Best Online Bookkeeping Services

Imagine effortlessly tracking your expenses, creating professional invoices, managing payroll, and staying on top of your budget—all from the comfort of your favorite coffee shop or the cozy office corner. Online bookkeeping services bring the magic of convenience and efficiency to your business, making your financial management journey smooth and enjoyable.

Read on to learn more about choosing the best bookkeeping service for your business.

QuickLook: Best Online Bookkeeping Services

What Are Online Bookkeeping Services?

Online bookkeeping services are like virtual financial assistants for businesses. They work through cloud-based platforms or software, allowing businesses to handle their financial records and transactions from anywhere. Your financial documents are securely stored in the cloud and are accessible at your fingertips whenever you need them.

These services come packed with a bunch of useful features, making your financial tasks a breeze. The features of online bookkeeping services include:

• Bookkeeping and Accounting: Online bookkeeping services handle the recording and organization of financial transactions. This includes tasks such as managing accounts payable and receivable, recording expenses and revenues, reconciling bank statements, and maintaining the general ledger. By keeping accurate and up-to-date books, businesses can better understand their financial health and make informed decisions.

• Financial Reporting: Online bookkeepers generate various financial reports to provide business owners with insights into their company’s performance. These reports may include profit and loss statements, balance sheets, cash flow statements, and other customized reports to meet specific business needs. These reports are crucial for tracking financial trends, assessing profitability, and preparing for tax obligations.

• Tax Preparation and Compliance: Online bookkeeping services often assist businesses in preparing and filing their tax returns accurately and on time. They help identify potential deductions and credits to minimize tax liabilities while ensuring compliance with tax laws and regulations. This can save businesses time, reduce the risk of errors, and potentially lower tax-related costs.

• Payroll Processing: Managing payroll can be complex, especially for small and medium-sized businesses. Online bookkeeping services can handle payroll processing, including calculating wages, deductions, and taxes, issuing paychecks, and filing payroll-related taxes. This helps businesses streamline their payroll operations and ensures employees are paid accurately and on time.

• Financial Analysis and Advisory: Many online bookkeeping services go beyond basic data entry and offer financial analysis and advice. They can interpret financial data, identify trends, and provide insights into business performance. These analyses can help businesses make strategic decisions, plan for growth, and improve overall financial stability.

• Cloud-Based Software Integration: Online bookkeeping services often work with cloud-based accounting software, allowing businesses to streamline their financial management processes further. By integrating with platforms like QuickBooks, Xero, or FreshBooks, businesses can efficiently manage invoices, expenses, and financial data, while the online bookkeeping service can access and update records in real time.

• Data Security and Backup: Ensuring the security of financial data is critical for any business. Reputable online bookkeeping services employ robust security measures to safeguard sensitive financial information. They often use encryption, secure servers, and regular data backups to protect against data breaches and ensure business continuity.

• Cost-Effectiveness: Online bookkeeping services can be more cost-effective than hiring in-house accountants. Businesses can choose from different pricing models, such as monthly subscriptions or pay-as-you-go plans, which can be flexible and affordable for small and growing enterprises.

How to Choose the Best Online Bookkeeping Service?

Choosing the best online bookkeeping service for your business requires careful consideration of various factors, including pricing, features, customer support, ease of use, service level, and integrations. To help you make an informed decision, here are some essential steps to follow:

Assess Your Business Needs: Start by evaluating your specific bookkeeping requirements. Consider the size of your business, the volume of transactions, payroll needs, and any specific financial reporting or tax compliance requirements. Understanding your needs will help you identify which services and features are essential for your business.

Compare Pricing Models: Look into the pricing structures of different online bookkeeping services. Some may offer monthly subscriptions with various tiers based on your needs, while others may have a pay-as-you-go model. Choose a pricing plan that aligns with your budget and expected usage.

Evaluate Features and Functionality: Review the features each service offers. Look for essentials like bank reconciliation, financial reporting, tax preparation, and payroll processing. Additionally, consider any specific features you may need, such as inventory management or multi-currency support, based on your business’s unique requirements.

