TL;DR: UK outsourced bookkeeping typically costs between £50 and £3,500 per month, depending on business size, transaction volume, and compliance needs. Pricing is commonly based on per-employee or monthly packages and delivers strong ROI compared to hiring in-house. White-label bookkeeping allows accountancy firms to achieve high margins while reducing operational overheads through hybrid UK-supervised delivery models.
In an era of talent shortages and complex compliance, outsourcing has become mainstream for both accountancy firms and growing businesses. A recent survey found that 90% of chief financial officers now outsource at least some accounting functions. At the same time, the UK bookkeeping market generated about £6.8 billion in revenue in 2025, with more than 6,059 businesses competing in a sector that continues to grow at 1.7% per year. With more than 5.5 million UK businesses, 99.9% of which are SMEs, the need for clear and transparent bookkeeping pricing has never been greater.
Yet most articles skim over costs, hide the small print or focus on US pricing. As a hybrid bookkeeping specialist supervised by UK chartered accountants, Acenteus CCA believes transparency helps firms make better decisions. This guide unpacks every element of outsourced bookkeeping pricing in the UK for 2025 so you can budget accurately and compare providers fairly.
What this guide covers
- Pricing models: How hourly, monthly, per-transaction and tiered packages work and when to use them
- Cost breakdowns by business size: From sole traders to large SMEs, see typical ranges
- Cost factors: Transaction volume, complexity, software integration, add-ons, delivery models and compliance
- In-house vs outsourced ROI: Understand total internal costs (salary, NI, pension and overhead) and calculate your return on outsourcing
- White-label bookkeeping: Pricing structures and profitability for accountancy firms
- Service-type pricing: Compare basic bookkeeping, VAT, payroll, CIS and full-service packages
- Regional and provider variation: How London vs regional rates and freelancers vs firms affect pricing
- Hidden costs, compliance and value: Budget for setup, software, catch-up work and future regulation
- Selecting a pricing model and provider: Decision frameworks and questions to ask
Whether you run a practice seeking scalable, white-label support or a finance director weighing in-house costs against outsourcing, this comprehensive guide gives you the data and frameworks needed to make an informed decision.
Understanding outsourced bookkeeping pricing models
Outsourcing providers use several pricing structures. Choosing the right model depends on your transaction volume, service scope and desire for budget predictability.
Hourly rate pricing
Many freelancers and small firms charge by the hour. UK bookkeeping hourly rates typically range from about £13-£60 per hour, with £20-£35 common for standard work and higher rates for complex, compliance-heavy tasks. Hourly pricing provides flexibility for ad-hoc support or clean-up work, but costs can become unpredictable when transaction volumes rise or if the work is poorly defined.
Typical hourly rates across the UK:
- Freelance bookkeepers: typically £18-£22 per hour
- Regional variance: London, Manchester, Birmingham and Bristol average £20 per hour, while Edinburgh averages £15
- High-end firms: specialists or chartered accountants can charge £35-£60+ per hour, reflecting higher qualifications
Hourly pricing works when you only need occasional support, scope is unclear (e.g. one-off cleanup), or you want a trial run before committing to a retainer. The downside is unpredictability: if you underestimate complexity or your books are messy, hours and invoices can balloon.
Monthly fixed-fee pricing
Fixed monthly retainers provide cost certainty by bundling agreed services into a single fee. This is increasingly popular, especially for SMEs and accountants who want predictable costs. Packages are often scaled by business size:
- Sole traders/micro-businesses: packages start around £50-£120 per month
- Small limited companies (1-5 staff): typical packages £100-£300 per month
- Growing SMEs (5-10 staff): packages £250-£600 per month
- Mid-sized companies (10-50 staff): £400-£2,000 per month
- Large SMEs (50+ staff): £2,000-£3,500+ per month
Monthly fees offer predictable budgeting and encourage providers to invest in automation. However, they can include minimum contract lengths and may not suit very low-transaction clients.
Per-transaction pricing
Under this model, fees are charged per invoice, receipt or bank transaction processed. Typical rates in the UK range from £0.50 to £2.00 per transaction, with lower rates for higher volumes. This model works well when there’s clear volume data and relatively standardised workflows.
