Best Bookkeeping Services for Small Businesses

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Privacy Secured  |  Advertising Disclosures
 
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
PlatformBest for…Cost per monthTax Preparation Services?Payroll Services?
1 800 AccountantFull-service bookkeeping Business: $179*
Core Accounting: $239*
Enterprise: $399*
 Yes, with Core Accounting and Enterprise plans Yes, as add-on service
PilotStartup businesses Starter: $499*
Core: $699*
Plus: Custom rates
 Yes, as add-on service No 
BenchSole proprietors Essential: $249*
Premium: $399*
 Yes, with Premium package No
Quickbooks
Existing QuickBooks users $300 to $700, based on your average monthly expenses  Yes, as add-on service Yes, as add-on service
Bookkeeper 360Hourly pricing for supportPay-As-You-Go: $49 + $125/hour for support
Monthly: $399 to $549
Weekly: $549 to $749
 Yes, as add-on service  Yes, as add-on service
DecimalProject-based businessesNot disclosed  Yes, as add-on service Yes, as add-on service
WaveExisting Wave Accounting users $149* No Yes, as add-on service
MerrittSoftware-free bookkeeping $190  No No
Finance PalA la carte service options Not disclosed  Yes, as add-on service Yes, as add-on service

* Billed annually

Learn more about how we chose our picks.

Small business bookkeeping services at a glance

1-800Accountant: Best online bookkeeping service for full-service bookkeeping

Business: $179
Core Accounting: $239
Enterprise: $399

Yes, with Core Accounting and Enterprise plans

Yes, as add-on service

Pros
  • Options to add on tax prep and payroll services
  • Offers catch-up bookkeeping option
Cons
  • Only offers quarterly meetings with bookkeepers, which is less frequent than some competitors
  • Only available to U.S.-based businesses

Why we picked it

+

1-800Accountant is our top pick for full-service bookkeeping because it offers a broad range of services, including bookkeeping, tax preparation and advising, business entity formation and payroll services.

However, be aware that most of the services on this list aren’t included in the basic plan and must be added on for a supplemental fee. Additionally, the company offers only quarterly meetings with your bookkeeper, which is less frequent than some of its competitors.

Pilot: Best online bookkeeping services for startups

Starter: $499
Core: $699
Plus: Custom rates

Yes, as add-on service

No

Pros
  • $200/month discount available for pre-revenue companies
  • Integrates with many online tools, including Gusto, BILL and Shopify
Cons
  • Designed for VC-backed companies
  • Charges an onboarding fee equal to one month of bookkeeping

Why we picked it

+

Pilot has some niche services that make it a uniquely good fit for startup businesses, such as CFO services and R&D tax credit preparation. It also offers quite a few perks, like a discount for pre-revenue businesses and integrations with multiple commonly used business software programs.

Still, its pricing model isn’t the most transparent since you’ll be limited to custom pricing as your monthly expenses grow. Plus, Pilot’s onboarding fee is fairly hefty since it’s equal to one month of bookkeeping services.

Bench Accounting: Best online bookkeeping service for sole proprietors

Essential: $249
Premium: $399

Yes, with Premium package

No

Pros
  • Offers catch-up bookkeeping services
  • Unlimited communication with your bookkeeping team is included in each plan
Cons
  • Uses proprietary accounting software, which could make it tricky to switch platforms at a later date
  • No option to add on payroll services

Why we picked it

+

Since Bench Accounting uses proprietary software, it’s likely going to be best suited for newer businesses that haven’t yet committed to an accounting platform, like QuickBooks. Plus, it offers catch-up bookkeeping services, which may be useful to those who haven’t invested in bookkeeping before.

That said, Bench’s proprietary software may make it more difficult to switch platforms if you end up wanting to do so in the future. And, while this provider does offer an option to add on tax services, it doesn’t provide any assistance with payroll.

QuickBooks Live: Best online bookkeeping service for existing QuickBooks Users

$300 to $700, based on your average monthly expenses

Yes, as add-on service

Yes, as add-on service

Pros
  • Provides clean-up bookkeeping for all clients
  • If you’re unfamiliar with the software, your bookkeeper will teach you to use it
Cons
  • Charges a mandatory one-month cleanup fee
  • More expensive than most of the competition

Why we picked it

+

Although this service is available to anyone, if you’re already an existing QuickBooks user, it should be especially easy to get started with QuickBooks Live’s full-service bookkeeping services. For those who choose to go this route, there are a few perks. In particular, every client is provided with catch-up bookkeeping services to give you a fresh start. In addition, the company offers an accuracy guarantee on its accountants’ work.

