For many UK businesses, accounting is one of those jobs that starts small and gradually becomes harder to manage.

At first, you may only need someone to keep the books up to date. Then come VAT returns, payroll, bank reconciliations, year-end accounts, Corporation Tax and regular financial reporting.

This is where accounting outsourcing can become an attractive option.

But one question usually comes first:

What Does Outsourcing Accounting Really Cost?

The honest answer is that there is no single price. The cost depends on what you outsource, the size of your business, the number of transactions, how organised your records are and how much support you need.

What Is Accounting Outsourcing?

Accounting outsourcing means hiring an external accounting professional or firm to handle some or all of your finance and accounting work.

Depending on your requirements, this could include:

• Bookkeeping
• Bank reconciliation
• VAT returns
• Payroll
• Management accounts
• Year-end accounts
• Corporation Tax support
• Self Assessment
• CIS
• Accounts payable and receivable
• Financial reporting
• General accounting support

You do not necessarily have to outsource everything. Many businesses start with one service and expand the arrangement as they grow.

The UK government recognises accounting and bookkeeping as functions that businesses can outsource to access specialist skills without taking on the ongoing commitment of employing someone internally.

So, How Much Does It Cost?

Outsourced accounting services is commonly priced through either a monthly package, a fixed project fee or an hourly rate.

As a broad market guide, smaller businesses may see basic bookkeeping packages starting from around £100–£300+ per month, while more comprehensive accounting support can move into £300–£1,000+ per month.

Businesses with higher transaction volumes, multiple entities, payroll, VAT, management reporting or more complex tax requirements may pay considerably more.

These figures should be treated as indicative rather than fixed UK market rates. The actual quote depends on the scope of work and the provider.

What Determines the Cost?

1. Number of Transactions

A business processing 50 transactions a month is very different from one processing 1,000.

More invoices, payments, expenses and bank transactions generally mean more accounting work.

2. Services You Need

Basic bookkeeping will normally cost less than a package that also includes:

• VAT returns
• Payroll
• Management accounts
• Year-end accounts
• Corporation Tax
• Credit control
• Financial analysis

The more responsibility you give your outsourced accounting team, the higher the overall fee is likely to be.

3. Business Structure

A sole trader with relatively straightforward finances may need limited support.

A limited company may require more extensive reporting and compliance work, including statutory accounts and Corporation Tax obligations. Companies House guidance notes that limited companies have several reporting responsibilities, including annual accounts and Company Tax Returns.

4. Number of Employees

If you have employees, payroll can become another part of your accounting requirements.

The cost can depend on employee numbers, payroll frequency and whether additional services such as pension administration are included.

5. Accounting Software

The software your business uses can also affect the workflow.

Cloud accounting platforms can make it easier for an external accountant to access records, reconcile transactions and keep financial information up to date.

The key is not simply choosing software, but making sure the software and accounting process work together.

6. Condition of Your Records

This is one factor businesses sometimes overlook.

If your books are already organised, reconciled and up to date, an accountant can usually start working efficiently.

If there are months of unreconciled transactions, missing invoices or incorrect entries, additional clean-up work may be required.

That can increase the initial cost.

Example: What Might an Outsourcing Package Look Like?

Imagine a small UK limited company with:

• Regular monthly bookkeeping
• One business bank account
• Quarterly VAT returns
• A small number of employees
• Year-end accounts
• Corporation Tax support

Instead of paying separately for every task, the business might choose a monthly accounting package.

Another business may only need bookkeeping and bank reconciliation, so its monthly cost could be considerably lower.

This is why comparing providers purely on their headline monthly price can be misleading.

The better question is: what exactly is included?

Outsourcing vs Hiring an In-House Accountant

Cost is one of the biggest reasons businesses consider outsourcing, but it is not the only factor.

An in-house employee comes with salary costs as well as other employment-related costs and responsibilities.

Outsourcing can give a business access to specialist accounting support without hiring a permanent member of staff.

It can also provide flexibility as the business grows.

For example, you might start with bookkeeping and gradually add VAT, payroll and management reporting instead of building an entire finance function internally.

What Should You Check Before Choosing an Outsourcing Provider?

Don’t choose an accounting provider simply because they offer the cheapest package.

Before signing up, ask:

• What services are included?
• Is VAT included?
• Is payroll included?
• Are year-end accounts included?
• Is Corporation Tax included?
• How many transactions are covered?
• What accounting software do they support?
• Are there additional setup or catch-up fees?
• Who will manage your account?
• How often will you receive reports?
• What happens if your business grows?

Companies House also recommends considering the size and suitability of an accounting firm for your business and notes that many accounting services can be delivered remotely.

Is Outsourcing Accounting Worth the Cost?

The answer depends on your business and what you need from your finance function.

For some businesses, outsourcing is mainly about saving time. For others, it is about having access to experienced accounting support without employing a full-time accountant.

Good bookkeeping and accounting can also make it easier to understand income and expenditure, plan ahead and stay on top of tax and reporting responsibilities.

So instead of asking only:

“How much does outsourcing cost?”

also ask:

“What will I get for that cost?”

A slightly higher monthly fee may include substantially more work, support and expertise than a cheaper package.

Tips for Keeping Outsourced Accounting Costs Under Control

Keep your records organised:
Send invoices, receipts and financial information regularly rather than leaving everything until year-end.

Choose the right package:
Don’t pay for services your business doesn’t need.

Understand what’s included:
Ask for a clear breakdown of the monthly fee and any additional charges.

Use accounting software effectively:
A good digital bookkeeping process can reduce unnecessary manual work.

Review your package as you grow:
Your accounting needs at £100,000 turnover may look very different from your needs at £500,000.

Frequently Asked Questions (FAQs)

1. Is outsourced accounting cheaper than hiring an accountant?

It can be, depending on the level of support required. Outsourcing allows businesses to pay for specific services without necessarily employing a full-time accounting employee. However, the total cost should be compared based on the actual services and support included.

2. Can I outsource only my bookkeeping?

Yes. You do not have to outsource your entire finance function. Many businesses outsource bookkeeping first and add services such as VAT, payroll or management accounts later.

3. Do outsourced accounting firms charge monthly?

Many providers offer monthly packages, while others may charge fixed fees for specific projects or services. UK businesses should compare the pricing structure and exactly what is included.

4. Does outsourcing include VAT returns?

It can, but this depends on the provider and package. Always check whether VAT preparation and submission are included before agreeing to a fee.

5. Can a small business outsource its accounting?

Yes. Outsourcing can be particularly useful for smaller businesses that need professional accounting support but do not want to employ a full-time finance team.

Final Thoughts

There is no universal price for outsourced accounting in the UK.

A small business with straightforward bookkeeping may need only a basic monthly service, while a growing company with VAT, payroll, management accounts and tax requirements will need a broader package.

The right approach is to compare services, experience, communication and overall value, not just the cheapest monthly price.

If you are considering outsourcing your accounting, start by listing the tasks you currently handle yourself. Then identify which ones are taking the most time and where professional support could make a difference.

At SAS KPO Services, we support UK accounting firms and businesses with reliable, professional accounting outsourcing services from bookkeeping and VAT returns to payroll, Corporation Tax, personal tax returns and year-end accounts.