Bookkeeping eats up time you could spend growing your firm.
That’s why outsourcing is common in the accounting industry — not only does it free you up for higher-value work, but it can also lead to significant cost savings.
In this article, I’ll share 11 outsourced bookkeeping solutions to help you decide.
Let’s go!
Table of Contents
- Ways to Outsource Bookkeeping for CPAs
- Top Platforms for Outsourcing Bookkeeping Services
- Why Should You Outsource Your Firm’s Bookkeeping?
- When Should You Outsource Your Firm’s Bookkeeping?
Ways to Outsource Bookkeeping for CPAs
Before we continue, there are 3 important terms you need to understand.
The option you choose will depend on these distinctions, as each comes with its own pros and cons.
Outsourcing
Outsourcing means hiring a third-party firm to handle your bookkeeping.
You hand over the work, and they manage it with their own team and processes. Unlike offshoring, outsourcing doesn’t have to happen overseas.
Instead of managing bookkeeping with an in-house team, you let an external provider take care of it.
Offshoring
Offshoring accounting or bookkeeping means moving your accounting functions and team to another country — typically one with lower labor costs. This is a very cost-effective solution.
Unlike other outsourcing models, you retain full control over financial data processing.
I’ve talked about the common misconceptions about offshored employees in a podcast — one of them is that they are a separate team from your onshored employees.
This is simply not true.
When you offshore, you are hiring someone else in another country and they become your “employee.”
For example, instead of hiring a bookkeeper in Canada or the US, you might instead hire skilled professionals with the required certifications from the Philippines.
My Future Firm team is 100% offshored. And in one of my LinkedIn posts, I shared some tips to bring out the best in offshore teams.
Onshoring
Onshoring means shifting accounting work to another city or region within your own country.
Firms that want to avoid language barriers, cultural differences, or foreign regulations often hire local bookkeepers or outsourced accountants within their own country to handle these tasks.
Top Platforms for Outsourcing Bookkeeping Services
1. TeamUp
When it comes to outsourcing bookkeeping tasks, TeamUp stands out as a great option for accounting firms (affiliate link) who are fed up with the BPO setup.
The company was founded by Isaac Smith, a former bookkeeping firm owner, and Meryl Johnston, a coach and an active member in my Future Firm Accelerate program.
TeamUp connects firms with accountants based in the Philippines and ensures that the firm maintains complete control of the hiring process, team dynamics, and culture.
However, what sets it apart is that it offers a platform that eliminates the need for ongoing BPO management fees as it lets you hire candidates directly.
Simply put, its business model is basically the anti-BPO professional services provider.
TeamUp has provided accountants for US, Australian, and Canadian firms.
2. TOA Global
TOA Global is one of the leaders in the accounting “outsourcing” (in quotes, because technically they offshore) world.
Many virtual firms have used this platform to build significant parts of their accounting departments. In fact, you often see them at conferences like Xerocon and QuickBooks Connect.
According to their website, they have over 4,000 people on their dedicated team and deal with almost 1,200 accounting firms.
The work is performed in the Philippines, but they also have offices in the US and Canada.
You get to choose who you want from the available pool of talent when you offshore, and you can then train them on your accounting system’s unique financial information procedures.
What I like is that they are up to speed with a lot of the modern accounting software options out there, so if you’re a cloud accounting firm, this might be a good option.
Also, they can handle more than just bookkeeping functions. They also have auditors and virtual assistants for accountants in their talent pool.
You can also utilize TOA Global to hire experts who’ll work on tasks related to financial statements, which could provide timely and accurate insights into your clients’ financial performance.
As you are hiring someone offshore, you’ll certainly pay less than what you would onshore. However, TOA Global is not the cheapest option out of the ones on this list.
3. Botkeeper
Botkeeper (I am an advisor to them) has a bookkeeping team located in the Philippines, though I’d say the model more resembles outsourcing rather than offshoring.
They manage financial records with tools like QuickBooks Online and Xero.
What’s interesting about Botkeeper is that they don’t just provide your CPA firm with outsourced bookkeeping assistance, but an entire software platform (pictured below) to go along with it.
