6 Best Bookkeeping Services for Your Online Business (Compared)

Are you looking for the best bookkeeping services for your online business?

Since there are a lot of bookkeeping tools on the internet, it can be intimidating to choose one for your website.

To make it easier for you, we have tested some of the most popular bookkeeping services on the market. When doing that, we kept different factors in mind, including ease of use, features, customization, and pricing.

In this article, we have hand-picked the best bookkeeping services for your online business.

If you are in a hurry, then you can take a quick look at our expert picks to make a decision.

How We Review Bookkeeping Services for Online Businesses

IRS requires all businesses to maintain books containing their financial records such as sources of income, taxable and non-taxable income, and business expenses.

However, maintaining proper books requires time and effort. This is where online bookkeeping services come in. They help you manage your books, payroll, expenses, and more.

In today’s guide, we have researched for you and paid special attention to the following criteria when picking the best bookkeeping services for online businesses:

• Ease of Use: When testing different services, we focused on a user-friendly interface, technical documentation, and easy onboarding processes that will suit beginners.
• Features: We have tried to find tools that come with most of the features required to manage your books, like bill payments, invoices, income and expense reports, bank and credit card statements, payroll, and more.
• Reliability: We have only recommended the services that we have tested ourselves. Plus, we took a look at customer reviews and support.

That being said, let’s take a look at the best bookkeeping services for online businesses.

1. Bench

Bench is the best bookkeeping service for online businesses. It comes with a dedicated team of experts that provides online bookkeeping services to you.

It offers monthly financial statements and expense overviews that give you control of your money. Its at-a-glance visual reports help you see the big picture and give you actionable insights to grow your business.

Plus, Bench comes with a tax preparation, filling, and advisory feature that contains all the information you need to file your taxes. The team can work with your CPA (certified public accountant) or help you find one to painlessly file your taxes on time, making it a great choice for small businesses.

Pros

• Bench comes with a mobile app for iPhone users where you can view financial reports.
• When we were investigating the service, we found that it has a catchup bookkeeping service for business owners who are behind on their books.
• The service offers unlimited customer support and has a year-end financial package to simplify tax filing.

Cons

• Bench has no free plan.

• It doesn’t manage payroll, pay bills, create invoices, or file taxes for you.

Why we recommend Bench: It is the best bookkeeping service for online business because it provides you with experts who will file your taxes, and do bookkeeping on your behalf. It is a great choice if you have a small company and do not know the right way to manage your finances.

2. QuickBooks

QuickBooks is the best accounting software for small businesses that also comes with bookkeeping features. It helps you easily record income, expenses, bills, and payments and then categorize the data for financial insights.

You can use the service to connect with bookkeeping experts who will help you easily manage your finance books.

If you don’t want to hire a bookkeeper, then you can also use the QuickBooks live assistant feature, where an expert will give you advice, answer your questions, and show you how to use the virtual bookkeeping product yourself.

Pros

• QuickBooks also offers a list of other features like payrolls, invoices, bill management, loans, accounting, and more.
• It allows you to manage transactions in different currencies.
• Upon exploring the service, we realized that the tool is cloud-based. This means you can access your data anywhere with an internet connection.
• QuickBooks allows you to control access levels for different users within your organization, ensuring data security.

Cons

• QuickBooks does not have a free plan, but its starting prices are affordable.
• It has a lot of features, which can be overwhelming for beginners.

Why we recommend QuickBooks: If you are looking for an all-in-one tool where you can manage your books, taxes, invoices, payroll, and loans, then QuickBooks is the best solution for you.

3. FreshBooks

FreshBooks is another all-in-one solution ideal for freelancers and self-employed professionals. It offers amazing bookkeeping services where you can connect with a specialist who will manage your books and taxes.

Additionally, it lets you create invoices for clients, capture expenses, manage payments, and offer time-tracking functionality if you bill clients by the hour.

FreshBooks also easily integrates with Bench, which makes it super easy to manage your books and file taxes.

Pros

• FreshBooks can integrate with popular payment gateways like PayPal, Stripe, and more.
• It can generate essential financial reports like profit and loss statements, expense reports, and tax summaries to help understand your business performance.
• The service has a user-friendly interface.
• It also has a mobile app. We liked this feature in particular because it lets you manage your finances by creating invoices, capturing receipts, and approving bills right from your mobile phone.

Cons

• FreshBooks does not have a free plan.
• It is not suitable for businesses with complex accounting needs.

