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The 9 Best Online Bookkeeping Services for Small Businesses

Damjan Jugovic Spajic Image
ByDamjan Jugovic Spajic
May 18,2022

Nowadays, many companies are cutting down on staffing costs by using online bookkeeping services. This term is often used interchangeably with virtual and outsourced bookkeeping, but all three terms actually mean different things. Outsourced bookkeeping refers to hiring any bookkeeper who doesn’t work in-house, while virtual bookkeeping means hiring a single freelance bookkeeper online to help you manage your business finances.

Online bookkeeping is a more elegant solution than either of the above. The term refers to contracting a company that usually offers both bookkeeping and accounting services and has a team of professionals taking care of these tasks for you. If you choose the right company, online bookkeeping is an affordable, and safe way to solve your bookkeeping and accounting troubles. 

In our reviews below we’ve examined factors like costs, services offered, and accounting software compatibility of the best online bookkeeping services on the market. Another crucial metric we’ve looked at is whether these companies provide their services for both cash- and accrual-based businesses and whether they charge extra for accrual accounting. Check out our list of the best online bookkeeping services in 2022 and beyond.

One of the first questions small business owners ask themselves is whether they need to hire a bookkeeper at all. Some companies choose to hire in-house bookkeepers instead of outsourcing them. This can be a smart move for two reasons. 

First, you and your employees should learn some basic bookkeeping skills as soon as possible. You’ll almost certainly need them at some point, and understanding how your books work will help you keep track of your finances and perform certain important tasks when needed. Secondly, if your business handles large expenses - over $300,000 per month for example - outsourcing could cost you a huge amount of money. And if you’re dealing with those sums of money, your company is probably big enough at this point to hire in-house bookkeepers. 

However, if you’re running a smaller business and have little or no experience in bookkeeping, your safest bet is probably to outsource your bookkeeping. Hiring online accounting services can even end up saving you money since you and your employees won’t have to waste your time on these tasks. Instead, you can focus on running your business as effectively as possible.

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Best for Xero and Quickbooks users

1. Bookkeeper360

Bookkeeper360 Logo
Bottom line

This provider is one of the best online bookkeeping services for your business if you use Xero or Quickbooks accounting software. Bookkeeper360 has three packages, with prices starting from $349/month for cash and $499/month for accrual-based accounting. These prices vary according to which tasks you want Bookkeeper360 to perform and the amount of your monthly expenses. Read Review

  • ⦿Wealth of features across three separate plans
  • ⦿Offers accrual accounting
  • ⦿Simple setup
Monthly cost:
Staring from $349/month for cash and $499/month for accrual; $19/month for the pay-as-you-go option
Cash and accrual accounting:
Both
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Xero and Quickbooks
Tax/Payroll services:
Starting from $200-$800 per filing for tax services; $45/month for HR and payroll

Get 15% off your first 3 months!

Best for growing businesses

2. Paro

Paro Logo
Bottom line

Paro is more than just a full charge bookkeeping service: It’s a platform for connecting businesses with expert agents in accounting, bookkeeping, and other finance-related jobs. Only the best of the best get to work with Paro. The service is also highly flexible, with both plans tailored to each customer. It can get expensive, but it’s worth the price. Read Review

  • ⦿Choose the agent you’ll work with
  • ⦿Dozens of additional services
  • ⦿Full-charge bookkeeping
Monthly cost:
Custom
Cash and accrual accounting:
Both
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
N/A
Tax/Payroll services:
Additional fee
Best for Businesses with a Tax Professional

3. Bench

Bench Logo
Bottom line

Bench is another great provider of online accounting services for small business owners. While it doesn’t provide bookkeeping services to accrual-based businesses, Bench’s competitive pricing means it’s worth checking out if you run a cash-based company. The service won’t handle your tax filing unless you provide up-to-date books. Bench has three packages on offer, which you can choose between based on your company’s monthly expenses. Read Review

  • ⦿Tax Support
  • ⦿In-house bookkeepers
  • ⦿Fast service
Monthly cost:
$299-$599 (billed monthly); $249-$479 (billed annually)
Cash and accrual accounting:
Cash only
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Uses its own software
Tax/Payroll services:
Limited support for business taxes

Save 30% off your first 3 months with Bench! GET STARTED

Best Overall

4. Bookkeeper.com

Bookkeeper.com Logo
Bottom line

Bookkeeper.com is the first provider on our list of the best online bookkeeping services, and we consider it the best option when looking for online CPA services. Why? Because Bookkeeper.com has the most affordable all-in-one service. The site offers accounting and bookkeeping to both cash- and accrual-based businesses at the same price. While Bookkeeper.com doesn’t place limits based on company expenses, there are restrictions on the number of monthly transactions that its team handles. Read Review

