What Is an Offshore Bookkeeper? Pros, Cons, and Costs Explained

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What Is an Offshore Bookkeeper

For many UK business owners, bookkeeping is one of those jobs that has to be done but rarely feels like the best use of time. Reconciling bank accounts, categorising transactions, chasing invoices, and preparing reports are all essential tasks, yet they often pull founders and managers away from growth-focused work.

This is where offshore bookkeeping comes in.

If you are running a UK business and looking for ways to reduce costs while keeping your finances organised, hiring an offshore bookkeeper may already be on your radar. In this guide, we explain exactly what an offshore bookkeeper is, how it works, what it costs in real terms, and whether it makes sense for UK businesses today.

The aim is simple. Clear answers. No technical jargon. Practical advice you can act on.

What is an offshore bookkeeper?

An offshore bookkeeper is a bookkeeping professional who works for your business from outside the United Kingdom. Instead of hiring someone locally, you work with a remote professional based in another country, most commonly the Philippines.

They access your accounting software securely and handle your day to day bookkeeping tasks just as a UK based bookkeeper would. The difference is location, not responsibility.

For UK SMEs, offshore bookkeeping has become more common as cloud accounting software, secure file sharing, and remote working tools have improved. Today, many bookkeeping tasks can be completed accurately without the bookkeeper ever stepping into your office.

Why UK businesses are turning to offshore bookkeeping

Over the past decade, UK SMEs have faced rising employment costs, tighter margins, and increasing compliance demands. At the same time, accounting software has become easier to use and more standardised.

These changes have pushed many businesses to rethink how they handle routine finance work.

Some key reasons offshore bookkeeping has grown in the UK include:

  • Rising UK salary and overhead costs
  • Greater acceptance of remote teams
  • Cloud tools like Xero and QuickBooks becoming standard
  • The need for flexible staffing rather than fixed headcount

Offshore bookkeeping/bookkeeping virtual assistant allows businesses to pay for output and support rather than paying for office space, pensions, and full time contracts.

What does an offshore bookkeeper actually do?

An offshore bookkeeper focuses on the operational side of bookkeeping. These are structured, repeatable tasks that follow clear rules and processes.

Typical responsibilities include:

  • Recording income and expenses
  • Bank and credit card reconciliations
  • Managing supplier bills and payment tracking
  • Raising and tracking sales invoices
  • Following up on overdue payments
  • Preparing books for month end close
  • Tidying up backlogs and historic data
  • Producing basic financial reports

Most offshore bookkeepers work within your existing systems and follow instructions set by you or your accountant. They are not guessing. They are executing agreed processes.

What offshore bookkeepers usually do not handle

It is important to set realistic expectations. Offshore bookkeepers generally do not replace your UK accountant or finance lead. Strategic and regulated tasks usually remain onshore.

These often include:

  • VAT planning and final submissions
  • Corporation tax advice
  • Statutory accounts sign off
  • Audit support
  • Complex accounting judgements

A common and effective setup for UK businesses is offshore bookkeeping combined with UK based accounting oversight.

The benefits of hiring an offshore bookkeeper

Lower costs without cutting corners

Cost savings are often the first reason business owners explore offshore options.

UK bookkeeping fees vary widely depending on complexity, but as businesses grow, costs often rise quickly. Offshore bookkeeping allows you to access skilled professionals at a lower monthly cost because employment and living costs are lower in countries like the Philippines.

This does not mean lower standards. Many offshore bookkeepers support UK, Australian, and US businesses every day and are comfortable with international accounting systems.

Flexible support that scales with your business

Offshore bookkeeping is well suited to businesses that do not need a full time UK hire.

You can start with part time support and increase hours as transaction volume grows. This flexibility is useful for seasonal businesses, startups, and fast growing companies.

More time for founders and managers

Bookkeeping is necessary but it is rarely the best use of a founder’s time.

By offloading routine finance tasks, business owners free up hours each week to focus on sales, marketing, hiring, and strategy. Over time, this can have a real impact on growth.

Access to a global talent pool

Countries like the Philippines have a large pool of finance professionals with experience supporting overseas clients. Many are already familiar with UK business workflows and expectations.

The drawbacks of offshore bookkeeping and how to manage them

Offshore bookkeeping is not risk free. The key is understanding the risks and putting simple controls in place.

Communication gaps

Time zone differences can slow responses if expectations are unclear.

This is usually solved by agreeing on overlap hours, using written task lists, and setting response time expectations from the start.

Quality concerns

Not all offshore bookkeepers deliver the same quality of work.

To manage this risk:

  • Use documented processes
  • Start with trial tasks
  • Review work closely in the first few months

Strong onboarding reduces errors later.

Data security worries

Financial data is sensitive, and this concern is valid.

Best practice includes:

  • Using cloud accounting software with role based access
  • Avoiding shared logins
  • Enabling two factor authentication
  • Removing access immediately when someone leaves

Good security is about process, not geography.

Offshore bookkeeper costs explained for UK businesses

Pricing is one of the most confusing areas of offshore bookkeeping. Many articles mention wide ranges without explaining why costs vary.