The platform allows your accounting firm to closely track the work and collaborate with the Botkeeper team.
Another interesting thing is that you don’t have to worry about Botkeeper offering other services down the road, thereby encroaching in your firm’s other accounting processes. They are firmly centered around helping you get rid of the bookkeeping work that you don’t want to do.
I had the chance to interview Botkeeeper’s CEO and wrote up a pretty extensive article on how their service works.
4. Pilot
Pilot provides outsourced bookkeeping functions. They focus on startups and growing businesses.
Unlike traditional firms, Pilot assigns you a dedicated professional bookkeeper who handles your books using QuickBooks Online while layering in automation to streamline the process.
Beyond bookkeeping, they offer CFO services and tax prep, making them a solid one-stop shop for financial back-office needs. Pricing is subscription-based, so you get predictable costs without surprise fees.
5. Paro
Paro is a bit different than the other options listed here.
They are an online network of accountants, bookkeepers, and tax experts that your modern accounting firm may use to acquire expertise on-demand.
The Paro platform connects firms with US-based professionals, so it’s certainly more in line with onshoring.
And while they can help with long term staffing needs for your accounting firm, they also have a large focus on helping you with your interim financial reports needs if you’re in a jam.
Like Uber, they act a bit like a match-making service where they help you fill a talent gap on-demand using their available pool of talent.
After a brief consultation call, Paro will match-make your financial services needs to an expert from their accounting services platform.
Following that, you’ll get a price and a scope of work for the help you’re looking for.
Once you approve the quote, the selected expert will be onboarded onto your team. They will work closely with you to seamlessly integrate into your existing bookkeeping processes.
6. Bookkeeper360
Bookkeeper360 offers a virtual bookkeeper service that integrates seamlessly with QuickBooks Online and Xero, giving you real-time financial insights.
Specialized professionals handle your books and help keep everything IRS-compliant. They adapt to your firm’s needs, whether that’s cash- or accrual-based accounting.
7. Bench
Bench offers outsourced bookkeeping and tax preparation services to businesses. It was recently acquired by Employer.co.
The company is based in Canada, but it exclusively services small businesses and firms in the US.
One of the big differences between Bench and some of the others is that they use their proprietary bookkeeping software to handle the books. So if you’re looking for outsourced bookkeeping to be handled on Xero or QBO, you’ll want to look elsewhere.
That being said, they offer outsourced bookkeeping for CPAs at competitive prices, making them a worthwhile consideration.
8. Upwork
Upwork is a freelancing marketplace where you can locate and hire freelancers, such as bookkeepers, to help you manage your company’s accounts payable and accounts receivable processes.
It’s often a popular recommendation when considering hiring staff for outsourced bookkeeping and other crucial processes. That being said:
Approach with caution.
While you can get some really cheap outsourced bookkeeping for CPAs with Upwork, I’ve never seen anything good come out of it. In fact, I’ve seen many disasters!
I’m not saying there are no good bookkeeping freelancers that can do your monthly bookkeeping or other basic bookkeeping services on the platform.
You can find great freelance bookkeepers — but you’ll have to look hard.
It also helps to remember: you get what you pay for.
9. QuickBooks Live
Here’s an interesting option for firms that might be heavy in the QuickBooks ecosystem.
QuickBooks Live is slightly controversial — it’s a software provider that got into the services game.
But at the same time, it also provides another option for outsourced bookkeeping for CPAs.
To be clear, QB Live is targeting small businesses, not firms.
From a consumer standpoint, it works just like Uber. You connect to their platform, answer a few questions and they connect you with a live bookkeeper to help out with the bookkeeping.
Nothing is advertised online about how they can help firms, though.
When I attended a previous QuickBooks Connect, it was mentioned in the QB Live session that they were receiving requests from firms who wanted to outsource their bookkeeping, so it might be worth speaking to them about it.
10. D&V Philippines
While there are a ton of outsourcing options out there (and I certainly am leaving quite a few out!), I wanted to briefly mention D&V Philippines.
