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8 Best Online Bookkeeping Services of June 2023

Are your business’s bookkeeping tasks becoming overwhelming? It might be time to hire an online service.

By Rosalie Murphy  and  Hillary Crawford  

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When bookkeeping tasks become too time-consuming to handle on your own, hiring an online bookkeeping service can be a worthwhile investment. These services are typically staffed by people who have access to your accounting software and help make sure none of your financial data slips through the cracks.

The best bookkeeping services handle your target tasks without breaking your business’s budget, integrate with your accounting software and offer a dedicated line of communication with a live bookkeeper. In addition, consider the availability of add-on services like tax planning, payroll and human resources support.

Here are NerdWallet’s picks for the top online bookkeeping services for small businesses.

Best Online Bookkeeping Services

Our pick for

Overall bookkeeping service

Bookkeeper360
Read review

Bookkeeper360

Bookkeeper360

Starting at

$399/month

Promotion

N/A
Read review

Why we like it

Bookkeeper360 is our top overall option because of its scalability, wide range of add-on services and multiple accounting integrations. Unlike less versatile competitors that limit their accounting methods to accrual basis or cash basis only, the service accommodates both. It also plays nicely with QuickBooks Online and Xero. Some other products either only integrate with QuickBooks or use proprietary accounting software, which makes it difficult to switch accounting services down the road. In terms of scalability, entrepreneurs can upgrade to weekly (instead of monthly) financial reports and receive support for extra services like payroll, human resources, invoicing and tax filing. This makes the product a good fit for small businesses of varying complexity.

Pros

  • Integrates with QuickBooks and Xero.

  • More complex businesses can subscribe to plans with advanced reporting and accrual basis accounting.

  • Offers add-ons for tax planning, payroll and HR, and back-office tasks like invoicing, bill pay and expense reimbursements.

Cons

  • Prices increase after business exceeds $20,000 in monthly expenses.

Read Full Review

Our pick for

Businesses on a budget

Merritt Bookkeeping

Merritt Bookkeeping

Merritt Bookkeeping

Starting at

$190/month

Promotion

N/A

Why we like it

Merritt Bookkeeping is a straightforward, budget-friendly bookkeeping option that runs on QuickBooks. Its team of bookkeepers categorizes bank transactions each month and produces financial reports, looping in CPAs as needed. Merritt will also issue 1099s. However, it does not offer payroll or HR support, financial forecasting, accrual basis accounting, tax planning or the other add-on features that more robust bookkeeping services offer.

Pros

  • Flat rate of $190 per month is more affordable than other bookkeeping services.

  • Integrates with QuickBooks.

  • 90-day money-back guarantee.

Cons

  • No add-on services, like tax planning or accrual basis accounting, outside of catch-up bookkeeping.

Our pick for

New businesses

Bench
Learn more

on Bench's secure website

Bench

Bench

Starting at

$299/month

Promotion

30% off first three months

Plus one free prior month of bookkeeping.

Learn more

on Bench's secure website

Why we like it

Bench offers bookkeeping support at a lower price than many competitors and is a good choice if you prefer to completely hand over your bookkeeping to an online service. Annual subscriptions, starting at $249 per month when billed yearly, are also available. While they require a larger upfront payment than a month-to-month plan, they can save you money in the long run.

Because Bench uses proprietary accounting software, it's best suited to businesses that are fairly new and haven't become too reliant on third-party accounting software yet. While that lack of integration could make switching accounting software down the road a pain if you outgrow Bench, you can still access your financial data after canceling your subscription. It also offers a plan with unlimited income tax support and annual tax filing services for $399 per month when billed annually.

Pros

  • Unlimited in-app messaging and phone calls with your bookkeeper.

  • Premium plan covers annual income tax filing for businesses and individuals.

  • Offers add-ons for catch-up bookkeeping and accounts receivable tracking.

Cons

  • No integration with QuickBooks, Xero or other accounting software. Business owners have to use Bench’s proprietary software, which could make it hard to move to another provider in the future.

  • No invoicing, bill pay or payroll add-ons.

Read Full Review

Our pick for

Fast-growing startups

Pilot
Read review

Pilot

Pilot

Starting at

$499/month (when billed annually)

Plus onboarding fee equal to one month of bookkeeping.

Promotion

First-year $200 monthly discount

for pre-revenue companies.

