For many business owners, tasks like bookkeeping, payroll, and tax preparation can quickly become overwhelming. If you're struggling to keep up with these things, it might be time to invest in outsourced accounting and bookkeeping services.
Not only can it save you valuable time—these services can reduce the risk of costly errors and give you access to the expert financial insights you need to take your business to the next level. You're not alone in considering it: about 37% of small businesses already outsource their accounting, making it one of the most commonly outsourced functions (Clutch, 2024).
Ready to get started? In this article, we'll cover the signs that it's time to outsource, the benefits of doing so, what outsourcing costs, and practical tips for how to outsource—and smoothly transition to—both accounting and bookkeeping services.
How much does it cost to outsource bookkeeping?
Outsourced bookkeeping typically runs $300 to $2,500 per month, depending on your transaction volume and how much you need done. Part-time or basic services (categorizing transactions, reconciling accounts, monthly reports) usually land around $300 to $1,000 a month, while full-service support that adds payroll, accounts payable and receivable, and advisory work runs closer to $1,000 to $2,500 or more, per 2026 industry pricing guides. If you'd rather pay by the hour, freelance bookkeepers generally charge $25 to $50 and firm-based bookkeepers $50 to $80.
Compare that to hiring in-house. The median wage for a bookkeeping, accounting, and auditing clerk is $49,210 a year (U.S. Bureau of Labor Statistics, May 2024), and once you add payroll taxes, benefits, and overhead, the fully loaded cost is closer to $61,000 to $69,000. Full-service outsourcing at $1,000 to $2,500 a month works out to roughly $12,000 to $30,000 a year—materially less than a full-time hire, which is a big part of why smaller businesses outsource.
5 signs it's time to outsource your accounting
As a small business owner, you've got a ton of responsibilities to juggle—from managing your company's day-to-day operations to keeping your customers happy and trying to grow your business on top of it all.
With so much going on, it's easy for something as important as your company's financial management to feel like a huge time drain. Unless you have a passion for numbers, tasks like reconciling a balance sheet and managing financial data probably aren't your favorite ways to spend your time. That's where outsourced accounting services can be a game-changer.
But how do you know if it's the right time to hand things over to an expert? Here are 5 signs that it might be time to find a professional accountant for your small business.
1. You're spending too much time on financial tasks
Time is one of your most precious resources, especially when you're balancing all the tasks you face as a business owner. As your business grows, you should be focusing on high-level strategy, not managing day-to-day financial operations.
If you're spending more time on accounting tasks than running your business, it's a serious sign you'd benefit from additional help. An accounting service provider can take over those overwhelming financial tasks, letting you focus on growing your business.
2. Financial errors are becoming common
Mistakes can always happen, but if you find yourself making accounting errors on a regular basis—forgetting to pay invoices, incorrect payroll calculations, or trouble balancing the books—don't be too proud to ask for help. Accounting mistakes can lead to financial losses, compliance issues, or even IRS audits. There's no good reason to suffer those consequences when it's easy enough to hire an accountant to do things the right way.
Accountants are skilled at managing complex financial information, staying on top of deadlines, and following the latest tax regulations—so you can avoid making any more costly mistakes.
If you're ready to find an accountant and outsource your accounting and bookkeeping needs, look no further. Check out Relay's accountant and bookkeeper directory to discover highly rated, verified professionals passionate about helping you take these tasks off your plate.
3. You struggle to keep up with tax deadlines
Tax season is the annual elephant in the room that can cause stress for any business owner. Between keeping track of tax deadlines, deductible expenses, calculating quarterly taxes, and ensuring compliance with ever-changing tax codes, it's a lot to handle.
You may already have an accountant you go to each year to help with your taxes, but additional accounting help throughout the year can help you stay on top of quarterly tax payments, payroll, and other pesky financial tasks—which all ultimately affect your tax return.
So if you're struggling to keep up with everything in between your annual tax filing, it's a sign that you should outsource your small business accounting—when you do, you'll find the partner you need to face your tax-time fears with confidence.
4. You're unsure of your business's financial health
If managing your money feels like an uphill battle, it might be time to bring in an expert. Many small business owners and startups find it challenging to balance the money that is flowing in and out. If you don't stay on top of it, things can get messy quickly.
An outsourced accountant can help you manage your cash flow by setting up a system that tracks incoming and outgoing money, forecasts future cash needs, and ensures you have enough liquidity to keep your business running smoothly. With an expert guiding your financial decisions, you'll have a clearer picture of your business's financial health.
