9 Best Online Bookkeeping Services in 2023
This article is part of a larger series on Accounting Software.
The best online bookkeeping services are affordable and easy to use, offer a wide range of bookkeeping solutions, and provide easy access to dedicated bookkeepers. Many of the top virtual bookkeeping services also have add-on services, such as catch-up bookkeeping, payroll, and tax filing, which can streamline your work.
We have compiled a list of the nine best virtual bookkeeping services for small businesses in 2023:
- Bench: Best overall online bookkeeping service with a range of services offered at a great value
- Xendoo: Best for franchise and ecommerce businesses
- Bookkeeper.com: Best virtual full-service accounting firm
- QuickBooks Live: Best for companies wanting assistance with QuickBooks Online
- Bookkeeper360: Best for companies using Xero bookkeeping software
- Merritt Bookkeeping: Best user review ratings for basic bookkeeping services
- Pilot: Best for startups
- Block Advisors: Best online bookkeeping firm that includes low-priced tax preparation
- 1-800Accountant: Best for new nonprofit organizations
Comparison of Best Online Bookkeeping Services
Monthly Pricing | Dedicated Bookkeeper | Catch-up Bookkeeping | Bill Pay | Invoicing | Bank Reconciliation | Payroll Integration | Tax Filing | |
---|---|---|---|---|---|---|---|---|
Starts at $299 | ✓ | ✓ | ✕ | ✕ | ✓ | ✓ | ✓ | |
Starts at $395 | ✓ | ✓ | ✕ | ✕ | ✓ | ✓ | ✓ | |
Starts at $399 | ✓ | ✕ | ✓ | ✕ | ✓ | ✓ | ✓ | |
Starts at $200 | ✓ | ✕ | ✕ | ✕ | ✓ | ✓ | ✕ | |
Starts at $399 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
$190 | ✓ | ✓ | ✕ | ✕ | ✓ | ✕ | ✕ | |
Starts at $499 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | |
Starts at $150 | ✓ | ✕ | ✕ | ✕ | ✓ | ✓ | ✓ | |
Starts at $375 | ✓ | ✓ | ✕ | ✕ | ✓ | ✓ | ✓ | |
Bench: Overall Best Online Bookkeeping Service
What We Like
- Supports unlimited users
- Catch-up bookkeeping services available
- Affordable plans include annual income tax return
- Access to a team of in-house bookkeepers
What's Missing
- Bench operates on proprietary software that doesn’t integrate with other accounting software like QuickBooks
- No mobile app for Android
- Separate software required for invoicing, bill payment, payroll, and inventory management
Features
- Dedicated bookkeeper: They will handle all aspects of your account and serve as your point of contact.
- Financial statements: You’ll receive these monthly.
- Catch-up bookkeeping: For an additional fee, you can enroll in BenchRetro, a special program for businesses that are more than two years behind in their bookkeeping.
- Tax assistance: With a Premium plan, your federal and state business tax returns—as well as individual returns for sole proprietors—are included.
- Payroll integration: The Gusto integration helps you manage your payroll. It’ll handle your payroll tax filing, manage employee information and benefits, and generate W-2s.
- 1099 reporting: This allows you to track payments to your independent contractors, which includes the transaction date, payee name, the total amount paid to the contractor during the tax year, and the payment method.
Xendoo: Best Online Bookkeeping Service for Franchise & Ecommerce Businesses
What We Like
- 30-day money-back guarantee
- Integrates with Xero and QuickBooks
- Mobile app
- Catch-up bookkeeping available
What's Missing
- Accrual-based accounting isn’t available with Essential plan
- Invoicing and bill pay services aren’t offered
- No free trial
Features
- Franchise support: Xendoo addresses the needs of franchises with accurate reporting based on a customized chart of accounts and support for multiple currencies and group benefits, such as group training sessions and webinars.
- Sales tax preparation: Xendoo’s sales tax experts will prepare and file your taxes accurately and on time so that you stay compliant.
- Multiple companies: If you have more than one business, you can add multiple companies easily within one account, and Xendoo will manage the books for all of them.
- Payroll integration: Like Bench, Xendoo integrates with Gusto, which will help you manage your employee information, benefits, and deductions. You’ll be able to process payroll and file payroll taxes and forms.
