Best Online Bookkeeping Services for Small Business [2023]

Apr 20, 2022 | Small Business

Best Online Bookkeeping Services for Small Business
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Top Picks for Accurate and Streamlined Financial Management

As a small business owner, I understand the importance of keeping accurate financial records. However, bookkeeping is not my strong suit, and I prefer to outsource this task to a professional bookkeeping service. If you are in the same boat, you may be wondering how to find the best online bookkeeping services that are both reliable and affordable.

One thing to look for is an online bookkeeping company that integrates with your accounting software, making it easier to keep track of your finances. Additionally, it’s important to find a service that fits within your budget. While some may suggest doing it yourself using accounting software, it’s important to consider whether or not this is the best use of your time and expertise. In this article, I will provide tips on how to find a trustworthy virtual bookkeeping service that can help you manage your small-business accounting needs without breaking the bank.

Key Takeaways

  • Look for online bookkeeping services that integrate with your accounting software
  • Find a service that fits within your budget
  • Consider outsourcing bookkeeping tasks to a professional service to save time and ensure accuracy.

What is Bookkeeping?

Bookkeeping refers to the process of recording a company’s financial transactions and maintaining accurate financial records. It involves tracking financial activities such as accounts payable and receivable, cash-basis and accrual-based accounting, and general ledger management. Online bookkeeping services can be outsourced to handle these tasks, which can save small-business owners time and reduce stress. These services typically have trained bookkeepers who reconcile bank statements, create financial reports, and ensure that documents are in order for tax purposes. By utilizing bookkeeping services, small-business owners can focus on other important accounting functions.

How to Find the Best Online Bookkeeping Services

If you’re looking for the best online bookkeeping services, you’re in luck. There are many great options available, each with its own unique features and benefits. Here are some of the top online bookkeeping services to consider:

Bench

Bench is a popular online bookkeeping service that offers a range of features to help small business owners manage their finances. With Bench, you can connect your bank accounts, credit cards, and merchant accounts, and all transactions are tracked automatically. You can also upload receipts and send them directly to Bench.

Bench offers two plans: Essential and Premium. The Essential plan costs $299 per month and includes unlimited bookkeeping, year-end financial statements, and support from Bench’s research team. The Premium plan costs $399 per month and includes unlimited communication with Bench’s research team, as well as year-end filing for sole proprietors, contractors, and businesses.

One downside of Bench is that it only works with cash-basis accounting, which may not be suitable for larger businesses. However, if you’re a small business owner looking for an affordable and easy-to-use bookkeeping service, Bench is definitely worth considering.

bench pricing
free trial

InDinero

InDinero is another great online bookkeeping service that offers a range of features to help small businesses manage their finances. With InDinero, you can choose from two plans: Essential and Custom. The Essential plan costs $900 per month and includes accrual accounting managed by controllers. The Custom plan offers more accounting services, including revenue recognition and tax filing.

One of the advantages of InDinero is that it offers flexible billing options, including monthly, quarterly, and annual installments. However, pricing can vary depending on the type of accounting your business uses, so you’ll need to contact a salesperson to discuss pricing.

InDinero is a good choice if you’re a business owner who needs help with day-to-day bookkeeping tasks. However, it may not be the best option if you need advanced accounting software.
freshbooks

FreshBooks

FreshBooks is an online bookkeeping service that’s designed for freelancers and small business owners. With FreshBooks, you can track time, assign it to clients, and create invoices. You can also import expenses straight from your bank account and link to your Outlook or Zoom account.

FreshBooks is a great choice if you’re looking for a bookkeeping service that’s easy to use and has a range of features. However, some users may find that the pricing is a bit high, especially if they need to upgrade to the Premium or Select plans.

free trial

KPMG Spark

KPMG Spark is an online bookkeeping service that offers powerful automated bookkeeping capabilities. With KPMG Spark, you can set up custom tracking and easily track your business’s finances.

One of the advantages of KPMG Spark is that it offers a range of advisory services, including tax planning and tax advice. However, pricing can be quite high, so it may not be the best option for small businesses on a tight budget.

Merritt Bookkeeping

Merritt Bookkeeping is an online bookkeeping service that’s designed for small businesses. With Merritt Bookkeeping, you can connect your bank accounts and credit cards, and all transactions are tracked automatically. You can also upload receipts and send them directly to Merritt Bookkeeping.

Merritt Bookkeeping offers two plans: Basic and Growth. The Basic plan costs $190 per month and includes monthly bookkeeping and financial reports. The Growth plan costs $290 per month and includes quarterly CFO services, inventory management, and forecasting.

One of the advantages of Merritt Bookkeeping is that it offers a mobile app that allows you to manage your finances on the go. However, some users may find that the pricing is a bit high, especially if they need to upgrade to the Growth plan.