5. You're growing and need advanced financial insights
As your business grows, your financial needs naturally become more complex. Expanding operations, hiring employees, or launching new product lines all add layers to your financial responsibilities as a business owner. To make informed decisions, you'll need a clear understanding of key financial metrics, like your gross profit margin and break-even point—but many small business owners struggle to get this clarity.
Outsourcing your accounting during growth phases can help you maintain control over your finances with confidence. An outsourced accountant provides valuable insights, detailed reports, forecasts, and analysis to support your decisions. With their expertise, you can build a financial strategy that supports your business's long-term growth and ensures tax compliance, giving you peace of mind.
The benefits of outsourcing accounting and bookkeeping
If you're wondering why outsourcing accounting and bookkeeping is a smart move for your small business, the benefits are pretty simple: it can save you time, prevent mistakes, and give you access to professional insights that can position your business for success.
If you're still not sure, though, here are a few more benefits of outsourcing your small business's accounting and bookkeeping needs:
More time for what matters: Outsourcing your accounting and bookkeeping frees you up to focus on core business tasks, whether that's growing your business, finding new clients, or simply spending less time working on spreadsheets. Let a professional handle the hassle of balancing your books.
Fewer errors: You're much more likely to make a mistake like missing a transaction or making an incorrect entry than a professional accountant is. When you remove yourself from such a high-pressure situation, you remove the risk of costly mistakes down the road.
Stay on top of taxes: Tax season doesn't have to be a nightmare. With outsourced help, you'll know that everything's compliant and on time, and you won't miss out on deductions you might not even know exist.
Expert advice when you need it: Hiring an outsourced accountant lets you tap into financial expertise when you need it. Whether it's budgeting, forecasting, or financial strategy, you'll have access to real-time insights that can guide your decision-making.
Save money: Outsourcing is often cheaper than having a full-time, in-house team. You get the help you need, but only when you need it, which leads to cost savings in the long run.
Grow at your own pace: As your business expands, so do your financial needs. The good thing about outsourcing is that it's flexible and cost-effective. You can go up or down depending on where your business is at.
Valuable insights, smarter decisions: Want to know exactly how your business is doing? An outsourced accounting firm gives you access to reports and data that paint a clear picture of your financial health, so you can make business decisions with confidence.
Outsourcing accounting and bookkeeping isn't just about taking responsibilities off your plate. It's about making sure your business runs smoothly and grows in the right direction. With professionals handling the details, you can focus on what you do best.
How to outsource accounting as a small business owner
If you've decided it's time to outsource your accounting, the next step is figuring out how to find the right accountant for your business. Here's a quick guide to help you through the process.
Step 1: Determine your accounting needs
Before you begin your search for an accountant, it's important to know what specific accounting tasks you need help with. Do you need someone to handle tax preparation, manage payroll, or provide financial reporting? Maybe you need help with cash flow management or long-term financial planning. Having a clear understanding of your needs will help you find an accountant with the right skills for your business.
Step 2: Look for specialized expertise
Not all small business accounting firms specialize in the same area or have the same experience doing specific tasks. Finding one with expertise in your industry can make a big difference. Every industry has its own unique financial needs, so make sure the accountant you hire understands the financial nuances of your business.
Need help finding the right person for your business? Check out Relay's accountant and bookkeeper directory to find local, professional support.
Step 3: Evaluate potential accountants
Once you've narrowed down your list, it's time to interview potential accountants. Ask about their credentials (like CPA certification), read client reviews, and check their experience. Make sure they're familiar with the accounting software you use and that they're responsive and easy to communicate with.
How to outsource bookkeeping as a small business owner
Remember, not all accountants offer bookkeeping—so if you're looking specifically for a bookkeeper to help manage your daily financial records, the steps below will help. Here's how to approach outsourcing your bookkeeping tasks effectively.
Step 1: Identify what bookkeeping tasks to outsource
Start by listing out the day-to-day tasks you'd like to delegate. This could include invoicing, managing accounts payable and receivable, keeping records of financial transactions, and bank reconciliations. Knowing exactly what you need will help you find the right bookkeeper to handle the work.
Step 2: Set clear expectations
Be clear about how often you expect updates, the types of reports you need (like monthly financial statements), and how frequently you want to review the books. Establishing these processes, in addition to the pricing level you'd ideally be around, early on will ensure everything runs smoothly.