  • ⦿All-in-one solution
  • ⦿World-class customer support
  • ⦿Easy-to-use website
Monthly cost:
$449-$849; custom
Cash and accrual accounting:
Both
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Quickbooks integration
Tax/Payroll services:
Additional fee
Best for add-on services for customizable plans

5. Reconciled

Reconciled Logo
Bottom line

Reconciled is another excellent solution for outsourcing small business bookkeeping. These online bookkeeping services allow for effortless management of your books, as Reconciled will provide each of their client businesses with a dedicated, US-based team of professionals. The team will handle the cleanup of your books if needed and offer excellent bookkeeping and CFO services and tax and advisory services. Reconciled is a bit expensive as prices start at $299/month, but you can plan a custom package with add-ons by reaching out to the team. Read Review

  • ⦿Offers bookkeeping, accounting, CFO advisory, reconciled tax, and more
  • ⦿Excellent contact options to reach your dedicated bookkeeping team
  • ⦿Solid selection of add-on services
Monthly cost:
Starts at $299/month
Cash and accrual accounting:
Cash only
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Gusto, Quickbooks, Sage Intact, ADP, Xero
Tax/Payroll services:
Yes
Best virtual bookkeeping

6. FinancePal

FinancePal Logo
Bottom line

FinancePal is a one-stop-shop for virtual bookkeeping services. With its US-based team of accounting and tax professionals, it’s the ideal solution for small business owners who don’t have the know-how to handle their own books. They do both cash and accrual accounting, issue financial statements, and handle reconciliations and payroll. Prices start from around $125/month, but you’ll need to get in touch with a company representative for a quote, as they only offer custom plans. Read Review

  • ⦿Full-service accounting provider for SMBs
  • ⦿Bookkeeping, tax prep, CPA, and invoicing services for one monthly fee
  • ⦿Dedicated team for your business
Monthly cost:
Custom quotes
Cash and accrual accounting:
Both
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
ADP, Gusto, Quickbooks, Xero
Tax/Payroll services:
Yes
Best for affordability

7. Merritt

Merritt Logo
Bottom line

Merritt is the most affordable provider on our list of online CPA services for small business owners, costing just $190 per month. This price is not dependent on the number of transactions your business conducts or how many bank accounts it has. While Merritt only does bookkeeping for cash-based businesses, its services are compatible with Quickbooks; the company will create monthly reports and reconcile your statements. If you’re looking for a cheap online provider that offers basic bookkeeping services, Merritt could be an excellent option for you. Read Review

  • ⦿Cheapest prices
  • ⦿Top-notch customer service
  • ⦿Ideal for small business owners
Monthly cost:
$190
Cash and accrual accounting:
Cash
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Quickbooks
Tax/Payroll services:
No
Best for tech startups

8. Pilot

Pilot Logo
Bottom line

Pilot is one of the leading online accounting firms that are compatible with Quickbooks. The company offers three packages. The first two Pilot Core and Pilot Select are meant for cash- and accrual-based businesses with monthly expenses below $200,000, while the Plus plan is for larger businesses or those with complex needs with monthly expenses over $200,000. The monthly amount you’ll pay for each of these packages depends on the value of your monthly expenses. While it offers reasonable prices, Pilot does not cover payroll and tax services as a part of its bookkeeping packages. Read Review

  • ⦿Focuses on businesses of all sizes
  • ⦿Fantastic customer service
  • ⦿30-day free trial
Monthly Cost:
$500-$849; custom (depending on monthly expenses)
Cash and accrual accounting:
Both
Financial Statements:
Yes
Monthly Reconciliations:
Yes
Accounting software compatibility:
Quickbooks Online
Tax/Payroll services:
Available as a separate service
Best Mobile App

9. KPMG Spark

KPMG Spark Logo
Bottom line

KPMG Spark offers remote bookkeeping services packages for cash and accrual-based businesses. Packages for cash and accrual accounting are limited by the value of monthly expenses and the number of accounts/projects you have. In addition to the four fixed plans on offer, there’s also a fifth customizable solution. Tax preparation is not included in any of the packages on offer, but it can be added at an extra cost. Read Review

  • ⦿Scalable solution
  • ⦿Knowledgeable Support Staff
  • ⦿Fantastic Software
Monthly cost:
$295-$895/month; custom
Cash and accrual accounting:
Both
Financial statements:
Yes
Monthly reconciliations:
Yes
Accounting software compatibility:
Uses its own software
Tax/Payroll services:
Yes

Methodology

Cost

The first thing we look at in our reviews of virtual accounting companies is the cost of these bookkeeping services. There are several ways in which the reviewed companies structure their pricing. 

