Top 10 outsourced bookkeeping services — and when your business needs them

There’s a lot to get right when running a business. In addition to offering the best products or services, you must ensure that your organization runs like a well-oiled machine. Effective bookkeeping plays a central role in that.  

In recent years, outsourced bookkeeping services have grown in popularity — and for good reason. With the need for greater efficiency, accuracy, and compliance in financial record-keeping, a growing number of businesses are handing over their bookkeeping to external professionals. 

But is outsourced bookkeeping the right choice for your business? In this article, we’ll help you answer that question. Read on to explore the benefits of outsourced bookkeeping, when it makes sense, and some of the top solutions available.

When do you need outsourced bookkeeping?

Outsourcing is a growing trend in business. Over the last five years, the amount of money businesses have spent on outsourced accounting services has risen by 40%. But outsourced bookkeeping services aren’t for everyone. In some cases, keeping expertise and processes in-house is the best and easiest way forward. 

To help you understand what’s best for your business, we’ll highlight some of the telltale signs that you would benefit from outsourced bookkeeping: 

• Your business is growing rapidly. As your company scales, your financial management becomes more complex. Outsourcing your bookkeeping can make it easier to handle increased transaction volumes and more complex reporting and compliance requirements. 
• You have limited resources. Small or fast-growing businesses may not have the resources to hire and train an in-house bookkeeper or accounting team. Outsourcing provides a cost-effective, hassle-free way to access the expertise you need. 
• You’ve experienced frequent bookkeeping errors. When it comes to financial records, even the smallest mistakes can have major consequences. Outsourcing your bookkeeping helps ensure accuracy, thoroughness, and compliance. 
• You want to focus on core business activities. You may find that the day-to-day running of operations is getting in the way of your wider business goals. Outsourcing your bookkeeping gives you more time and resources to focus on strategic growth.

Businesses of all sizes can benefit from outsourced bookkeeping. That said, it tends to be particularly popular with small and medium-sized businesses. In fact, 37% of small businesses now outsource their accounting function entirely. Why is this? Because small businesses tend to have fewer resources for specialized in-house teams. They also have more focus on growth and efficiency than established enterprises. 

Certain industries also tend to benefit more from outsourcing their bookkeeping. For example, companies in fast-growing industries such as tech or SaaS may want more time and resources to focus on getting products to market. In addition, industries with uniquely complex regulatory requirements, such as healthcare and pharma, may benefit from external professional support.

Benefits of outsourced bookkeeping

With outsourced bookkeeping services becoming more popular, it’s clear that this approach is advantageous for a growing number of businesses. If you’re still on the fence about whether to outsource your bookkeeping, here are some of the key benefits to consider: 

• Cost efficiency. By outsourcing your bookkeeping, you save on the recruitment, training, salaries, and benefits associated with an in-house bookkeeping team. But that’s not all — you also save on office space, equipment, and overheads. This makes outsourced bookkeeping highly cost-effective for fast-growing businesses.
• Improved accuracy. Outsourced bookkeeping allows you to tap into a wealth of industry experience and expertise with minimal effort on your part. Your service provider will have access to the latest news, technologies, and best practices. The result is increased accuracy, fewer accounting errors, and peace of mind. 
• Access to niche expertise. Many small-business owners end up managing bookkeeping themselves to cut costs. While there are plenty of intuitive tools on the market for bookkeeping beginners, this approach eats into your time and increases the risk of error. Outsourcing to a seasoned pro solves this problem. 
• Scalability and flexibility. Outsourcing your bookkeeping means you can scale services up and down to meet your changing needs. As a result, you always get the support you need. Contrast this with an in-house team, which offers much less flexibility and is slow to expand or downsize.  
• Time savings. In business, time is so often money. The more time you can spend on tasks that move the needle, the faster your business will grow. Outsourcing your bookkeeping means there’s one less thing to think about. 
• Leverage the latest tech. As industry experts, outsourced bookkeeping companies have access to the very best tools and insights. That means they can guarantee unbeatable levels of accuracy and compliance. 

