The 6 Best Bookkeeping Services for Your Online Business (Compared)

By Naveed Ahmed | Reviewed by Syed Balkhi | September 27, 2024 | Reader Disclosure

As an expert with over 15 years of experience in the online business world, I’ve seen firsthand the importance of keeping accurate financial records. It’s not just about staying compliant with tax regulations; it’s about gaining a clear understanding of your financial well-being, making informed decisions, and ultimately, growing your business. That’s why choosing the right bookkeeping service is critical.

The challenge? With so many options available, it can be overwhelming to find the perfect fit for your website. I’ve tested some of the most popular bookkeeping services, comparing their features, ease of use, customization, and pricing to bring you this comprehensive guide.

I’ll break down each service’s strengths and weaknesses, helping you make the right choice. Ready to get started? Let’s dive in!

Our Expert Picks:

Service	Best For	Pricing
Bench	Bookkeeping and tax management	$299/month
QuickBooks	Managing accounts and books	$15/month
FreshBooks	Simple bookkeeping for freelancers	$5/month
Bookkeeper.com	Bookkeeping solution for small businesses	$399/month
Bookkeeper360	Managing books for a US-based company	$399/month
inDinero	Complex financial management and bookkeeping	$750/month

How We Review Bookkeeping Services for Online Businesses

The IRS demands that all businesses maintain financial records, including income sources, taxable and non-taxable income, and business expenses. However, this can be time-consuming and challenging. This is where online bookkeeping services come in, helping you effortlessly manage your books, payroll, expenses, and more.

To ensure I provide the most valuable recommendations, I focused on the following criteria when evaluating these services:

• Ease of Use: I prioritised user-friendly interfaces, clear technical documentation, and smooth onboarding processes that are ideal for beginners.
• Features: I looked for tools that offer the features you need to manage your books effectively, such as bill payments, invoices, income and expense reports, bank and credit card statement integration, payroll, and more.
• Reliability: I only included services that I personally tested and reviewed. I also considered customer reviews and support to ensure the service is reliable and responsive.

Why Trust WPBeginner?

At WPBeginner, we have a team of experts with 16+ years of experience in WordPress, SEO, web hosting, eCommerce, online marketing, and more. We have thoroughly reviewed each service featured here, considering ease of use, features, customization, and pricing. To learn more about our editorial process, please visit our website.

The Best Bookkeeping Services for Online Businesses

1. Bench

Bench is my top pick for online businesses. It offers a dedicated team of experts who handle your bookkeeping for you. This means you can focus on running your business while they take care of the numbers.

I was particularly impressed with their monthly financial statements and expense overviews, giving you complete control over your finances. The visual reports provide an easy-to-understand snapshot of your business, offering actionable insights to fuel your growth.

Bench also includes a tax preparation, filling, and advisory feature that helps simplify tax season. Their team can work with your CPA or help you find one, ensuring your taxes are filed correctly and on time. This makes Bench a fantastic option for small businesses who want expert support for their finances.

Pros:

• Mobile app (iPhone) to view financial reports.
• Catchup bookkeeping service for those who are behind on their books.
• Unlimited customer support.
• Year-end financial package to streamline tax filing.

Cons:

• No free plan.
• Doesn’t manage payroll, pay bills, create invoices, or file taxes for you (you need to work with their team for these tasks).

Why we recommend Bench:

Bench is the best choice for online businesses because it offers expert bookkeeping and tax filing services. If you’re a small business owner who wants to simplify your financial management and ensure accuracy, Bench is a perfect solution.

2. QuickBooks

QuickBooks is a well-known accounting software, and it also offers robust bookkeeping features. This makes it a popular choice for online businesses. It’s easy to record income, expenses, bills, and payments, and the service categorizes data for valuable financial insights.

You can connect with QuickBooks bookkeeping experts who will manage your finances. If you prefer to manage the books yourself, QuickBooks provides a live assistant feature, where experts give advice, answer questions, and guide you through the process.

Pros:

• Extensive features, including payroll, invoices, bill management, loans, accounting, and more.
• Supports transactions in different currencies.
• Cloud-based, allowing access to your data anywhere with an internet connection.
• Control access levels for different users within your organization, ensuring data security.

Cons:

• No free plan, but starting prices are affordable.
• The wide range of features can be overwhelming for beginners.