Read review

Why we like it

Pilot aims to serve startups with niche services, like help claiming the research and development tax credit. It offers discounts for pre-revenue companies and add-on support and tax services for CFOs. The company also calculates burn rate, an important metric for venture capitalist-backed companies. And while other services primarily focus on cash basis bookkeeping, Pilot stands out for operating on an accrual basis only.

Pros

  • Designed for startups that have high growth potential and use accrual basis accounting.

  • Offers separate tax preparation plans and add-ons for inventory tracking, custom reporting and billable expenses.

  • Integrates with QuickBooks, Expensify, Gusto and more.

Cons

  • Prices increase after business exceeds $30,000 in monthly expenses.

  • Recurring monthly phone reviews with bookkeepers cost extra.

  • Mandatory onboarding fee equal to one month of bookkeeping.

Read Full Review

Our pick for

QuickBooks users

QuickBooks
Learn more

on QuickBooks Live's secure website

QuickBooks Live

QuickBooks

Starting at

$200/month

Plus first-month cleanup fee.

Promotion

N/A
Learn more

on QuickBooks Live's secure website

Why we like it

QuickBooks Live is convenient for people who already use QuickBooks Online for accounting because the services are automatically integrated. You can also subscribe to QuickBooks Live through your QuickBooks Online account. When matching you with a bookkeeper, the company will try to select someone who has experience in your industry and has similar availability. Bookkeepers can provide monthly financial reports, though they can’t help with tax planning, sending invoices or managing payroll.

Pros

  • Fully integrated with QuickBooks Online.

  • If you think your bookkeeper has made a mistake, QuickBooks will evaluate the situation and correct errors at no additional cost.

  • No cap on meetings with your bookkeeper; QuickBooks says small-business owners usually schedule one or two video appointments per month.

Cons

  • No tax filing or accrual basis accounting, even as an add-on service.

  • Mandatory first-month setup fee to clean up your books.

  • Prices increase after business exceeds $10,000 in average monthly expenses.

Read Full Review

Our pick for

Businesses that need extensive tax support

1-800Accountant

1-800Accountant

1-800Accountant

Starting at

$399/month

Promotion

N/A

Why we like it

1-800Accountant goes beyond basic bookkeeping support by offering year-round tax advice from an accountant, along with personal and business tax preparation and filing services. Unlike some competitors that offer tax support only as an add-on, 1-800Accountant’s bookkeeping plan (Enterprise) includes it. On average, according to the company, this helps businesses save over $12,000 in tax dollars per year. The proprietary software also includes built-in accounting features like invoicing, bank connections, receipt storage and mileage tracking.

While 1-800Accountant offers less expensive plans that may be useful for businesses that need only tax advice and quarterly reviews, only its most expensive Enterprise plan comes with bookkeeping services.

Pros

  • Includes business and personal tax preparation, plus year-round tax advice.

  • Has add-on payroll services and catch-up bookkeeping.

  • Offers less expensive plans for businesses that need tax support and a dedicated accountant but not bookkeeping assistance.

Cons

  • Accountant meetings occur quarterly, which is less frequent than some competitors.

  • Proprietary bookkeeping software could make it difficult to switch to another provider.

Our pick for

Project-based businesses

Decimal

Decimal

Decimal

Starting at

$395/month

Promotion

N/A

Why we like it

Similar to competitors, Decimal offers additional features beyond bookkeeping services, like invoicing, bill pay and payroll. Unlike the competition, however, it also has add-ons for job costing and project-based accounting, which is a plus for businesses that need assistance gauging project profitability. Accounting software typically comes with project-tracking features, but analyzing the resulting figures can be time-consuming. Outsourcing the task can help you quickly parse out which types of projects are worth your business’s time and effort.

Pros

  • Add-ons for job costing and project-based accounting may be especially useful for project-based businesses. Other add-ons include inventory management, payroll and catch-up bookkeeping.

  • Integrates with QuickBooks.

  • Can request financial statements as often as you’d like.

Cons

  • Only the highest-tier plan takes care of the month-end closing process and matches you with a dedicated accountant.

  • Provides you with tax-ready financials, but recommends its partners for other tax support and CFO services.

Our pick for

Midsize businesses

inDinero

inDinero

inDinero

Starting at

$750/month

Promotion

N/A

Why we like it

Whereas multiple bookkeeping services integrate with QuickBooks Online and Xero, inDinero’s Growth plan also accommodates clients that work with NetSuite, a popular enterprise resource system for more complex, growing businesses. You can customize plans according to your specific needs and choose between a variety of services including invoicing, tax support, profit and loss and balance sheet reporting, cash flow forecasting, employee reimbursements and equity management.

