What Is Outsourced Bookkeeping? A Complete Guide for Small Businesses
Outsourced bookkeeping is when a business hires a third-party provider to handle its day-to-day accounting tasks. Instead of managing an internal team, business owners rely on external bookkeepers to record transactions, reconcile accounts, prepare reports, and ensure compliance – often at a lower cost and higher accuracy than an in-house setup.
Download Our Free Brochure →How Outsourced Bookkeeping Works
The process starts with an agreement between your business and the bookkeeping provider. This covers the scope of work, frequency of reporting, and data security standards. Once onboarded:
- You share your financial documents through secure platforms.
- The provider records transactions, categorizes expenses, and reconciles your accounts.
- Monthly or quarterly reports (P&L, Balance Sheet, Cash Flow) are prepared.
- Your CPA gets clean, ready-to-file data for tax prep.
Many providers also support catch-up bookkeeping, payroll, and 1099 tracking.
Benefits of Outsourced Bookkeeping
Cost Savings
No salaries, benefits, or office space needed. Pay only for what you use – typically starting around $150/month.
Specialized Expertise
Access to trained bookkeepers and CPAs who stay current on tax laws, compliance, and financial best practices.
Time Efficiency
Delegating bookkeeping tasks frees up your time to focus on operations, marketing, or strategic growth.
Scalability
Add or reduce services based on your seasonal or growth needs – without hiring or downsizing staff.
Technology Access
Get real-time financial reports and cloud-based systems without managing software licenses yourself.
Reduced Risk
Professionals help minimize errors, avoid tax penalties, and ensure audit readiness.
Download Our Free Brochure →Why It Works for Small Businesses
Small business owners often wear multiple hats – bookkeeping shouldn’t be one of them. Outsourcing helps avoid:
- Falling behind on books
- Filing taxes late or incorrectly
- Making business decisions without accurate data
- Paying too much for full-time staff you don’t need
Instead, you get clean books, ready to use whenever you need them.
Real-World Example
A boutique design agency in Dallas was three months behind on its books. After outsourcing to RemoteBooksOnline:
- All books were caught up and reconciled in two weeks
- They avoided a $500 late filing penalty
- Their CPA completed the return in one day using our CPA-ready reports
- The owners now receive clean monthly reports and spend zero time on reconciliation
In-House vs. Outsourced Bookkeeping
| Feature | In-House | Outsourced |
| Cost | High (salary, benefits, tools) | Lower (pay-as-you-go) |
| Flexibility | Fixed resources | Scales with business needs |
| Access to Expertise | Limited to staff skills | Broad experience, CPA-reviewed |
| Software Maintenance | Managed in-house | Included with service |
| Risk of Turnover | High | None – you’re always covered |
Common Tasks Handled by Outsourced Bookkeepers
- Transaction recording and categorization
- Bank and credit card reconciliation
- Financial statement preparation
- Sales tax tracking and filings
- Payroll data entry
- Support during tax season
- 1099 contractor management
- Catch-up or cleanup bookkeeping
How Much Does Outsourced Bookkeeping Cost?
Costs vary depending on your business size, volume of transactions, and services needed. Most providers offer plans starting from:
- $150–$300/month for basic services
- $400–$750/month for high-volume or complex businesses
- Hourly rates ($30–$100/hr) for one-time or ad-hoc support
Always request a customized quote based on your needs.
FAQs
What is outsourced bookkeeping?
It’s when a business hires an external service provider to handle financial tasks like recording transactions, reconciling accounts, and preparing reports.
Is it safe to outsource my financial data?
Yes, reputable providers use secure portals, encryption, and industry-standard compliance practices to protect your data.
Can I outsource just a portion of my bookkeeping?
Yes. You can outsource specific tasks like reconciliation or cleanup, or go fully hands-off.
Does outsourced bookkeeping work for all industries?
Yes. Whether you’re in retail, legal, medical, real estate, or consulting — it scales to fit your needs.
Do I still need a CPA?
Yes. Bookkeepers organize and prepare your data. Your CPA uses those records to file taxes and offer strategic advice.
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
Stay organized and tax-ready year-round with our flat-rate monthly bookkeeping services.
Need to fix errors or outdated data in QuickBooks? Start with our expert QuickBooks cleanup services.
CPA and bookkeeping firms can scale faster with our white-label bookkeeping services fully branded for your clients.
Explore our full range of bookkeeping services designed for small businesses looking for accuracy, simplicity, and CPA-reviewed financials.
Whether you’re based in New York or Nevada, we support businesses nationwide – check out our full list of locations and ZIP codes to find local coverage.
Outsourced bookkeeping helps you stay organized, tax-ready, and focused on what matters most – growing your business.
Try your first month free with RemoteBooksOnline.