Let’s break it down clearly.

Common pricing models

Offshore bookkeeping is usually priced in one of three ways:

  • Hourly billing
  • Fixed monthly packages
  • Dedicated part time or full time resources

Each model suits different business needs.

What actually affects the cost

The biggest cost drivers are not location alone. They include:

  • Number of monthly transactions
  • Number of bank and credit card accounts
  • VAT frequency and complexity
  • Sales channels such as eCommerce platforms
  • Multi currency activity
  • Reporting requirements

A simple service business with one bank account costs far less to support than a multi channel eCommerce brand.

Understanding total cost, not just hourly rates

Many businesses focus only on hourly rates and miss the bigger picture.

The real cost includes:

  • The service fee.
  • Onboarding time.
  • Process documentation.
  • Management and review time.
  • Cleanup work in the early stages.

A cheaper rate does not always mean better value.

For a deeper breakdown, it helps to compare offshore pricing with local benchmarks and understand how pricing works in key offshore markets. Many business owners researching bookkeeping fees in the Philippines find that transparency matters more than headline numbers.

When offshore bookkeeping makes sense

Offshore bookkeeping works particularly well for UK businesses that:

  • Use cloud accounting software
  • Have repeatable processes
  • Want predictable monthly costs
  • Prefer operational work handled externally

It is also popular with accounting firms that want to scale capacity without increasing UK headcount.

When offshore bookkeeping may not be the right fit

It may not suit every situation.

Offshore bookkeeping can be challenging if:

  • Your processes are undocumented
  • Your accounts are highly complex
  • You need daily in person finance support
  • You are unwilling to review work initially

In these cases, a hybrid model or local support may work better.

How UK businesses typically hire offshore bookkeepers

There are several ways to hire offshore support.

Some businesses hire freelancers directly. Others work with staffing partners or managed service providers.

When comparing options, many UK businesses also evaluate bookkeeping outsourcing companies that specialise in remote finance support. The key difference is how much management and oversight you want to handle yourself.

Regardless of route, testing skills and communication before committing long term is essential.

Security and compliance in plain English

You do not need to be a compliance expert to hire offshore.

You do need basic safeguards:

  • No shared passwords
  • Controlled system access
  • Clear offboarding procedures
  • Secure file sharing

These controls protect your data regardless of where your bookkeeper is based.

A simple onboarding approach that works

Strong onboarding prevents most problems later.

In the first month, focus on:

  • Access setup
  • Clear bookkeeping rules
  • Review of the first month end close

In months two and three:

  • Reduce errors
  • Speed up turnaround times
  • Refine reports and documentation

This phased approach builds trust and consistency.

Key performance indicators to track

Managing offshore bookkeeping is easier when expectations are clear.

Useful KPIs include:

  • Time to close each month
  • Reconciliation completion rates
  • Error or reclassification frequency
  • Response times
  • Quality of documentation

Regular reviews keep standards high.

How we approach offshore bookkeeping at Teambuild Consultancy

At Teambuild Consultancy, we support UK businesses by providing virtual assistants from the Philippines, including experienced offshore bookkeepers.

Our approach focuses on practical support, not overcomplication. We work with UK SMEs that want reliable bookkeeping help without long term employment commitments.

Our pricing is slightly different, but it is ideal for people who need predictable costs and dedicated support rather than fluctuating hourly bills.

Our transparent pricing

We keep pricing simple and clear:

  • Part time support at approximately £500 per month for four hours per day, five days a week
  • Full time support at approximately £900 per month for eight hours per day, five days a week

These models suit businesses that want consistent availability and accountability.

Industries we support

We work with businesses across a wide range of sectors, including:

  • Property
  • eCommerce
  • Accounting and bookkeeping firms
  • Finance and admin support
  • Technology and IT
  • Engineering
  • Medical and healthcare administration

This industry exposure helps our offshore bookkeepers adapt quickly to UK business expectations.

Who offshore bookkeeping is best suited for

In our experience, offshore bookkeeping works particularly well for:

  • UK small business owners
  • SME founders and managing directors
  • Finance managers in growing businesses
  • Operations managers
  • Accounting and bookkeeping firm owners
  • Startup and scale up founders

These businesses value structure, cost control, and flexibility.

Final thoughts

Offshore bookkeeping is no longer a niche option. For many UK businesses, it has become a practical and reliable way to manage finances efficiently.

When done properly, offshore bookkeeping:

  • Reduces costs
  • Improves consistency
  • Frees up time
  • Supports growth

The key is clarity. Clear scope, clear processes, and clear expectations.

If you approach offshore bookkeeping as a partnership rather than a shortcut, it can become a long term advantage for your business.

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    Jack

    Article by

    Jack

    I’m Jack, a Content Strategist at Teambuild Consultancy. For the past three years, I’ve been exploring how virtual assistants can transform the way businesses operate. My work focuses on creating awareness among business owners about the benefits of hiring dedicated VAs, from cutting costs to boosting efficiency. I’m passionate about helping companies see how the right virtual support can free up their time and let them focus on what really matters.

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