Nowadays, in the age of technology, every little thing is available in the online medium. Just like traditional onsite bookkeepers, online bookkeeping services are highly prevalent. In fact, these virtual bookkeepers can manage day-to-day financial tasks like recording transactions, processing payroll, etc. So if you are familiar with this platform, you will know that outsourcing your bookkeeping to a virtual medium can help you ensure that your books are accurate and also save you time.
At the same time, many of them offer add-on services like payroll and tax filing, as mentioned above. In fact, there are many things that the job of a virtual bookkeeper entails. Also, these services are staffed by real people. Therefore, if you previously had a wrong idea that the entire work is software-based, it is not so.
So if you are looking for a full-service virtual accounting firm or basic online bookkeeping services, you need to know some of the significant aspects of this platform. Today, we will share some of the essential aspects that you need to know if you want to start this business. Stay with us until the end to get a complete idea. Let’s get started!
Table of Contents
- What is Virtual Bookkeeping Services?
- List of Best Online Bookkeeping Services
- 1. Bookkeeper360: Best Overall Bookkeeping Service
- 2. QuickBooks Live: Best Bookkeeping Service for QuickBooks Users
- 3. Merritt Bookkeeping: Best Budget Bookkeeping Service
- 4. Bench: Best Bookkeeping Service for New Businesses
- 5. Pilot: Best Bookkeeping Service for Fast-Growing Startups
- 6. Botkeeper: Best Online Bookkeeping Service to Assist Accounting Firms
- How Can You Choose Bookkeeping Services?
- Does the Bookkeeping Service Use the Proper Accounting Method for Your Business?
- Does it Integrate with Your Accounting Software?
- What Kind of Relationship will You Have With Your Bookkeeper?
- Ending Note
Since you are reading this blog, it is pretty apparent that you are probably looking forward to starting this business. Well, before doing that, you need to be highly familiar with some of the significant aspects of bookkeeping services.
Previously, you must have only heard about onsite bookkeeping; however, now virtual bookkeeping services have become equally popular. However, what is it all about? Let us go into the details. It is the process of accurately recording a business’s financial activity. The job of virtual bookkeepers is pretty varied. Often they have to reconcile the bank statements with invoices and receipts.
At times, their job entails creating financial reports like balance sheets and cash flow statements. Also, they ensure that your documents are in order at tax time. Some of the firms also offer add-on services like inventory reconciliation.
So by now, you must have understood how important it is for business owners to get these things right? Yes, the companies’ profits depend on them to a great extent. Therefore, these bookkeeping services are of utmost importance for any business platform.
List of Best Online Bookkeeping Services
So if you are wondering what the best virtual bookkeeping services of 2023 are, let us share with you some of the significant details regarding them. Here are some of them:
1. Bookkeeper360: Best Overall Bookkeeping Service
The price is highly customizable of this particular bookkeeping service. However, it depends on the business size and the level of service. Therefore, for businesses with less than $20,000 in expenses, pay-as-you-go service starts at $19 per month. Also, you have to pay $99 per hour of support. Monthly expenses begin at $349 per month, and weekly reporting starts at $499. However, the prices rise for larger business platforms.
However, if you are wondering why it is different from other competitors, let us share the details with you. As per the news, Bookkeeper360 integrates with QuickBooks and Xero. Also, it offers weekly reporting. In fact, the pay-as-you-go pricing option is also available here.
Even though it is a bit more expensive than the others, Bookkeeper360 offers full-service support. Also, they have dedicated accounts for each small business. For businesses with intensive bookkeeping needs, Bookkeeper360 is the best option for them. They will offer their clients accurate weekly financial reports along with some add-on services.
2. QuickBooks Live: Best Bookkeeping Service for QuickBooks Users
The expenses for the first month of using the services of QuickBooks Live are around $500. After that, you have to pay $200 per month for those businesses whose average monthly expenses are less than $25,000. However, those businesses which have expenses of more than $25,000 have to pay $400 per month.
At the same time, they are fully integrated with QuickBooks Online. Also, onboarding month includes catch-up bookkeeping from your last business tax return to the present. If you notice that your bookkeeper has made an error, you can request another one to look over those books. QuickBooks will reopen books and correct errors for free.
Just like other QuickBook services, they integrate with the product suite. At this time, they take in whatever info the users have already shared with QuickBooks Online. In fact, here, the users can also schedule video calls if they need to interact with them. Even though they won’t provide you add-on services, these bookkeeping services give the users detailed monthly financial reports.
3. Merritt Bookkeeping: Best Budget Bookkeeping Service
One of the reasons people use these particular bookkeeping services is because they are pretty budget-friendly. Well, if your budget is a bit tight and you cannot afford the costly ones, you can indeed opt for the services of Merritt Bookkeeping. The expenses are $190 per month. However, the catch-up bookkeeping costs $70 or $140 per month.
It is because of the flat rate of $190 per month that makes it is a popular choice among users. At the same time, they integrate with QuickBooks. You will be surprised to know that they will also communicate with a user’s CPA as the tax season approaches. However, they do not provide their users with any add-on services.
As you know, Merritt Bookkeeping is a simple and budget-friendly option that runs on QuickBooks. Their team categorizes bank transactions each month and provides financial reports each month to the users. Even though they do not offer any add-on services, they are pretty reliable in this job. Therefore, many businesses prefer opting for them.