Why we recommend FreshBooks: If you are looking for a tool that will manage basic invoicing, expense tracking, and simple bookkeeping, then FeshBooks is a good solution.

4. Bookkeeper.com

Bookkeeper.com is a great bookkeeping solution for small businesses. It manages your books using QuickBooks, which is a popular accounting software. The team consists of certified accountants and QuickBooks professionals, so you know you are in good hands.

Upon signing up, it connects your banking and credit card statements to Quickbooks, and you get access to the customized chart of accounts and are able to set up bills, invoicing, and payments.

After that, the team of experts will file your taxes and give you advice that can help you better understand your financial position.

Pros

• With Bookkeeper.com, you can quickly get an overview of your finances anytime you want.
• We were impressed when we found out that the tool offered business advising. This lets you discuss your budget and financial plans beyond bookkeeping.
• The service allows you to pay vendors and suppliers using checks. It will print and mail the checks for you. Plus, the service will monitor your invoices to make sure that they are paid on time.

Cons

• Bookkeeper.com does not have a free plan, and its paid plan can be expensive for small businesses.
• You will need to integrate the tool with QuickBooks.

Why we recommend Bookkeeper.com: We recommend Bookkeeper.com because it is super scalable and integrates with QuickBooks to provide personalized bookkeeping services for your business.

5. Bookkeeper360

Bookkeeper360 is an online bookkeeping service that uses Xero accounting software to set up your books.

The team offers small businesses a dedicated account manager, financial statements, cash and accrual basis reporting, bills, invoicing, and payroll. It also maintains a general ledger, which is a central record of all your transactions.

With the virtual CFO plan, you can also get access to technology advisory, HR services, daily bookkeeping, custom and KPI reporting, and a dedicated CFO/CPA to manage your account.

Pros

• Bookkeeper360 reconciles your bank statements with your accounting records to ensure accuracy.
• It offers optional tax filing services for business and individual income taxes, along with tax planning and advisory services.
• It connects you with US-based bookkeepers familiar with local accounting regulations and tax laws.

Cons

• Bookkeeper360 is expensive for small businesses and has no free plan.

Why we recommend Bookkeeper360: If you have a US-based company, then we recommend Bookkeeper360 because it connects you with local experts who can manage your books according to accounting regulations.

6. inDinero

inDinero is an online accounting software, bookkeeping, and tax services provider. It offers an all-in-one solution, which includes bookkeeping, bills, payroll, and tax filing.

The software uses an intuitive interface that quickly gives you an overview of your income, expenses, and profits. Behind the scenes, inDinero has a highly dedicated team of accounting and bookkeeping experts who will work and manage your accounts.

Plus, inDinero’s onboarding team will help you set up your account, bank, and credit statements so that you are never behind on your bookkeeping.

Pros

• It also offers CFO services.
• The company declutters your accounts and reconciles your financial statements with bank statements.
• You can track and manage your business spending effectively.

Cons

• inDinero is too expensive for small companies.

Why we recommend inDinero: If you are looking for a comprehensive financial management and bookkeeping solution, then inDinero is a great choice.

What Is the Best Bookkeeping Service for Online Businesses?

In our expert opinion, Bench is the best bookkeeping service for online businesses. It comes with a dedicated team of experts to provide bookkeeping services for your company.

Plus, it shows financial statements and expense overviews that help you get control over your money.

However, if you are looking for an all-in-one solution where you can manage taxes, invoices, books, and payrolls, then you can go with QuickBooks instead.

Similarly, if you are a freelancer, then FreshBooks is a great choice as well.

On the other hand, if you are just looking for a bookkeeping service, then you can opt for Bookkeeper.com.

Frequently Asked Questions About Bookkeeping

Here are some questions that are frequently asked by our readers about bookkeeping services:

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

If you have an online store or business, then you will need accurate and organized financial records. A proper bookkeeping service will help 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 come with robust security measures to protect your financial data. All of these services 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 for bookkeeping services:

Bookkeeping software: Software like QuickBooks and FreshBooks offer user-friendly interfaces where you can manage your own books.

Bookkeeping services: Companies like Bookkeeper.com or BookKeeper360 provide a team of bookkeepers to handle your finances. They are good options for rapidly scaling businesses.

Hybrid solutions: Some services, like inDinero, offer bookkeeper software and access to professional accountants that you can contact for advice or to manage your books.

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