10 Best Online Bookkeeping Services To Check In 2020 [Reviewed]

Are you looking for online bookkeeping services to help your business with bookkeeping, tax return preparation, payroll?

On this list you’ll find:

✓ Dedicated reviews of our top 10 picks

✓ Our evaluation methodology

✓ How to choose a provider

✓ Benefits

In 2020, due to the importance of avoiding face-to-face contact because of the COVID-19 pandemic, finding the best online bookkeeping services is crucial. Here you’ll read the reviews of the best services on the market.

Let’s get to it.


Online Bookkeeping Service Companies

1. Bookkeeper.com

Tax preparation

Detailed payroll solutions

Tax planning and education

Best for law firms

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If you’re looking to get thorough tax assistance for your law firm or have individual contractors, Bookkeeper.com - one of the most popular online bookkeeping services - has you covered. Easy onboarding and detailed services will make the next tax season a breeze.

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Ease of use



2. Bench


Specialized bookkeeping

Detailed expense tracking

Best For Loan Applicants

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Thinking of applying for a loan? Bench is among the best online bookkeeping services to get you ready. With historical bookkeeping, specialized bookkeeping, BenchTax, affordable service, and a free trial to top it all off, choosing Bench is a no-brainer.

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Ease of use



3. Merritt

Discounts for historical accounting

Custom-built web interface

Money-back guarantee

Best For Independent Contractors Employment

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Merritt is a simple, user-friendly solution that provides affordable bookkeeping services. Even if you need historical bookkeeping, they can do it, and with a discount. Add to that a 90-day money-back guarantee, and you have great service on your hands.

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Ease of use



4. QuickBooks

Mobile app for receipts

QuickBooks cash account

Allows you to track owed payments

Best for U.S.-based businesses

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QuickBooks has a brilliant, industry-standard software that’s easy to get started with. The plans are affordable, while useful features like mobile receipts, tracking spending and bills, and having more control over one’s money make it among the most popular online bookkeeping services.

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Ease of use



5. Bookkeeper360

Fractional CFO

Business coaching

Back-office services

Best for ecommerce startups

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Though it’s on the expensive side, Bookkeeper360 is among the best online bookkeeping services for ecommerce startups. With back-office services such as inventory management and enterprise resource planning (ERP) software integrations, as well as business coaching and a fractional CFO, you can customize plans to fit your business needs.

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Ease of use



6. GoDaddy Bookkeeping

Summary emails for the company

Ecommerce integrations

Freelance tax support

Best for freelancers

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GoDaddy Bookkeeping offers insanely affordable services for any small business (especially those related to ecommerce) and freelancers on the lookout for online personal bookkeeping services. Thanks to ecommerce integrations and extensive tax support for freelancers, it definitely provides plenty of value for money.

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Ease of use



7. inDinero

Multi-dimensional reporting

Project management

Tax questionnaire

Best for growing businesses

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inDinero is an all-in-one bookkeeping services solution for startups and growing businesses. Bookkeeping, tax, and payroll services are extremely detailed and professional, while multi-dimensional reporting and plans built around scaling give you a chance to grow.

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Ease of use



8. KPMG Spark

Business licensing

One-minute invoices

Real-time accounting dashboard

Best For Small And Medium-Sized Businesses

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KPMG Spark offers simple, affordable remote bookkeeping services for small and medium-sized businesses. On top of features like payroll and tax preparation, a real-time accounting dashboard provides additional insights into your business’s functioning, while specific add-ons help small businesses grow.

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Ease of use



9. Kashoo

Automatic contact creation

Machine learning categorization

Detailed tax categories

Best for entrepreneurs

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Kashoo is insanely affordable and offers a wide variety of features. Automatic reports, automatic contact creation, and receipt matching, coupled with intuitive, cloud-based software, make Kashoo a great choice for anyone on the lookout for affordable bookkeeping.