Per-transaction pricing is particularly attractive for high-volume retail/e-commerce businesses, accountancy firms reselling bookkeeping services at a markup, and businesses that want cost to scale transparently with activity. They become inefficient once transaction counts exceed 200 because a fixed fee often works out cheaper.
Tiered package pricing
Tiered pricing blends predictability with scalability by grouping services into levels (for example, basic bookkeeping, bookkeeping plus VAT, or bookkeeping plus payroll and management accounts). Many providers bundle hours, transaction thresholds, and deliverables into tiered packages (e.g. “Starter”, “Growing”, “Established”) at set price points.
A typical structure might be:
- Basic: 0-50 transactions, simple bank reconciliation, from £50-£150/month
- Standard: 51-200 transactions, VAT support, from £150-£400/month
- Premium: 200-500+ transactions, multi-currency, management reports, from £400-£1,500+/month
Packages make it easier for buyers to compare options side-by-side, but it’s critical to understand what’s included versus “add-on” services (e.g. catch-up work, CIS, or complex reporting).
Pricing models comparison
Pricing model | Typical range | Best for | Pros | Cons |
Hourly | £13-£60+/hour | One-off projects, clean-ups, very small clients | Flexible, pay only for hours used | Costs unpredictable; can discourage efficiency |
Monthly fixed fee | £50-£3,500+/mo | Most businesses with steady transaction flow | Predictable budgeting; encourages provider efficiency | May require minimum contract; not ideal for very low volume |
Per-transaction | £0.50-£2 per transaction | Sole traders/micro-businesses with <50 transactions | Only pay for what you use; easy to scale down | Becomes expensive as volume grows; careful tallying required |
Tiered package | Varied (Basic, Standard, Advanced) | SMEs wanting scalable bundles | Clear deliverables; easy to upgrade | Packages may include services you don’t need |
UK bookkeeping cost breakdown by business size
Not all businesses are created equal. Costs depend on transaction volume, staff size and complexity. Below is a breakdown of typical outsourced bookkeeping fees for 2025.
Business size | Monthly cost | What’s usually included |
Sole traders & micro-businesses (turnover <£100k, <25 transactions) | £50-£120/mo | Basic transaction entry, bank reconciliation, quarterly VAT preparation (if registered). Per-transaction packages also popular. |
Small Ltd companies (1-5 staff) | £100-£300/mo | Transaction entry, bank and credit-card reconciliations, quarterly VAT submissions, monthly management reports. |
Growing SMEs (5-10 staff) | £250-£600/mo | Bookkeeping, VAT, payroll for up to 10 employees, quarterly management accounts. |
Mid-sized companies (10-50 staff) | £400-£2,000/mo | Bookkeeping, VAT, payroll (up to 50 employees), monthly or quarterly management accounts. |
Large SMEs & enterprises (50+ staff) | £2,000-£3,500+ per month | Full-service bookkeeping, weekly payroll, VAT, CIS processing, management reporting, dedicated team with UK oversight. |
Note: Pricing ranges reflect typical 2025 fees and exclude catch-up or setup costs. VAT returns typically add £70-£200 per quarter, while software subscriptions (e.g. Xero) add £15-£60/month.
This scale-based approach highlights how outsourcing costs align with business complexity. SMEs with more than 10 staff often find that fixed monthly packages deliver better value than hourly or per-transaction models.
Key cost factors that influence bookkeeping pricing
Every outsourced bookkeeping proposal reflects a set of cost drivers. Understanding these factors helps you anticipate fees and negotiate effectively.
1. Transaction volume
Providers tier pricing by transaction counts, because more transactions mean more data entry, coding and reconciliation. Typical bands include:
- 0-25 transactions/month: micro businesses; per-transaction pricing works
- 26-50 transactions: lower tier of monthly fixed fees (£50-£100)
- 51-100 transactions: requires part-time bookkeeper; fees often £100-£250
- 101-200 transactions: moderate complexity; fees £250-£400
- 201-500 transactions: high volume; expect £400-£1,000
- 500+ transactions: complex, often includes multi-entity or multi-currency; quotes become bespoke
2. Service complexity and depth
Basic bookkeeping focuses on data entry and bank reconciliations. As you add VAT returns, payroll, CIS (Construction Industry Scheme) processing, management accounts or inventory management, costs increase. For instance, VAT return support adds £75-£250 per return and payroll for 10 staff can raise monthly fees to £600-£1,100.
