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Best Online Bookkeeping Services 2020: Run Your Business Like a Pro

Running a company isn’t easy. You need to manage your workforce, pay salaries, do your taxes, and somehow remember to innovate. The dream can easily become a bureaucratic nightmare.

That’s where online bookkeeping services come in. They transform raw numbers into the reports and summaries and other paperwork you need. It’s like having a team of bookkeepers and accountants on retainer - but without the expense. If you’re unsure which service to choose, read on. We’ve compiled a list of the best online bookkeeping services for you.

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Fortunly’s Top 3 Online Bookkeeping Service Picks

Top 3 Picks

Bench

All-in-one package

Retailer-friendly

Invoicing and tax filing

Sign Up Now READ REVIEW

Bookkeeper360

All-in-one service

E-commerce integration

Great mobile app

Sign Up Now READ REVIEW

KPMG Spark

Low prices

Fast setup

Easy to use

Sign Up Now READ REVIEW

6 Best Online Bookkeeping Service Picks

1. Bench

All-in-one package

Retailer-friendly

Invoicing and tax filing

Starts At:

$310/month

Sign Up Now

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If you’re running a retail business or sell products of any kind, inDinero could be the best solution for you. This company offers both traditional bookkeeping services and all-in-one packages to suit the needs of various businesses. With an in-house bookkeeping team and an internally developed application, there’s no denying that inDinero provides clients with an excellent service.

Read full review

Pricing:

OK

Features:

Excellent

Ease of Use:

Excellent

Customer Service:

Excellent

2. Bookkeeper360

All-in-one service

E-commerce integration

Great mobile app

Starts At:

$199/month

Sign Up Now

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Based on Xero’s platform for online accounting, Bookkeeper360 offers an all-in-one personalized solution for small businesses. This company’s simple accounting software is accompanied by a skillful team of CPAs and certified bookkeepers, as well as many different tools to help you organize your own business. Depending on the scale of your operations, you can pick one of Bookkeeper360’s premade packages, or schedule a call and create a plan based on your needs. It’s flexible and integrates well with many popular platforms.

Read full review

Pricing:

OK

Features:

Excellent

Ease of Use:

Very Good

Customer Service:

Very Good

3. KPMG Spark

Low prices

Fast setup

Easy to use

Starts At:

$195/month

Sign Up Now

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Founded in 2013, KPMG Spark might be one of the younger names in the online bookkeeping business, but that doesn’t mean the accountants working here don’t take their job seriously. Spark has already processed more than 5 million transactions, has a team of top-notch bookkeepers, and offers a high-quality knowledge hub dedicated to helping small entrepreneurs create the business of their dreams.

Read full review

Pricing:

Very Good

Features:

Excellent

Ease of Use:

Excellent

Customer Service:

Excellent

4. Bookkeeper.com

Flexible pricing

QuickBooks integration

Good for restaurants

Starts At:

$285/month

Sign Up Now

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This Waynesboro-based service has been in the accounting business for a long time. Bookkeeper.com offers a variety of services: remote accounting, financial planning, audit assistance, payroll, tax preparation, and, of course, bookkeeping. The company’s expertise is in the restaurant business, where it offers a wide variety of solutions for organization and business management.

Read full review

Pricing:

Very Good

Features:

Excellent

Ease of Use:

Very Good

Customer Service:

Excellent

5. Merritt Bookkeeping

Flat-rate plan

Fast setup

QuickBooks integration

Starts At:

$190/month

Sign Up Now

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When it comes to running a small business, accounting services are now providing very streamlined bookkeeping solutions. One such company is Merritt Bookkeeping, a highly rated bookkeeping service that’s one of the favorites among small businesses in the United States. Merritt provides hassle-free setup and payments, going toe-to-toe with many larger companies in the industry.

Read full review

Pricing:

Excellent

Features:

OK

Ease of Use:

Excellent

Customer Service:

Excellent

6. inDinero

All-in-one package

Retailer-friendly

Invoicing and tax filing

Starts At:

$310/month

Sign Up Now:

show more


If you’re running a retail business or sell products of any kind, inDinero could be the best solution for you. This company offers both traditional bookkeeping services and all-in-one packages to suit the needs of various businesses. With an in-house bookkeeping team and an internally developed application, there’s no denying that inDinero provides clients with an excellent service.