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Ease of use



10. Wave

Double-entry accounting

Syncing and tracking receipts

Run multiple businesses in one account

Best For Nonprofits

Visit Site

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If you’re looking for nonprofit bookkeeping services online, you are likely to find Wave in the search results. This free web-based bookkeeping software offers plenty of features. Double-entry accounting prevents mistakes and any fraudulent activities, tracking expenses is easy, and with its 100% free service, it’s perfect for nonprofits.

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Ease of use



How we created this list? Our Methodology

To choose the best services out there, we took plenty of things into consideration. For one, we took a look at the plans these companies offer. Are they affordable? How are they formed? Next, we looked at the scope of the features these companies offer. Is it only bookkeeping, or do they offer services like tax assistance, payroll, and financial reporting? Finally, we narrowed our list down by choosing the top-rated bookkeeping services when it comes to ease of use. Here are some other important things we’ve considered:


✓ Pricing


Plan options

Our list comprises mostly companies that offer affordable plans. The only exceptions are the ones whose features are so many and so detailed that their expensive plans offer great value. 


Not all businesses need the same plans, so we looked for remote bookkeeping services that have some add-ons available. That way, you can customize a plan to fit your business.

Setup charge

None of these companies charge separately for the setup, making them even more affordable.

The number of transactions/dollar value of monthly expenses

Different companies charge differently for their services. Some do it per number of transactions, others based on your monthly expenses, and we included both types so you can choose what works best for you.

Value for Money

Regardless of how their plans work, all of these services offer proper value for the amount of money you’re paying. 


✓ Features (Basic & Advanced)


Income & expenses management

Counting every income and expense manually takes a lot of time. That’s why our list of bookkeeping services comprises those able to get your income/expenses automatically and reconcile transactions easily.

Financial statements

We’ve found companies that provide not just simple bookkeeping, but show you your business’s financial health as well.

Financial reports

Do you know where you’re spending your money, who your most valuable clients are, and where your opportunities for growth lie? Unless your bookkeeping service provides you with financial reporting, it’s likely that you don’t.


Messing up the payroll checks and (accidentally) not fulfilling your legal requirements can have serious consequences. We found online outsourcing bookkeeping services that help with payroll and take care of payroll tax payments so you don’t have to worry about it.


We all know how stressful the tax season can get, which is why we went with companies offering both online bookkeeping and tax services.

Cash basis or accrual basis bookkeeping

Having both options is important – you never know when cash basis bookkeeping won’t be a good fit for your business anymore.


✓ Software & Integrations

The services on our list either use their own user-friendly software or integrate with what is the industry standard. They also have additional integrations for easier onboarding and seamless functioning.


✓ Setup, Onboarding, & Ease of Use

It’s all for nothing if getting started is a hassle, which is why the bookkeeping services we chose make the onboarding process simple and have an intuitive interface.


✓ Customer Support

When there’s a bug or you’re unsure what to do, it’s important to have responsive customer support and multiple ways to contact them.

At a Glance

  • Tax planning and education
  • Detailed payroll solutions
  • Tax preparation
  • Easy onboarding
  • Detailed features
  • Focus on data security
  • Somewhat expensive
  • No free trials

Though Bookkeeper.com offers financial reporting and allows both cash and accrual basis bookkeeping, its two most detailed features are tax and payroll services. That and the focus on data security make it one of the best online bookkeeping services for law firms.

Here are its top features:

  • Tax preparation services. Whether you’re baffled by gift & estate tax return preparation or out-of-state returns, Bookkeeper.com will do wonders for you.
  • Tax planning and education. While plenty of companies provide tax assistance, Bookkeeper.com offers highly professional tax saving strategies and education as well.
  • Payroll solutions. Finding both bookkeeping and payroll services online isn’t difficult, but you’ll hardly get more comprehensive payroll solutions (with W-2s and 1099s included) than the ones Bookkeeper.com offers.

Transaction-based plans start at $285/month. If you have up to 125 transactions/month, you’ll get account reconciliation, monthly financials, advice, and expense management. With more expensive plans, a monthly report with KPIs is included as well.

