There’s a lot to say about the cost-effectiveness of finance and accounting outsourcing services.
However, finance and outsourcing costs can be relative. Every firm should understand the dollar amount of outsourcing its specific services.
In this article, we attempt to narrow down the cost of outsourcing different finance and accounting services to help accounting firms (in the US, UK, EU, Australia, Singapore, etc.) negotiate better rates and plan their resources confidently.
Why Understanding Pricing Matters
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Rising Demand for Outsourced Finance
As more firms turn to outsourcing to reduce operational costs and manage workload, adequate knowledge of pricing structures and models will help them build more profitable outsourcing relationships.
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Cost is A Major Concern for Every Decision-maker
Accounting, bookkeeping, and CPA firms need the right pricing information to plan their budgets and allocate resources. This knowledge is key to realizing the value of outsourced finance and accounting services.
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Transparent Breakdown Helps to Avoid Hidden Surprises
When you and your potential outsourcing partner are on the same page concerning the price of their services, hidden and unpleasant cost surprises that disrupt budgets and stifle cash flow are prevented.
What Influences the Cost of Finance and Accounting Outsourcing?
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Scope of Services
All things being equal, outsourcing a function that can be completed in under an hour will cost much less than a task that requires four hours to complete.
That is why a basic bookkeeping service costs less than a financial audit. Similarly, running payroll for 20 employees will be less expensive than doing the same for 100 employees.
Many times, projects with larger scopes also require greater expertise to complete.
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Geography: Location of the Outsourcing Provider
Cost of living (and other economic factors) varies across geographical locations. This reflects on labor (and accounting) costs.
You can’t compare the cost of outsourcing a service to a company in India (where the minimum wage is $674) to a company in the US (where the minimum wage is $15,080), which is why PwC and other Big-4 firms outsource to India.
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Complexity of the Finance Function
If your clients have multiple products, intricate revenue systems, or international locations, more detailed and complex financial reporting is needed.
This requires more time and resources to complete, which will increase your finance and accounting outsourcing costs.
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Volume of Transactions
Transaction volume also drives up labor costs as your outsourcing partner may need to commit more accounting resources to get the job done.
Transactions in e-commerce and hospitality are usually more voluminous and involve multiple accounts. These transactions take a longer time to reconcile and are done more frequently.
Bookkeeping and financial reporting here will cost more.
Tools Used
The software your outsourced partners use for your clients’ work will either increase your operating costs (through subscription fees) or reduce costs indirectly (due to faster turnaround time).
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Experience Level of Staff
The more specialized (and certified) employees an outsourcing firm has on staff, the greater the outsourcing costs to deliver projects because paying CPA-level professionals will naturally be more expensive than entry-level bookkeepers.
That will also reflect in the quality of work you receive. This means quicker turnaround time, fewer revisions, and timely payments.
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Compliance and Reporting Requirements
When your clients operate in a heavily regulated industry like construction and non-profit, you will need more specialized knowledge and a strenuous financial reporting process to keep your clients compliant. You’ll pay more for the depth of work.
Common Pricing Models in Finance and Accounting Outsourcing
| Model | How it Works | Worthy of Note |
| Hourly Rates | Allows you to pay for outsourced finance and accounting services based on the time spent on your projects.
It is simple to calculate. At the end of the project, the outsourcing provider multiplies their hourly rate by the number of hours your project took to create your bill. |
This pricing structure may impact your ability to plan your resources ahead of time, since the project has to be completed to understand its final cost. |
| Monthly Packages | In the monthly packages model, you agree on the services you need, the deliverables, and the monthly cost of those services with your outsourcing partner.
Once you receive your deliverables at the end of the month, you can pay the agreed amount. |
Apart from clarifying expectations for all parties, this pricing model enables you to plan your resources ahead of time. |
| Full-Time Equivalent (FTE) | In this pricing model, you’ll pay an amount equal to the full cost of using a full-time employee for a dedicated, 40-hour-a-week accounting professional.
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This is best if you need day-to-day finance and accounting support or flexible staffing without pricing structurepaying employee benefits or making long-term commitments. |
| Project-Based Pricing | Project-based pricing allows you to pay a fixed fee for each service you receive. | Works best for seasonal or one-off projects like a financial audit, where you can pay for services based on their type and unique requirements. |
Sample Pricing by Service Type
Finsmart Accounting’s prices are structured as follows:
| Package | Price | Model | Services |
| Dedicated Seat | $2600 | FTE |
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| Hourly Seat | $20 per hour | Hourly |
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| USA Tax Seat | $3000 | FTE |
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Pricing Comparison – India vs. Philippines vs. US
India-based outsourcing partners like Finsmart offer up to 60–70% cost savings compared to US providers.