Read full review

Pricing:

OK

Features:

Excellent

Ease of Use:

Excellent

Customer Service:

Excellent

How Do We Evaluate Bookkeeping Services?

Bookkeeping isn’t something to be taken lightly. Balancing your company’s finances can spare you a big headache in the long run and help you sleep tight after a long day at work. And you need accurate numbers for banks, the IRS, and city hall.

We took a deep dive into the bookkeeping market, identified the most prominent services, and evaluated them. We checked all the important criteria to ensure that they can satisfy your business bookkeeping needs.

Pricing

We’ll start with the most important factor for many businesses – is it expensive to manage your books? Could you maybe get by with free bookkeeper software or a super-affordable alternative? Every business cares about saving money, so we take a hard look at pricing plans and balance them against features.

Pricing plans are often a good hint about what a service offers its customers. Services are generally sold on a subscription basis, tiered so businesses of different sizes and types can choose a plan according to their needs and budgets. Lower-cost plans have limits – like a disabled key features or limiting the number of transactions per month. Other plans are a complete solution only if you subscribe to one or more add-on modules. We take all of this into account when assessing the value of the best bookkeeping services online.

Features

Affordability doesn’t matter if the bookkeeping service you’ve signed up for doesn’t do everything you need.

A good bookkeeping service should offer at least the basics in its entry-level subscription, like monthly financial statements and income and expense reports. We also look into different types of accounting to determine whether both cash- and accrual-based bookkeeping are available, as well as whether there are options for payroll and taxes. The last thing you want is having to search for additional online CPA services after you’ve already gone into business with a bookkeeper.

Ease of use

Just as features separate the cream from the crop, easy-to-use tools end up being the best in the business. After all, we want to manage our books, not land a spaceship on the surface of Mars. It’s not rocket science, nor does it need to be.

That’s why we rank streamlined services higher than overly complex ones. From signing up and the initial setup through to everyday use, the best bookkeeping software provides all the tools you need but isn’t intimidating for newbies. We also take into account how well the service is integrated within the mobile app and if it’s all presented in a sleek design. Messy, cramped, or convoluted designs are often signs of a hastily put-together system that tries to look professional, but ends up being laughably bad.

Customer service

Finally, your bookkeeper of choice should be available for any kind of help you need on your accounting journey. It might be virtual bookkeeping, but that doesn’t mean that you should be left on your own. Sometimes, you’ll need to contact customer support if a problem occurs.

Even from the most basic bookkeepers, we expect at least a monthly meeting so we can go over everything that has happened with our business. You should be able to contact your accountant via a range of methods – email, phone, or live chat – if you run into an issue with the service or just need a pointer or two. Availability and quality of service is what’s scored here, with extra points going towards online bookkeeper that goes above and beyond for their clients.

The 6 Best Online Bookkeeping Services 2020

  • Bench: Best overall bookkeeping services
  • Bookkeeper360: Best full service online bookkeeping service
  • KPMG Spark: Best online bookkeeping services for startups
  • Bookkeeper.com: Best online bookkeeping service for QuickBooks
  • Merritt Bookkeeping: Best online bookkeeping service for beginners
  • inDinero: Best bookkeeping service for retailers

      Bench Accounting is a service designed specifically for small businesses. This Vancouver-based company was founded in 2012 and has an in-house team of bookkeepers working to ensure your business stays at the top of its game. After signing up with Bench, one member of the team gets assigned to you and, from that point onwards, works one-on-one with your business. This accountant will learn about your company and will guide your through all the tools at your disposal. Before you start, there’s an option for a free one-month trial, which we highly suggest.

      Pricing

      Depending on the size and income of your company, Bench offers several pricing plans for its online bookkeeping services. You’re looking at a minimum of $119/month if you choose to pay annually, or $139 if you decide to pay on a month-by-month basis. The most you’ll have to pay is $349/month, which is still a fair price. The company also does annual reviews with a possibility to update your pricing in case your business doesn’t need an expensive plan anymore. Each plan includes bookkeeping for up to 15 accounts, and there’s also a handy tool that helps you pick the perfect package for you depending on your monthly expenses. It’s important to note that all of Bench’s plans offer exactly the same features; the only difference between price points is the value of monthly transactions the company will process.