Getting started is easy – the road between the initial consultation and the first reports is quick and well-guided. This web-based platform uses QuickBooks, the industry standard, and integrates with Microsoft Office.

You can contact Bookkeeper.com’s highly responsive customer support via live chat, phone, email, or a website ticket.

We started our top 10 online bookkeeping services list with Bookkeeper.com due to its detailed tax and payroll services, as well as its focus on data security. This service is great for those who work with sensitive information and employ independent contractors.

At a Glance

  • Detailed expense tracking
  • Specialized bookkeeping
  • BenchTax
  • Free trial
  • Historical bookkeeping
  • Fast turnaround times
  • No payroll
  • No financial advice

Bench offers a month-long free trial. If you want to apply for a loan, Bench’s online bookkeeping services like historical bookkeeping, BenchTax add-on, and financial reports will get you ready.

Here are its main features:

  • Specialized bookkeeping. Should your business need to track things like cash revenue or accounts receivable (A/R), you can add specialized bookkeeping to any plan.
  • BenchTax. You can choose to get Bench’s help with tax preparation and then file it yourself or add BenchTax services. With a licensed expert, the latter covers unlimited tax filings, itemized tax deductions, quarterly estimates, etc.
  • Detailed expense tracking. Several online bookkeeping services for small business provide real-time cash flow updates and detailed financial statements. But with Bench, you can also tag transactions with product, client, or location labels.

If your monthly expenses are below $1,000, you can get Bench’s services for $169/month. Plans cover businesses with up to $1 million monthly expenses, and for just $349/month. Bench mainly does cash basis accounting, but accrual basis accounting is available.

Bench integrates with Stripe, FreshBooks, Gusto, and the onboarding process is very easy. You get a dedicated bookkeeper to explain how Bench (and the Bench app) works and get all the necessary information from you.

This professional bookkeeping service has responsive customer support available via phone, email, and live chat.

Bench may not help with payroll checks or financial advice, but the detailed historical bookkeeping, professional tax services, and specialized bookkeeping make it a great choice for those applying for a loan.

At a Glance

  • Discounts for historical accounting
  • Custom-built web interface
  • Money-back guarantee
  • Quick and simple setup
  • Intuitive interface
  • 24/7 support
  • Only bookkeeping
  • No multiple plans or add-ons

This award-winning service offers a refund if you’re not satisfied with its services. Besides offering cheap online bookkeeping services, including simplified issuance of 1099 and automatic retrieval of bank statements, here’s what else it provides:

  • Custom-built web interface. You get to review and adjust reports in Merritt’s simple, custom-built web interface showing a balance sheet, monthly/yearly expenses and income statement, and income graphs.
  • Discounts for historical accounting. Depending on whether you have a QuickBooks file and how much information has already been entered, you’ll get different discounts.
  • 100% money-back guarantee. If after 90 days of using Merritt, you aren’t satisfied, you’ll get your money back.

If you’re looking for low-cost online bookkeeping services, Merritt’s $190 plan should draw your attention.

For historical accounting, you’ll pay $140 if your QuickBooks file is less than halfway done, and $95 if more than half of all info is entered.

Merritt has a fast setup and initiation process. In just 15 minutes, you’ll be all set, thanks to a seamless QuickBooks integration.

Customer support is only available via a website form or social media, but they reply within 24 hours and are very helpful.

Merritt offers great online small business bookkeeping services, and though that’s all it offers, it does so in a simple, intuitive, and highly professional way. If bookkeeping is all you need, and you’re looking for an affordable solution, Merritt’s single plan is the right choice. And if you don’t like it, just ask for a refund!

At a Glance

  • QuickBooks cash account
  • Allows you to track owed payments
  • Mobile app for receipts
  • Industry-standard software
  • Affordable
  • Discounts are common
  • No cash management yet
  • Customer support not always responsive

The scope of QuickBooks’ services depends on the country you’re in, so be aware we’re talking about the U.S. market. What makes QuickBooks one of the best online bookkeeping services are features like the Sales Tax Liability Report and the option to create a spending roadmap.