Step 3: Remember that fit and reliability are important
Just like with accountants, you'll want to evaluate bookkeepers based on their experience and accuracy. Look for someone with strong attention to detail, good reviews, and experience working with businesses like yours. Reliability is crucial for keeping your financial records up to date.
Looking for a reliable bookkeeper? Check out Relay's bookkeeper directory to find outsourced bookkeeping services that can streamline your accounting processes.
How to transition to outsourced bookkeeping
Once you've chosen a bookkeeper, a smooth handoff comes down to getting them the right access and records in the right order. A sensible sequence looks like this:
Grant software and document access. Add your bookkeeper to your cloud accounting software (QuickBooks Online or Xero) with the right permission level, and set up a secure way to share sensitive files.
Connect your bank feeds and share your chart of accounts. Link business bank and credit card feeds so transactions flow in automatically, and hand over your existing chart of accounts.
Hand over prior records. Share prior-year financial statements, tax returns, and past reconciliations, plus any industry-specific documents (insurance, contractor agreements, compliance filings) your bookkeeper will need.
Agree on who does what. Write down which finance tasks you'll keep and which the bookkeeper now owns, then hold a short handover call so nothing falls through the cracks.
Reconcile the first period and set a cadence. Have your bookkeeper reconcile the first month to catch any gaps, then agree on a standing reporting schedule (monthly statements, quarterly reviews).
Handled this way, the switch usually takes a few weeks and leaves you with cleaner books than you started with. Keeping your business banking organized in dedicated accounts makes the handoff even easier—your bookkeeper can see exactly what's flowing through each account instead of untangling one catch-all balance.
When is the best time to outsource accounting and bookkeeping?
Everyone is different—there isn't a singular "right answer" to when a small business owner should outsource their accounting and bookkeeping. But there are certain times or situations that make it especially worth considering.
During tax season: If the thought of handling taxes is overwhelming, outsourcing can ensure everything is accurate and compliant, helping you avoid costly mistakes.
Periods of rapid growth: When your business is hiring, opening new locations, or increasing sales, outsourcing can help manage the added complexity and keep your finances in order.
When upgrading to new accounting software: Transitioning to more advanced accounting systems, like QuickBooks Online, can be tricky. An accounting professional can handle the setup and ensure everything runs smoothly.
When financial tasks become too time-consuming: If bookkeeping and accounting are taking up too much of your time, outsourcing can free you up to focus on other areas of your business.
The bottom line: why outsourcing is key
Outsourcing accounting and bookkeeping is more than just lightening your workload. It's about making your business run stronger and more smoothly.
When you bring in experts, you're freeing up time and ensuring accuracy, staying compliant with tax laws, and gaining valuable financial insights that will help you make better strategic decisions.
Ready to get started? Check out Relay's accountant and bookkeeper directory to find professionals worth contacting in your area.
Frequently asked questions
How much does it cost to outsource bookkeeping?
Outsourced bookkeeping typically costs $300 to $2,500 per month. Part-time or basic services run around $300 to $1,000 a month, while full-service support with payroll, accounts payable and receivable, and advisory work runs closer to $1,000 to $2,500 or more. Hourly rates generally range from $25 to $80 depending on whether you hire a freelancer or a firm.
Is it cheaper to outsource bookkeeping than to hire in-house?
Usually, yes—for small businesses that don't need a full-time bookkeeper. A full-time in-house bookkeeper costs roughly $61,000 to $69,000 a year once you add payroll taxes, benefits, and overhead to the median salary. Full-service outsourcing at $1,000 to $2,500 a month works out to about $12,000 to $30,000 a year, so outsourcing is often the more cost-effective option until your volume justifies a dedicated hire.
What's the difference between outsourcing accounting and bookkeeping?
Bookkeeping covers the day-to-day recording of transactions—categorizing expenses, reconciling accounts, and keeping your financial records accurate. Accounting builds on that with higher-level work like tax preparation, financial reporting, forecasting, and strategic advice. Not every accountant offers bookkeeping, so if you need daily records managed, confirm that up front.
How do I transition to an outsourced bookkeeper?
Grant your new bookkeeper access to your accounting software and a secure way to share documents, connect your bank and credit card feeds, and hand over your chart of accounts along with prior-year statements, tax returns, and reconciliations. Agree on who owns which tasks, then have them reconcile the first period to catch any gaps before settling into a regular reporting cadence.