3. Software integration and technology
If your provider needs to integrate with multiple systems (EPOS, CRMs, industry platforms) or support complex workflows in Xero, QuickBooks, or Sage, expect a premium. Many UK firms now insist on MTD-compatible accounting software, which has licence costs of its own (often £10-£50 per month for small business plans).
Modern providers work with cloud accounting platforms to reduce manual processing and speed up month-end closes. Research shows that simple reconciliations can be completed in 48 hours, while complex datasets take 2-3 business days.
4. Add-on services
Common add-ons that drive pricing include:
- Payroll processing: fully managed payroll costs roughly £5-£10 per payslip or £25-£50 per month for five employees
- VAT returns: typical cost £70-£100 per quarter, but can reach £200-£400 per return for high-volume businesses
- CIS processing: charges vary widely (often £1-£20 per certificate), depending on whether gross, standard (20%) or higher (30%) CIS rates apply
- Management accounts and reporting: monthly or quarterly management accounts add roughly £50-£250 depending on depth
5. Delivery model: UK-only, offshore, or hybrid
A UK-only bookkeeping team typically charges higher hourly and package rates because of local salary and overhead levels. Pure offshore providers can be cheaper, sometimes undercutting UK rates substantially, but may raise concerns around communication, time zones, and regulatory understanding.
Hybrid models (offshore delivery with UK-qualified oversight) aim to combine lower per-unit costs with UK-standard review and compliance, typically coming in 30-50% below pure UK providers for equivalent output while avoiding most quality and compliance risks of unmanaged offshore setups. Acenteus CCA uses this model, delivering UK-standard books at 50-70% of the cost of purely UK providers while maintaining oversight.
6. Dedicated vs shared resources
You can either pay for a dedicated bookkeeper (or team) or for a share of a pooled team. Dedicated resources cost more but offer deeper familiarity with your systems and clients. Shared resources are cheaper but can be less tailored.
White-label providers for accountants often use a hybrid approach: a named lead bookkeeper managing a shared team behind the scenes.
7. Compliance requirements (MTD, PAYE, CIS, industry rules)
As HMRC’s Making Tax Digital (MTD) and basis period reforms reshape how records must be kept and submitted, compliance becomes both a cost driver and a cost saver. Key regulatory drivers include:
- Making Tax Digital (MTD) for Income Tax: Businesses with income over £50,000 must keep digital records and file quarterly updates from 6 April 2026; those over £30,000 from 6 April 2027
- Basis period reform: 2025/26 transitional year; sole traders and partnerships must align accounting periods with tax years
- VAT MTD: mandatory since 2022, with the VAT registration threshold at £90,000 from April 2024
- PAYE/National Insurance: Employer NI contributions increased from 13.8% to 15% in April 2025
Outsourced teams that are MTD-ready and handle digital record-keeping and quarterly submissions will price that expertise in, but they also help you avoid penalties and rework.
Outsourced bookkeeping vs in-house cost comparison
A common question is whether outsourcing genuinely saves money compared with hiring a bookkeeper. To answer that, we must tally the full cost of an in-house employee.
True cost of an in-house bookkeeper
When UK businesses or accountancy firms consider cost, they often compare outsourced fees to basic salary alone. In practice, the true cost of an in-house bookkeeper includes:
- Salary: As of December 2025, the average bookkeeper earns £28,514 per year, with salaries ranging £25,000-£40,000 depending on experience
- Employer National Insurance: For 2024/25 employers pay 13.8% on earnings above the secondary threshold; from April 2025 this rises to 15%. On a £30,000 salary, NI contributions total roughly £4,200-£4,500 per year
- Pension contribution: Under auto-enrolment, employers must contribute 3% of qualifying earnings. On a £30,000 salary, that’s about £600-£800
- Benefits, training, software licences, office space, equipment, and management overhead: typically add 15% of salary (approximately £3,750-£6,000)
- Total cost: Combining these elements gives a total annual in-house cost of approximately £38,500-£61,300 for a single bookkeeper
You must also consider recruitment fees and time, onboarding and training, cover for holidays and sick leave, turnover risk, and “key person risk” if a single individual controls the books.