Here are some other of its offers:

  • Mobile app for receipts. Snap photos of your receipts and QuickBooks’ app will automatically match them to an existing transaction.
  • QuickBooks cash account. QuickBooks lets you spend money via the QuickBooks Debit Card or by withdrawing it at an ATM.
  • Track owed bills. While plenty of online accounting and bookkeeping services provide professional invoices, QuickBooks also lets you track which vendor bills haven’t been paid.

The Essentials plan is only $50/month and covers features like invoices, tracking income and expenses, standard reports, etc. For just $150, you get far more features, a dedicated team, and 24/7 support. Add-ons include payroll and a live expert. Overall, QuickBooks offers very affordable bookkeeping in the U.S.

Once you create a company file, you can start using QuickBooks and add the necessary information as you go. The industry-standard software integrates with plenty of apps like PayPal, Shopify, Gusto, etc.

QuickBooks’ customer support is available via live chat and phone, although they are not always responsive.

Anyone looking for the best virtual bookkeeping services should think about using QuickBooks. It has brilliant software and user-friendly features like mobile receipts and tracking owed payments. Coupled with useful add-ons and easy expense tracking, it’s a great choice for U.S.-based businesses.

At a Glance

  • Back-office services
  • Fractional CFO
  • Business coaching
  • Free trial
  • Plenty of add-ons
  • Helpful customer support
  • On the expensive side
  • Getting started takes 1-2 weeks

Voted partner of the year by Xero, Bookkeeper360 offers HR solutions. This means that certified HR professionals can help you handle payroll. You can try out the service during a 14-day free trial.

Here’s what else sets Bookkeeper360 apart:

  • Business coaching. If you need help figuring out your business’s core values and vision alignment, Bookkeeper360 can help.
  • Fractional CFO. A dedicated CFO optimizes your cash flow, works on forecasting, and helps with your growth strategy.
  • Back-office services. Bookkeeper360 is a great choice for ecommerce businesses as it offers services like inventory management and enterprise resource planning (ERP) software integrations.

Monthly bookkeeping packages are formed based on monthly expenses, as well as whether you need cash or accrual basis bookkeeping. Plans start at $399/month for up to $1,000 in monthly expenses. Add-ons include tax assistance, payroll, and back-office services.

Though the interface is intuitive, it can take 1-2 weeks to actually get started. Available integrations include Xero, Stripe, PayPal, Shopify, etc.

The company’s extremely helpful customer support is available via phone, email, and live chat. Moreover, you can get business support as an add-on.

Bookkeeper360 offers great virtual bookkeeping services for startups, especially in the ecommerce industry. With detailed main features as well as plenty of useful add-ons like business coaching, fractional CFO, or business support, you can customize your plan to fit your business’s needs.

At a Glance

  • Freelance tax support
  • Summary emails for the company
  • Ecommerce integrations
  • Very affordable
  • Simple to use
  • Plenty of integrations
  • Bookkeeping only
  • No accrual basis bookkeeping
  • Stripe and Paypal integrations have a fee

If you’re surfing bookkeeping websites looking strictly for bookkeeping help, GoDaddy Bookkeeping is a great choice. Tools for reconciliation, invoicing, and tax return preparation will get your books in order. Income and expense management, as well as business reports, provide additional support.

Here are some useful features worth your attention:

  • Extensive freelance tax support. What separates GoDaddy Bookkeeping’s tax services from others is the extensive tax support for freelancers.
  • Ecommerce integrations. GoDaddy Bookkeeping has integrations with the likes of Amazon, PayPal, eBay, and Etsy, making it a great choice for ecommerce businesses.
  • Summary emails for the company. Need to send reports of your weekly/monthly profit and account balances? This small business bookkeeping service makes it simple.

GoDaddy Bookkeeping plans start from only $4.99/month and are perfect for freelancers. The most expensive plan is just $14.99 and offers unlimited business reports, ecommerce integrations, automatic imports of bank statements and credit card statements, and recurring invoices.

Once you have a GoDaddy account, you can get started in a couple of clicks.

