Accounting Outsourcing Costs 2025: Complete Price Comparison (U.S. vs. India)

The accounting industry is rapidly evolving, and outsourcing has become a key strategy for small and mid-sized CPA and accounting firms looking to reduce costs, access specialized expertise, and focus on growth. On average, firms that outsource accounting services save 15% to 30% in operational costs, no wonder why the demand for outsourced accounting services continue to rise and is expected to grow at a CAGR of 9.3% from 2024 to 2030. 

However, understanding the costs associated with outsourcing is crucial to boosting profitability and streamlining operations. While the benefits—cost savings and efficiency— are well-known, it’s essential to evaluate the financial impact to make an informed decision. 

Let’s dive into the average costs of outsourcing accounting services, particularly to India, the factors that affect pricing, and how to decide if outsourcing is the smart choice for your accounting firm.

1.Industry Standards for Average Costs of Accounting Outsourcing Services

The cost for outsourcing varies depending on multiple factors like region, complexity of services, and the level of expertise required.  

• On average, the cost for accounting outsourcing services varies based on staff experience. A junior-level remote staff (with some experience) typically costs between $18,000 to $28,000 per year, while senior-level staff with 2 to 4 years of experience usually ranges from $24,000 to $48,000 per year.

• Basic outsourced tax advisory can cost $3,000- $6,000/ year

• Complex and comprehensive outsourced advisory tasks can be priced between $7,800 to $16,800/ per year, depending on the expertise involved.

2.Average Cost Per Hour for Outsourcing to India

• On average, when a firm outsources accounting services to India, they can incur cost between $8 to $12 per hour.

• The costs can vary depending on the complexity of the service, the experience of the professionals, and the location of the outsourcing firm within India.

3.Accounting Outsourcing Cost in Other Countries

4.Why India is the Preferred Global Accounting Outsourcing Destination?

• Cost-effectiveness- India offers competitive rates ranging between $8 to $12 per hour without sacrificing quality, allowing accounting firms to save on overhead costs. 

• Skilled workforce- India has one of the largest pools of highly educated, qualified professionals, many trained in international standards. 

• Access to global professional qualifications- Indians can now acquire professional qualifications like the CPA (Certified Public Accountant) locally, without the need to travel to the US or Dubai. 

• Previously, multiple exams and international travel made it difficult for many to qualify, but with local exam access, the number of qualified CPAs has significantly increased, strengthening the Indian talent pool. 

• Quality and compliance- Providers ensure strict adherence to global financial regulations, delivering precision and accuracy. 

• Scalability and flexibility-Indian offshore team can easily adapt to accounting firm’s growing needs, offering scalability and flexibility. 

• Advanced technology- Cutting-edge accounting software used by Indian outsourced service providers ensures streamlined processes, real-time updates, and enhanced security. 

• Time zone advantage- India’s time zone (UTC+5:30) facilitates 24/7 support, with the remote team handling tasks while the onshore team is offline. This enables companies to maintain continuous operations without overburdening their staff. 

Learn why India is the top destination for outsourced bookkeeping services 

5.Factors That Affect the Cost of Outsourcing Accounting Services

• Location of the outsourcing firm- The region or country of the outsourcing provider plays a significant role in determining the cost. Countries with lower living costs, such as India, tend to have lower rates. 

• Scope of services- Basic tasks like data entry or bookkeeping are less expensive, while complex services like audits, financial consulting, and tax planning will be more costly due to the level of expertise required. 

• Experience and expertise- The more experienced and specialized the accountants, the higher the cost. Firms with highly qualified professionals and experience in international accounting standards tend to charge more. 

• Size of the business- Larger CPA and accounting firms with more complex accounting needs may need to pay more due to the increased volume of work, while smaller ones may be able to find more affordable options. 

• Technology and automation- Providers who use advanced accounting tools and automation to streamline processes may charge slightly more, but this often leads to higher efficiency and better results. 

6.Evaluating Accounting Outsourcing ROI

• Cost avoidance beyond labour- While accounting outsourcing reduces direct costs like salaries and benefits, it also helps avoid indirect costs that may be more difficult to quantify.  

These include: –  

– the cost of employee turnover,
– recruitment,
– training, technology infrastructure,
– compliance risks associated with keeping an in-house team. 

• Client satisfaction and retention- A lesser considered but highly impactful element of ROI is client satisfaction. By outsourcing to highly skilled professionals, firms can deliver better service, quicker response times, and more accurate financial insights. Clients are likely to appreciate the increased precision, transparency, and efficiency that come with outsourcing, leading to higher retention rates and even more referrals—ultimately growing your client base and bottom line. 