The first option is offering fixed prices for packages. With these fixed-price packages, there’s usually a limit to the number of transactions the provider will process for you every month. Of course, if you buy a more expensive package, you’ll get increased limits with more expensive packages.

The second way providers determine pricing is by offering packages based on your business’s monthly expenses. For example, if you’re looking for bookkeeping and payroll services online and your monthly expenses are lower than a certain limit - let’s say $200,000 - you could use a company’s basic package, while if you have more than $200,000 in monthly expenses, you’d have to take a more expensive package. The pricing for a single package can also vary based on how many expenses you have.

Another way bookkeepers calculate prices is by offering fixed monthly prices but with limits on the number and frequency of services.

In many cases, there’s a significant difference between the price of packages for cash-based and accrual-based businesses. While some of the providers on our list of online bookkeeping services reviews, like Bookkeeper.com, offer the same pricing for both types of business, some only service cash-based businesses. Others work with accrual businesses but charge a steep price for it.

Of course, the cost is not the only metric we assess, and it’s not always the most important one. Factors like the range of services each company offers and the accounting software it uses are all crucial. Check out the other factors we considered in our bookkeeping service for small business reviews below.

Dealing with Cash- and/or Accrual-Based Businesses

Before you consider hiring an online bookkeeping provider, it’s vital to find one that offers the services your business actually needs. There are two types of accounting for businesses: cash- and accrual-based accounting. 

Cash-based accounting is a system in which transactions are recorded when actual money changes hands. When money goes into or out of your bank account - like when a customer pays for your product or you pay your suppliers - these transactions are recorded. There is no accounts payable or accounts receivable to keep track of with cash-based accounting.

On the other hand, accrual accounting also keeps records of payments that are due. This means that revenue and expenses are recorded when they are earned, not when they’re paid for. The money your customers are due to pay is referred to as accounts receivable, while the money you owe is accounts payable.

The best virtual bookkeeping companies we review differ in the services they offer for cash- and accrual-based businesses. Some companies offer the same services at the same price for both accrual and cash businesses. The second group of bookkeepers offers different prices for these two types of businesses. Lastly, some providers on our list don’t provide their services to accrual-based businesses at all.

Compatibility with Accounting Software

When choosing monthly bookkeeping services, you should take into account which accounting software the service in question uses. The most popular accounting programs are Quickbooks and Xero; if you’re already using one of these two it would save time and resources to choose a service that is compatible with either of those. However, some of the reviewed services have their own software, which they will set up for you. If you aren’t using any accounting software, some providers - like Bookkeeper.com - will purchase an accounting software account for you and transfer your old accounting data to it.

For these reviews, we’ve checked each provider’s accounting software compatibility and listed any specific offers these services might have.

Monthly Reconciliations

In our reviews of the best bookkeeping services online, we check whether the companies in question offer monthly reconciliations as part of their service. Reconciliation refers to a process in which the accountant compares two sets of records and checks if all the figures and transactions are matching and in order. This includes checking if all expenses match exactly the amount of money that’s taken out of the company account and vice versa for money that’s received. In short, reconciliation provides greater consistency and accuracy.

Reconciliation is not only useful but a necessary tool in order to make sure that no one is tampering with the books and will make tax filings much easier.

Monthly Financial Statement

Another important metric we include in our reviews of the best online accountants is whether or not these online services provide monthly financial statements. All of the providers on our list supply the three most basic financial statements: profit and loss statements, balance sheet reports, and cash flow statements. However, some services provide additional statements (or provide the standard statements more frequently). We list this information in our reviews.

Other

Besides the aforementioned metrics, there are several other things we keep an eye out for during our research. These include tax services, payroll processing, and consulting. We highlight any relevant properties or services offered among these providers that can help you make a decision on which online bookkeeping service to choose.

Featured Snippet Image

Online Bookkeeping Services - Top 5 list for 2022

  1. Bookkeeper360
  2. Paro
  3. Bench
  4. Bookkeeper.com
  5. Reconciled

Online Bookkeeping Services for Small Business Reviews

Bookkeeper360

Bookkeeper360 Logo VISIT WEBSITE
Value for money

GOOD

Scalability

EXCELLENT

Ease of use

EXCELLENT

Customer support

EXCELLENT

Tax filing

AVAILABLE AT ADDITIONAL COST

  • ⦿ Dedicated accountant services
  • ⦿ Training and technical support for using accounting software
  • ⦿ Full tax filing available for an additional fee

Bookkeeper360 is an online bookkeeping service best suited for small businesses that use Xero or Quickbooks accounting software. Like Bookkeeper.com, Bookkeeper360 also works with both cash- and accrual-based businesses. There are three bookkeeping packages on offer, including a pay-as-you-go solution.