Bookkeeper.com: Best Virtual Full-service Accounting Firm
What We Like
- All-in-one bookkeeping, tax, and consulting solution
- Specializes in QuickBooks Online
- Dedicated bookkeeper
- Payroll is available for an additional fee
- Secure online network that protects your financial data
What's Missing
- No mobile app available
- High monthly service fee
- Lack of transparent pricing with add-on services like tax preparation
- Must pay for features that you may not need
- No free trial available
Features
- Dedicated bookkeeper and account manager: Your dedicated bookkeeper is a certified QuickBooks ProAdvisor, and you’ll also be assigned an account manager who’ll assist with onboarding activities and serve as your point of contact.
- Monthly financial statements: Each month, you’ll receive a balance sheet, profit and loss statement, statement of cash flows, and general ledger report.
- Free advice: Your monthly fee includes general business consulting, software training, tax planning, and strategic planning.
- Software setup: Accounting software setup is included in the monthly fee.
- Payroll and tax preparation add-ons: For an additional fee, you can opt for payroll or tax preparation services.
QuickBooks Live: Best for Assistance With QuickBooks Online
What We Like
- Dedicated bookkeeper
- Monthly financial reports
- No contract required
- 100% Accurate Books Guarantee
What's Missing
- Requires a separate subscription to QuickBooks Online
- Doesn’t include bill payment, invoicing clients, accounts receivable (A/R), or accounts payable (A/P)
- Financial and tax advice isn’t available
- Accrual method accounting isn’t supported
- Inventory management isn’t included
Features
- Dedicated bookkeeper: You’ll be assigned a dedicated bookkeeper—a QuickBooks ProAdvisor.
- Real-time access: Your dedicated bookkeeper will directly access your QuickBooks Online account and allow you to view the data in real time.
- Customized setup: Your bookkeeper will assist you with setting up your chart of accounts and connecting your bank and credit card accounts.
- Payroll add-on: For an additional fee, QuickBooks Online offers full-service payroll that integrates with its software.
Bookkeeper360: Best Online Bookkeeping Service for Xero Users
What We Like
- Dedicated bookkeeper
- Uses Xero or QuickBooks bookkeeping software
- Free consultations
- Wide range of services and tailored solutions
- Accrual basis accounting available
What's Missing
- Pay-as-you-go plan requires a $500 initial retainer
- More expensive than other options
Features
- Mobile app: Bookkeeper360’s mobile app connects to your Xero or QuickBooks Online account and provides valuable information, including scorecards and metrics.
- CFO advisory: Available for an additional fee, a dedicated accountant will work with you to analyze your financials and determine a strategy to manage and grow your business.
- Payroll and HR solutions: Full-service payroll is integrated fully with your bookkeeping, starting at $46 per month.
- Accrual basis accounting: Features include complex accounting like deferred revenue, inventory, and accrued expenses.
Merritt Bookkeeping: Best User Review Ratings for Basic Bookkeeping Services
What We Like
- 100% money-back guarantee if you’re not satisfied with services
- Catch-up bookkeeping available at a discounted rate
- Budget-friendly, flat-rate pricing with no setup charges
- Quick setup and initiation process
- Outstanding user reviews of 4.9 out of 5 stars
What's Missing
- Accrual basis accounting is unavailable
- No personal access to your QuickBooks files
- Only basic bookkeeping services offered—doesn’t include payroll, tax, or invoicing
Features
- Intuitive user interface: An easy-to-access client portal enables you to view reports and how your transactions are categorized. If there are any corrections, you can indicate this through the custom interface.
- Monthly financial reports: In addition to your standard financial statements, you’ll receive 10 detailed reports on the performance of your business each month.
- 1099 filing: Merritt will assist with filing 1099 forms for your contractors for an additional fee of $75 for the report preparation and $8 per form.
- 90-day money-back guarantee: You can test out Merritt Bookkeeping for three months at no risk. If you’re not satisfied within that period, you’ll receive a full refund.
Pilot: Best Online Bookkeeping Service for Startups
What We Like
- Dedicated bookkeeper
- Accrual-based accounting available
- Industry-specific financial reports
- Add-ons available for bill pay, invoicing, tax, and CFO services
What's Missing
- Businesses must use QuickBooks Online
- Financial statements are accrual-basis only
- Plans are more expensive than other providers listed here
- Payroll services are unavailable
- Plans must be prepaid annually
Features
- Dedicated bookkeeper: Your dedicated bookkeeper will assist you with setting up your account and serve as your point of contact.
- Monthly financial reports: Basic financial reports are sent on a monthly basis. The Core plan offers more customized reports as well.
- Accrual-based accounting: Accrual-based accounting is included in all plans.
- Tax management: Pilot Tax is available as a separate package and includes federal-, state-, and city-level income tax prep and 1099 filing.