Outsourced cost structure
In contrast, outsourced bookkeeping costs are variable instead of fixed, meaning you pay based on volume and complexity. They’re scalable (adding clients or transactions increases cost, but you avoid hiring steps), and you don’t carry HR, training or benefits overhead.
Based on the ranges discussed earlier, annual costs typically fall between £1,200 and £24,000 (equivalent to £100-£2,000 per month). Case studies of white-label accounting and bookkeeping arrangements show 25-60% cost savings versus building equivalent in-house teams.
ROI calculator and break-even analysis
A simple ROI formula for outsourcing is:
ROI = (In-house cost – Outsourced cost) ÷ Outsourced cost × 100
Example:
- In-house cost: £45,000 (salary £30,000 + NI £4,500 + pension £700 + benefits/overhead £9,800)
- Outsourced cost: £18,000 per year (equivalent to £1,500 per month for a growing SME)
- ROI: (45,000 – 18,000) ÷ 18,000 × 100 = 150%
In other words, for every pound spent on outsourcing, the company saves £1.50 compared with hiring. The break-even point occurs when monthly transaction volumes and complexities mean outsourcing costs approach the in-house salary plus overhead. For many SMEs this happens around 100-200 transactions per month.
Five-year cost projection
Option | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total 5-year cost |
In-house bookkeeper | £45,000 | £46,800 | £48,600 | £50,400 | £52,200 | £242,800 |
Outsourced service | £18,000 | £18,540 | £19,096 | £19,669 | £20,259 | £95,564 |
Savings | £27,000 | £28,260 | £29,504 | £30,731 | £31,941 | £147,236 |
Assumptions: 4% annual salary growth; 3% annual increase on outsourcing fees; benefits and overhead costs scale with salary.
Over five years, outsourcing saves around £147,000, equating to an ROI over 150%. It also frees management time and reduces turnover risk.
Real-world example
A five-partner accountancy practice processing around 200 transactions per month faced capacity constraints. Hiring three in-house bookkeepers would have cost about £135,000 plus NI, pension and overhead, totalling roughly £180,000 annually. By outsourcing to a hybrid provider at £6,000 per month (£72,000 per year) they saved over £100,000 per year. Additionally, the outsourced team delivered reconciliations within 48 hours and freed partners to focus on advisory work.
Expert providers report that when you factor in freed-up partner time, faster closes, and reduced error rates, effective ROI can reach 200% or more in some scenarios.
White-label bookkeeping for accountancy firms
Outsourcing isn’t just for SMEs – many UK accountancy firms partner with specialist providers to deliver bookkeeping under their own brand. This white-label model allows practices to scale capacity without hiring.
What is white-label bookkeeping?
White-label bookkeeping is when an outsourcing partner performs the work, but you keep client-facing control and brand. Your firm remains the point of contact; the outsourced team works in the background, typically inside your Xero or QuickBooks file. The provider uses your templates, communicates via your portals and remains invisible to your clients. Only the final work product appears under your branding.
Reseller margins and profitability models
White-label pricing is usually structured so that the outsourcing fee sits at around 50-70% of the equivalent in-house cost, leaving room for your markup. Pricing models include:
- Volume-based discounts: fees decrease as you outsource more clients or transactions. For example, a provider may charge £20 per hour for the first 100 hours per month and £15 per hour thereafter
- Per-client packages: packages for micro-business clients might cost £60 per month, which firms resell at £100-£150, generating healthy margins
- Dedicated full-time equivalent (FTE): a full-time offshore bookkeeper costs around £1,600-£2,000 per month when supervised by UK accountants, compared with £3,500-£4,000 for a UK-based hire
When setting reseller margins, consider the value of your review, client management and expertise. Many firms apply a 50-100% markup to cover quality control and advisory time.