      If you need additional online accounting services, like payroll or preparing taxes, each of these add-ons will cost you an additional $35. Finally, there’s the BenchPro service for extended bookkeeping. This, like the basic plan, has a flexible pricing model and starts at $83/month. BenchPro is reserved for international companies that deal with multiple currencies and locations.

      Features

      So, what do you get for your money? First of all, a real-time system that reports all of your transactions, a monthly review of your books, as well as annual reporting. Bench has its own standalone app – which is also available on mobile – so you won’t need to worry about other accounting programs. If you’ve previously used QuickBooks to manage your finances, Bench’s staff can help you make the transition.

      Bench offers both cash- and accrual-based bookkeeping, connects to all banks in North America, and comes with all the tools to keep your books tidy: balance sheets, visual reports, expense management, even catch-up bookkeeping and preparation for tax season. It’s not a completely all-in-one accounting solution, as it lacks an invoice system and bill-payment option. As such, Bench’s payroll and tax-filing services go through third parties. Bench integrates with several payment processors, including Amazon, Strike, Shopify, and Square.

      Ease of use

      Bench’s app is one of the best-looking online bookkeeping apps around. It’s so straightforward that you probably won’t need any kind of tutorial to start working with it. The layout isn’t crowded and is highly customizable, so you can either dive deep into your books or just grab all the important stats at a quick glance. The mobile app is just as well-designed and functional as the desktop equivalent.

      Customer service

      As we’ve already mentioned, Bench goes above and beyond simple bookkeeping, providing you with a real person you can talk to and ask for advice about your business. That makes this one of the best online bookkeeping services for small business, as it provides a personalized experience with options to arrange one-on-one calls and chat with the agent. Everything goes through the app, too, so there’s no need to set up Skype. The typical response time is one business day. While you’re waiting for a reply, Bench’s handy FAQ and knowledge base are great resources for problem-solving.

      PROS

      • Fast, modern design
      • Great mobile app
      • User-friendly and powerful
      • Flexible pricing model

      CONS

      • Can get expensive with add-ons
      • Not an all-in-one accounting solution

      Reasons to Sign Up:

      All-in-one package

      Retailer-friendly

      Invoicing and tax filing

          Based on Xero’s platform for online accounting, Bookkeeper360 offers an all-in-one personalized solution for small businesses. This company’s simple accounting software is accompanied by a skillful team of CPAs and certified bookkeepers, as well as many different tools to help you organize your own business. Depending on the scale of your operations, you can pick one of Bookkeeper360’s premade packages, or schedule a call and create a plan based on your needs. It’s flexible and integrates well with many popular platforms.

          Pricing

          There are just three flat-rate plans to choose from, starting at $199 per month and billed annually. Initially, Bookkeeper360 can have a serious impact on your wallet. You need to spend at least $314 monthly to get the services of a bookkeeper and monthly reviews, while $539/month will unlock an invoice program, weekly reviews, and accrual reporting.

          You can also opt in a payroll service for $45 per month, while each tax filing will cost you $200. There are a few more add-ons, ranging from $99/month back-office, up to $700/month for the CFO Advisory package in case your need help developing targets, business plans, and forecasts. Unfortunately, no free trials are available right now.

          Features

          Just like its competition, Bookkeeper360 offers real-time accounting and monthly reviews, with advice on improving your business and saving you time so you can deal with important matters. The tool is very powerful and can handle large numbers of daily transactions, automatically sorting them into appropriate categories for easy filtering and browsing.

          Because Bookkeeper360 doesn’t use any outsourced bookkeeping services, everything is available under one roof and streamlined for maximum efficiency. In case you’re transitioning from another system, your existing data can be converted so you can keep your books in one place. Finally, this company offers excellent integration with other apps; aside from Amazon, Shopify, and Stripe, you can connect your account to ADP, Gusto, Bill.com, and many other relevant services.

          Ease of use

          Getting your account up and running requires a few more steps than just signing up for the service. But once the import process is complete, you’ll be greeted with a nice-looking, clean dashboard. The platform is refreshingly free of confusing elements, so you can stay laser-focused on your financials.