This Philippine-based company provides outsourced accounting services, and has been active in the cloud accounting space for many years.
Their dedicated team can also assist you with some of your other accounting needs and financial reporting requirements in addition to bookkeeping services.
And while I won’t comment on pricing here, they are quite competitive.
When it comes to outsourced bookkeeping for CPAs, you might want to add them to the evaluation.
11. Cloudstaff
Cloudstaff (affiliate link) provides a diverse talent pool of highly skilled accounting professionals.
They that you have the flexibility to select the candidate who aligns best with your specific needs and preferences.
What sets it apart is that it takes the burden of IT and HR setup off your shoulders, saving you from the complexities often associated with remote staffing. This way, you can focus your energy on your core business activities.
In essence, Cloudstaff streamlines the entire process of finding, onboarding, and managing remote talent, making it easier for you to scale your firm and achieve your business objectives.
Why Should You Outsource Your Firm’s Bookkeeping?
Outsourcing your firm’s bookkeeping can offer several benefits, depending on your specific business needs and circumstances.
Hiring an online bookkeeping service, for example, can help in accounting and bookkeeping, ensuring accurate financial reporting for your business.
Here are some compelling reasons why you might consider outsourcing your firm’s bookkeeping:
- Reduced labor costs: Outsourcing can be more cost-effective than hiring and training in-house bookkeepers or accountants. You can avoid expenses related to salaries, benefits, and office space.
- Access to specialists: Outsourcing firms often employ experienced professionals who specialize in bookkeeping and accounting. You can benefit from their expertise and stay up-to-date with relevant regulations and best practices.
- More time for core business activities: Outsourcing your bookkeeping tasks allows you to redirect your time and resources toward core business activities like sales, marketing, and taking care of client relationships.
- Accuracy and compliance: Professional bookkeepers are trained to maintain accurate financial records. Often, outsourcing firms are typically well-versed in tax laws and regulations, so you can avoid compliance issues and penalties.
- Easily adapt to growth: As your business grows, your accounting needs may become more complex. Outsourcing can accommodate this growth by providing flexible solutions.
- Access to modern technology: Outsourcing firms often have access to cutting-edge accounting software and tools.
- Flexibility: Outsourcing providers can tailor their services to match your specific needs, whether you require full-service bookkeeping or assistance with specific tasks.
While outsourcing bookkeeping has numerous advantages, you need to choose a reputable and trustworthy outsourcing partner.
Carefully evaluate potential providers, check their references, and ensure they align with your firm’s goals and values before making a decision.
When Should You Outsource Your Firm’s Bookkeeping?
Deciding when to outsource your firm’s bookkeeping depends on various factors, including your business’s size, growth stage, financial complexity, and your own capacity and expertise.
Here are some common scenarios and signs that indicate it might be a good time to consider virtual bookkeeping services:
- Time constraints: As your business grows, so do your responsibilities. If you find that managing bookkeeping tasks is taking up too much of your time as a business owner, outsourcing can free you to focus on core business activities and strategic planning.
- Inconsistent records: If your financial records are often incomplete or inconsistent, it can lead to costly errors and compliance issues. Outsourcing can provide consistent and reliable record-keeping.
- Growth and complexity: As your business expands, your financial transactions and reporting requirements may become more complex. Outsourcing can help you manage this increased complexity effectively.
- Seasonal demands: If your firm experiences seasonal fluctuations in financial activity or your bookkeeping workload varies greatly from month to month, outsourcing can offer flexibility by providing additional support during peak times and scaling down during slower periods.
The decision to outsource your firm’s bookkeeping should be based on a careful assessment of your unique circumstances and needs.
You also need to make sure that whoever you choose to work with is not only skilled but also fits in with your culture. Here’s a list of 23 accounting interview questions to gauge this.
Ready to Outsource Bookkeeping?
That’s a wrap.
We’ve covered the benefits and the top platforms for outsourcing your bookkeeping.
Where do you outsource your bookkeeping processes?
Do you prefer offshoring, onshoring, or offshoring? Is there anything we missed?
Share them in the comments below!