Packages

For online accounting and bookkeeping services, Bookkeeper360 has several plans to choose from. 

First, there’s the Monthly plan, priced at $399/month or $349/month with the current discount (cash-based accounting) and $549/month or $499/month (accrual-based accounting). Note that the price is higher for users with more than $20,000 in monthly expenses. This package comes with a dedicated accountant, monthly reconciliation, profit and loss, and balance sheet. It also gets access to quality customer support. 

You can also opt for the Weekly plan, which will set you back $499/month or $549/month with the current discount (cash-based accounting) and $749/month or $699/month (accrual-based accounting). Once again, the cost will be higher if your monthly expenses exceed $20,000. As one of the top bookkeeping services online, the Weekly plan comes with all the features offered in the Monthly solution with the addition of a dedicated accounting team, weekly updates, and advanced reporting.

There’s also the Pay-As-You-Go plan which starts at $19/month plus $99/hour for support and offers a fast and easy setup, a dedicated accountant, and on-demand bookkeeping, training, and advisory.

For additional fees, Bookkeeper360 also provides tax filing (starting from $200 per filing), full payroll processing services ($45/month), CFO advisory (starting from $1,000/quarter), and back-office services (starting from $99/month). Combined, this is all you could ask for in CPA bookkeeping services online.

Summary

While it’s a bit more expensive than the competition, Bookkeeper360 still brings a lot to the table. While Bookkeeper360 used to offer the same pricing for both accrual and cash-based businesses, the company now has different packages for each. However, these new service packages are more competitively priced. Additionally, no matter which plan you decide to go for, you’ll get access to best-in-class support. Overall, Bookkeeper360 is a solid choice if you need comprehensive bookkeeping online services. 

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Paro Review

Paro Review Logo VISIT WEBSITE
Value for money:

VERY GOOD

Scalability:

EXCELLENT

Ease of use:

EXCELLENT

Customer support:

VERY GOOD

Tax filing:

AVAILABLE AS A SEPARATE SERVICE

  • ⦿ Highly flexible pricing
  • ⦿ 100+ financial services available
  • ⦿ Dedicated agents for every customer

Paro offers full charge bookkeeping services, i.e., it takes care of every step of the bookkeeping process for you. When you start working with Paro, you’ll be assigned a dedicated agent to manage all bookkeeping-related tasks. This is an online bookkeeping service first and foremost, but it’s also much more than that, as you’ll see in our overview.

Packages

What sets Paro apart from other bookkeepers is service flexibility, particularly in the pricing department. Instead of funneling customers into pre-made plans they would have to box their business and budgeting into, Paro will instead evaluate your business and, accordingly, create a tailored offer.

The evaluation process starts with selecting your company size and industry. Then, select the service you need, including specific tasks. The final steps include choosing between recurring and one-time use of virtual bookkeeper services, as well as your budget for this job, followed by filling out contact information. Once you complete this questionnaire, Paro’s experts will analyze all the data and come up with an offer that should suit your budget. You’ll then get a call from one of Paro’s representatives to further discuss the proposal. They’ll also present you with several candidates, handpicked from the vast pool of in-house and freelance experts, from which you’ll choose the agent you’ll be working with from that point on.

The pricing range is hard to estimate, since this online bookkeeper does everything on a case-by-case basis. Unfortunately, this service isn’t transparent with its prices, only showing them once you’re already past the introductory signup process. This could be a problem for young startups and businesses with limited budgets, since they can’t plan ahead and know whether this service will fit their budget at all. The only price point available on Paro’s website is the buyout fee. If a customer wants to hire the agent they’ve been working with, thus taking them away from this platform, a fee is applied to cover these expenses. It can either be a flat-rate fee of $25,000, or 25% of the agent’s annual pay, whichever is higher.

What small business bookkeeping services does Paro provide? It can manage your cash flow, run the payroll software, provide reporting on all finances, collect invoices, or balance your credit. But, that’s not all. When we said Paro isn’t like other bookkeepers, we didn’t mean just due to its personalized pricing. It doesn’t just offer different types of bookkeeping, but other financial services, too. Currently, you can hire this company for over 100 different jobs split between several major categories:

  • Accounting & bookkeeping services
  • Strategic advisory & CFO services
  • Financial planning & analysis
  • Business systems & processes
  • Tax
  • Audit & assurance

Again, there are no pre-made plans or packaged virtual bookkeeping services. This means you’ll need to re-initiate the questionnaire process we covered earlier in this review if you need to hire more people. Therefore, Paro’s platform won’t be for everyone, especially not business owners looking to simplify the hiring process and have a clear pricing range from the get-go.