GoDaddy Bookkeeping also integrates with Stripe and PayPal, for which you’ll have to pay the associated fees. Another downside of this service is the lack of accrual basis bookkeeping.

GoDaddy Bookkeeping support is only available via website ticket and email.

This company offers the most inexpensive bookkeeping for small businesses and is perfect for freelancers and ecommerce businesses. Even though GoDaddy Bookkeeping only provides bookkeeping, it offers great value for these specific services at an insanely low price.

At a Glance

  • Tax questionnaire
  • Multi-dimensional reporting
  • Project management
  • Detailed services
  • Constant coverage
  • Helps with the growth strategy
  • Expensive
  • Tracking 1099 is not seamless

inDinero is dedicated to your growth. With a proactive tax strategy, a multi-person team providing constant coverage, and back-office services, it helps you strategize and grow. Another characteristic that makes it one of the best online bookkeeping services out there is that it grows and scales with you. For example, you can start with cash basis bookkeeping and upgrade to accrual once your business needs it.

Here’s what else it offers:

  • Project management. This company organizes your projects and day-to-day tasks to let you focus on your business.
  • Tax questionnaire. inDinero’s online bookkeeping and tax services encompass a cloud-based self-guided tax software. You simply enter all the necessary tax information and leave the rest to professionals.
  • Multi-dimensional reporting. Track expenses by project or client to determine what brings you money.

The plan for cash-basis bookkeeping is $300/month. That may sound expensive, but it covers all the features the company offers – payroll, accounts receivable (A/R)/accounts payable (A/P) reporting, dedicated account manager, etc.

For the custom plan, you can also add fractional CFO services or back taxes.

Getting started is easy, and the software is very intuitive. Integrations include PayPal, Gusto, Expensify, and Stitch Labs.

You can reach inDinero’s incredibly responsive customer support via phone or email.

inDinero rightfully made it on our list, being an all-in-one bookkeeping services solution. Not only does the company do bookkeeping, tax filing, payroll support, and plenty of reporting, it’s dedicated to each user and works to help their business grow.

At a Glance

  • Business licensing
  • One-minute invoices
  • Real-time accounting dashboard
  • Easy to use
  • Great customer support
  • Affordable for small businesses
  • Can get pricey for larger businesses
  • Delay times in updates

This cloud-based bookkeeping company is a great solution for small and medium-sized businesses. Reconciliation is quick and easy, and so is tracking expenses. Payroll and tax return preparation are on the highest level, but here are its most impressive features:

  • Real-time accounting dashboard. If monthly reports don’t work for you, KPMG Spark’s real-time income, expenses, and balance statements are just the thing for you.
  • Business licensing. Here’s an add-on you don’t see very often! For $20 a month, KPMG Spark does your business licensing for you.
  • One-minute invoices. Thanks to their WePay partnership, you get paid faster, and all through professional looking invoices that you can create in under a minute.

Bookkeeping packages for small business are affordable, with plans starting at $195/month and depending on the number of accounts you have.

We’ve chosen services with simple setups for our top 10 online bookkeeping services list, and KPMG Spark is no exception. Customers love the intuitive software and WePay integration. Add-ons are very specific, and besides tax preparation, include business licensing and R&D Feasibility Study Credit.

KPMG Spark’s responsive customer support is available via phone, email, and live chat.

KPMG Spark is simple and offers certain unique services, such as business licensing and R&D Feasibility Study Credit. With simple, intuitive software and a real-time accounting dashboard, it’s a great choice for small and medium-sized businesses.

At a Glance

  • Detailed tax categories
  • Automatic contact creation
  • Machine learning categorization
  • Affordable
  • Easy to use
  • Responsive customer support
  • Reporting lacks customization
  • Somewhat limited features

With Kashoo, you can get your sales tax summary in two clicks and your payments in one minute. On top of that, you have a 14-day free trial to try out these cloud-based bookkeeping services:

  • Automatic reports. Kashoo makes sure all expense tracking is instantly updated through machine learning. Data visualizations and Smart Inbox keep you updated at all times.
  • Automatic contact creation. When you start working with a new vendor, they will be automatically added as a contact, without you needing to do anything.
  • Detailed tax categories. Not only are there plenty of categories to choose from, Kashoo even offers a plethora of sub-categories for simple filing and more detailed tax reports.

