Best Virtual Bookkeeping Solutions for Small Businesses

by Jack Pit One Stop Solutions for Accounting and Bookkeeping

Are you tired of the chaos that often surrounds tax season? Do you find yourself dedicating excessive time to financial tasks?

The anxiety of scrambling to collect tax documents at the eleventh hour can be overwhelming. Rushing through bookkeeping responsibilities not only adds stress but also exposes you to compliance risks and missed growth opportunities. Thankfully, online bookkeeping services have made financial assistance more accessible.

If you're searching for bookkeeping support, this guide will acquaint you with the comprehensive offerings of online bookkeeping services. We will explore the top seven solutions tailored for small businesses and provide insights into critical factors when selecting the ideal virtual bookkeeping services for your needs.

Overview of Virtual Bookkeeping Service

Virtual bookkeeping services typically provide you with a dedicated bookkeeper or a team of financial experts to assist you with fundamental bookkeeping tasks. The primary responsibility of a bookkeeper is to uphold the accuracy of your financial records.

Bookkeeping is an inescapable facet of running a business due to specific IRS regulations regarding financial record maintenance. Beyond ensuring compliance, maintaining well-organized financial records monitors your business's financial health, facilitates preparations for tax season, and generates essential financial statements.

Top Online Bookkeeping Service for Small Businesses

1.FreshBooks

FreshBooks’ online bookkeeping services help you protect your profits, save time, and grow your business. In collaboration with Bench.co (more on them later), we offer expert virtual bookkeeping systems and tax services support. The two platforms work together seamlessly, allowing you to bill and invoice with FreshBooks effortlessly and automatically see that income reflected in your bookkeeping.

In addition to being one of the best online bookkeeping services, FreshBooks offers 100% compliant tax preparation, taking the stress out of this essential but time-consuming process.

Other features of FreshBooks’ online bookkeeping services include:

Dedicated virtual bookkeepers
Seamless, efficient workflows between various features
Clear, on-demand reporting on your business's financial health
The FreshBooks Accounting Partner Program allows accountants, bookkeepers, and tax experts to work more efficiently with clients.
Monthly organized transaction reports
Monthly financial statements
Catch-up bookkeeping services to help you get your finances up-to-date
Retro bookkeeping services allow you to access 2+ years of historical bookkeeping, IRS correspondence, unfiled back taxes, and more
Year-round tax services, including advisory and filing
Seamless integration with more than 100 apps and add-on services

2. Bench. co

Bench stands out as a preferred choice for small businesses due to its cost-effective bookkeeping service paired with an intuitive and user-friendly platform. With Bench, you gain access to visually informative reports that offer immediate insights, empowering the growth of your small business. An added advantage is the seamless communication through chat with your dedicated bookkeeping service team. Moreover, Bench enjoys highly favorable online reviews and provides numerous integration possibilities.

One caveat to consider with Bench is its specialization in cash-basis accounting. However, it's worth noting that an option for custom accrual accounting is available within the Pro plan.

Key Features:

Regular Issuance of Monthly Financial Statements
Robust Financial Reporting Capabilities
Inclusion of Tax Filings and Tax Preparation for Sole Proprietors; Tax Filing Services Offered as Add-Ons for Other Business Types
Access to Personalized One-on-One Guidance from an Assigned Professional Bookkeeper and Tax Expert
Thorough Organization of Business Transactions by Your Dedicated Bookkeeper
Compatibility with Most Payroll Platforms for Flex and Pro Plans; Core Plan Provides Connectivity with Gusto Only
Seamless Integration with Major Payment Processors for Flex and Pro Plans; Core Plan Offers Integration with FreshBooks, PayPal, Stripe, and Select Others.
Are your books in arrears? Consider the optional addition of historical bookkeeping, a feature that remains available even if you're several years behind.
Experience real-time accounting benefits when you utilize LendingClub.
With the Flex and Pro plan, you can link non-LendingClub bank accounts, credit cards, and debit cards.
Receive a Year-End Financial Package encompassing a Profit and Loss Statement, Balance Sheet, Trial Balance, Journal Entry Summary, and General Ledger.

3. Bookkeeper.com

While Bookkeeper.com may be among the more premium options in our selection of business bookkeeping services, it offers a wide array of optional add-on services. If you seek a bookkeeping solution for the long haul, Bookkeeper.com presents an extensive range of bookkeeping features available as add-ons. These possibilities encompass payroll services, individual and business tax return preparation, and the generation of financial performance reports featuring key performance indicators.

Key Features:

Personalized Support: Benefit from a dedicated bookkeeper and a dedicated account manager.
Regular Monthly Bank Reconciliation Services.
Monthly Statement Generation, which includes the Statement of Cash Flows.
Expertise in Both Cash and Accrual Accounting Methods.
Support Availability: Enjoy unlimited support on the Small Business Plus plan and higher, with limited backing on the Small Business plan.
Scheduled Meetings: Small Business Plus plan offers 30-minute monthly meetings, while the Small Business Advanced Plan provides 45-minute sessions. Customized appointments are available on the Custom Plan.
Lite Virtual Chief Financial Officer Services is Included with the Small Business Plus plan and above.
Optional Historical Bookkeeping Add-On.

4. Pilot

Pilot extends a comprehensive suite of fundamental bookkeeping and accounting services and capabilities, encompassing access to a chart of accounts and financial statements. However, many advanced services and features are exclusively accessible as add-ons or through the custom plan. This customization level might align with your requirements for businesses with monthly expenses exceeding $200,000. Additional services within your reach may involve inventory tracking, BillPay, Chief Financial Officer (CFO) services, and tax-related support.

One limitation of Pilot is its primary mode of communication with financial experts, primarily relying on email, which may hinder quick response times. Nevertheless, phone communication remains available in most instances. Additionally, it's worth noting that Pilot does not offer a month-to-month payment option, setting it apart from a few others on our list.

Key Features

Dedicated Finance Expert Included Across All Plans
Proficiency in Accrual Bookkeeping
Comprehensive Financial Statement Preparation
Streamlined Automatic Import of Transactions
Payroll Management and Precise Balance Sheet Reconciliation
Burn Rate Calculations for Informed Financial Decision-Making

Additional Benefits of the Core Plan and Beyond:

Expedited Delivery of Your Financial Records
Monthly Phone Reviews to Enhance Communication and Understanding

5. Merritt Bookkeeping

Merritt Bookkeeping stands out with its exceptionally competitive pricing, as it offers a flat rate applicable to all types of businesses. However, it's important to note that Merritt Bookkeeping may not be the ideal choice if flexibility is your top priority, as it exclusively supports data import from QuickBooks Online. Nevertheless, if your business is in its nascent stages and you seek an affordable and straightforward solution, Merritt Bookkeeping's affordability renders it a compelling choice.

Key Features

Option for Historical/Catch-Up Bookkeeping Add-On to Bring Your Books Up to Date
Capability to Issue 1099 Forms
Automated Retrieval of Statements from Your Bank Accounts
User-Friendly Interface for Effortless Navigation
Regular Monthly Financial Reports
Seamless Integration with Your QuickBooks Online Account

Wrapping Up!

Many small business owners often undertake their bookkeeping, but it's a common pitfall for bookkeeping to slip to the back burner until tax season looms. Delaying tax-related tasks until the eleventh hour can result in missed opportunities from regular expense and revenue tracking, precise balance sheets, accrual accounting, comprehensive financial reporting, and more. Selecting the appropriate bookkeeping services for your small business ensures accuracy and liberates your time, allowing you to concentrate on your company and alleviating a considerable amount of stress.