Agents that work through Paro aren’t random freelancers looking for a summer job. Instead, this company uses a strict vetting process, picking only the best candidates out of the bunch. On Paro’s website, you’ll find that it hires just the top 2% of its applicants and looks only for experts in the field of remote bookkeeping. Its agents hail from well-known business firms like Deloitte, Ernst and Young, and PricewaterhouseCoopers, but also universities like Harvard and Stanford. This rigorous process ensures Paro can provide a top-notch experience for all clients.

Summary

There’s a lot to like about Paro - from its professional approach to bookkeeping, to the dozens of extra services it provides if the need arises. The lack of pricing transparency is problematic, but considering its agents will work exclusively with your business, and they all possess exquisite skills and knowledge, this online bookkeeping platform is well worth it.

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Value for money

GOOD

Scalability

GOOD

Ease of use

EXCELLENT

Customer support

EXCELLENT

Tax filing

LIMITED AVAILABILITY 

  • ⦿ Expense management available across all packages
  • ⦿ Uses own proprietary bookkeeping software
  • ⦿ Provides catch-up booking services

Another great provider on our list, Bench, is one of the best possible choices for cash-based businesses. While Bench only provides bookkeeping services to cash-based companies, it is one of the most affordable options and offers a wide variety of services. Furthermore, you can send your financial reports for checks and invoices to Bench, and the company will adjust your monthly statements to reflect accounts receivable and accounts payable as well.

Packages

There are three Bench bookkeeping packages on offer. All three options offer bookkeeping, tax prep, advisory, and banking in a single platform.

Core, the first online accounting and bookkeeping services package, is priced at $249/month if billed annually ($299 for monthly billing) and is meant for businesses who want a business bank account with integrated bookkeeping. It comes with real-time accounting and a free business bank account if you bank with LendingClub.

With the Flex plan, you’re looking at $349/month for annual billing or $399/month for monthly billing. This option was created with businesses with existing bank accounts in mind and comes with customized accounting features. 

Lastly, the Pro version is meant for companies with complex accounting needs. If billed annually, it will set you back $479/month or $599/month if billed monthly. It offers specialized account features.
All plans come with monthly bookkeeping and annual financial statements, expert support, tax preparation and filing for those with up-to-date books, and the opportunity to connect with major payroll and payment processing platforms.

Summary

Although it only handles cash-based businesses, Bench accounting is definitely a great option if you’re looking for online bookkeeping and accounting services. The company has relatively low prices and a good selection of services and packages on offer, making it a great choice for cash-based small businesses looking to outsource their bookkeeping.

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Bookkeeper.com

Bookkeeper.com Logo VISIT WEBSITE
Value for money

EXCELLENT

Scalability

GOOD

Ease of use

EXCELLENT

Customer support

EXCELLENT

Tax filing

AVAILABLE AT ADDITIONAL COST

  • ⦿ No price markup for accrual accounting
  • ⦿ Free secure online document storage
  • ⦿ One-on-one teleconference meetings with a dedicated bookkeeper

Bookkeeper.com ranks number one on our list of online bookkeeping and payroll services for several reasons. First of all, this company offers accounting for both cash- and accrual-based businesses for the same price. Secondly, Bookkeeper.com has fairly low prices, especially considering that the price is the same for both accrual and cash businesses. This is very rare among bookkeeping services since most charge considerably more for accrual-based businesses. As part of your package, the company can also help you set up Quickbooks accounting software.

Packages 

Bookkeeper.com has three predetermined packages of online bookkeeping services for small business owners plus a fourth custom solution. 

Priced at $449/month, the Small Business plan lets you process up to 100 transactions per month. With this plan, you also get access to a dedicated bookkeeper and account manager, a secure portal with document storage, monthly bank/credit card reconciliation, documents such as balance sheet, profit and loss, and statement of cash flows, and limited online support. 

The Small Business Plus solution will set you back $649/month and let you make up to 200 transactions. In addition to everything from the first tier, this plan also offers up to 20 invoices in the bill pay feature, 30 minutes of monthly scheduled meetings, and unlimited online support.

Small Business Advanced, the provider’s third-tier online bookkeeping software solution, costs $649/month and supports up to 300 monthly transactions. It offers 40 invoices in the bill pay feature and 45 minutes of monthly scheduled meetings. Additionally, this Bookkeeper.com plan comes with lite CFO and advisory services and the functionality which allows you to separate transactions by class, location, and department.