A typical model might be:
- Outsourcing partner charges £150 per month for a client ledger
- Firm charges client £250-£350 per month as part of a broader compliance/advisory package
- Firm pockets the difference, without adding FTEs
Benefits for accounting practices
White-label partners absorb workload spikes, seasonal peaks and staff shortages, avoiding recruitment delays. This enables:
- Capacity without hiring: Scale without the overhead of new employees
- Revenue growth: Firms can onboard new bookkeeping clients quickly. Because outsourcing reduces cost per client, you can offer competitive pricing while increasing margin
- Time savings: Senior accountants regain 10-15 hours per week to focus on advisory services
- Quality control: UK-supervised hybrid providers adhere to local accounting standards and provide working papers ready for audit, reducing rework and preserving your firm’s reputation
- Client retention: By offering comprehensive bookkeeping and payroll under one umbrella, you reduce the risk of clients seeking services elsewhere
Client billing models
Firms typically bill clients via fixed monthly retainer (encourages predictable cash flow), per-transaction fee (can suit micro-clients, though ensure you include your review time), or hybrid models that combine a base fee with variable add-on charges for payroll or VAT.
Cost by service type
When comparing quotes, break down pricing by the specific services you need. Here are typical ranges for 2025:
Service type | Typical cost range | Notes |
Basic bookkeeping & reconciliation | £50-£200/mo | Includes transaction entry, bank reconciliation and basic reports. Suitable for micro-businesses. |
Bookkeeping + VAT returns | £100-£400/mo | VAT return preparation costs £70-£100 per quarter; high-volume businesses pay up to £200-£400 per return. |
Bookkeeping + payroll processing | £150-£600/mo | Fully managed payroll costs £5-£10 per payslip or £25-£50 per month for five employees. Prices scale with employee count. |
Bookkeeping + CIS processing | £200-£800/mo | CIS certificate processing ranges £1-£20 per certificate; total depends on number of subcontractors and monthly returns. |
Full-service package (bookkeeping + payroll + VAT + management accounts) | £400-£2,500+/mo | For mid-sized firms (10-50 staff). Includes monthly management accounts, payroll, VAT, CIS and advisory time. |
£500-£3,000 one-time | Preparation of statutory accounts and liaison with auditors; cost varies by company size and complexity. |
These ranges help you benchmark quotes. Always confirm what’s included, how volume fluctuations are handled and whether set-up fees or software licences are extra.
Regional and provider type pricing variations
Geographic differences
Bookkeeping costs vary across the UK due to labour costs and competition. The average UK rate for bookkeeping is £20 per hour in 2025, but location matters. London, Manchester, Birmingham and Bristol all show £20 per hour, while Edinburgh is cheaper at £15 per hour. Rural providers may charge lower fees but might have limited capacity or slower turnaround times.
Provider types
Provider type | Typical range | Advantages | Considerations |
Individual freelance bookkeepers | £18-£22/hour | Personalised service; flexible; good for micro-businesses | May lack capacity; cover issues during leave; limited review/quality control |
Small local bookkeeping firms | £50-£300/month | Offer fixed packages; local knowledge; often use cloud software | Quality varies; may lack specialist expertise or scalability |
Established UK accounting firms | £35-£45+/hour | High professional standards; integrated tax and advisory services | Higher cost; often require minimum commitment |
Offshore providers (no UK oversight) | Low – often £10-£20/hour | Cost-effective; large capacity | Potential quality issues; time-zone and regulatory understanding differences |
Hybrid UK-supervised offshore | £15-£30/hour | Balance of cost efficiency and UK quality; dedicated account manager; scalability | Requires good communication and processes |
Choosing the right provider depends on your budget, service requirements and risk tolerance. Always verify qualifications (AAT, ACCA, ICB), data security protocols and communication channels.
Hidden costs and value considerations
Outsourced bookkeeping often appears cheaper at first glance, but ensure you factor in the following:
- Setup and onboarding costs: Data migration, chart-of-accounts mapping and clean-up work may attract one-time fees. Some providers include onboarding free of charge; others charge £200-£500 depending on complexity
- Software licensing: Xero or QuickBooks subscriptions (£25-£50 per month) may not be included. Clarify whether your provider includes these in the price
- Data migration and catch-up work: If your books are behind, expect separate charges for historical reconciliation. Clean-up work can cost the equivalent of 1-3 months of standard fees
- Communication and support: Check whether you have a dedicated contact and how quickly they respond. Some low-cost providers limit support hours
- Quality assurance and error correction: Lower-priced providers may not include review by a qualified accountant. Mistakes can cost more in penalties and rework than you save on fees
- Compliance risk and penalties avoided: Staying compliant with MTD, VAT, PAYE and CIS rules prevents fines. Paying slightly more for a provider that guarantees compliance can save money long term
While not always visible on a quote, these factors affect the total cost and value of outsourcing. Choose a partner who is transparent about what’s included.