Both cash and accrual basis bookkeeping are available, and all of it as part of incredibly cheap online bookkeeping services. Kashoo’s only plan is just $19.95/month and covers all the features that the company offers: machine learning-aided categorization, income, and expense tracking, OCR receipt matching, financial reports, etc.

Kashoo’s software is simple and intuitive, and getting started is easy. Plenty of integrations like SurePayroll, Stripe, and FreshBooks make it all simpler, though Kashoo treats them as add-ons.

Kashoo’s customer support is always happy to help via phone, chat, or email.

If you’re on the lookout for low-cost online bookkeeping services, give Kashoo a try. The company offers a plethora of features (automatic reports, maximizing tax deductions, invoices, etc.) Although the features are somewhat limited, with such an affordable price, the value you’re getting is more than worth it.

At a Glance

  • Syncing and tracking receipts
  • Run multiple businesses in one account
  • Double-entry accounting
  • 100% free
  • A large number of features
  • Easy expense tracking
  • Have to enter bank statements manually
  • No live support

Looking for free online bookkeeping services? You’re in the luck! Wave is an award-winning free software built for entrepreneurs and great for nonprofits. It offers features like payroll, payments, expense tracking, and makes both accrual and cash basis bookkeeping available. You can run multiple businesses from one account.

Here’s why Wave is special:

  • 100% free software. There are no hidden fees. You can use Wave as much as you want, as long as you want!
  • Double-entry financial accounting. By recording each transaction in two accounts, Wave makes sure there are no mistakes.
  • Syncing and tracking receipts. Scan receipts and sync them with your Wave account via apps. If you have receipts in your inbox, you can even email them to receipts@waveapps.com.

Wave’s software gets updated often. Though each new iteration improves Wave’s virtual bookkeeping services, getting used to things shifting around takes some time. Though it integrates with Stripe, it recently stopped integrating with Capital One’s Spark Business Checking & Savings accounts. You now have to enter your bank statements manually, though it’s a small price to pay for a 100% free service.

If you need any help, Wave has a help center, and you can also submit a website ticket.

We’ve included Wave on our list not only because it’s among the rare free online bookkeeping services, but also because it offers a lot of useful features. Expense tracking, smart dashboard, invoices, and even double-entry accounting mean you’re getting plenty of value, free of charge, making it a great choice for nonprofits.

Best Online Bookkeeping Services In 2020 At A Glance

  • Bookkeeper.com: Best For Law Firms
  • Bench: Best For Loan Applicants
  • Merritt: Best For Independent Contractors Employment
  • QuickBooks: Best For U.S.-Based Businesses
  • Bookkeeper360: Best For Ecommerce Startups
  • GoDaddy Bookkeeping: Best For Freelancers
  • inDinero: Best For Growing Businesses
  • KPMG Spark: Best For Small And Medium-Sized Businesses
  • Kashoo: Best For Entrepreneurs
  • Wave: Best For Nonprofits

How to Choose an Online Bookkeeping Service for Your Business?

Even with our online bookkeeping services review, choosing the perfect bookkeeping company isn’t a one size fits all situation. The best online bookkeeping services for realtors aren’t fit for, say, large corporations. That’s why you need to take into consideration things like business size, pricing, and even the software a certain bookkeeping company uses, before choosing what works for you. Here are some of the things you need to pay attention to:

  • Business needs. Some companies only offer bookkeeping, while others provide far more features like tax preparation, financial reports, payroll, or even a personal CFO. Based on your business needs, you’ll choose one or the other. 
  • Business size. Depending on whether you’re a startup comprised of five people or a large business, you’ll need a different scope of online accounting and bookkeeping services. You also might need to ask yourself – as my business grows, will this company be able to grow with it? 
  • Pricing & how it’s formed. Some bookkeeping companies form prices based on the number of transactions, others based on your monthly expenses, or they may have a single plan for all. Choose something you can afford, priced in a way that fits your preferences. 
  • Ease of use. If setting everything up and understanding the software is difficult, you’ll never get to fully use the features you’re paying for.
  • Integrations. If you run an ecommerce business and want to integrate with Amazon or Etsy, you need virtual bookkeeping companies that allow you to do that. If you already have some reports done in QuickBooks, choosing a service that doesn’t use that software can cost you a lot of time.