At the same time, though, this provider is much more expensive than its competition, with packages priced up to $700/month, depending on your expenses. Plus, those catch-up bookkeeping services come at an extra cost. QuickBooks Live charges a mandatory one-month cleanup fee.

Bookkeeper360: Best online bookkeeping service with hourly pricing

Pay-As-You-Go: $49 + $125/hour for support
Monthly (for cash-based accounting): $399
Monthly (accrual-based accounting): $549
Weekly (for cash-based accounting): $549
Weekly (for accrual-based accounting): $749

Yes, as add-on service

Yes, as add-on service

Pros
  • Offers an hourly rate for pay-as-you-go support
  • Has an app
Cons
  • Expensive — and prices will increase if your business has more than $20,000 in monthly expenses
  • Payroll and tax services are add-ons

Why we picked it

+

If you’re only looking for support from a live bookkeeper on an as-needed basis, Bookkeeper360 could be a strong option. In addition to its weekly and monthly plans, it offers the opportunity to choose pay-as-you-go support for an hourly fee. Plus, unlike some of its competitors, this platform offers an app, giving you access to your finances while you’re on the go.

Yet, depending on which plan you choose, Bookkeeper360 can get pricey and the price will escalate over what’s advertised if you have a lot of monthly expenses. It also charges higher prices for accrual-based accounting methods. And if you also want to enroll in tax preparation or payroll services, those will have to be purchased separately for an additional fee.

Decimal: Best project-based online bookkeeping service

Not disclosed

Yes, as add-on service

Yes, as add-on service

Pros
  • Offers the opportunity to add on project-profitability and job-costing services, which may make it a good fit for project-based businesses
  • Integrates with several business and financial software companies, including QuickBooks, Gusto and BILL
Cons
  • Only offers quote-based pricing, which lacks transparency
  • Dedicated accountant support is only available with the premium plan

Why we picked it

+

If you run a project-based business, you may want to consider working with Decimal for your bookkeeping needs. The company offers several services — like job costing and project profitability — that may be useful, though they are add-ons. In addition, the platform integrates with several other business and financial software solutions, which can make it easier to get up and running.

Unfortunately, the company lacks transparency around its pricing and some of its plan inclusions do not match up to its competitors. For example, support from a dedicated accountant is only available with Decimal’s Premium plan.

Wave Advisors: Best online bookkeeping service for existing Wave users

Starting at $149, billed annually

Not included, but you can file taxes using your Wave account with Block Advisors (part of H&R Block) for a fee

Yes, as add-on service

Pros
  • Integrates with Wave accounting software, which is free to use
  • Bookkeeping service includes monthly review calls with your advisor
Cons
  • Done-for-you payroll services only available in Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin
  • Also offers quote-based pricing, which is not very transparent

Why we picked it

+

Wave’s accounting software is free to use, which makes it a good fit for startups, sole proprietors, or anyone who has just decided to start a business. With rates as low as $149/month its add-on bookkeeping service seems like a good deal at first glance, especially when you consider that the fee includes monthly review calls with an accountant.

Keep in mind that the company’s free accounting software may not have as many robust features as paid accounting platforms, which may limit what a bookkeeper is able to do for you. Also, its add-on payroll services aren’t available in every state, so be sure to do your research before signing up for that service.

Merritt Bookkeeping: Best software-free online bookkeeping service

$190

No

No

Pros
  • Offers a 90-day money-back guarantee
  • Offers catch-up bookkeeping at a discounted rate
Cons
  • Doesn’t offer additional services, like tax or payroll
  • Custom-built software may make it harder to switch companies in the future

Why we picked it

+

If you’re just looking for basic bookkeeping services, Merritt Bookkeeping offers them at a flat, monthly rate. Plus, it offers some unique perks, like a 90-day money-back guarantee and discounted catch-up bookkeeping services. But, the company’s most unique feature is that it displays all of its financial reporting in a custom-built software system so that you don’t have to subscribe to an additional service like QuickBooks.

On the other hand, it may not be the best fit if you need more comprehensive services, like tax prep or payroll. And, the fact that it uses proprietary software may make it harder to switch companies if you decide you need more robust bookkeeping help later on down the road.

FinancePal: Best online bookkeeping service with a la carte options

Not disclosed

Yes, as add-on service

Yes, as add-on service

Pros
  • Custom packages allow you to only pay for the services you need
  • Has an app
Cons
  • Not transparent about cost
  • Choosing a la carte services can add up fast

Why we picked it

+

If you want a bookkeeping service that’s custom-built to serve your needs, consider using FinancePal. The company prices all of its services on an a la carte basis to ensure that you’ll only pay for exactly what you need. It could be a good fit for those who have highly specialized financials or those who want to take care of some of their reporting on their own.

