Outsourced Bookkeeping: Everything You Need to Know

Bookkeeping is essential—but not every business has the time or expertise to manage it in-house. That’s why more companies, from startups to seasoned enterprises, are turning to outsourced bookkeeping for reliable, scalable support.

This practical guide covers everything you need to know—from key benefits and costs to how to choose the right partner.

In today’s fast-paced business landscape, outsourcing bookkeeping offers access to specialized talent, modern tools, and cost efficiency—without the overhead. It’s a smart move for industries like e-commerce, SaaS, professional services, and fast-growing startups across the U.S., U.K., Australia, and beyond.In fact, according to Deloitte’s Global Shared Services and Outsourcing Survey, 73% of organizations outsource at least one component of their finance function, with bookkeeping and transactional tasks among the most common.

What Is Outsourced Bookkeeping?

Simply put, outsourced bookkeeping means hiring a third-party team (or individual) to handle your company’s day-to-day financial recordkeeping remotely.

Unlike hiring in-house, outsourced solutions are flexible and often cost less. You avoid recruitment hassles, onboarding time, and infrastructure setup. Instead, you gain access to trained professionals who already understand financial best practices.

In-house vs. Outsourced Bookkeeping:

Criteria	In-house Bookkeeping	Outsourced Bookkeeping
Cost	Higher costs due to salaries, benefits, and overhead	Generally 30–60% more affordable
Scalability	Limited by internal team size and resources	External teams can grow with your business
Expertise	Dependent on in-house expertise and training	Access to professionals trained across various tools and sectors

Benefits of Outsourcing Bookkeeping

Outsourced bookkeeping offers more than savings—it brings structure and financial clarity.

• Cost Savings: Avoid salaries, benefits, and office costs. Outsourcing can cut bookkeeping costs by thousands annually. You eliminate recruitment, training, and overhead expenses. Many providers offer bundled pricing, making budgeting easier.
• Time Efficiency: Spend less time on admin, more time on strategy and growth. Outsourced teams follow established processes, reducing delays. This allows internal teams to refocus on high-impact activities.
• Specialized Expertise: Access bookkeepers familiar with global compliance and reporting standards. Many are certified professionals trained across industries. They bring up-to-date knowledge of tax laws and regulations.
• Scalability: Whether you’re processing 10 or 10,000 transactions, outsourcing adapts with you. You can increase or reduce the scope without needing to hire or fire staff. This flexibility supports business expansion or contraction.
• Error Reduction: Professionals use tools and workflows that minimize mistakes. Automated checks and standardized procedures ensure consistent accuracy. This reduces the risk of costly financial misstatements.
• Data Security: Top providers employ encryption, regular backups, and role-based access. Most comply with international standards like ISO 27001. Your financial information is protected with enterprise-grade security.
• Advanced Tech: Benefit from tools like QuickBooks Online, Xero, and AI-powered reconciliation. Outsourced providers often invest in the latest accounting technology. You get modern reporting and integrations without added costs.

According to a 2023 report by Clutch, 83% of small businesses will maintain or increase their spending on outsourced business services —highlighting growing confidence in external finance partners.

When Should a Business Consider Outsourcing Bookkeeping?

Not every business starts with a bookkeeper. But every business reaches a point where accurate financial management is non-negotiable.

Outsource if:

• You or your team spend too much time on bookkeeping tasks.
• There’s a lack of in-house expertise in accounting and tax compliance.
• You’re scaling and your financial needs are becoming more complex.
• You’re aiming for investor-readiness and need clean financials.
• Staying compliant with international laws is getting overwhelming.

Types of Outsourced Bookkeeping Services

Outsourcing isn’t all-or-nothing. Services can be customized depending on your business needs.

• Accounts Payable & Receivable Management: Streamline bill payments and customer collections. Ensure timely follow-ups, reduce late payment penalties, and maintain steady cash flow. Professionals can automate reminders and reconcile invoices seamlessly.
• Payroll Processing: Ensure accurate, on-time payroll with compliance built in. Avoid legal penalties by adhering to tax deadlines and labor laws. Providers also manage deductions, bonuses, and multi-jurisdictional payroll setups.
• Bank Reconciliation: Identify discrepancies and maintain clean books. Reconcile bank statements against internal records to detect errors or fraud. Accurate reconciliation helps ensure reliable financial statements.
• Financial Reporting: Monthly P&Ls, balance sheets, and custom dashboards. Generate real-time insights that inform executive decisions. Outsourced teams can tailor reports to meet investor or board requirements.
• Tax Preparation & Filing: Stay compliant with local and international tax rules. Minimize liabilities through strategic planning and deductions. Experts stay updated on evolving tax codes, helping reduce audit risks.
• Expense Tracking & Budgeting: Get visibility into spending and improve forecasting. Categorize expenses accurately to monitor departmental costs. Gain insights that support cost-cutting initiatives and margin improvement.

See how companies are saving by outsourcing to the Philippines.

Best Countries for Outsourced Bookkeeping Services

When it comes to outsourcing bookkeeping, not all countries offer the same level of talent, infrastructure, or cultural alignment. The Philippines stands at the forefront of global finance outsourcing, while a few others are steadily emerging as reliable alternatives for specific needs. Here’s a look at where businesses are turning in 2024 to scale their bookkeeping functions efficiently.