Check Customer Support Options: Good customer support is crucial, especially if you are not well-versed in bookkeeping or accounting. Ensure that the service offers multiple support channels, such as phone, email, or live chat, and inquire about their response times and availability.

Assess Ease of Use and User Interface: A user-friendly platform is essential to ensure smooth navigation and efficient bookkeeping processes. Many services offer demos or free trials, allowing you to explore their interface and see if it suits your preferences and level of expertise.

Review Service Level and Expertise: Research the reputation and experience of the online bookkeeping service. Look for customer reviews, testimonials, and ratings to gauge the quality of their services and the satisfaction of their clients.

Security and Data Protection: Ensure that the service prioritizes data security and follows industry-standard encryption protocols to safeguard your financial information. Check their data backup procedures and how they handle potential data breaches.

Integration Capabilities: If you are already using accounting software, such as QuickBooks or Xero, ensure that the online bookkeeping service can seamlessly integrate with your existing tools. This integration can streamline your workflow and reduce the need for manual data entry.

Scalability: Consider the scalability of the service. As your business grows, you may require additional features or increased support. Choose a service that can accommodate your future needs without disruption.

Trial Periods and Money-Back Guarantees: Whenever possible, opt for services that offer trial periods or money-back guarantees. This allows you to test the service and its suitability for your business.

10 Best Online Bookkeeping Services

To help you get started, here are 10 reputable online bookkeeping services that have received positive reviews from users and are known for their reliability, functionality, and customer support.

Xendoo

Xendoo is a sophisticated online bookkeeping service, catering to businesses seeking expert accounting support. With its customizable services and a team of certified public accountants (CPAs), Xendoo aims to deliver precision and efficiency.

Key features of Xendoo include:

• Invoice and expense tracking: Effectively manages and tracks invoices and expenses to maintain financial organization.
• Bank reconciliation: Seamlessly reconciles your bank accounts for accurate financial records.
• Financial reporting: Accesses comprehensive financial reports, enabling data-driven decision-making.
• Tax preparation: Relies on Xendoo’s expertise to streamline your tax preparation process.
• Payroll processing: Efficiently handles employee payroll within the platform.

Pros:

• Expert CPAs: Xendoo provides access to a team of certified public accountants, offering specialized insights and guidance.
• Customizable services: Tailor-made solutions allow businesses to receive personalized accounting support.
• Accurate financial reporting: Xendoo is committed to delivering precise and timely financial reports, ensuring reliability.
• Good customer service: Xendoo’s responsive customer support is readily available to assist with any inquiries.

Cons:

• Can be expensive: Xendoo’s pricing might be higher compared to some other bookkeeping services, reflecting its premium offerings.
• Not as easy to use as some other bookkeeping services: Users new to accounting platforms might require some time to familiarize themselves.

Pricing:

Xendoo’s pricing starts at $395 per month, catering to businesses with up to 50 transactions per month. Plans include unlimited bank transactions, invoices, and expense tracking.

Who Should Use It?

Xendoo is an excellent choice for small businesses seeking advanced accounting services and prefer to collaborate with a team of experienced CPAs. It’s also ideal for businesses looking for customized accounting solutions tailored to their unique needs.

Get started with Xendoo

Bench

Bench is a comprehensive online bookkeeping service designed to cater to the accounting needs of small businesses. With its user-friendly interface and a range of features, Bench aims to simplify financial management for entrepreneurs and business owners.

Key features of Bench include:

• Invoice and expense tracking: Stay organized with Bench’s efficient tools to track and manage your invoices and expenses effortlessly.
• Bank reconciliation: Seamlessly reconcile your bank accounts to ensure accurate financial records.
• Financial reporting: Access comprehensive financial reports to gain valuable insights into your business’s performance.
• Tax preparation: Simplify tax season with Bench’s support for tax preparation, helping you stay compliant.
• Payroll processing: Manage your employee payroll efficiently within the platform.

Pros:

• Easy to use: Bench’s user-friendly software makes it accessible to users with minimal accounting experience.
• Scalable: Whether you’re a small startup or an established business, Bench can scale to fit your needs.
• Reliable: With a team of experienced accountants ready to assist, Bench provides reliable customer support.
• Affordable: Bench offers competitive pricing, making it a cost-effective solution for small businesses.
• Good customer service: Benefit from Bench’s responsive and helpful customer support team.