• Opportunity cost of in-house resources- The true ROI of outsourcing comes from freeing up in-house staff to focus on high-value tasks. By shifting away from non-revenue-generating activities like bookkeeping, senior team members can

– prioritize business development,
– client relationships,
– and strategic growth. 

Want to know more about when to consider outsourcing accounting services? Check out our blog now! 

7.How to Choose the Correct Accounting Service Provider for Your Firm

• Check their reputation- Look for a service provider with a proven track record and positive client testimonials. 

• Evaluate expertise- Ensure the provider has the necessary skills and expertise in the specific accounting services your accounting firm needs. 

• Assess communication- Make sure they keep clear, timely communication. Also, ask the mode and frequency of communication employed by the offshore team. 

• Consider technology- Ensure the remote service provider uses modern accounting software and technology to streamline operations. 

8.Why Choose Infinity Globus as Your Accounting Outsourcing Partner?

• Cost-effective solutions- We offer affordable accounting services that help CPA and accounting firms reduce overhead costs while maintaining high-quality standards. 

• Reliable and scalable- Our services are tailored to fit your needs, with the flexibility to scale as your firm grows. 

• Highly skilled accountants- Our team consists of experienced professionals with in-depth knowledge of accounting standards and industry best practices. 

• Focus on quality- We prioritize accuracy and compliance, ensuring that your client’s financials are always in order and up to industry standards. 

• Comprehensive services- From basic bookkeeping to complex financial reporting, we offer a full range of accounting services to support your clients at every stage. 

• Seamless support- Infinity Globus is committed to being a trusted partner, providing consistent support and expert guidance to help optimize your client’s finances. 

9.Conclusion

Outsourcing accounting services offers a strategic solution for CPA and accounting firms looking to reduce costs, access specialized expertise, and increase operational efficiency. By understanding the average costs, factors influencing pricing, and the long-term benefits, accounting firms can make informed decisions about whether outsourcing is the right path for their growth.

So, whether you’re looking to streamline bookkeeping or tackle more complex financial tasks of your clients, outsourcing can provide a smart, flexible way to support your endeavours.

Ready to cut costs and boost efficiency? Contact Infinity Globus today to discover how our expert accounting solutions can help your accounting firm grow!

10.FAQs

1. What are the benefits of outsourcing accounting services for my firm?

Ans- Outsourcing accounting services can reduce overhead costs, increase operational efficiency, provide access to specialized expertise, and allow your firm to focus on growth. 

 2. Why is India a popular destination for outsourcing accounting services?

Ans- India offers highly skilled professionals at affordable rates, with hourly rates ranging between $8 to $12. The country’s large talent pool, adherence to global financial regulations, advanced technology, and time zone advantage make it a top choice for outsourced services. 

 3. What factors influence the cost of outsourcing accounting services?

Ans- The cost is affected by factors such as the outsourcing provider’s location, the scope and complexity of the services, the expertise required, the business size, and the technology used by the remote service partner. 

 4. What types of accounting tasks can be outsourced?

Ans- Common outsourced accounting services include bookkeeping, tax preparation, payroll management, financial reporting, audits, and financial consulting 

5. What should I look for when choosing an outsourcing provider?

Ans- Key factors to consider include the provider’s reputation, expertise in specific accounting services, communication practices, the use of modern accounting software and technology to streamline operations. 

6. What factors should I consider when choosing an outsourcing provider, especially regarding location?

Ans- Consider factors like the provider’s location, time zone, labour cost, expertise, and familiarity with international standards to ensure the provider meets your firm’s unique needs. India remains a strong choice due to its huge pool of skilled professionals and competitive pricing.

7. How does the transition process work when outsourcing accounting services?

Ans- Transitioning to an outsourcing provider involves understanding the provider’s onboarding process, timeline, and integration of current systems with the remote team. 

8. How can Infinity Globus help ensure the quality of outsourced accounting services?

Ans- Infinity Globus prioritizes accuracy, compliance, and quality. Our team consists of highly skilled professionals trained in international accounting standards, ensuring that your client’s financials are always in order and meet industry best practices. 

9. Why should I choose Infinity Globus over other outsourcing providers?

Ans- Infinity Globus stands out due to its combination of cost-effectiveness, high-quality services, and flexibility. Our team of experienced professionals with years of experience uses cutting-edge technology to ensure efficient and accurate accounting, with a focus on compliance and customer satisfaction.