Best Virtual Bookkeeping Solutions for Small Businesses
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.
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