          Of course, you’ll get a mobile book keeping app to manage your books on the go. The mobile app has the same streamlined design as the desktop version, but it’s a little too basic in places and requires several taps to get where you want to be. Overall, the user experience is positive, but there’s room for improvement.

          Customer service

          Bookkeeper360 prides itself on its personalized, one-on-one solutions. For the most part, the company delivers what it promises. Bookkeeper360’s customer service professionals fast and effective at solving problems. Unfortunately, though, the website doesn’t include an FAQ section or any kind of knowledge base, so you’ll need to rely on the team to help you in case you run into any issues. Aside from the in-app support from your personal bookkeepers, there is an “800” phone number available for quick calls for emergencies.

          PROS

          • All-in-one solution for small businesses
          • Integrates with many popular apps and payment processors
          • Personalized bookkeeping
          • Tools for importing existing books

          CONS

          • Expensive basic package
          • No free trial
          • Lack of knowledge base on the website

          Reasons to Sign Up:

          All-in-one service

          E-commerce integration

          Great mobile app

              Founded in 2013, KPMG Spark might be one of the younger providers of business accounting software, but that doesn’t mean the accountants working here don’t take their job seriously. Spark has already processed more than 5 million transactions, has a team of top-notch bookkeepers, and offers a high-quality knowledge hub dedicated to helping small entrepreneurs create the business of their dreams.

              Pricing

              At a glance, Spark’s small business bookkeeping pricing is flexible and caters to companies of different sizes. Monthly rates start at $195 for cash accounting and $695 for accrual accounting, but can go as high as $1,000 per month for companies that have many bank accounts and need accrual bookkeeping. Whichever plan you choose, you’ll be assigned one of Spark’s agents to help you with monthly and annual reports.

              Choosing a plan is a pretty straightforward process, with just three add-ons – tax prep for $125 per month, payroll for $100 per month, and $1,000 per month if you need consulting services. There is an option to pay for this virtual bookkeeper annually, in which case you’ll get a discount on your bills. Most importantly, there is no contract, so you’re free to cancel at any time.

              Features

              No matter what payment processor, card, or account you connect to it, Spark will update and categorize your transactions in real time, with handy reporting tools and the ability to easily search through all the data you’re dealing with. The company’s invoicing software for small business also allows you to generate invoices with the push of a button.

              What makes Spark even more interesting is its collaboration support. You can connect an unlimited number of additional users to your account, as well as your accounting team. All these collaborators can work together in real time. When working on your taxes, you can track the mileage of all your company’s vehicles and prepare your taxes with a straightforward process.

              Ease of use

              KPMG’s onboarding process is lightning-fast – it takes just three minutes to set up and start using the app. Once you’re all set up and done, you’ll be greeted with a slick, modern dashboard that provides a lot of data on one screen without being overwhelming. Before you even sign up for virtual bookkeeping services with Spark, you can schedule a live demo with the team and get acquainted with all the intricacies of this powerful app. Unfortunately, Spark is only available on desktop as an online web app. Hopefully, this omission will be fixed in the foreseeable future.

              Customer service

              Spark’s team is one of the best rated when it comes to bookkeepers for small businesses. The live chat service on the website is available even before you become a client; this is how you access the knowledge base, too. There’s also the option of arranging a one-on-one session with an assistant. If you prefer more old-fashioned methods, you can reach the support team via phone or email Monday through Friday from 9 a.m. to 6 p.m. With all these features combined, Spark is one of the best online bookkeeping services when it comes to customer satisfaction.

              PROS

              • Fair pricing model
              • Loads of features and collaboration tools
              • Free trial and live demo available
              • Professional, highly responsive web app

              CONS

              • No mobile app
              • Accrual accounting options are more expensive than those offered by competitors

              Reasons to Sign Up:

              Low prices

              Fast setup

              Easy to use

                  This Waynesboro-based service has been in the accounting business for a long time. Bookkeeper.com offers a variety of services: remote accounting, financial planning, audit assistance, payroll, tax preparation, and, of course, bookkeeping. The company’s expertise is in the restaurant business, where it offers a wide variety of solutions for organization and business management.