Cons:

• Not as customizable as some other bookkeeping services: Businesses with specific customization needs may find Bench’s options somewhat limited.
• Not well-suited for businesses with complex accounting needs: Companies requiring intricate accounting solutions might need more tailored services.

Pricing:

Bench’s pricing starts at $299 per month.

Who Should Use It?

Bench is an excellent choice for small businesses in need of streamlined bookkeeping services without the cost of hiring a full-time bookkeeper. It’s also suitable for businesses seeking a reliable and affordable bookkeeping solution.

Get started with Bench

1-800Accountant

1-800Accountant offers a full-service bookkeeping solution, providing comprehensive support for businesses’ financial management needs. With their expertise and range of services, they aim to be the go-to choice for businesses seeking comprehensive bookkeeping assistance.

Key features of 1-800Accountant include:

• Full-service bookkeeping: Covering all aspects of bookkeeping, from invoicing and expenses to bank reconciliation and financial reporting.
• Tax planning and preparation: Ensuring businesses are well-prepared for tax season with strategic planning and accurate preparation.
• Expert guidance: Access to knowledgeable accountants for personalized advice and support.

Pros:

• Comprehensive services: 1-800Accountant handles all bookkeeping aspects, reducing the need for additional services.
• Tax expertise: Specialized tax planning and preparation help businesses maximize deductions and minimize liabilities.
• Professional guidance: Benefit from the expertise of accountants to make informed financial decisions.

Cons:

• Potentially higher cost: Full-service bookkeeping may come with a higher price tag than basic services.

Pricing:

Starts at $179 per month

Who Should Use It?

1-800Accountant is an ideal choice for businesses looking for a complete bookkeeping solution, especially those who want expert assistance in tax planning and preparation.

Get started with 1-800Accountant

QuickBooks Live

QuickBooks Live is an efficient cleanup bookkeeping service offered by QuickBooks, a well-established name in the accounting software industry. With its experienced bookkeepers, QuickBooks Live is perfect for businesses seeking to organize and streamline their financial records.

Key features of QuickBooks Live include:

• Cleanup bookkeeping: Sorting and organizing existing financial records to ensure accuracy and consistency.
• Professional bookkeepers: Access to trained bookkeepers well-versed in QuickBooks software and practices.
• Ongoing support: QuickBooks Live provides continuous assistance and advice for maintaining clean and organized books.

Pros:

• Expert cleanup: QuickBooks Live bookkeepers are skilled at organizing and categorizing financial data effectively.
• Integration with QuickBooks: Seamlessly sync your cleaned data with QuickBooks software for smooth accounting.

Cons:

• Limited scope: QuickBooks Live primarily focuses on cleanup services and may not cover all aspects of full-service bookkeeping.
• Extra fees: Requires a subscription to QuickBooks Online, which is an additional cost.

Pricing: $200 per month

Who Should Use It?

QuickBooks Live is an excellent choice for businesses looking to tidy up their financial records, especially those already using QuickBooks software.

Get started with QuickBooks Live

Botkeeper

Botkeeper is an innovative bookkeeping service tailored for accounting firms. With its AI-powered platform and automation capabilities, Botkeeper aims to revolutionize the way accounting firms handle bookkeeping tasks.

Key features of Botkeeper include:

• AI-powered bookkeeping: Leveraging artificial intelligence and machine learning to automate bookkeeping processes.
• Data extraction: Botkeeper efficiently extracts and categorizes financial data for streamlined bookkeeping.
• Seamless integration: Integration with various accounting software for easy data transfer and reporting.

Pros:

• Automation efficiency: Botkeeper reduces manual tasks, saving time and effort for accounting firms.
• Data accuracy: The AI-driven system ensures precise categorization and organization of financial data.

Cons:

• Learning curve: Accounting firms may need some time to adapt to the AI-driven platform and its functionalities.
• Limitations: The revenue recognition capabilities here are pretty basic.

Pricing: $155 per month for simple entities.

