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.
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
1800-Accountant is another excellent solution for outsourcing your business books - which is probably one of the most tedious tasks of running a business in the first place. This solution ranked high on our list of online bookkeeping services because it offers unlimited hours of support from a dedicated bookkeeper for a flat rate with no hidden fees. 1800-Accountant integrates effortlessly with any online bookkeeping software you already use, and provides numerous additional services to ensure your books are in order with minimal effort on your part. Read Review
- ⦿Excellent customer support
- ⦿Proprietary software available
- ⦿Full-service accounting available
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
Xendoo is one of the newer online bookkeeping services, but it’s already made a name for itself as a top-notch option. The service is designed specifically for small business owners who want to outsource their bookkeeping, and it offers a variety of features and services that cater to this target market. Read Review
- ⦿Flat monthly rate
- ⦿Dedicated bookkeeper
- ⦿Small business focus
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
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
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
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
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
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.
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.
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.
Online Bookkeeping Services - Top 5 list for 2022
Online Bookkeeping Services for Small Business Reviews
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.
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.
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.
AVAILABLE AS A SEPARATE SERVICE
- ⦿ Flat pricing
- ⦿ Dedicated bookkeeper
- ⦿ Additional services available
If you are looking for a service that will provide you with a dedicated bookkeeper to help you to outsource your bookkeeping, 1-800Accountant could be just the ticket. This US-based online bookkeeping service has a team of bookkeepers and accountants with an average of 17 years of experience in the business. If you decide to sign up for one of their packages, you’ll get to focus on growing your business and leave the bookkeeping to the experts.
As mentioned before, 1-800Accountant has flat-rate packages to offer to their clients, but the pricing tiers will vary depending on your state. Bookkeeping services come as a part of the highest tier of services, so let’s build up to that.
The first tier is called Startup and is advertised as the perfect solution for starting a small business or forming an LLC. As one of the online bookkeeping companies that offer full service, the Startup plan at 1-800Accountant includes outsourcing customized articles of incorporation, secure online access to your documents, and unlimited phone and email support. The best part is that it’s all completely free - all you need to cover is your state fee.
The second tier is called Business, and it is a solid solution for small businesses that need basic accounting help. The plan starts at $125 per month, plus the state fees, and includes access to the company’s accounting portal, quarterly reviews with your dedicated accountant, year-round tax advice, and proactive tax planning.
The next tier, Corporation, starts at $225 per month and includes everything from the Business plan while adding personal and business tax preparation.
If you want to fully outsource your books, this online bookkeeping company’s Enterprise tier might be the right pick. Starting at $375 per month, this tier includes everything from previous tiers and adds financial reports. Most importantly, this tier includes bookkeeping services.
1-800Accountant takes a lot of pride in its proprietary bookkeeping and accounting software that integrates seamlessly with any other software you are already using to provide accurate categorized transactions and reconciled accounts. Its software allows you to connect your bank accounts, issue invoices, and effortlessly track your books.
Finally, the company also offers customized packages. If you haven’t found the services you need within the flat-rate packages, you can schedule a call with a representative and create a custom plan that will fit your business and budget.
What makes 1-800Accountant one of the best online accounting services on this list is the hands-on approach of its team when it comes to your accounting needs. For starters, scheduling a call to ask your dedicated bookkeeper is pretty much effortless. The company’s experienced staff can provide advice, tax planning, and even help you get your books in order for a tax audit.
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.
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
- 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.
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.
AVAILABLE AS A SEPARATE SERVICE
- ⦿ It easily scales with your business as it grows
- ⦿ 30-day money-back guarantee
- ⦿ Comes with a mobile app with easy access to your dashboard
Xendoo is an excellent all-around pick for your small business’s bookkeeping needs. This platform scored well in every category, with the only drawback being its lack of tax filing services.
However, this can be remedied by opting for one of the company’s add-ons or by hiring a tax specialist. Don’t forget that professional tax services are 100% deductible!
Xendoo’s online business bookkeeping service pricing is very straightforward, with three tiers to choose from depending on your business’s monthly expenses and connected bank and credit card accounts.
The “Essential” plan is the basic option and is best suited for businesses with monthly expenses lower than $50,000, which includes up to four bank and credit card accounts. It costs $395 per month or $355 per month when billed annually, and it offers weekly bookkeeping with the help of a dedicated bookkeeping team, although it provides only cash basis accounting.
The “Growth” plan is designed for businesses with more complex bookkeeping needs. It costs $695 per month or $625 per month when billed annually, and it’s suited for businesses with monthly expenses lower than $75,000 that include up to six bank or credit card accounts. It has all the features of the Essential plan, plus semi-annual tax consultations, two integrations, and modified accrual accounting.
The “Scale” plan is the most comprehensive package offered by Xendoo. It costs $995 per month or $895 per month when billed annually. It’s best suited for small and medium-sized businesses with less than $125,000 in monthly expenses. Companies with more than $125,000 will have to reach out to this virtual accounting company to get a custom plan.
The Scale plan offers everything included in the previous two plans but allows for up to 12 bank and credit card accounts to be managed, along with four integrations, custom charts of your accounts, and it allows for deferred schedules.
The company also provides add-ons such as “Tax guidance plus annual federal and state tax return," which costs $1,200 annually. If you are months or years behind on your bookkeeping, you can also add catch-up bookkeeping to help you sort the issue out. The price of this add-on starts at $295 per month, but the final price will depend on the amount of catching up required.
The last add-on the company offers is fractional CFO, with a price starting at $1,500 per month, and it offers the strategic insight required to get your business off the ground and set it on the course to success.
Xendo's monthly bookkeeping service prices may seem a bit on the steep side, but the company provides excellent value for your money. With three service tiers to choose from, Xendoo can scale easily with your company.
Your dedicated bookkeeper is available to answer any questions and explain anything that shows up on your Profit & Loss or Balance Sheet reports, and they can help you develop a better understanding of your business’s financial and budgeting picture so that you can make informed decisions about where to allocate your resources.
Add-on services such as tax guidance and catch-up bookkeeping are also available, making Xendoo a great all-around choice for small business bookkeeping needs. The company even offers a 30-day money-back guarantee, so you can always try the service out for yourself before making any commitments.
- ⦿ Excellent integration options
- ⦿ Top-notch customer support
- ⦿ 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.
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.
According to the reviews available for this online bookkeeping company, custom pricing is more common with Reconciled, even though the pricing is represented as flat-rate tiers on its website. During the initial 30-minute consultation with its team, most of its customers find that a custom set of services that addresses all the bookkeeping pain points, together with the service-based pricing, is a better fit for them.
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 (or a smaller team available in South America), 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
- ⦿ 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.
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.
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.
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.
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.
Bookkeeping services include but are not limited to, performing monthly reconciliations, creating financial statements and reports, handling taxes, and payroll processing.
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.
When hiring an online bookkeeper, you should look for a trustworthy and cheap provider that performs all bookkeeping services for your type of business.
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.
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.