                  Pricing

                  Taking the “less is more” approach, there are just two bookkeeping price packages on offer here, each including the best accounting programs on the market. The Small Business plan starts at $285/month for companies that have fewer than 125 monthly transactions, while Small Business Plus costs $495/month for companies that make up to 250 transactions per month. The more expensive package also grants you three customized reports and location tracking.

                  In case your company needs additional services like payroll management and tax filing, you’ll need to pay extra. Unfortunately, Bookkeeper.com doesn’t list the prices of these services upfront. Instead, the company creates plans based on the size and needs of your business. It can get expensive and we’re not fans of hidden costs.

                  Features

                  Bookkeeper.com uses QuickBooks for all of its services. This is, by far, the best accounting software for Mac and PC. That makes the transition particularly quick and easy if your business was already using a version of QuickBooks.

                  Of course, the complete set of features you get varies according to which version you choose, but from the basics you can expect detailed stats and reports, invoicing, a mobile app, and integration with many business programs and eCommerce platforms.

                  Ease of use

                  The software you’ll be working with is top-class, mostly thanks to its extensive reporting capabilities and highly customizable dashboard. There are lots of interesting options when setting up the look and feel of this online accounting software, with collapsible graphs and charts, so you can easily make it as complicated or as simple as you’d like. The dashboard has a really nice and clean look comparable to Bench’s bookkeeping app, although it is not as fast.

                  Customer service

                  Getting in touch with Bookkeeper.com is a breeze. The easiest ways to do this are via the online form or over the phone, but the company’s customer service agents are also very active Facebook and Twitter. The site’s Learning Center features a lot of useful articles and guides, including reminders about tax season. Once you become a Bookkeeper.com client, you’ll find additional tools at your disposal, including calculators and forms.

                  PROS

                  • Very experienced team of professionals
                  • QuickBooks subscription
                  • Great knowledge base and active community

                  CONS

                  • Some costs are hidden until you schedule a signup meeting
                  • Slow setup with many extra steps
                  • No free trial

                  Reasons to Sign Up:

                  Flexible pricing

                  QuickBooks integration

                  Good for restaurants

                      When it comes to running a small business, accounting services are now providing very streamlined bookkeeping solutions. One such company is Merritt Bookkeeping, a highly rated bookkeeping service that’s one of the favorites among small businesses in the United States. Merritt provides hassle-free setup and payments, going toe-to-toe with many larger companies in the industry.

                      Pricing

                      This company advertises itself as the easiest bookkeeping service on the web for a reason. There is just one payment option when you sign up with Merritt: a flat fee of $190 per month. That’s really it. There are no hidden fees, no hassle, and the company will even help you import your books into its system. However, if your books aren’t up-to-date, you might need to pay Merritt to do the catching up for you. Still, even this add-on is incredibly affordable.

                      Features

                      Merritt offers top accounting software for companies that are looking for basic bookkeepers. The company’s accountants won’t do your payroll or fill out your taxes for you, but they with prepare tax reports that you can send to your CPA. When you sign up, you’ll get a bookkeeping team to manage your books through top-of-the-line QuickBooks software. Compared to other services that use this tool, Merritt will take care of the whole setup process and even transfer your existing QuickBooks file, that is if you were already running your books through it.

                      Unfortunately, if you’re looking for accrual-based bookkeeping, you’ll need to look elsewhere. However, Merritt will you do get monthly reports that can be viewed in any browser. You can connect all this cloud accounting software with all your bank accounts and cards and it’ll all be synced and available in reports.

                      Ease of use

                      This is a service designed for people who just don’t want to bother about number-crunching, graphs and charts. It’s as streamlined as it can be, with a 3-step setup and provided to you via simple web interface in can you don’t want to bother with QuickBooks. Bookkeeping with Merritt is an absolute breeze.

                      Customer service

                      Merritt’s bookkeeping team is on stand-by during business hours and is ready to help you with anything if you send you query before their closing times. Therefore, this is the fastest customer service we’ve come across, beating even the best online bookkeeping services around. All of the talk is done through their web app, although only after you’ve already completed the boarding process, so the only way to contact Merritt beforehand is via web form.

