Online bookkeeping services streamline financial management, helping businesses track finances, save time, and reduce errors. Here’s a guide to the best options for businesses of various sizes and needs.
FAQs
1. How does online bookkeeping work?
- A service provider collects your financial data, balances books, and delivers financial reports.
2. What are the benefits of outsourcing bookkeeping?
- Saves time and costs, minimizes errors, ensures compliance, scales accounting efficiently, and provides expert insights.
3. What types of online bookkeeping exist?
- Cash Bookkeeping: Records finances when money is paid or received.
- Accrual Bookkeeping: Documents finances when invoices are issued or received.
4. What does online bookkeeping cost?
- Costs vary based on the provider and service scope, from flat fees to tiered pricing plans.
5. Are there alternatives to QuickBooks?
- Yes! Alternatives include Xero, Sage, FreshBooks, Wave Accounting, Zoho Books, and FreeAgent.
Top 11 Online Bookkeeping Services
1. 1-800 Accountant – Easy-Scaling Services
- Key Features:
- Access to CPAs with 17+ years of experience.
- Dedicated bookkeeper.
- Tax-ready financials.
- Payroll support and detailed reports.
- Pricing:
- Startup: Free (+ state fee).
- Business: $125/month.
- Corporation: $225/month.
- Enterprise: $375/month.
2. FreshBooks – Best for Time-Tracking
- Key Features:
- Invoice creation in seconds.
- Expense tracking and tax services.
- Performance reports and time-tracking.
- Pricing:
- Lite: $8.50/month.
- Plus: $15/month.
- Premium: $27.50/month.
- Select: Custom pricing.
3. Bookkeeper – Best Well-Rounded Service
- Key Features:
- Bill payment, tax planning, and reporting.
- Access to CPAs and financial planning.
- Pricing:
- Small Business: $399/month.
- Advanced: $799/month.
- Custom: Custom pricing.
4. Bench – Wide Choice of Services
- Key Features:
- Easy-to-read reports.
- Real-time cash flow updates.
- Catch-up bookkeeping for up to 2 years.
- Pricing:
- Essential: $249/month (annual).
- Premium: $399/month (annual).
5. Pilot – Ideal for Startups
- Key Features:
- Accrual-based accounting.
- Financial reports tailored to industries.
- Pricing:
- Core: $599/month.
- Select: $849/month.
- Plus: Custom pricing.
6. Merritt Bookkeeping – Affordable Services
- Key Features:
- Automated statement collection.
- Flat fee, no transaction limits.
- Pricing:
- $190/month.
7. Intuit QuickBooks – QuickBooks-Based Service
- Key Features:
- Personalized insights.
- Tax-ready financials and real-time collaboration.
- Pricing:
- Simple Start: $15/month (initial three months).
- Essentials: $27.50/month.
- Premium: $42.50/month.
- Advanced: $100/month.
8. Botkeeper – Tailored for Accounting Firms
- Key Features:
- AI/ML-powered automation.
- Centralized dashboard for client accounts.
- Pricing:
- Custom pricing based on client count.
9. Xendoo – Best for Advanced Bookkeeping
- Key Features:
- Weekly book reconciliation.
- Dedicated CPAs and onboarding specialists.
- Pricing:
- Essential: $355/month (annual).
- Growth: $625/month (annual).
- Scale: $895/month (annual).
10. inDinero – Ideal for Growing Businesses
- Key Features:
- Customizable services and real-time imports.
- Tax filing and reporting.
- Pricing:
- Essential: $300/month.
- Growth: $900/month.
- Executive: Custom pricing.
11. Ignite Spot Accounting – Best Reporting Services
- Key Features:
- Extensive monthly reports.
- Coaching for business growth.
- Pricing:
- Bookkeeper: 0.75% of revenue.
- Accountant: 1.5% of revenue.
- Controller: 2.25% of revenue.
- CFO: 3% of revenue.
How to Choose the Right Service
- Check Qualifications: Ensure bookkeepers and CPAs are experienced.
- Assess Communication: Look for easy, direct access to bookkeepers.
- Evaluate Technology: Ensure compatibility with your accounting software.
- Compare Services: Ensure services align with your business goals.
- Check Responsiveness: Prioritize providers with fast response times.
- Look for Financial Insights: Opt for services with interpretation and advice.
- Review Industry Expertise: Choose providers familiar with your field.
- Analyze Pricing Models: Ensure scalability and value for your budget.
Best Options for Specific Needs
- For Small Businesses:
- Bench: Starts at $249/month.
- Best Overall:
- Bookkeeper: Starts at $399/month.
- Advanced Bookkeeping Needs:
- Xendoo: Starts at $355/month.
- Best Value for Money:
- 1-800 Accountant: Free/Paid plans start at $125/month.
Summing it up
Outsourcing bookkeeping can save time, reduce costs, and provide valuable financial insights. With options ranging from startups to large enterprises, use this guide to find a service tailored to your needs and ensure financial peace of mind.
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