Lastly, there’s the Custom solution for users who don’t find any of the options above adequate. If you opt for Bookkeeper.com’s custom online CPA services, you’ll get everything from the fixed plans plus the opportunity to choose the number of monthly transactions. You have a team of bookkeepers ready to assist you at any time, and your dedicated bookkeeper will have one-on-one teleconference meetings with you to go over your financial reports.

Summary

To conclude, Bookkeeper.com offers a competitive, all-encompassing bookkeeping and accounting service for both accrual- and cash-based businesses while still being affordable. For this reason, Bookkeeper.com tops our list of bookkeeping services online.

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Reconciled Review

Reconciled Review Logo VISIT WEBSITE
Value for money:

EXCELLENT

Scalability:

GOOD

Ease of use:

EXCELLENT

Customer support:

EXCELLENT

Tax filing:

AVAILABLE

  • ⦿ Excellent integration options
  • ⦿ Dedicated US-based team
  • ⦿ Enterprise accounting solutions available

When handling your business books on your own becomes too much, relying on a good, experienced accounting team is your best bet. Thankfully, this is precisely what Reconciled, another online bookkeeping company on our list, provides. 

Even if they’re a bit on the expensive side, this team can take everything off your plate - from basic bookkeeping and CFO services to solutions tailored for enterprises.

Packages

Currently, Reconciled offers four different packages and an impressive list of add-on services you can stack on top of the plans.

The first plan is Reconciled Express, which starts at $299 per month. With this plan, you can rely on the team to provide you with monthly reconciliations of up to three bank or credit card accounts. 

It also provides monthly financial reports for businesses that net less than a million in annual revenue, which is why we would recommend it as one of the best online accounting services for a small business. It also includes posting monthly from up to three channels, with the limitation that these don’t require the client or inventory detail on the reports.

The next tier, Basic, will cost you $600 per month. With this tier, the limit of up to three bank or credit card accounts is increased to five, and there is no annual revenue limit for monthly financial reports. It also includes weekly accounts payable support for up to 20 bills a month and quarterly advisory meetings with your dedicated team.

Reconciled Core tier, which costs $1250 a month, includes all of the above while increasing limits for bank and credit cards to seven accounts and the number of bills a month to 40.

The highest tier with this online bookkeeping company is called Reconciled Advanced. It starts at $1,600 per month and includes support for up to 60 weekly accounts payable, posting from up to five sales channels, and accounts receivable support for up to 40 invoices a month. Lastly, this tier’s users also have access to monthly advisory meetings. 

If you need more, you can consult with the team and include some of the available add-ons in your monthly package. These can include customized monthly financial statements, automatic tax filing, quarterly financial reviews, and monthly business reviews. 

Unfortunately, the website doesn’t mention the pricing for these, so you’ll have to reach out to the team to determine how much you’ll be paying each month for these services. 

Summary

All in all, Reconciled is an excellent, full-service solution for all your bookkeeping and accounting needs. While it is not the most affordable option on this list of best online accounting services, the price per quality ratio is excellent. 

After all, not only will you get a dedicated US-based team of professionals to handle your books, but you can also easily reach out to them about any issues or concerns you might have. The team is renowned for providing excellent customer support, which is, when it comes to bookkeeping, well worth paying a bit extra for.

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FinancePal

FinancePal Logo VISIT WEBSITE
Value for money

GOOD

Scalability

EXCELLENT

Ease of use

GOOD

Customer support

EXCELLENT

Tax filing

AVAILABLE

  • ⦿ Custom-tailored plans
  • ⦿ Mobile receipt tracker
  • ⦿ Lots of useful third-party integrations

If you’re looking for a dedicated team of US-based tax and accounting experts to handle your finances, file taxes, and take care of your team’s payroll, FinancePal is an ideal solution. Offering one of the best virtual bookkeeping services with supremely customizable plans and reasonable pricing, FinancePal is a perfect fit for small businesses and startups intimidated by the prospect of running their own books.  

Packages 

Unlike most competitors, FinancePal doesn’t display pricing plans on its website. That is because the company emphasizes a granular approach to customers, offering each individual/company a chance to make their own plan. This is done by cherry-picking and customizing services to create a unique package that saves money by avoiding unnecessary expenses. Unfortunately, it also means that you won’t know how expensive or cheap the bookkeeping services are before reaching out to get a quote.

Luckily, getting a quote requires nothing more than divulging basic details about your business (type, size, number of employees, W2 employees, 1099 contractors, etc.) and choosing whether you’ll need payroll and tax filing services. Prices start as low as $125. For the purposes of this review, we got ourselves a quote for a small arts and crafts supplier with ten employees. Still, you can choose between numerous industries ranging from agriculture and advertising to construction, restaurant insurance, legal counseling, and more.