Here’s a table showing the price difference between India, the Philippines, and the USA for the role of an accountant.
| Role | Country | Indeed | Glassdoor |
| Accountant | India | $3144.24 | $3,035.58 |
| Accountant | Philippines | $7870.79 | $6001.10 |
| Accountant | United States: | $83,707 | $85,490 |
Why India Is the Preferred Destination for Finance and Accounting Outsourcing
India is one of the most affordable and advanced finance and accounting destinations due to:
- Availability of CPAs: The finance and accounting industry in India is highly competitive, thanks in part to government support and a rigorous education system.
Between 2020 and 2025, the country added over 9,000 new CPAs, who can walk into any firm, any business, and deliver excellent end-to-end accounting services.
- Domain Expertise: The Indian education system also emphasizes global financial reporting standards, like the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). This means your outsourced accountants do not need any training on accounting procedures.
Moreover, outsourcing companies in India prequalify their staff through a rigorous selection process, turning them into plug-and-play finance and accounting resources for US, UK, and Australian firms.
- Fintech Adoption: Investments from the Indian Government and the Big-4 accounting firms have helped to improve proficiency in financial technology, artificial intelligence, and analytics.
When you outsource to India, you wouldn’t need to train your partners on the tools you use for client work (QuickBooks, Xero, NetSuite, etc.).
“The Finsmart team can work with any software you have. QuickBooks Desktop, QuickBooks Online, Xero, Bill.com, you name it!
We don’t have to train anybody. They’re already trained.
—Mariko Hayashi-Hall, Founder and CEO of Chicago-based Brilliant Solutions Group
Cost vs. Value: What Are You Really Paying For?
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Expertise and Accuracy
The average finance and accounting outsourcing company has spent years helping accounting and CPA firms with diverse challenges in your industry.
This has given them the wealth of knowledge and experience to deliver the quality of service that your in-house team may not be capable of.
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Compliance and Reduced Risk
Reputable outsourcing companies not only understand your client’s unique compliance needs but are also equipped with the technology to keep your client’s data safe.
Your potential outsourcing partner should be GDPR and SOC II-certified. This will enable them to handle your client’s data in a way that complies with relevant privacy and data security laws.
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Scalability and Responsiveness
Growth can deplete your in-house resources and reduce your ability to meet client deliverables at scale, unless you hire more hands.
But hiring takes weeks, requires a huge financial commitment, and can end up a waste of resources if you hire the wrong person.
Outsourced companies are a steady source of qualified professionals available for monthly subscriptions.
This allows you to quickly add more staff (as you expand) to manage the increased workload and maintain the service quality.
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Access to Better Tools
Outsourced finance and accounting staff are trained with the latest accounting software solutions.
Using their resources allows you to tap into advanced technologies that can streamline and automate your repetitive work for maximum efficiency and profitability.
For example, the Finsmart accounting team is skilled in Financial Cents, Asana, Salesforce, NetSuite, Sage, Liscio, Dropbox, etc.
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Business Continuity
By outsourcing to countries like India, you can provide continuous client service in your firm. As a team in one location closes, the other resumes, ensuring round-the-clock operations.
How to Reduce Costs Without Compromising Quality
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Bundle Packages for Better Rates
Many outsourcing companies bundle their services into packages by combining related functions into a singular ball-park price. This makes it cheaper to get multiple accounting services than when you have to pay separately.
Using bundled services also reduces data transfer, which might lead to errors and costly corrections.
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Choose the Right Mix of Services
Choosing the right mix of services helps you receive the exact services you need and not more.
When choosing a bundled package, take your time to assess the importance of every service, so that you don’t pay for the components you don’t need.
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Offshore to Countries like India
Thanks to differences in labor costs, outsourcing to countries with lower labor costs (like India) reduces your outsourcing costs by as much as 60-70% (as you can see in the table above).
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Opt for Experienced Partners with Proven Processes
A reputable finance and accounting outsourcing company will bring years of proven accounting processes to the table.
Since you won’t have to micromanage them, you can focus on your strategic work, knowing they’ll turn in their assigned work on time.
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Automate Routine Tasks
Not only will automation reduce the time your outsourcing partner spends on projects, but it will also reduce human errors and costly corrections.
Artificial Intelligence, robotic process automation (RPA), and other innovations present an opportunity to save time and reduce operational costs for you and your outsourcing partner.
Final Thoughts: Get Custom Pricing for Your Business
Getting the best outsourcing price (and value for your money) requires a clear understanding of your workflow needs.
With this knowledge, you can confidently determine your budget for outsourcing a service, so you don’t pay a dime more than necessary.
If you need help understanding your outsourcing needs and finance and outsourcing costs, our support team will gladly assist you in figuring it out (and the best price based on market forces). You can book a free consultation today.
“Explore affordable, high-quality finance and accounting support with Finsmart Accounting.”
Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
