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
Get 15% off your first 3 months!
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

7. Bookkeeper.com

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

9. Merritt

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
Related Products and Services
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.
Online Bookkeeping Services - Top 5 list for 2022
- Bookkeeper360
- 1-800-Accountant
- Paro
- Xendoo
- Reconciled

Online Bookkeeping Services for Small Business Reviews
Bookkeeper360
GOOD
EXCELLENT
EXCELLENT
EXCELLENT
AVAILABLE AT ADDITIONAL COST
- ⦿ Dedicated accountant services
- ⦿ Training and technical support for using accounting software
- ⦿ Full tax filing available for an additional fee
1-800Accountant Review
EXCELLENT
VERY GOOD
EXCELLENT
EXCELLENT
AVAILABLE AS A SEPARATE SERVICE
- ⦿ Flat pricing
- ⦿ Dedicated bookkeeper
- ⦿ Additional services available
Paro Review
VERY GOOD
EXCELLENT
EXCELLENT
VERY GOOD
AVAILABLE AS A SEPARATE SERVICE
- ⦿ Highly flexible pricing
- ⦿ 100+ financial services available
- ⦿ Dedicated agents for every customer
Xendoo Review
EXCELLENT
VERY GOOD
EXCELLENT
VERY GOOD
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
Reconciled Review
EXCELLENT
EXCELLENT
EXCELLENT
EXCELLENT
AVAILABLE
- ⦿ Excellent integration options
- ⦿ Top-notch customer support
- ⦿ Enterprise accounting solutions available
Pilot
GOOD
EXCELLENT
GOOD
EXCELLENT
AVAILABLE AS A SEPARATE SERVICE
- ⦿ Accrual bookkeeping services with a dedicated bookkeeper
- ⦿ Custom reporting features
- ⦿ Special discount for pre-revenue companies
Bookkeeper.com
EXCELLENT
GOOD
EXCELLENT
EXCELLENT
AVAILABLE AT ADDITIONAL COST
- ⦿ No price markup for accrual accounting
- ⦿ Free secure online document storage
- ⦿ One-on-one teleconference meetings with a dedicated bookkeeper
KPMG Spark
GOOD
EXCELLENT
EXCELLENT
GOOD
AVAILABLE AS AN ADDITIONAL SERVICE
- ⦿ Solutions for cash and accrual accounting needs
- ⦿ Easy expense tracking
- ⦿ Automatic payroll services through WePay

Merritt
Merritt
EXCELLENT
EXCELLENT
GOOD
EXCELLENT
UNAVAILABLE
- ⦿ Fixed pricing scheme
- ⦿ Very simple and quick setup
- ⦿ Supports Quickbooks
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.