The basic small business bookkeeping services ended up costing us $205 per month. These included access to FinancePal’s dedicated account manager, monthly financial statements and reconciliations, a mobile receipt tracker, and the use of the company’s excellent smartphone app for iOS and Android systems.

To get tax services (which include corporate tax preparation for sales and use taxes, along with tax consulting with FinancePal’s experts), you’ll need to pay extra for the One Solution Accounting plan. In our case, this ended up costing $280 per month in total. 

FinancePal offers seamless integration with popular accounting and payroll software such as ADP, Gusto, Quickbooks, and Xero. As with other virtual bookkeeping companies, the customer service is quick to respond and very helpful. Finally, your personal account managers can also answer any questions you may have about tax filing and other complicated accounting procedures.

Summary

FinancePal is offered by industry veterans Community Tax, which is best known for its excellent IRS tax debt resolution services. FinancePal tailors its services to new business owners overwhelmed by the complexities of filing taxes and handling payroll. Although the pricing scheme isn’t available on the website, getting a custom quote is a quick and easy process and the prices are very competitive.

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Value for money

EXCELLENT

Scalability

EXCELLENT

Ease of use

GOOD

Customer support

EXCELLENT

Tax filing

UNAVAILABLE

  • ⦿ Fixed pricing scheme
  • ⦿ Very simple and quick setup
  • ⦿ Supports Quickbooks

Merritt is a California-based online bookkeeping and accounting service that only works with businesses that use cash accounting and only has one package to offer. However, the company charges an affordable, flat rate and offers free online bookkeeping services for nonprofits and charities.

Packages

Merritt’s bookkeeping package comes at a flat rate of $190/month. The company does your bookkeeping and accounting in Quickbooks Online, which means that if you use cash-based accounting and you’re already using Quickbooks, Merritt is the cheapest option for you. This package offers the basic bookkeeping services you might need, including monthly reconciliations, monthly financial statements, and collecting all your bank statements for you. Merrit does not provide tax services or payroll processing, so you’d have to use some other software for that or outsource those services to someone else. Signing up to Merritt is quick and easy; it usually takes no longer than 24 hours.

Summary

While Merritt offers only simplified bookkeeping without tax service and payroll processing, it could still be a great choice for you if you’re looking for no-frills cheap online bookkeeping services. It’s the most affordable option for small businesses that use Quickbooks cash accounting or self-employed individuals and boasts excellent user reviews and a 90-day money-back guarantee.

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Value for money

GOOD

Scalability

EXCELLENT

Ease of use

GOOD

Customer support

EXCELLENT

Tax filing

AVAILABLE AS A SEPARATE SERVICE

  • ⦿ Accrual bookkeeping services with a dedicated bookkeeper
  • ⦿ Custom reporting features
  • ⦿ Special discount for pre-revenue companies

Pilot is another Quickbooks-compatible provider that makes our list of online bookkeeping and accounting services for small businesses. Pilot has three packages to choose from, all available to both cash and accrual-based businesses. While the first two plans come with a predetermined list of services and are meant for companies with monthly expenses below $200,000, the third option is completely customizable.

Although the starting rates Pilot offers are relatively affordable, this company does not provide flat-rate online bookkeeping services; the price depends on the exact amount of monthly expenses your business has.

Packages

The first package is called Pilot Core. This plan is ideal for small businesses and comes with a dedicated finance expert, support for accrual-basis bookkeeping, P&L, balance sheet, cash flow statements, support, and a monthly price between $599 and $899.

The second package, Pilot Select, is a good choice for growing businesses that need more support. This plan offers everything included in the Core plus industry-standard financial ratios, expedited books delivery, monthly phone reviews, and priority support for a price ranging between $849/month and $1049/month.

It’s worth noting that Pilot offers pre-revenue companies a $200 monthly discount on the Core and Select plans.

The third option on the list of Pilot’s online business bookkeeping services is the Plus plan. An excellent choice for companies with more than $200,000 in monthly expenses, this option includes everything from the first two plans plus add-ons such as support for multiple entities, classes, and locations, AR, AP and inventory tracking, billable expenses, and a fully customizable chart of accounts.
  
Pilot bookkeeping does not include tax services or payroll processing. However, you can purchase tax and CFO services separately. 

Pilot uses Quickbooks Online for its bookkeeping service. The company can either import your old data or open a new Quickbooks account for you.

Summary

While Pilot does not offer tax or payroll services, it provides packages for both cash and accrual-based accounting. The pricing may vary depending on your monthly expenses, but if you can estimate them reasonably, Pilot’s payment model may work well for you. The company offers a month-long trial of its free services for bookkeeping online, so if you’re having second thoughts, don’t hesitate to test out the service without any obligation to continue.

