How Much Does Outsourced Accounting Cost in Australia?
Outsourcing accounting has become an increasingly popular choice for Australian sinesses looking for reliable, cost-effective financial support. Regardless of whether you’re a sole proprietor, start-up or enterprise, outsourced accounting offers all the perks of a dedicated accounting team without the overhead of hiring full-time staff.
But how much does it actually cost?
Why Cost Varies So Much (And Why It's Not All Apples-to- Apples)
Outsourced accounting service providers handle accounting tasks similar to that of a local or in-house team member. This includes bookkeeping, accounts payable and receivable, cash flow management and financial reporting. Building an outsourced team typically involves partnering with a specialist provider who recruits, trains, and onboards offshore staff to support and scale your finance function. Outsourced accounting pricing mostly depends on a few key variables:
Business size
A larger business means more employees and higher transaction volume, both of which are major factors in determining the cost for outsourced accounting services.
- The more complex your payroll, the more you can expect to invest in your outsource accounting team to manage this compliance-heavy task.
- Larger-scale businesses also generally mean a greater volume of monthly transactions, multiple revenue streams and more complex financial reporting requirements.
Services included
Outsource accounting teams can handle the full scope of accounting requirements. This may include tasks like bookkeeping, payroll, cashflow management & forecasting, to financial controller functions and tax compliance and preparation. Your outsource team could even be responsible for directly corresponding with key stakeholders such as customers and suppliers. The cost of outsourced accounting services varies significantly depending on the services required for the role.
Hourly Rates vs Monthly Packages
Bookkeeping services cost (hourly rates) in Australia:
| Pricing Model | Typical Range (AUD) | Description |
| Hourly Rate | $40-$100 per hour | A common model for freelancers and smaller scale businesses looking for bookkeeping services. |
| Monthly Retainer | $500-$5000+ per month | A fixed fee covering a suite of accounting/bookkeeping services. |
An hourly rate is usually preferred by businesses looking to outsource during certain tasks, or perhaps have in-house teams that need the help during tax season.
Monthly retainers are expected for mid to large-sized companies where a larger, more regular set of services are required, such as payroll, BAS management reporting etc. Rates vary widely due to the broad scope of outsourced accounting and bookkeeping services.
Monthly Pricing Benchmarks for Australia
Outsourced accounting services costs usually follow a tiered system. Each tier adds layers of services and complexity to those services. The larger your business, the more likely you’ll be looking at a higher tier of services.
| Tier | Typical Range/month (AUD) | Description |
| Basic | $500 – $1000 | Bookkeeping, reconciliations, quarterly BAS. A few hours per month. |
| Mid | $1000 – $2000 | Payroll, monthly reporting, software integration. A few days per month. |
| High | $2000 – $5000+ | Multi-entity support, management reporting, advisory. Full time support. |
What Impacts the Price?
The cost of outsourced accounting/bookkeeping services varies heavily on the accounting complexity your business requires. Some major cost drivers include:
Frequency of reporting
Are you looking at monthly or quarterly reports? More frequent reporting means a higher monthly retainer.
Payroll size & scope
As employee numbers increase, so does the complexity of transactions-more pay slips, tax withholding, superannuation, benefits, overtime, leave and reimbursements to process.
Automation level
The use of software and applications like Xero, MYOB and QuickBooks decreases manual workload, leading to recognised outsource cost efficiencies.
Special compliance needs
Industries including healthcare, construction, non-profits often face additional regulatory reporting, grant accountability, and tax obligations. This often requires accountants with specialised compliance knowledge and, in some cases, advanced systems.
Is It Cheaper Than Hiring In-House?
Hiring an in-house bookkeeper or accountant in Australia can cost anywhere between $6,000 – $10,000 a month plus on costs. Compared with a high tier outsource accounting service costing between $3,000 – $4,000+ a month, outsourcing often delivers significant savings. That is an approximate 60% saved every year per staff member! This too, is before factoring in employment overheads and recruiting costs that an in-house team entail.