4. Bench: Best Bookkeeping Service for New Businesses
The Bench is one of the best options when it comes to bookkeeping services. The expense that you have to bear per month is $299 if you opt for this. However, this is the Essential Plan, where the team prepares monthly bookkeeping and financial statements for taxes. The rates increase to $499 per month for the Premium Plan, where you can enjoy unlimited tax advisory services.
One of the reasons Bench is a popular choice among users is that they offer a free LendingClub business checking account to Core plan users. In fact, even if you leave Bench, that account is portable. Also, you will get unlimited in-app messages and phone calls from them. Moreover, if you opt for their services, you will get a free one-month trial.
However, you must keep in mind that they have no connection with Xero, QuickBooks, or other such software. Well, that is not much of an issue in comparison to all the services they provide their users. Moreover, Bench offers Bookkeeping support at a lower price than many of its rivals. In fact, their team aims to take books completely off the hands of users. They use proprietary software to do all the work. Therefore, they do not integrate with QuickBooks and others. It is due to this reason that they are suited for new businesses.
5. Pilot: Best Bookkeeping Service for Fast-Growing Startups
As the name suggests, this bookkeeping service is designed for startups. Their price begins from $599 per month for Core service. It includes basic bookkeeping and monthly reports. If you want to opt for pro service, it will cost you around $849 per month. This will provide you with monthly phone reviews and custom pricing for larger businesses that need add-ons. Also, you must note that Pilot offers the pre-revenue companies a $200discount per month.
In fact, due to this big discount, many people opt for their services. Their team prepares a wholesome financial report which includes the burn rate. This is something that is essential for venture capitalist-backed companies. Also, they provide their users with accrual basis accounting. At the same time, Pilot integrates with QuickBooks, Gusto, and many more.
One of the significant reasons people prefer their services is that Pilot serves startups. Especially those startups that are backed by venture capital. Therefore, Pilot is a great option for these fast-growing startups.
6. Botkeeper: Best Online Bookkeeping Service to Assist Accounting Firms
It is by using artificial intelligence (AI) and machine learning, Botkeeper automates the maximum of bookkeeping processes. You can best think of it as a virtual robotic bookkeeper that supports the accounting practice.
However, the service is compatible only with QuickBooks and Xero. It can also do multiple-entity accounting as well. But with both platform and client entity fees, the price is more on the steep side. So you must pay it annually. However, they allow you to focus on higher-level client advisory services. This is possible because they help you offload daily bookkeeping tasks like data entry, classifications, etc.
Botkeeper assists traditional accounting firms by automatically completing all the work. Also, there are unlimited bank transactions available. In addition, they can accommodate multiple locations and enterprise businesses. However, they do not provide you with any detailed pricing info. But pricing for accounting firms included both a platform fee and a per-client fee. As per the news, the platform fee is about $12,000 per year, and the client entity fee is $660 per year.
By now, you must have understood that Bookkeeping forms an integral part of running a business. However, it takes a significant amount of time and effort. But once this job is done, you can shed off a lot of load from your shoulders.
Does the Bookkeeping Service Use the Proper Accounting Method for Your Business?
If you are familiar with this job, you will know that there are two different accounting methods, which include Cash basis and accrual. Well, the first one focuses on the movement of cash. Therefore, expenses are recorded when payments are made, and revenues are recorded when payments are received.
On the other hand, accrual accounting recognizes revenue as soon as it is earned and expenses just as they are owed. So if you have a lot of cash on hand, but there are a lot of bills that you need to pay, accrual is the best option. At the same time, cash basis accounting is much simpler. This is the reason many bookkeeping services offer them at a lower price. Therefore, make sure you choose a service that does the right type of accounting for the size and complexity of your business.
Does it Integrate with Your Accounting Software?
You must know many bookkeeping services are built to run on QuickBooks, an industry leader in accounting and bookkeeping software. In fact, some of them also support Xero, which is another cloud-based accounting software. So if you are comfortable with your current software, make sure that your bookkeeping service supports it.
However, you need to be diligent about your financial record keeping. This is because most of them will go through your old receipts, invoices, and bank statements to update them. Needless to say, this service has a monthly fee. So, it is essential to price out your catch-up bookkeeping expenses while looking for their services.
What Kind of Relationship will You Have With Your Bookkeeper?
If you opt for these services for the first time, you will have the above question on your mind. Let us share with you the significant details. Here, you will mainly contact your bookkeeper through phone or through emails.
However, if you desire one-on-one meetings, you have to pay more. Moreover, if you want a higher level of support in the future, like CFO-style services, you have to choose a similar kind of service where you can later on upgrade.
How Much Will Be the Expenses?
If you are comparing the services of various bookkeepers, make sure you list out all the essential features. This has to include the add-ons like tax prep, payroll, and HR. So if you are thinking about one that runs in QuickBooks and Xero, include that as well. You can also take advantage of product demos, reviews of clients, and other aspects to find the right service for your business.
Needless to say, bookkeeping is an essential part of the success of a small business platform. Since it takes a lot of time and effort manually, people now opt for the virtual medium. They adeptly handle crucial tasks and provide you with detailed and accurate reports, monthly or weekly. At the same time, they also offer many add-ons like payroll, tax services, CFO advisory, etc. So if you want to remain tension-free with all these things, opt for either of them.