                      PROS

                      • Flat monthly fee with money-back guarantee
                      • Simple and fast onboarding process
                      • Based on QuickBooks

                      CONS

                      • Doesn’t offer all-in-one solution
                      • No phone listed on website

                      Reasons to Sign Up:

                      Flat-rate plan

                      Fast setup

                      QuickBooks integration

                          If you’re running a retail business or sell products of any kind, inDinero could be the best solution for you. This company offers both traditional bookkeeping services and all-in-one packages to suit the needs of various businesses. With an in-house bookkeeping team and an internally developed application, there’s no denying that inDinero provides clients with an excellent service.

                          Pricing

                          When it comes to pricing and plans, inDinero offers straightforward options that are decent, although not up there with the best virtual online bookkeeping services. These come in three packages, depending on the number of transactions and accounts you need. You can also request custom quotes and customize existing offers to suit your needs. The Basics pack costs $310 per month and, as the name implies, provides just basic bookkeeping and invoicing. The most popular plan is the Essentials package; for $525 a month you get twice as many transactions and a payroll option. The top-of-the-line plan costs $1,300; it’s the only plan that offers accrual accounting. Before you sign up you can request a free demo, but there’s currently no trial period on offer.

                          Features

                          Look no further than inDinero if you need the best invoice software that’s powerful and affordable. In fact, this feature is more than affordable – it’s free, as inDinero provides online invoicing in all of its plans, as well as tax filing and employee-reimbursement services. The company’s web and mobile app provide real-time financial reports that allow you to check your balance at a glance before the monthly review. If you go with the most expensive option, you’ll also be granted access to accrual accounting and inventory accounting, a rarely seen but highly requested option for retailers.

                          As for other services, catch-up accounting is possible on demand. If you need the QuickBooks app (for example, you already manage your books through it), you’ll need to contact inDinero to request assistance with setting it up. This is also one of the best online bookkeeping services for law firms due to how well-structured the reporting system is. The reports are “multidimensional,” meaning that you can create reports for each of your clients. As for integration, inDinero connects to PayPal, Stripe, Gusto, Stitch Labs, and more.

                          Ease of use

                          The in-house developed app is on par with what Bench and Spark have on offer, and there is also a mobile version. Navigating through the app is a breeze, and the handy filtering options help you stay on top of your expenses. A lot of the process is automated, so the onboarding process and day-to-day tasks aren’t a hassle. The design can be a bit too simple in places, but generally provides exactly the information you need, where you need it.

                          Customer service

                          What makes inDinero one of the best online bookkeeping services is how much effort the company has put into helping its clients become the best entrepreneurs they can be. On the website, you’ll be able to find many resources for building a better business, like guides for filing your taxes. If you need to contact the company with general inquiries, you can do so using a web form and a phone number, while the app includes a chat option. All in all, inDinero provides a pleasant customer experience.

                          PROS

                          • Truly all-in-one bookkeeping
                          • Invoicing and tax filing included, even in the basic plan
                          • Easy-to-use, automated app
                          • Great for retailers

                          CONS

                          • Charges high fees for accrual accounting compared to competitors
                          • No free trial

                          Reasons to Sign Up:

                          All-in-one package

                          Retailer-friendly

                          Invoicing and tax filing

                          Fortunly’s Guide to Online Bookkeeping

                          Why choose online bookkeeping?

                          Nothing beats having a local accountant whom you can visit personally to discuss and review your financial statements every month. But it’s not always so affordable or practical to make face-to-face visits just to check on your business’s finances. Modern bookkeeping is a computer-powered process, but the major game-changer is the internet.

                          Real-time bookkeeping: Whatever type of business you’re running, having access to your financial reports anytime, anywhere is essential these days. The best online bookkeeping services in the business are fast, with web-based applications offering unparalleled speed of access to your statements. It all works in real time, so you’ll see funds in your accounts the second they drop in. That means there’ll be no more nail-biting tension when tax season is approaching.

                          Personal bookkeeper: Just because a service is online doesn’t mean it has to be fully automated and impersonal. Today, online bookkeeping services hire teams of the best people in the business to act as your personal bookkeepers. They produce monthly and annual reports for you, help you with setting everything up, and offer useful advice that will benefit your company in the long run.