Why we recommend QuickBooks:

QuickBooks is the ideal solution if you seek an all-in-one tool for managing books, taxes, invoices, payroll, and loans. It’s a powerful and versatile option for online businesses.

3. FreshBooks

FreshBooks is another all-in-one solution that’s perfect for freelancers and self-employed professionals. It offers exceptional bookkeeping services where you can connect with a specialist to manage your books and taxes.

Beyond bookkeeping, FreshBooks allows you to create invoices for clients, capture expenses, manage payments, and even track your time if you bill by the hour. These features are incredibly useful for freelancers and small businesses who need a streamlined approach to financial management.

FreshBooks also integrates seamlessly with Bench, making it simple to manage your books and file taxes.

Pros:

• Integrates with popular payment gateways like PayPal, Stripe, and more.
• Generates essential financial reports such as profit and loss statements, expense reports, and tax summaries to analyze business performance.
• User-friendly interface.
• Mobile app to manage finances, create invoices, capture receipts, and approve bills from your phone.

Cons:

• No free plan.
• Not ideal for businesses with complex accounting needs.

Why we recommend FreshBooks:

If you need a tool that handles basic invoicing, expense tracking, and simple bookkeeping, FreshBooks is a great choice. Its simplicity makes it perfect for freelancers and small businesses who need to keep their finances organized.

4. Bookkeeper.com

Bookkeeper.com is an excellent bookkeeping solution for small businesses. They manage your books using QuickBooks, which is a popular and reliable accounting software. Their team consists of certified accountants and QuickBooks professionals, providing peace of mind knowing you’re in good hands.

When you sign up, Bookkeeper.com connects your banking and credit card statements to QuickBooks. You then get access to a customized chart of accounts and can set up bills, invoices, and payments. Their expert team handles tax filing and offers advice to help you understand your financial position better.

Pros:

• Quick overview of your finances anytime you want.
• Business advising to discuss your budget and financial plans beyond basic bookkeeping.
• Pay vendors and suppliers using checks, which Bookkeeper.com prints and mails for you. They also monitor invoices to ensure timely payment.

Cons:

• No free plan, and the paid plan can be expensive for small businesses.
• Requires integration with QuickBooks.

Why we recommend Bookkeeper.com:

Bookkeeper.com is a scalable solution that integrates with QuickBooks to provide personalized bookkeeping services for your business. It’s a great choice for businesses that need expert help with financial management and tax compliance.

5. Bookkeeper360

Bookkeeper360 is an online bookkeeping service that uses Xero accounting software. They offer small businesses a dedicated account manager, financial statements, cash and accrual basis reporting, bills, invoicing, and payroll.

Bookkeeper360 maintains a general ledger, a central record of all your transactions. They also offer a virtual CFO plan that includes technology advisory, HR services, daily bookkeeping, custom and KPI reporting, and a dedicated CFO/CPA to manage your account.

Pros:

• Reconciles your bank statements with your accounting records to ensure accuracy.
• Offers optional tax filing services for business and individual income taxes, along with tax planning and advisory services.
• Connects you with US-based bookkeepers who are familiar with local accounting regulations and tax laws.

Cons:

• Expensive for small businesses. No free plan.

Why we recommend Bookkeeper360:

Bookkeeper360 is a strong choice for US-based companies because it connects you with local experts who can manage your books according to accounting regulations. If you need comprehensive bookkeeping services with a focus on compliance, Bookkeeper360 is worth considering.

6. inDinero

inDinero is an online accounting software, bookkeeping, and tax services provider. They offer an all-in-one solution, including bookkeeping, bills, payroll, and tax filing.

inDinero uses an intuitive interface that provides a clear overview of your income, expenses, and profits. Behind the scenes, they have a dedicated team of accounting and bookkeeping experts who handle your financial management.

Their onboarding team assists in setting up your account, bank, and credit card statements so you can stay on top of your bookkeeping.

Pros:

• Offers CFO services.
• Declutters your accounts and reconciles your financial statements with bank statements.
• Effectively tracks and manages business spending.

Cons:

• Too expensive for small companies.

Why we recommend inDinero:

inDinero is a comprehensive financial management and bookkeeping solution. It’s a great choice for businesses with complex financial needs and those who want an all-in-one solution with expert support.