2025 UK compliance and regulatory cost impact
Compliance is both a cost driver and an area where outsourcing provides value. Key regulatory changes for 2025/26 include:
Making Tax Digital for Income Tax (MTD ITSA)
The UK government’s MTD programme will require sole traders and landlords with annual income over £50,000 to submit quarterly digital reports from 6 April 2026, reducing the threshold to £30,000 in April 2027 and planning further reductions. Businesses must use compatible software and maintain digital records. Outsourced providers often include MTD-compliant systems and can spread the cost across multiple clients.
VAT registration and returns
Since April 2024, the VAT registration threshold is £90,000. Providers that prepare VAT returns must ensure digital links and file through HMRC’s MTD portal. Quarterly submission fees are typically included in fixed packages.
Basis period reform and reporting changes
Basis period reforms and changes to PAYE reporting from the 2025/26 tax year mean bookkeeping needs to be more timely and accurate than ever. This typically favours better-systemised outsourced teams who can keep books up to date throughout the year rather than backdating everything at year-end.
How to choose the right pricing model for your business
Decision framework by business profile
- Startups/sole traders: Per-transaction or basic fixed fee (£50-£150/month)
- Growing SMEs: Tiered monthly packages (£250-£600/month)
- Established businesses: Full-service fixed fee (£400-£2,000+/month)
- Accounting firms: White-label volume-based pricing
Questions to ask providers
Before committing to an outsourced bookkeeping provider, ask:
- What’s included versus add-ons?
- How do you handle volume fluctuations?
- What are your quality assurance processes?
- What’s your UK oversight model?
- How do you ensure MTD compliance?
- What security certifications and data handling policies do you have?
- What are your typical turnaround times?
- Do you provide a dedicated contact or shared resources?
Acenteus CCA pricing and value proposition
Hybrid delivery model advantage
Acenteus CCA uses a hybrid delivery model that combines offshore efficiency with UK CPA oversight. This approach delivers:
- Cost: 50-70% of pure UK providers
- Quality: UK accounting standards maintained through qualified oversight
- Compliance: MTD-ready, HMRC-aligned systems
- Speed: Turnaround often under 48 hours for routine tasks
White-label solutions for accountants
We offer transparent reseller pricing, allowing your firm to scale with “your brand, our execution.” Our scalable capacity model means you can take on new clients without recruitment delays or overhead increases.
Technology integration
We work natively with Xero, QuickBooks and other cloud platforms, ensuring seamless integration with your existing tech stack.
Pricing philosophy
We believe transparent pricing helps firms make better decisions. Our quotes are detailed, with clear breakdowns of what’s included and what’s extra. We offer bespoke packages tailored to your practice’s needs, whether you’re a sole practitioner or a multi-partner firm.
Making the right choice for your business
The UK bookkeeping market is thriving, with revenue forecast to reach £7.3 billion by 2029-30. As Making Tax Digital expands and compliance requirements tighten, the value of professional, systematic bookkeeping only increases.
For most UK SMEs and accountancy firms, outsourced bookkeeping delivers compelling ROI when you need capacity beyond occasional tasks but don’t want the full overhead of hiring. The key is finding a provider whose pricing model, service scope, and quality standards align with your needs.
Whether you choose hourly flexibility, monthly predictability, per-transaction scalability, or tiered packages, transparency is essential. Ask detailed questions, compare total cost (not just headline rates), and evaluate providers on quality, compliance capability, and cultural fit as much as price.
Acenteus CCA’s hybrid model offers UK accountancy firms and growing businesses the best of both worlds: offshore cost efficiency combined with UK-qualified oversight, MTD-ready systems, and transparent pricing. Our white-label solutions allow practices to scale profitably while maintaining client relationships and quality standards.