Block Advisors: Best Online Bookkeeping Firm That Includes Low-priced Tax Preparation
What We Like
- Access to tax help with free accounting software
- Ability to meet with a tax pro in person or virtually
- Full menu of financial services, including taxes and payroll
- Transaction syncing available
- Ability to import documents like W-2s and 1099s by snapping a photo
What's Missing
- Desktop software unavailable
- No dedicated mobile app
- Do-it-yourself (DIY) option unavailable for corporate and partnership returns
- Block Advisors uses Xero accounting software, which can be limiting if you would prefer to use QuickBooks or another software.
Features
- Bookkeeping services: Both levels of bookkeeping support give you free, on-demand access to Xero. The Starter plan gives you access to an accounting pro while the Full-Service plan entitles you to monthly financial statements.
- 100% Accuracy Guarantee: You can rest assured that your books will be accurate as Block Advisors guarantees that if it makes an error on your return, you’ll be reimbursed for any resulting penalties and interest.
- Payroll services: Block Advisors can assist with generating payroll, creating and filing quarterly and year-end payroll tax forms, and providing support.
- Small business expertise: Your Block Advisor is equipped to handle anything from your Schedule C return to reviewing your financial statements.
1-800Accountant: Best for New Nonprofit Organizations
What We Like
- Can manage multiple business entities
- Mobile app
- Dedicated accountants
What's Missing
- No monthly subscription option; only annual
- Bookkeeping services available only in Enterprise plan
- Financial reports available only with Enterprise plan
Features
- Entity formation: 1-800Accountant will prepare and file your Articles of Incorporation, file for your employer identification number, serve as your registered agent, and help set up your business to maximize tax savings
- Dedicated accountant: You’ll be matched with a dedicated accountant who is knowledgeable in your industry and location.
- Catch-up bookkeeping: No matter how far you have fallen behind with your books, 1-800Accountant will provide assistance with getting your financials up-to-date.
- Tax advice, preparation, and payroll: Depending on the plan you select, 1-800Accountant will file your business and personal taxes, provide year-round tax advice, tax consulting and planning, and even audit defense. It will also process payroll for your employees.
How We Evaluated Online Bookkeeping Services
We evaluated the best online bookkeeping services based on the following criteria:
35% of Overall Score
Because each plan depends on many factors, we looked at the value provided in terms of the time and potential money that you’re saving by using the service.
20% of Overall Score
You should be able to access a dedicated bookkeeper for any questions or advice and one-on-one assistance.
15% of Overall Score
The best online bookkeeping service should offer a wide range of bookkeeping solutions, including catch-up bookkeeping, invoicing, bill pay, bank reconciliation, payroll, and tax filing.
10% of Overall Score
We evaluated whether the online bookkeeping service offered tax and consulting, and the scope of those services.
20% of Overall Score
We consider the opinion of users and the service’s ratings on various review sites. This criteria was disregarded for providers where no reviews were found.
Frequently Asked Questions (FAQs)
A virtual bookkeeper handles your bookkeeping remotely, and all communication and storage of financial documents are handled within the bookkeeping software. They will categorize your transactions and prepare financial statements for your review. Depending on the service you select, they may also pay bills, invoice clients, process payroll, and prepare your income taxes.
You should outsource your bookkeeping tasks to a virtual bookkeeper if you don’t have the time for and knowledge of DIY bookkeeping. As your business grows and your financial transactions increase, you will need a virtual bookkeeper to do routine tasks like classify transactions and reconcile bank accounts.
The leading online bookkeeping services offer many levels of security. The best way to ensure that your data is secure is to look for security features like documentation that shows frequent security updates and patches, intrusion detection, data encryption, and multifactor authentication (MFA).
A few benefits of using an online bookkeeping service include increased efficiency and accuracy, access to expert advice and insights, cost savings, real-time financial reporting, and reduced administrative burden for business owners.
There are many factors to consider, such as if they can handle the accounting tasks you want to outsource and if they offer the services you need at present and in the future. You will also want to take into account which accounting solution the bookkeeper uses and how you will communicate with them. We suggest reading our guide on how to choose a virtual bookkeeper for the step-by-step process.
Bottom Line
The best online bookkeeping services depend on the exact needs of your business. If you have fallen behind on your books and you want to get caught up, Bench might be the best option for you. If you’re using QuickBooks Online, QuickBooks Live can match you with a ProAdvisor to help you manage your books. If you need other services aside from bookkeeping, such as financial planning, tax advice, and payroll, you should consider Bookkeeper.com.