Who Should Use It?

Botkeeper is an excellent choice for accounting firms looking to boost efficiency and streamline bookkeeping processes through AI-powered automation.

Get started with Botkeeper

Ignite Spot Accounting

Ignite Spot Accounting specializes in providing certified bookkeepers to businesses in need of professional financial management support. With its team of certified experts, Ignite Spot aims to ensure accurate and reliable bookkeeping services.

Key features of Ignite Spot Accounting include:

• Certified bookkeepers: Access to qualified and experienced bookkeepers for accurate financial management.
• Full-service bookkeeping: Comprehensive support covering invoicing, expenses, bank reconciliation, and financial reporting.
• Personalized assistance: Tailored solutions to meet the unique needs of each business.

Pros:

• Certified expertise: Ignite Spot’s certified bookkeepers assure of quality and accuracy.
• Customized solutions: Businesses receive personalized bookkeeping support tailored to their specific requirements.

Cons:

• Higher cost: Hiring certified bookkeepers may lead to higher fees compared to basic bookkeeping services.

Pricing: Starts at $417 per month

Who Should Use It?

Ignite Spot Accounting is an excellent choice for businesses seeking the assurance of certified bookkeepers and personalized financial management support.

Get started with Ignite Spot Accounting

Bookkeeper 360

Bookkeeper 360 offers flexible bookkeeping services, allowing businesses to access bookkeeping support on an hourly basis. With their adaptable approach, Bookkeeper 360 aims to cater to businesses with varying needs.

Key features of Bookkeeper 360 include:

• Hourly bookkeeping services: Businesses can hire bookkeepers based on their specific hourly requirements.
• Invoicing and expense tracking: Efficiently manage invoices and expenses to maintain financial organization.
• Customizable support: Tailor the bookkeeping service based on your unique business needs.

Pros:

• Flexibility: Hourly bookkeeping allows businesses to obtain support only when required, thus reducing costs.
• Customization: Allows you to choose the specific bookkeeping tasks you need assistance with, providing tailored support.

Cons:

• Limited scope: Businesses requiring ongoing, full-service bookkeeping may find hourly services less comprehensive.

Pricing: $399 per month

Pay-as-you-go option is available for $125 per hour of support.

Who Should Use It?

Bookkeeper 360 is an ideal choice for businesses looking for bookkeeping support on a flexible and hourly basis, allowing them to customize the services they need.

Get started with Bookkeeper 360

FinancePal

FinancePal is a specialized bookkeeping service tailored for small businesses. With their expertise in handling small business finances, FinancePal aims to be the go-to solution for entrepreneurs seeking professional bookkeeping support.

Key features of FinancePal include:

• Small business focus: FinancePal understands the unique needs of small businesses and provides targeted support.
• Invoicing and expense management: Efficient tools to handle invoices and expenses for financial organization.
• Tax preparation: Assistance with tax planning and preparation for small businesses.

Pros:

• Small business expertise: FinancePal’s tailored services cater to the specific financial needs of small businesses.
• Tax assistance: Small businesses can benefit from expert guidance in tax planning and preparation.

Cons:

• May not be suitable for larger businesses: FinancePal’s specialized focus may not cater to larger enterprises with complex needs.
• FinancePal’s services might be comparatively less customizable than other bookkeeping solutions.

Pricing:

The company doesn’t display pricing plans on its website, but there have been reports of quotes between $205-$280 per month, depending on the needs.

Who Should Use It?

FinancePal is an excellent choice for small businesses in need of expert bookkeeping support tailored to their unique financial requirements.

Get started with FinancePal

Decimal

Decimal offers a comprehensive bookkeeping service, providing businesses with on-demand reports and financial insights. With their streamlined reporting process, Decimal aims to help businesses make informed decisions based on accurate and up-to-date financial data.

Key features of Decimal include:

• On-demand reports: Access financial reports and insights whenever you need them, allowing for quick decision-making.
• Customizable reporting: Tailor reports to suit your specific business needs and preferences.
• Data visualization: Understand financial data easily with visually engaging graphs and charts.