What Is the Best Bookkeeping Service for Online Businesses?

The best bookkeeping service for you depends on your specific needs and budget.

• Bench is the best choice for businesses that need expert bookkeeping and tax filing services. It’s a great option for small businesses who want to simplify their financial management.
• QuickBooks is the ideal solution if you seek an all-in-one tool for managing books, taxes, invoices, payroll, and loans. It’s a powerful and versatile option for online businesses.
• FreshBooks is a great choice for freelancers and small businesses who need to keep their finances organized. Its simplicity makes it easy to use and manage.
• Bookkeeper.com is a scalable solution that integrates with QuickBooks to provide personalized bookkeeping services for your business. It’s a great choice for businesses that need expert help with financial management and tax compliance.
• Bookkeeper360 is a strong choice for US-based companies because it connects you with local experts who can manage your books according to accounting regulations. If you need comprehensive bookkeeping services with a focus on compliance, Bookkeeper360 is worth considering.
• inDinero is a comprehensive financial management and bookkeeping solution. It’s a great choice for businesses with complex financial needs and those who want an all-in-one solution with expert support.

Frequently Asked Questions About Bookkeeping

Why do I need a bookkeeping service for my online business?

Running an online business requires accurate and organized financial records. A bookkeeping service helps you with tasks like:

• Recording income and expenses
• Categorizing transactions
• Reconciling bank statements
• Generating financial reports
• Managing accounts payable and receivable

Is bookkeeping software secure?

Most bookkeeping services have robust security measures to protect your financial data. These services typically offer features like data encryption, two-factor authentication (2FA), and secure login procedures.

What are the different types of bookkeeping services available?

There are three main categories of bookkeeping services:

• Bookkeeping software: Software like QuickBooks and FreshBooks offers user-friendly interfaces where you can manage your books yourself.
• Bookkeeping services: Companies like Bookkeeper.com or BookKeeper360 provide a team of bookkeepers to handle your finances. These are great options for rapidly scaling businesses.
• Hybrid solutions: Some services, like inDinero, offer bookkeeping software and access to professional accountants you can contact for advice or to manage your books.

How much do bookkeeping services cost?

The cost of bookkeeping services can vary depending on the service provider, the level of service you need, and the size of your business. Some services offer a free plan, while others have tiered pricing based on features.

What are the benefits of using a bookkeeping service?

Using a bookkeeping service offers many benefits for online businesses, including:

• Save time: Bookkeeping services handle the time-consuming tasks, allowing you to focus on your business.
• Accuracy: Bookkeeping services often have expertise in accounting and financial management, reducing the risk of errors.
• Compliance: Bookkeeping services help ensure you meet all tax requirements and regulations.
• Insights: Bookkeeping services provide financial reports and insights that help you make informed decisions.
• Reduced stress: Knowing your finances are in order can significantly reduce your stress levels.

Can I use a bookkeeping service if I am not a US-based company?

Yes, there are many bookkeeping services that cater to businesses outside the US. However, it’s essential to choose a service that understands the tax laws and regulations of your specific country.

What should I look for in a bookkeeping service?

When choosing a bookkeeping service, consider the following factors:

• Ease of use: The service should be user-friendly and intuitive.
• Features: The service should offer the features you need to manage your books effectively.
• Reliability: The service should be reliable and responsive.
• Pricing: The service should fit your budget.
• Support: The service should provide excellent customer support.

How often should I reconcile my bank statements?

It’s best practice to reconcile your bank statements at least monthly. This helps ensure that your records are accurate and that you haven’t missed any transactions.

What is the difference between bookkeeping and accounting?

Bookkeeping involves recording financial transactions, while accounting involves analyzing and interpreting that data to create financial statements and reports. Bookkeeping is a core part of accounting.

What is a chart of accounts?

A chart of accounts is a list of all the accounts in your business’s accounting system. It organizes your financial data and helps you track your income, expenses, assets, and liabilities.

Conclusion

Choosing the right bookkeeping service is crucial for the success of your online business. By taking the time to evaluate your needs and consider the options discussed, you can find a service that streamlines your financial management, saves you time, and provides valuable insights to help you grow.

If you’re interested in learning more about tech news, feel free to visit my website: www.naveedahmed.me.