How to Evaluate a Quote (Beyond the Price Tag)
When evaluating quotes from outsourced accounting service providers, it’s important to make sure everything is 100% clear and understood on both sides. A basic checklist for evaluating quotes would include:
Service inclusions: Ensure that each requested service is listed in the quote. e.g., BAS lodgement, payroll, frequency of reporting, etc.
Certifications: Do they have the appropriate qualifications to actually provide the services you require?
Turnaround time: Make sure deadlines are clearly defined where applicable.
Software compatibility: This is important especially if you are outsourcing only a section of your accounting/bookkeeping. The software the outsourced provider uses (such as Xero, MYOB, QuickBooks, etc.) should be compatible with your own.
Support quality: Can they ensure the availability of dedicated account managers and/or teams throughout the contract period?
Ongoing Training: Is your offshore partner providing ongoing CPD training to your staff members so they remain up to date with the latest legislation.
Question your potential provider if you feel there’s a lack of itemisation and clarity in a quote like this.
Final Thoughts: What You Should Expect at $2K-$4K/Month
At the higher tier of quality accounting, you should receive a solid balance of quality, expertise, and value for growing your business. You can expect: :
- Responsive, personalised support with a dedicated team.
- Accurate and timely bookkeeping with comprehensive financial reports.
- Real business advisory services targeted to help strategic growth, beyond basic compliance.
- Integration with accounting software and automation to save time on more basic tasks.
- Compliance assurance for complex industry-specific needs.
Frequently asked questions
What is the average hourly rate for a bookkeeper in Australia?
You can expect to pay between $40 – $100 per hour for basic bookkeeping services. This is usually preferable for freelancers and smaller businesses.
How much does outsourced accounting cost monthly?
Monthly retainers for outsourced accounting can range from $500 – $4000+ a month. This is highly dependent on the services you require. Retainer tend to follow a tiered system, with each higher tier providing more specialised services.
What's included in an outsourced bookkeeping package?
An outsourced accounting and bookkeeping service can potentially provide the full suite of accounting services. This ranges from basic bookkeeping to payroll for large-scale companies, to compliance adherence.
Why is there such a range in outsourced accounting pricing?
In addition to considering which services are provided, pricing also depends on the scale of your business. E.g., payroll for a smaller business would be simpler than that of a larger business with more variables to consider.
Special compliance needs and software compatibility play a big part in this as well. Special compliance needs require specialised knowledge from your team, driving costs up. And on the other hand, being able to automate certain workflows using QuickBooks, Xero or MYOB may bring costs down.
How do I compare accounting providers fairly?
Make sure that each provider is quoting for the same range of services. Check for appropriate certifications to ensure compliance standards are adhered to. Are they using industry software that can integrate with your systems?
Also ensure you have ready support-is there an easily reachable contact should anything happen?
Is outsourced accounting cheaper than hiring in-house?
Comparing apples to apples in terms of services provided, yes, outsourcing your accounting tasks is significantly more affordable than hiring in-house (this represents an approximate 60% annual saving per staff member). This is purely comparing salary and not factoring the other on cost, overheads and recruitment that comes with a local hire.
What should I look for in a quote or proposal?
- An itemised quote of services provided, along with the qualifications to match (ifapplicable).
- Make sure timelines and deadlines are clearly defined, along with frequency in termsof reporting.
- It is important that they can ensure their software is compatible with your currentintegrations.
- It is essential that a good provider is able to ensure the availability of a dedicatedaccount manager to contact throughout the contract period.
- What else comes with the fee? Ongoing training & support, local HR support, workculture costs etc.
Are you looking to take the next step with outsourced accounting?
Get in touch with S&B today.
Outsourcing your accounting gives your business flexibility, cost savings, and access to the right expertise as your business grows. Understanding the main cost drivers like business size, payroll, automation, and compliance will help you choose the level of support that fits your business best.