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KPMG Spark

KPMG Spark Logo VISIT WEBSITE
Value for money

GOOD

Scalability

EXCELLENT

Ease of use

EXCELLENT

Customer support

GOOD

Tax filing

AVAILABLE AS AN ADDITIONAL SERVICE

  • ⦿ Solutions for cash and accrual accounting needs
  • ⦿ Easy expense tracking
  • ⦿ Automatic payroll services through WePay

KPMG Spark, formerly known as Bookly, offers comprehensive bookkeeping and accounting services. The company provides its services to both accrual and cash-based businesses. As with many other services, KPMG Spark’s solutions for accrual businesses are much more expensive than those for cash-based ones. However, the company offers practically all imaginable bookkeeping services, which partially makes up for its slightly higher prices.

Packages

KPMG Spark’s online bookkeeping services pricing page features four fixed packages and a customizable option for companies with specific needs.

First, there is the Basic plan, ideal for businesses with up to 100 monthly transactions and up to three bank accounts. It’s priced at $295/month and includes cash-based bookkeeping, real-time bank and credit card reconciliation, daily categorization of revenues and expenses, receipt and document storage, support for multiple users, on-demand financial reports, and customer service via video, text, email, phone.

The Essential plan will set you back $595/month. It is designed for businesses with 101-200 monthly transactions, four to six bank accounts, and project accounting for up to two projects. It offers everything from the Basic plan plus a dedicated accounting team, project accounting, custom access by role, and a customized accounts chart.

As one of the best online bookkeeping services for small businesses, the Professional plan ($795/month) was created for accrual-basis businesses with 201-300 monthly transactions and seven to nine bank accounts. It supports project accounting for three or four projects. On top of the features offered in the previous plans, it also lets you create and schedule client invoices and payments. Finally, it supports cash flow statements.

If your company has up to 300 monthly transactions, up to nine bank accounts, and requires project accounting for five or six projects, you should consider the KPMG Spark Premium solution. Priced at $895/month, this plan also features quarterly financial analysis reports and consultations.

Lastly, the customizable Elite plan offers a long list of add-ons such as inventory tracking, custom and consolidated reporting, quarterly reconciliations with an investment manager, and more. 

You’ll get access to KPMG Spark’s own accounting software,  which the company uses to perform its bookkeeping and accounting services online. If you previously used Quickbooks or Xero, KPMG Spark can integrate data from that software into its own.

The company also offers tax services and payroll processing for an extra fee. For an additional $125 per month, KPMG Spark will prepare your tax returns. Payroll processing will cost you an additional $100 per month, plus another $6 for every employee.

Summary

Should you go for KPMG Spark’s bookkeeping service? It’s certainly worth considering, as this respected company offers highly rated bookkeeping and accounting services for both accrual and cash-based businesses. That said, the pricing is quite steep, especially for accrual-based accounting. On the other hand, the company allows you to take care of all your bookkeeping needs in one place, tax and payroll services included, which is a worthwhile tradeoff for many businesses.

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Frequently Asked Questions
What is the difference between accounting and bookkeeping?

Bookkeeping refers to the recording and tracking of all financial transactions, while accounting refers to interpreting and summarizing this data. However, people often use these terms interchangeably. 

What is online bookkeeping?

Online bookkeeping refers to outsourcing bookkeeping services to an individual or a company, usually through bookkeeping websites, which perform these services and communicate with you online. This means that transactions and other financial documents will be exchanged and updated online through bookkeeping software.

What are some bookkeeping services?

Bookkeeping services include but are not limited to, performing monthly reconciliations, creating financial statements and reports, handling taxes, and payroll processing. 

Why you should hire a bookkeeper?

Hiring a bookkeeper frees up your time to focus on business, minimizes the chances of making critical errors, alleviates tax concerns, and gives you a clear view of your finances.

What makes a good bookkeeper?

When hiring an online bookkeeper, you should look for a trustworthy and cheap provider that performs all bookkeeping services for your type of business.

How much does monthly bookkeeping cost?

Free online bookkeeping services are almost impossible to find. The monthly cost of bookkeeping depends on the amount of services the provider offers, your monthly expenses, and whether you deal in cash or accrual accounting. Exact pricing systems differ between providers, but monthly prices range anywhere from $190 to $1,000.

How do I find a good bookkeeper?

In order to find a bookkeeper, you need to evaluate which bookkeeping services your business needs. First of all, look at whether you need cash or accrual accounting, tax services or payroll processing, the number of expenses you have, how many accounts you need reconciled, and so on. These are some of the most important metrics to keep in mind when looking for online bookkeeping services.