Types of outsourced bookkeeping services

Outsourced bookkeeping is a rather broad term that encompasses different types of service offerings. Each type offers unique benefits and drawbacks, making them suitable for some businesses but not others. With this in mind, it’s important to spend some time familiarizing yourself with the different options available to figure out what aligns best with your needs. 

Here’s a quick overview of the different types of outsourced bookkeeping services: 

Full-service bookkeeping

As the name suggests, this option covers all your business’s bookkeeping needs. It’s ideal for businesses that want a completely hands-off approach and spans the full spectrum of bookkeeping services, including: 

• Recording transactions
• Managing accounts payable and receivable
• Account reconciliation
• Financial reporting
• Managing payroll

Partial bookkeeping 

Under this model, you outsource some of your bookkeeping services but continue to handle others in-house. For example, you might handle the day-to-day bookkeeping tasks in-house but choose to hand over payroll processing and financial reporting to a third-party service provider. Partial bookkeeping is a flexible choice that enables you to approach bookkeeping in a hybrid manner. 

Project-based bookkeeping

Sometimes you need help with a specific, one-off bookkeeping project. Perhaps your in-house team is stretched thin, and you need a trusted third party to handle your quarterly reporting. In this case, you can opt for project-based bookkeeping. This means you can access expertise when you need it, without heaping further demands on your team or hiring seasonal staff on short contracts. 

Offshore bookkeeping 

This option involves hiring professional bookkeepers from other countries. With the rise of cloud accounting, it’s now possible to access a global bookkeeping talent pool. This opens the door for highly cost-effective solutions, as some countries charge much less than others. That said, it’s crucial to ensure that your bookkeeping service provider is familiar with the relevant compliance requirements in your jurisdiction.

Onshore bookkeeping 

This option involves partnering with bookkeeping service providers based in the same region or country as you. While you might end up paying more than for offshore bookkeeping, you can rest assured that the service provider will have a deep understanding of local regulations and laws.

Virtual bookkeeping

Virtual bookkeeping services are rendered completely remotely using cloud-based digital platforms such as QuickBooks Online or Xero. Likewise, all communication and other touchpoints take place online via platforms such as Zoom, Google Meet, or Microsoft Teams. Most of the bookkeeping services we’ve highlighted in this list will fall into this category.

The 10 best outsourced bookkeeping providers

Considering outsourcing your bookkeeping? With so many service providers to choose from, it can be difficult to know where to start. In this section, we’ll help you narrow down the field. Read on to explore the top 10 outsourced bookkeeping providers — and what makes them stand out.

1. TOA Global

TOA Global is a leading provider of outsourced accounting services. Based in Australia but with offices in the US, South Africa, and the Philippines, TOA Global has well over one thousand clients worldwide. They offer a range of outsourcing services, including: 

• Payroll
• Accounting receivable and payable
• Financial analysis
• Auditing

In addition to financial services, TOA Global provides executive assistants who can help senior managers with scheduling, communications, and more. 

2. Bench

In recent years, Bench has emerged as one of the leading bookkeeping service providers for small businesses, with more than 35,000 clients in the US alone. This is thanks in large part to their tech-driven, no-nonsense approach.

Bench provides outsourced monthly bookkeeping, catch-up bookkeeping, and tax services. But that’s not all — they also offer an industry-leading software platform where you can: 

• Communicate with the Bench team
• Sync data from your accounts to avoid costly errors
• Access real-time reports on your financials
• Manage your financial documents securely
• Get alerts and reminders for important tasks

3. Bookkeeper360

Bookkeeper360 has been ranked the best overall bookkeeping solution by Forbes, Nerdwallet, and Entrepreneur magazine. It offers a range of award-winning accounting and business services, including: 

• Bookkeeping 
• Tax preparation, planning, and advisory
• Fractional CFO services
• Payroll and HR

Bookkeeper360 also offers proprietary software where you can view your financial data and insights. In addition, it integrates with market-leading software such as QuickBooks, Xero, and Gusto. 