Note, however, that the lowest-tier Essential plan uses proprietary software and lacks integrations with QuickBooks Online or NetSuite. Considering the price point and more advanced CFO-level features you can add to your plan, inDinero is best suited for medium-sized and quickly growing businesses.

Pros

  • Integrates with NetSuite, making it a good fit for midsize businesses. It’s also compatible with QuickBooks Online.

  • Will provide financial reports as often as you’d like.

  • Customize plans to include other services like accounts receivable processing, inventory reconciliation and payroll support. Higher-tier plans enable accrual accounting.

Cons

  • Plans are expensive compared with those of competitors.

  • Custom plans make it difficult to predict exactly how much you’ll pay per month.

» MORE: 5 bookkeeping best practices for startups and small businesses

How do online bookkeeping services work?

Small-business bookkeeping is the process of accurately recording your business's financial activity. You might choose to outsource some bookkeeping basics and more complex tasks to online bookkeeping services, including:

  • Recording transactions.

  • Reconciling bank statements.

  • Handling accounts receivable.

  • Running financial reports.

  • Managing payroll.

  • Preparing tax forms.

At the very least, you can expect most bookkeeping services to input transactions, reconcile accounts and send you financial statements regularly. Most services touch base monthly, but in some cases, you can pay extra to receive weekly reports. Depending on the company, you can speak with your bookkeeper (or team of bookkeepers) as often as you'd like or at least a few times per month.

How to choose bookkeeping services

Ask yourself the following questions to find the right online bookkeeping service for your business:

Is the bookkeeping service compatible with your accounting method?

There are two accounting methods: cash basis and accrual basis.

Cash basis accounting is much simpler, which is why many bookkeeping services offer it at a lower price. But accrual accounting can give you a better understanding of where your business stands. So, choose a service that does the right accounting for your business's size and complexity.

Does it integrate with your accounting software?

Lots of bookkeeping services are built to run on QuickBooks, an industry leader in accounting and bookkeeping software. Some services also support Xero, another popular cloud-based accounting software. If you're comfortable with your current software, ensure your bookkeeping service supports it.

Do you need add-on services outside of basic bookkeeping tasks?

Not all bookkeeping services offer the same add-on features. Some business owners, for example, might want their bookkeeper to handle payroll, HR or other back-office jobs like invoicing, bill pay and inventory management on top of fielding basic bookkeeping tasks. Or, if it isn’t already included, you may be looking for tax support to take some of the pressure off when it's time to file returns. These services can help you claim the correct small-business tax credits and deductions, prepare your returns and file them. Even if a bookkeeping service has all of these add-ons, they can be expensive, so be sure you understand the total cost before choosing a service.

Will you require catch-up bookkeeping services?

If you haven't always been diligent about your financial record-keeping, most bookkeeping services will go through your old receipts, invoices and bank statements to bring your books up to date. This service usually carries an additional fee, so it's important to price out your catch-up bookkeeping costs while searching for a bookkeeping service.

How often do you want to communicate with your bookkeeper?

Online bookkeeping services typically offer a dedicated contact or team — but these are still virtual bookkeepers, available by email or occasionally by phone. If you don't want to communicate virtually, these bookkeeper interview questions can help you find a resource near you.

Online services may offer one-on-one meetings, but you might have to pay more. If you want a higher level of support in the future, such as chief financial officer or CFO-style services, consider choosing a bookkeeping service that will allow you to upgrade later.

What’s your online bookkeeping services budget?

When comparing services, ensure you're pricing out all the features you need, including add-on services like tax prep, payroll and HR. If you're considering a bookkeeping service that runs on QuickBooks or Xero, include the cost of that software, too. Take advantage of product demos and introductory calls to find the right service.

» MORE: Best accounting and bookkeeping apps

Last updated on April 27, 2023

To recap our selections...

NerdWallet's Best Online Bookkeeping Services of June 2023

  • Bookkeeper360: Best for Overall bookkeeping service
  • Merritt Bookkeeping: Best for Businesses on a budget
  • Bench: Best for New businesses
  • Pilot: Best for Fast-growing startups
  • QuickBooks Live: Best for QuickBooks users
  • 1-800Accountant: Best for Businesses that need extensive tax support
  • Decimal: Best for Project-based businesses
  • inDinero: Best for Midsize businesses

Frequently asked questions