction volume, marketplace reconciliation, multi-channel inventory
- Real estate: Property-level reporting, depreciation tracking, 1031 exchange coordination
- Professional services: Project-based billing, WIP tracking, realization analysis
Industry-specific expertise costs more but prevents expensive mistakes.
What’s Usually Extra (Not Included in Monthly Fee)
Some services are typically billed separately from your monthly outsourced accounting fee:
- Tax preparation: Business and personal returns are usually a separate engagement
- Year-end audit preparation: Support for financial statement audits
- Historical cleanup: Catch-up bookkeeping for months or years of backlog
- System implementation: Setting up new accounting software or migrating between systems
- Special projects: Financial modeling, due diligence support, acquisition accounting
Ask upfront what’s included and what’s billed separately. “All-inclusive” rarely means everything.
The 1-4% Rule
As a benchmark, total finance and accounting costs should be 1-4% of annual revenue. Here’s what that looks like:
| Annual Revenue | Target Accounting Cost | Monthly Budget |
|---|---|---|
| $500,000 | $5,000-$20,000/year | $400-$1,700/month |
| $1,000,000 | $10,000-$40,000/year | $800-$3,300/month |
| $3,000,000 | $30,000-$120,000/year | $2,500-$10,000/month |
| $5,000,000 | $50,000-$200,000/year | $4,200-$16,700/month |
The percentage typically decreases as revenue grows due to economies of scale. A $500K business might spend 3% on accounting; a $5M business might spend 1.5%.
If you’re spending significantly more than 4%, your accounting may be inefficient. Significantly less, and you may be underinvesting in financial infrastructure.
How to Evaluate Outsourced Accounting Quotes
When comparing providers, ask these questions:
What’s included vs. billed separately? The $1,500/month quote that excludes payroll and AP isn’t comparable to the $2,500/month quote that includes everything.
How are overages handled? If transaction volume spikes, does your fee increase? By how much?
What’s the contract term? Month-to-month offers flexibility. Annual contracts may offer better pricing.
Who will I actually work with? Named team vs. rotating staff matters. You want consistency.
How do you handle tax integration? For S-Corps and partnerships, your accounting should connect to your tax strategy. If they look confused by this question, they’re just bookkeepers.
For related information about CPA costs specifically, see our guide on how much does a CPA cost.
Frequently Asked Questions
Why is there such a wide range in pricing?
Services vary dramatically. “$1,500/month” from one provider might include basic bookkeeping only, while “$1,500/month” from another includes full AP/AR management, payroll coordination, and monthly financial review. Always compare what’s included, not just the headline price.
Is cheaper always worse?
Not necessarily, but understand what you’re getting. Offshore providers can be cheaper but may lack U.S. tax knowledge critical for S-Corps and partnerships. For simple bookkeeping, cheaper might be fine. For tax-integrated accounting, expertise matters more than price.
Can I start small and add services later?
Yes. Most providers offer modular services. Start with bookkeeping, add AP management when volume warrants it, add controller oversight when you need strategic support. The key is finding a provider that can grow with you.
What if my needs are variable month to month?
Some providers offer flexible arrangements with a base fee plus per-transaction pricing for variable work. This works well for businesses with seasonal patterns or unpredictable invoice volume.
Get a Custom Quote
Your specific cost depends on your situation: transaction volume, entity structure, state presence, and service needs.
The ranges in this guide give you a starting point. For businesses with S-Corp or partnership structures, tax integration adds value that generic bookkeeping services can’t match.
Ready to see what outsourced accounting would cost for your business? Get a custom quote based on your specific situation.
For details on what full-service outsourced accounting includes, see our outsourced accounting services page.