4. Pilot

Based in San Francisco, CA, Pilot is a popular provider of outsourced financial services. It’s primarily aimed at startups and small businesses, making it particularly popular with tech and SaaS businesses. Pilot’s clients have access to a secure portal where they can view your books, interact with bookkeepers, and view task progress. Its core offerings include: 

• Bookkeeping services
• Tax services
• Virtual CFO services
• Stock administration
• R&D credit claims

5. QuickBooks Live Expert

QuickBooks is well-known for being the market leader in small business accounting software. In addition, they also offer hands-on support with a range of services known as QuickBooks Live. 

Through QuickBooks Live Expert Assisted, you can access accounting and bookkeeping expertise to help you build smarter workflows and get advice on-tap. You can take things a step further with QuickBooks Live Expert Full-Service, which outsources your entire bookkeeping function to a team of experts.

6. Botkeeper

Florida-based Botkeeper offers something a bit different to the other options on this list. It’s primarily a software platform that focuses on bookkeeping automation. The Botkeeper platform offers a range of advanced features powered by artificial intelligence (AI) and machine learning (ML), such as: 

• Automated transaction categorization
• Activity Hub for all communications, feedback, and interactions
• Secure document management
• Automated ledger reviews that flag anomalies and inconsistencies
• Automated journal entries

Botkeeper combines this functionality with the expertise of senior accountants, providing full-service bookkeeping for businesses that want to achieve more with less.

7. Ignite Spot

Based in Salt Lake City, UT, Ignite Spot offers flexible outsourced bookkeeping services. Unlike some of the larger service providers on this list, Ignite Spot doesn’t provide its own platform. Instead, the team uses trusted industry tools such as QuickBooks and Gusto to provide efficient and accurate bookkeeping services. 

In addition to full-service bookkeeping and accounting, Ignite Spot offers outsourced CFO and financial controller services. 

8. Belay

Belay provides bespoke outsourced bookkeeping and accounting services. From odd jobs to full-service bookkeeping, you can access the level of support you need to achieve your financial and business goals. Their offering includes: 

• Bookkeeping services
• Financial controller services
• CFO services

In addition to financial services, Belay offers virtual assistants and marketing assistants. By handing over all those administrative jobs that take up so much time, you can focus on adding real value to your business.

9. Decimal

Decimal provides a broad range of outsourced financial services available for fixed prices. In 2022, the US-based company bought KPMG Spark, the Big Four firm’s cloud-based bookkeeping service. A year later, Decimal was named one of the top 100 FinTech companies by Powderkeg. 

With clients spanning a broad range of industries — everything from eCommerce to SaaS, marketing agencies, and real estate — Decimal is a great fit for forward-thinking companies looking to drive value and efficiency. 

10. Xendoo

Rounding off this list, Xendoo provides businesses with a dedicated team of external accountants, bookkeepers, and CPAs. They use the latest technology to streamline processes across three core service offerings: 

• Bookkeeping services
• Tax services 
• Catch-up bookkeeping

Xendoo primarily helps small businesses. Their clients span eCommerce, franchises, and even professional services firms. So if you’re looking for outsourced bookkeeping for CPAs, they’re a great shout.

The bottom line

Outsourced bookkeeping services are a game-changer for businesses. They offer a flexible, convenient, and cost-effective way to ensure accurate financial records and up-to-date books. While outsourcing isn’t for everyone, it’s a great option for fast-growing businesses looking to save on time and resources. 

There are plenty of outsourced bookkeeping companies to choose from. If you decide that outsourcing is right for you, the ten we’ve listed in this article are a great place to start. 

If your goal is to increase efficiency and free yourself from time-consuming tasks, TaxDome can help. With automated workflows, secure client portals, unlimited file storage, and a range of collaboration tools, TaxDome has everything you need to build a high-performing accounting practice.