                          Bookkeeping on the go: You probably carry your smartphone and laptop with you wherever you go. So, it makes sense to have access to your financials at all times. The best online accounting software now works with pretty much any device that can connect to the internet. Most of them work just as well on smartphones as they do on PCs. That means, even in the case of an emergency, you’re just a few taps or clicks away from your books and a person who can provide financial guidance.

                          What affects the price of online bookkeepers?

                          Exactly how much money you’ll need to spend on a good online bookkeeping service depends on what set of features you want. That said, some providers calculate prices dynamically, or have a separate set of plans for different accounting methods.

                          Cash vs accrual accounting: Depending on these accounting systems, your monthly plan could be drastically cheaper or more expensive. Cash accounting is more straightforward and popular among small businesses. It shows exactly how much money your business has in the bank, since the balance updates when money enters or leaves your account. Accrual accounting helps with projections of your business strategy, but it’s harder to track as it records expenses and revenues when they are earned, instead of when money enters/leaves the account. This method is usually more expensive as it requires more busywork.

                          Accounts and transactions: Simply put, the bigger your company is, the more you’ll need to pay your bookkeeper. Your small business accounting costs can also soar if you have several bank accounts, cards, or many transactions and expenses. All good bookkeepers will clearly state the thresholds for their plans, so you can plan ahead before signing up for their services.

                          Additional features: Need to process payrolls, help with filing taxes, or and invoice system for your business? You’ll seldom get all of that for free. In fact, additional services can easily double your monthly bill. On the other hand, you’ll have everything in one place. That alone is a life-saver when starting up your own business.

                          Software: QuickBooks is considered to be one of the best business programs around, and you’ll see it mentioned all around the bookkeeping market. It’s considered a standard for modern bookkeeping, but it also comes at an additional cost; its developer charges a subscription for it. On the flipside, many bookkeepers now offer their own in-house applications, which typically provide a lot of great features and are a free alternative to QuickBooks. Just be sure to check whether you can later export your books to a QuickBooks-friendly format if you decide to switch your bookkeeping service.

                          Frequently Asked Questions

                          What should I pay for bookkeeping services?

                          Online bookkeeping for small business can cost as little as $119 per month, but on average you can expect to pay $250-300 per month. The exact price you’ll need to pay largely depends on the size of your business, your expenses, and the features your company needs. Accrual accounting and additional services like tax filing and payroll processing can raise the price significantly, up to and over $1,000 per month. The best practice is to, if possible, test a service out with a free trial, then sign up for its annual plan. That way you’re saving at least 10% on your subscription for cloud-based accounting software compared to monthly payments.

                          What are some bookkeeping services?

                          Bookkeeper.com, Bench Accounting, KBMG Spark, and inDinero are the most popular bookkeeping services for small businesses. A bookkeeping service manages your company’s finances by documenting your transactions and providing monthly reports, which give you an overview of how your company’s doing. Many also offer additional services, like preparing your statements for tax season, filing your taxes for you, as well as processing payroll and creating invoices. Hiring a professional for your business accounting takes those tasks off of your back so you can spend more time developing strategies to grow your company.

                          How much does it cost to outsource bookkeeping?

                          Outsourcing your bookkeeping means hiring a bookkeeping service, which can cost upwards of $120 per month. The price increases as you add more services and if you’re doing accrual-based bookkeeping, but it also means you’ll be provided with a personal bookkeeper, whom you can contact about any issues you run into. In case your outsourced bookkeeper uses subscription-based software like QuickBooks, expect to pay a little extra to cover all costs. Mind you, this is one of the best business programs around, so spending a few more dollars can benefit you in the long run.

                          What is a full service bookkeeper?

                          A full service bookkeeper, or full charge bookkeeper, handles all of the banking needs for you business. That includes handling books, processing payroll for your employees, preparing monthly/quarterly/annual reports, as well as tax filing and preparation. A full service bookkeeper is a person or service you can rely on when it comes to the financial side of your company. Of course, doing all that work can prove to be quite expensive, so tread carefully before you decide to go with an all-in-one bookkeeper. Today, signing up with some of the best online bookkeeping services on the market means you can get personal full service bookkeeping that’s both affordable and available for any inquiries about running your business.