Since the pricing is so customized, though, it’s hard to get a true sense of what your bookkeeping work will cost. Plus, when you’re choosing services individually, there’s a chance that your bill may add up fast.

What is a small business bookkeeping service?

When you hire a bookkeeping service, you’re hiring someone to help record and keep track of all the financial transactions that take place in your business.

The bookkeeper is also responsible for creating financial reporting — like income statements and balance sheets — that summarize these transactions and show your business’s positioning.

With full-service bookkeeping, you may also be provided with supplemental services, such as tax preparation or payroll.

Accounting vs. bookkeeping services

Most bookkeeping services use accounting software, like Quicken or QuickBooks, to record a business’s financial transactions. However, accounting and bookkeeping are two different disciplines and one requires a higher level of mastery than the other.

As stated above, bookkeeping involves keeping records of financial transactions and using those records to prepare the appropriate financial reporting. Accounting takes things a step further.

An accountant will analyze and interpret the data provided by the bookkeeper and use it to help the business owner make informed decisions based on where they stand financially.

How to compare small business bookkeeping services

There are many factors to consider when choosing an online bookkeeping service, including:

  • Pricing: How much are you willing to pay for your small business bookkeeping service? How would you like to be billed for the services you receive (monthly, annually, hourly)?
  • Available services: What services do you need? Are you satisfied with basic bookkeeping or do you need assistance with supplemental tasks, like tax preparation, payroll or catch-up bookkeeping? Does the accounting method used by the service match up with your business’s preferred method?
  • Dedicated service: Do you want one dedicated bookkeeper who is in charge of doing the books for your business or are you okay with multiple people from the same company working on your account?
  • Support: How frequently would you like to connect with your bookkeeper? What communication methods do you prefer to use if you need to get in contact with them in between meetings?
  • Integrations: Do you have any existing financial software programs that you’d like your bookkeeping service to be able to integrate with? Are you okay with the idea of subscribing to a particular accounting software if it’s required by your bookkeeper?

Pros and cons of bookkeeping services

ProsCons

 You’ll have an ongoing record of your business’s financial transactions.

 You’ll be provided with up-to-date financial reporting.

 You’ll have to pay for the service, which can get costly, depending on which option you choose.

 You’ll likely have to interpret the financial data on your own or hire an accountant.

Alternatives to online bookkeeping services

If contracting with an online small business bookkeeping service is not the right choice for you, here are a few alternative options:

  • Taking a DIY approach: It’s possible to do your own bookkeeping by investing in accounting software and recording all of your business’s financial transactions on your own. You’ll save money going this route, but it will likely take a lot more time and effort on your part.
  • Hiring an accountant: On the other hand, if you want someone who can not only keep your books up to date but can also interpret your financial data and provide you with recommendations, it may be worth hiring an accountant instead. However, this method is likely going to be more costly than an online bookkeeping service.

How we chose the best online bookkeeping services

We reviewed more than 15 online bookkeeping services to determine the nine best small business bookkeeping services overall. We evaluated platforms based on the following criteria:

  • Pricing: We considered the range of pricing tiers available, as well as where the company’s overall pricing range fell in line with the competition.
  • Services offered: We considered which services were included in the base package, which were package upgrades, and which were considered add-ons.
  • Support: We considered how frequently consumers will be able to meet with their bookkeepers and the methods by which they are able to contact their bookkeepers in between meetings.
  • Integrations: We took into account any possible integrations with other business or financial software solutions.

Best small business bookkeeping services summary

  • 1-800Accountant: Best online bookkeeping service for full-service bookkeeping
  • Pilot: Best online bookkeeping services for startups
  • Bench Accounting: Best online bookkeeping service for sole proprietors
  • QuickBooks Live: Best online bookkeeping service for existing QuickBooks Users
  • Bookkeeper360: Best online bookkeeping service with hourly pricing
  • Decimal: Best project-based online bookkeeping service
  • Wave Advisors: Best online bookkeeping service for existing Wave users
  • Merritt Bookkeeping: Best software-free online bookkeeping service
  • FinancePal: Best online bookkeeping service with a la carte options

Frequently asked questions

It’s possible to do your own bookkeeping as a small business owner using accounting software. Most software platforms will integrate with your bank and other financial platforms, making it easy to reconcile transactions.

Most bookkeeping services offer the ability to reconcile your financial transactions and generate financial reporting. Some will offer additional services, such as tax planning, payroll or catch-up bookkeeping.

Pricing for bookkeeping services can vary widely, depending on the size of your business and the kind of help you need. Most services will charge a monthly fee while others charge hourly for support. The providers on this list range from $49/month plus an hourly support charge to more than $700/month.