Close & bookkeeping
Outsourced Bookkeeping Cost: What Drives the Price
What outsourced bookkeeping costs depends on scope, not company size: the pricing models, the six drivers that move a quote, and how to compare providers.
MYGrowth Solutions5 min read
Ask three bookkeeping firms for a price and you can get three very different numbers for what sounds like the same job. Usually it isn’t the same job. One quote assumes cash-basis books closed in three weeks. Another assumes accrual books, two entities and a close by day 5.
This guide explains how providers price bookkeeping, what actually moves the number, and how to compare quotes on a like-for-like basis.
The four common pricing models
| Model | How it works | Works well when | Watch out for |
|---|---|---|---|
| Hourly | You pay for time logged each month | Scope is unclear or very irregular | Costs rise when your books are messy, which is when you can least afford it |
| Fixed monthly tiers | A set price per month for a defined scope | Volume is fairly steady | What happens when you exceed the tier’s limits |
| Per transaction | Price scales with the number of transactions coded | Volume swings a lot by season | Complex transactions cost the same as simple ones, so quality can suffer |
| Custom fixed quote | A written price for a scope agreed after a review | Multiple entities, inventory or unusual revenue | Make sure the scope document is specific |
Most growing businesses are best served by a fixed monthly price with clear limits. You know the cost in advance, and the provider has a reason to make the work efficient rather than slow.
A good quote tells you what happens when you outgrow it. A weak one leaves that for the first invoice.
The six drivers that move the price
Company revenue is a poor guide to bookkeeping cost. A $20M business with one bank account and one revenue stream can be simpler than a $3M business with five sales channels. These are the factors that matter.
1. Transaction volume
More transactions mean more coding, matching and review. Count the lines across bank, card and payment accounts in a typical month, not your busiest one.
2. Number of accounts
Each bank account, credit card, payment processor and loan needs its own feed and its own reconciliation. A business with two accounts and one with twelve are very different jobs, even at the same volume.
3. Cash or accrual basis
Cash-basis books record money when it moves. Accrual books also record what you owe and what you are owed, plus prepaid costs and deferred revenue. Accrual takes more work, and it is what lenders, investors and most growing companies need.
4. Entities and intercompany activity
Every legal entity is a separate set of books. If entities trade with each other, someone has to record both sides and make sure they agree before any consolidated report is right.
5. Close deadline
Books closed by the 5th business day cost more to deliver than books closed by the 20th. The work is the same, but it has to be scheduled, staffed and reviewed to a tighter deadline.
6. Complexity in the details
Multi-currency, inventory, sales tax in several states, revenue that is earned over time, and job or project costing all add steps. None is unusual, but each should be named in the scope.
What is usually included, and what usually isn’t
Read the scope line by line. These items vary the most between providers:
| Usually in the monthly fee | Often priced separately |
|---|---|
| Coding transactions and bank, card and payment reconciliations | Catch-up or clean-up of past months |
| A monthly close pack: P&L, balance sheet, cash summary | Payroll processing |
| Basic support by email | Sales tax returns, 1099 filing |
| An agreed close date | Management reporting with commentary, budgets, forecasts |
| Year-end handover to your tax preparer | New systems, migrations, automation projects |
Catch-up work is the most common surprise. If your books are months behind, expect a one-time fee to bring them current before the monthly price applies.
A worked reference point: our published prices
We publish our bookkeeping prices so you have at least one concrete reference. They are fixed monthly fees, set by the drivers above:
| Tier | Price | Scope |
|---|---|---|
| Starter | $299 per month | Up to 100 transactions, 2 bank or card accounts, cash basis, 1 entity, books closed by the 10th |
| Growth | $399 per month | Up to 300 transactions, 5 accounts, cash or accrual basis with multi-currency, books closed by the 7th, monthly review call |
| Scale | $499 per month | Up to 750 transactions, unlimited accounts, accrual basis with intercompany for up to 2 entities, books closed by the 5th, dedicated accountant |
Full accounting, management reporting and filing starts from $700 a month. The current details are always on our pricing page.
Use these to calibrate other quotes, not as the only answer. The right price is the one that matches your scope.
Outsourcing versus hiring
Compare the full cost of each option, not just a salary against a monthly fee. An in-house hire also brings:
- Benefits and payroll taxes
- Software seats and equipment
- Recruiting time, and the cost of a bad hire
- Cover for holidays, sick days and turnover
- Review of their work, which still has to come from someone senior
Outsourcing replaces most of those with one fee and a team. It makes the most sense when your workload is too big for the founder but too small, or too specialized, for a full-time finance hire.
How to compare quotes fairly
Send every provider the same brief, then compare answers side by side:
- Your monthly transaction count and the list of accounts
- Cash or accrual, and the number of entities
- The close date you need
- Systems in use: accounting software, payroll, payments, sales tax
- Whether your books are current, and if not, how far behind
Then ask each provider:
- What is included, in writing, and what is billed separately?
- What happens if we exceed the tier’s limits in a busy month?
- Who reviews the work before it reaches us?
- How do we get our data and files if we leave?
Clear answers to those four questions tell you more about a provider than the headline price.
Where to start
Count your transactions and accounts for last month, decide on cash or accrual, and pick a close date you can live with. That is enough to get comparable quotes.
If you would like a second opinion on your current setup, our free 30-minute health check covers your close, your tools and what a fixed monthly price would look like for your books.