Benefits Of Using Bookkeeping Services

Finding online bookkeeping services in 2020 is especially important; however, outsourcing bookkeeping to an online company has always had its benefits.

✓ For one, you’re saving plenty of time you’d otherwise be losing on boring must-do tasks. Just ask yourself how much time a month you lose creating invoices or gathering your bank statements in preparation for the tax season?

✓ And speaking of tax season, it’s incredibly stressful to be the sole responsible person for filing taxes correctly. One seemingly small mistake can cost you a lot, so why not outsource it to an experienced company? By finding the best online bookkeeping services, you’ll likely have to do an insanely small part of it all and leave the main work to skilled professionals. On top of that, they’ll know how to maximize your tax deductions.

✓ With additional features these companies offer, you’ll be getting paid more easily, have a partner to help your business grow, and create foolproof business strategies.

✓ And with financial reporting, you’ll always know how your business is doing. The great thing is, you’ll be getting all that from the comfort of your own home.

Key Takeouts

By finding the right online outsourcing bookkeeping services, you’ll be able to focus on your business without wasting time and nerves, creating invoices, and doing tax return preparation. Thanks to timely and thorough reporting, bookkeeping companies let you know how your business is doing, and you’re able to change your strategy accordingly. In some cases, you’ll even get some help with that strategy from the bookkeeping company you’re working with. Payroll, payments, balance sheets – it will all be taken care of in a professional manner. If you’re a startup or a small business, getting someone to take over the boring yet stressful part of the work will free you up to do more important things. As for large companies, the bigger the company, the bigger the numbers – and who better to ensure that everything is impeccable but the best online bookkeeping companies out there?


What is online bookkeeping?

Online bookkeeping companies manage businesses’ bookkeeping, and often help with payroll, taxes, and financial reports as well. The main difference between online and traditional bookkeeping lies in the medium through which the business is carried out. While traditional bookkeeping means meeting face-to-face with a certified public accountant (CPA), with online bookkeeping, everything is done over the internet. Consequently, traditional bookkeeping usually relies on paperwork, while online bookkeeping leverages technology by using software.

What is the difference between accounting and bookkeeping?

People often get accounting and bookkeeping mixed up because they are very closely connected. However, there is a difference. While bookkeeping means recording financial transactions, accounting is responsible for classifying, analyzing, interpreting, and summarizing. 

How much does monthly bookkeeping cost?

The cost of monthly bookkeeping services depends largely on your needs, and consequently, on the company you choose to do your bookkeeping. For example, if you’re a freelancer and only need simple bookkeeping, GoDaddy does it for as little as $4.99. If you want tax preparation, payroll, and detailed reports, it will cost you more, and the final price will likely depend on how many transactions you need a month or how big your monthly expenses are. Getting the best online bookkeeping services will likely mean you’ll have to pay a couple hundred dollars a month. There are more affordable, even free services. However, when it comes to getting plenty of detailed features, a couple of hundred dollars a month is an average cost of bookkeeping services, even for a small business.

Is there a difference between virtual and online bookkeeping services?

When they say “virtual bookkeeping services,” many actually think of online bookkeeping services. Originally, there was a difference in the meaning of these terms. Someone offering a virtual bookkeeping service was a single person, working a part-time bookkeeping job from home. Meanwhile, an online bookkeeping service referred to a company providing a wide variety of bookkeeping features, complete with software and monthly/yearly reporting. However, nowadays, they are often interchangeable.