Ready to explore how outsourced bookkeeping can transform your operations? Contact Acenteus CCA for a personalised pricing consultation and discover how our hybrid delivery model can save you 30-50% versus traditional alternatives while maintaining the quality and compliance your clients deserve.
Frequently Asked Questions (FAQ)
Most small UK businesses pay somewhere between £50 and £300 per month for ongoing outsourced bookkeeping, with complex or larger setups paying more. If bookkeeping is bundled with accounts and tax, total monthly fees often land in the low-hundreds to mid-hundreds.
Prices vary because of transaction volume, scope (e.g. whether VAT, payroll, management accounts are included), software integration, and whether you're dealing with a solo bookkeeper or a full outsourced team.
Once you factor in salary, NI, pension, software, office space and management time, outsourced bookkeeping is usually 40-60% cheaper than employing an in-house bookkeeper for equivalent output in the UK.
Bookkeepers handle daily transaction recording, reconciliations and basic reports, while accountants focus on tax, statutory accounts, and strategic advice. Most growing businesses benefit from both: a bookkeeper (or outsourced equivalent) plus an accountant for higher-level work.
You'll see all of the following in the UK: hourly rates (often £12-£20), monthly packages (£50-£2,500), and per-transaction pricing. Monthly retainers are now the most common model for ongoing work.
A reasonable hourly rate for a competent UK bookkeeper is often around £20-£35 per hour for standard work, rising to £40+ for complex or specialist tasks.
It depends on transaction volume and how automated your systems are, but small businesses on forums frequently report needing 2-8 hours per month for basic bookkeeping, and more if payroll, VAT, or complex reconciliations are involved.
Cloud accounting software (e.g. Xero, QuickBooks) costs as little as £10-£50 per month for basic plans, but the software doesn't replace the need for someone who understands bookkeeping rules, reconciliations, and compliance. Many DIY users on Reddit admit they underestimated the time and complexity involved.
Combined packages for bookkeeping and payroll commonly fall in the £150-£600+ per month range for small-to-mid-sized UK businesses, depending on employee numbers and complexity.
Accounting firms that bundle bookkeeping with accounts and tax often quote in the £1,000-£2,000+ per year range for smaller limited companies, with higher bands for more complex businesses, as discussed in UK forums and client groups.
Reputable outsourced providers use secure, audited systems, access controls, and encrypted connections to your software. Always ask about their security certifications, data handling policies, and where data is stored.
Outsourced teams typically keep digital records in MTD-compatible systems, prepare and submit quarterly VAT or income tax updates, and ensure links between source data and submissions remain digital. You must still choose an MTD-compatible software provider, but your outsourced team handles day-to-day bookkeeping and submissions.
Compare your transaction volume, services included (VAT, payroll, management accounts), and your provider's experience and responsiveness. Benchmarks from UK pricing guides show clear bands: if you're paying significantly above market without extra value (advice, reporting, speed), it's worth shopping around.
Common red flags include refusal to outline clear pricing and scope, no written engagement or SLAs, lack of experience with UK regulations (MTD, VAT, CIS), poor communication and slow responses, and no clear quality review process.
Yes. Many outsourced providers specialise in multi-industry support, using cloud systems and standardised workflows to handle retail, hospitality, services, professional firms and more. Where necessary, they adapt chart of accounts and reporting to each sector.
In a white-label arrangement, clients usually interact with your firm only; the outsourced team works under your brand. In other setups, you may be transparent that you work with a specialist partner. It's a strategic choice.
Turnaround depends on how far behind you are and how organised your records are, but outsourced teams routinely handle 6-12 months of catch-up work in a matter of weeks when provided with bank statements and invoices. This is often billed separately from ongoing monthly fees.
For very small businesses with minimal activity, DIY might be feasible with simple software. But once bookkeeping starts to take hours of your time every month, or you worry about errors and compliance, modest outsourced fees often pay for themselves in time saved and stress reduced.
Reputable providers should have clear exit procedures that include data handover, final reconciliations, and documentation transfer. Look for contracts without punitive exit clauses.
Yes. Most outsourced providers are experienced at collaborating with your year-end accountant or tax advisor, providing clean books and supporting documentation when needed. White-label providers can work seamlessly as an extension of your existing accounting firm.