When choosing an online bookkeeping service, it’s important to consider factors such as price, features, ease of use, and customer service. By doing your research and comparing different options, you can find the best online bookkeeping service for your business.

How to Find a Trustworthy Virtual Bookkeeping Service

As a digital marketing expert, I have worked with many small businesses that have struggled to find a trustworthy virtual bookkeeping service. In this section, I will provide some tips on how to find a virtual bookkeeping service that is reliable, efficient, and affordable.

Hiring a Dedicated Bookkeeper

One of the most important things to consider when choosing a virtual bookkeeping service is whether or not they offer a dedicated bookkeeper. A dedicated bookkeeper is someone who will be assigned to your account and will be responsible for managing your financial records. This ensures that you have a consistent point of contact and that your bookkeeper is familiar with your business’s financial situation.

Communications

Another important factor to consider is how well the virtual bookkeeping service communicates with its clients. You should look for a service that is responsive and provides a clear onboarding process. A good virtual bookkeeper will make your job easier by providing an easy-to-use interface that will allow you to communicate easily with them. You should also look for a virtual bookkeeper who is able to answer your emails and provide video chat or messaging support.

Live Bookkeeping

Live bookkeeping is a feature that allows you to communicate with your bookkeeper in real-time. This can be a valuable tool if you need to make quick decisions about your finances. Many virtual bookkeeping services offer live bookkeeping as an add-on service, so be sure to ask about it when you are considering a service.

Outsourced Accounting Services

In addition to bookkeeping, many virtual bookkeeping services offer outsourced accounting services. This can include services such as tax preparation, financial analysis, and budgeting. If you are looking for a comprehensive financial management solution, you may want to consider a virtual bookkeeping service that offers these additional services.

Contractor vs Employee

When choosing a virtual bookkeeping service, you should also consider whether you want to work with a contractor or an employee. Contractors are typically less expensive than employees, but they may not be as reliable or dedicated to your business. Employees, on the other hand, are more expensive but are often more reliable and dedicated to their work.

Conclusion

In conclusion, finding a trustworthy virtual bookkeeping service can be a challenge, but it is an important step in managing your small business’s finances. By considering factors such as dedicated bookkeepers, communications, live bookkeeping, outsourced accounting services, and contractor vs employee, you can find a service that meets your needs and helps you stay within your budget.

Frequently Asked Questions

What are some of the best online bookkeeping services for small businesses?

As per my research, some of the top-rated online bookkeeping services for small businesses are Bookkeeper360, Bench, QuickBooks Online, Botkeeper, and Ignite Spot Accounting. These services offer a range of features such as dedicated bookkeepers, catch-up bookkeeping services, affordable plans, and access to a team of in-house bookkeepers.

What factors should I consider when choosing an online bookkeeping service for my small business?

When choosing an online bookkeeping service, you should consider factors such as pricing, features, customer support, and scalability. It is important to choose a service that fits your business needs and budget. Also, make sure to check the security and privacy policies of the service provider.

How much should I expect to pay for monthly bookkeeping services for my small business?

The cost of monthly bookkeeping services for small businesses can vary depending on the service provider, the size of your business, and the level of bookkeeping services you require. On average, you can expect to pay anywhere from $200 to $500 per month for basic bookkeeping services.

Are there any free online bookkeeping services available for small businesses?

While there are some free online bookkeeping services available, they may not offer the same level of features and support as paid services. However, some service providers offer free trials or demos that allow you to test their services before committing to a paid plan.

What are the benefits of using virtual bookkeeping services for small businesses?

Virtual bookkeeping services offer several benefits for small businesses, including cost savings, improved accuracy, and increased efficiency. With virtual bookkeeping services, you can access your financial data from anywhere at any time, and you can also save time on administrative tasks such as data entry and record keeping.

How do I find the best bookkeeping software for my small business?

When looking for the best bookkeeping software for your small business, you should consider factors such as ease of use, features, pricing, and customer support. It is also important to choose software that integrates with other tools and software you use in your business. Some popular bookkeeping software options include QuickBooks Online, Xero, and FreshBooks.


ABOUT THE AUTHOR

Phil Tucker

Phil Tucker

Digital Marketing Expert

Phil Tucker is a digital marketing expert specializing in Search Engine Optimization and Website Design. He founded Be Famous Media in 2012, a digital marketing agency located in Lynchburg VA, that helps businesses across the United States increase their online visibility and attract more customers.

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About The Author

Phil Tucker

Phil Tucker is a full-time blogger and digital marketing expert. Join Phil and thousands of monthly readers on MrPhiLTucker.com to learn how to grow your online visibility and generate more revenue.

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