What's the cost of outsourced bookkeeping if you turn over £1m?

For UK businesses approaching £1 million in annual turnover, bookkeeping often becomes more complex, but not necessarily more manual.

Understanding the outsourced bookkeeping cost for a £1 million turnover business starts with knowing what you’d otherwise spend doing it in-house.

The real cost of in-house bookkeeping for UK SMEs

Traditionally, growing businesses hired internal finance staff to keep up with higher transaction volumes, VAT compliance and reporting. However, employing an in-house bookkeeper is expensive. Once you factor in salary, employer National Insurance, pensions, software licences and management time, the annual cost quickly adds up.

Industry estimates suggest UK small businesses typically spend around 2% to 5% of annual turnover on accounting costs, depending on complexity and sector. For a £1 million turnover business, that equates to £20,000 to £50,000 per year on finance and accounting support alone.

How much does it cost to outsource bookkeeping at £1m turnover?

Outsourced bookkeeping costs depend on scope, for example VAT returns, management reporting and payroll support, transaction volume and how tidy your source data is. The key difference today is that cloud bookkeeping is built around automation-first workflows, including bank feeds, receipt capture and reconciliations, which significantly reduces manual effort.

This shift is reflected across the wider profession. Xero-backed research published in November 2025 highlights AI-driven productivity gains across UK accountancy, helping explain why modern bookkeeping typically requires fewer hours than it once did.

Put into context, for a £1 million turnover business, outsourced bookkeeping is typically structured below the 2% to 5% accounting cost benchmark associated with in-house finance and traditional accounting models. Businesses can compare plans to understand how costs and service levels change as requirements increase.

Why outsourced bookkeeping services scale better

At the £1 million turnover stage, outsourcing is often a more flexible option than expanding an internal finance team. Instead of relying on a single employee, businesses gain access to established processes and specialist expertise through outsourced bookkeeping providers in the UK, without recruitment or long-term employment commitments.

For businesses reviewing outsourced bookkeeping providers UK quotes, providers like Sanay offer an alternative to traditional in-house models, combining automation with experienced finance professionals to support compliance as businesses grow.

If you would like to explore whether an outsourced bookkeeping partner is right for your business, contact us today to review your current setup and identify a more efficient way forward.