Pros:

• On-demand access: Decimal’s on-demand reporting ensures businesses can access financial insights whenever required.
• Customization: Tailor reports to focus on the specific financial metrics that matter most to your business.

Cons:

• May not provide comprehensive bookkeeping services beyond reporting, and businesses may need to supplement with other bookkeeping solutions.
• Smaller businesses with minimal reporting needs might find the cost of the service relatively higher.

Pricing:

Decimal’s pricing starts at $395 per month, providing businesses with access to on-demand financial reports and insights.

Who Should Use It?

Decimal is best for businesses that require quick and customizable access to financial reports and insights to aid in decision-making. It is especially suitable for businesses seeking to analyze specific financial metrics and visualize data effectively.

Get started with Decimal

Pilot

Pilot is a premium bookkeeping service tailored for startups, offering expert financial management and support. With their team of experienced accountants, Pilot aims to provide startups with the financial expertise needed to succeed.

Key features of Pilot include:

• Startup expertise: Pilot specializes in catering to the unique financial needs of startups and early-stage businesses.
• Full-service bookkeeping: It covers all aspects of financial management, from invoicing to financial reporting.
• Dedicated accountants: Pilot provides access to a dedicated team of experienced accountants for personalized support.

Pros:

• Startup-focused: Pilot’s specialization in startups ensures businesses receive tailored financial support.
• Expert guidance: Benefit from the expertise of experienced accountants dedicated to your business.

Cons:

• Premium pricing: Pilot’s comprehensive services may come with a higher price tag compared to basic bookkeeping solutions.
• Startups with very simple bookkeeping needs might find the premium service more comprehensive than necessary.

Pricing: $499 per month billed annually for pre-revenue generating companies and $1,500 per month for revenue-generating companies.

Who Should Use It?

Pilot is best for startups and early-stage businesses seeking expert financial guidance and full-service bookkeeping support. It is ideal for businesses that value personalized attention and are willing to invest in premium bookkeeping services to ensure financial accuracy and success.

Get started with Pilot

Choosing the Right Online Bookkeeping Service for Your Business

As you can see, there are plenty of options. Selecting the best service for your business requires a thoughtful assessment of your needs and budget constraints. Each service comes with its strengths and limitations, so it’s crucial to prioritize what aligns most closely with your business requirements.

Consider factors such as pricing models, features, customer support, ease of use, service level, and integrations to make an informed decision. Remember that what might be the best option for one business may not necessarily be the ideal fit for another. By taking the time to evaluate and compare the available options, you can find an online bookkeeping service that not only streamlines your financial management but also contributes to your business’s growth and success.

FAQs

How do online bookkeeping services ensure data security?

Online bookkeeping services prioritize data security by implementing industry-standard encryption protocols. They use secure servers to store financial data and regularly perform data backups to prevent loss. Additionally, reputable services have strict access controls, ensuring that only authorized personnel can access sensitive information.

Can online bookkeeping services handle complex accounting tasks?

Yes, many online bookkeeping services are equipped to handle complex accounting tasks. They offer a range of functionalities, including bank reconciliation, financial reporting, payroll processing, and inventory management. Some services may also cater to specific industries with unique accounting requirements.

Do you still need an accountant if you use online bookkeeping services?

While online bookkeeping services can handle many financial tasks, the need for an accountant depends on the complexity of your business’s financial operations. Accountants bring expertise in tax planning, financial analysis, and strategic advice, which can be invaluable for making informed decisions and ensuring compliance with tax laws.

Can online bookkeeping services integrate with other business software?

Yes, most online bookkeeping services offer integrations with popular accounting software, such as QuickBooks, Xero, or FreshBooks. These integrations streamline data flow, reducing the need for manual data entry and ensuring consistent and accurate financial records across multiple platforms.

Can online bookkeeping services help with tax preparation?

Yes, many online bookkeeping services offer tax preparation assistance. They can help businesses gather and organize necessary financial documents, calculate tax liabilities, and prepare and file tax returns. Properly maintained books by these services facilitate smooth tax preparation and ensure compliance with tax regulations. However, for complex tax situations, it’s advisable to seek advice from a certified tax professional or accountant.