How much does it cost to outsource finance and accounting services?

How much does it cost to outsource finance and accounting services?

The cost of outsourcing finance and accounting services depends on the role, the pricing model, and the staff location, and it can range from about $10 an hour offshore to $75 or more an hour onshore.

• The type of role, such as payroll or tax prep, shapes the price.
• How you pay, whether hourly, part-time, full-time, or per project, also matters.
• Where your staff work, offshore or onshore, drives the biggest gap in cost.

Business processes cover a wide range in the outsourcing sector, and accounting is one of the top services firms send out. The main reason is cost. In short, outsourcing parts of the work saves money. However, the cost of outsourcing finance and accounting services will vary by a few key things.

• The accounting role
• The type of outsourcing you choose
• The location of your outsourced staff

Finance and accounting outsourcing also covers many roles. For example, it includes payroll, bookkeeping, accounts receivable, accounts payable, tax prep, and reports.

Each type and cost of outsourcing accounting service

Price plays a big part when you decide to outsource finance and accounting services. However, no two firms have the same needs. So there is no single price for the work. In most cases, you will pick from the following types.

Cost of outsourcing accounting services for part-time employees

This plan works if you hire an outsourced pro for about 80 hours a month. As a result, you pay less than for full-time help. In addition, it fits firms with a light or steady workload.

Cost of outsourcing accounting services for full-time employees

This plan assumes about 160 hours a month, which counts as full-time. So it suits firms with steady, heavy work. In turn, you get a dedicated pro who knows your books well.

Cost of outsourcing accounting services per hour

This is ideal for firms that are just starting out. After all, it is not wise to pay large sums for small-scale work. So a good provider will let you pay an hourly rate instead. As a result, you only pay for the time you use.

Cost of outsourcing accounting services per project

Some tasks need more focus than others. For those, you can pay per project. So this plan works well for one-off jobs like an audit or a year-end close.

Cost of outsourcing accounting services for tax returns

Tax return work is a specialized service. For it, you can hire a provider and ask for a quote. From there, they will set a price based on the following.

• Level of skill required
• The nature of the project
• The time period and scale of the services required

Some providers offer small or medium business packages. Others ask for a fixed monthly fee with all services included. So you can pick the plan that fits your budget.

What affects the cost of outsourcing finance and accounting services

Several things move the final price up or down. Because of this, it helps to know them before you sign.

• Staff location. Offshore teams cost far less than onshore ones. As a result, location drives the biggest gap in price.
• Scope of work. Simple bookkeeping costs less than tax prep or full financial reports.
• Skill and experience. A senior accountant or CPA charges more than a junior bookkeeper.
• Volume and hours. More transactions and more hours mean a higher monthly bill.
• Pricing model. Fixed monthly plans can cost less than open-ended hourly work.

General cost of outsourcing accounting services

For some reference, the pay for a bookkeeper in the Philippines stays well below Western rates, according to PayScale. However, the market worth of a finance pro rises with time and experience.

According to TimeDoctor, the hourly rate for accounting and bookkeeping in the US ranges from about $10 to $25 for offshore providers. Meanwhile, US-based bookkeepers often charge $40 to $75 an hour. So the savings from offshore staff can be large.

To put things in perspective, here are some of the things you pay for when you outsource with a trusted Filipino BPO.

• education from higher institutions;
• high English proficiency;
• high levels of training in fields such as finance, IT, commerce, and engineering;
• high levels of employment in the BPO industries;
• high levels of skill in telecommunications;
• a wide network of international clients, partners, and investors.

On top of that, Filipino workers bring a world-class work ethic. For example, they show warmth, care, and drive. In addition, they work well across cultures and often go the extra mile. So how does that sound for your money’s worth?

Frequently asked questions

Is it cheaper to outsource accounting than to hire in-house?

Yes, in most cases. Offshore teams cost far less than local hires. In addition, you save on office space, gear, and benefits.

What finance and accounting tasks can I outsource?

You can outsource many tasks. Common ones include payroll, bookkeeping, accounts payable, accounts receivable, tax prep, and reports.

Which pricing model should I choose?

It depends on your workload. For light or new work, hourly or part-time plans fit best. For steady, heavy work, a full-time or fixed monthly plan is often cheaper.

Is outsourced accounting safe and accurate?

It can be, with the right partner. First, check their track record and reviews. Then set clear reporting and data security rules from day one.

How much can I save by outsourcing offshore?

Savings vary by role and location. However, offshore rates often run well below onshore ones. As a result, many firms cut costs while they keep good quality.

Key takeaways

• The cost of outsourcing finance and accounting services depends on the role, the model, and the location.
• You can pay part-time, full-time, hourly, or per project.
• Offshore rates start around $10 an hour, while onshore rates can reach $75 or more.
• Skill, volume, and scope all shape the final price.
• The right partner keeps both cost and quality in check.