• The Philippines remains the most trusted destination for outsourced bookkeeping, and for good reason. With a deep talent pool of accounting professionals—many of whom are CPA-certified—the country combines technical expertise with a high level of English proficiency and cultural alignment with Western business standards. Filipino bookkeepers are widely experienced in platforms like QuickBooks, Xero, and NetSuite, and are known for their reliability, adaptability, and customer-centric approach. As the world’s most mature finance outsourcing hub, the Philippines continues to attract startups and global enterprises alike that want quality, security, and value in one package.

• India follows closely as a well-established player in the outsourcing space, particularly in high-volume, back-office finance tasks. Indian firms have built global delivery models that allow them to support enterprises with complex accounting systems, compliance processes, and ERP integration. While India offers a broad spectrum of financial services, it often caters to larger corporations looking for technical accounting expertise at scale.

• Vietnam is emerging as a competitive outsourcing market thanks to its growing BPO sector, increasing number of English-speaking finance graduates, and favorable labor costs. While not yet as mature as the Philippines or India, Vietnam is gaining ground with businesses seeking affordable bookkeeping support, especially within Southeast Asia. Its proximity to major Asia-Pacific markets also makes it appealing for companies with regional operations.

• Malaysia offers a stable, multilingual finance workforce, particularly attractive to multinational corporations with operations across Asia. Its skilled accounting professionals are supported by strong digital infrastructure and a government that actively promotes shared services. Malaysia is especially known for delivering high-quality financial reporting and compliance support to mid-market and enterprise clients.

• Brazil rounds out the list with a solid base of finance and accounting talent, particularly in compliance-heavy environments. While costs may be higher compared to Asian counterparts, Brazil is a go-to for companies seeking support in the Americas with Portuguese- or Spanish-speaking finance professionals. It is especially suitable for regional businesses in LATAM that need culturally aligned, local finance partners.

At Penbrothers, we specialize in offshore staffing solutions with a proven track record of placing finance professionals from the Philippines into high-performance global teams.

How Much Does Outsourced Bookkeeping Cost?

Pricing varies, but the average outsourced bookkeeper in Southeast Asia costs 70% less than their U.S. counterpart.

Factors Influencing Cost:

• Volume and complexity of transactions
• Type of services required
• Technology stack used
• Country of origin

For instance, hiring in the Philippines via Penbrothers can provide full-time bookkeeping support starting at significantly lower monthly costs than hiring locally in the West. Plus, we handle HR, compliance, and admin—so you don’t have to.

Bookkeeper

Responsible for documenting financial transactions, organizing them accurately, and maintaining up-to-date ledgers to ensure consistent and reliable financial records

Philippine Annual Salary:	USD 15,123
United States Annual Salary:	USD 66,300

How to Choose the Right Outsourced Bookkeeping Provider

Not all providers are created equal. The right partner aligns with your workflow, values, and growth plan.

Look for:

• Industry Experience: Especially if your sector has specific compliance or reporting standards. A provider with niche experience can better anticipate challenges and regulatory requirements. This ensures your books are aligned with industry best practices from day one.
• Tech Proficiency: Providers should be skilled in platforms like QuickBooks, Xero, NetSuite, etc. They should also be capable of integrating with your current systems and recommending automation tools for efficiency.
• Security Standards: Look for ISO certifications and data encryption practices. A trustworthy provider should have strict data governance policies and regular audits to prevent breaches.
• Transparent Pricing: Avoid hidden fees or vague deliverables. A detailed breakdown of services and billing helps build trust and manage expectations.
• Flexibility: Your business changes. Your bookkeeping solution should, too. Whether scaling up or pivoting, your provider should adapt to meet new demands without friction.

Penbrothers offers end-to-end staffing, HR management, and operational support so you can focus on growth. Our clients trust us not just for talent, but for the systems we build around it.

Penbrother’s Success Story

How a US Company Achieved 76% Cost Savings with Offshore Bookkeeping Support

KP Staffing, a Texas-based agency specializing in skilled trades and light industrial staffing, faced rising labor costs and slowed hiring cycles due to a tightening U.S. talent market. In response, the company partnered with Penbrothers to offshore several back-office roles—including bookkeeping—to the Philippines. This strategic move allowed them to maintain financial accuracy and compliance while freeing up resources to focus on scaling their core business. By hiring offshore bookkeepers, KP Staffing was able to delegate daily financial tasks such as invoicing, reconciliation, and payroll support to skilled professionals at a fraction of the domestic cost.

With Penbrothers’ fast-track hiring process, KP Staffing was able to fill roles within 30 days, supported by a Hypercare onboarding framework that ensured smooth team integration and performance alignment. The result: a 76% reduction in employee costs and improved operational agility. “Penbrothers enabled us to get the best of both worlds,” says CEO Nathan Doran, “saving on overhead while working with expert talent that supports our business growth.” Offshore bookkeeping has since become a critical component of their back-office operations, helping KP Staffing scale smarter and faster.

Conclusion

Bookkeeping shouldn’t be a bottleneck.

With outsourced bookkeeping, you free up time, cut costs, and gain access to expertise that scales with you. It’s not just about saving money—it’s about building smarter financial foundations.

Whether you’re launching a startup or optimizing a global operation, the right partner matters. Penbrothers can connect you with vetted, full-time bookkeepers from the Philippines and help you set up a streamlined, secure, and fully compliant financial operation.

Ready to elevate your bookkeeping game? Let’s build your offshore team today.