Small businesses may find it difficult to hire an accountant or bookkeeper because they don’t have enough work. Virtual bookkeepers can help you do this. They are able to manage several small business accounts. Also, they can easily manage multiple small businesses’ accounts at a fraction of the cost of an in-house accountant.
No matter how small your business may be You shouldn’t manage your company’s finances unless you have experience in bookkeeping. Even then, it’s best to outsource repetitive tasks.
Before we get to the best online bookkeeping services for your finances, let us first learn about small business accounting.
What is virtual bookkeeping?
Remote bookkeeping is where accountants manage your company’s balance sheet and profit and loss statements, monthly reconciliation, and cash flow statements online using an accounting or bookkeeping software. Virtual bookkeepers are able to handle payrolls, tax prep, and inventory management, as well as other services such as accounting software. They can do everything an in-house bookkeeper could. Their physical presence does not matter.
Here are five virtual bookkeeping options that we think will be the best for small businesses in 2022.
Bookkeeper 360: extensive virtual bookkeeping for small businesses
Bookkeeper360 is a great value-for-money platform even though it costs more than its rivals. Bookkeeper360 is fully integrated with the major accounting and payroll software Xero. Gusto, Gusto, ADP, and QuickBooks. It also offers a wide range of affordable additional services that can replace your in-house bookkeeper.
- Dedicated accountant/accounting team (depending on your pricing choice)
- Both cash-based, as well as accrual accounting options, are available
- All plans include monthly reconciliation of profit and loss as well as a balance sheet
- Available for bill pay
- Available W-2s and 1099’s
- Affordable back office, payroll, and HR services starting at $99 & $45 per monthly
- Integrated with Gusto, QuickBooks, and Xero accounting/payroll software
- All US-based accountants are eligible
- It is more expensive than some of its competitors and may not be the right fit for your business depending on how big it is.
- Fixed pricing is available only for monthly expenses above $20,000; everything else is quoted-based
- No catch-up bookkeeping
- There is no free trial
Bookkeeper360 is an excellent choice if you want to focus more on your business and not get bogged down in the complexities of bookkeeping. Bookkeeper360 can take care of all your bookkeeping tasks at a fraction of the cost of hiring an in-house accountant. All their accountants are US-based and will be able to understand your business needs.
Xendoo – A bookkeeping software that has something for everyone
Few virtual bookkeeping services offer as many pricing options as Xendoo, and that is why it should be the bookkeeping software of choice for every business. This is particularly true for small businesses that are just starting out in business and may only require basic bookkeeping.
- Bookkeeping basics at a very affordable price
- The pricing structure clearly outlined
- Every plan includes a dedicated US-based CPA bookkeeper
- Robust integration (Quickbooks. Xero. Gusto. A2X. Amazon. TaxJar. Stripe. Shopify. Expensify. Bill.com).
- They do only cash-based accounting for even the most expensive plans
- There is no free trial
Xendoo could be ranked among the top bookkeeping software if not for its flaw with accrual-based accounting. Virtual bookkeeping services often offer this, but we know that it is a business decision that something has to be done in order to keep the price down.
Nevertheless, small businesses may be happy with cash-based accounting. It is available for all plans.
Bookkeeper.com is the champion of additional services
Bookkeeper.com is one of the best virtual bookkeeping services. It offers great solutions for your tax and payroll filing problems, as well as neatly-segmented payment plans. Bookkeeper.com also provides a longer onboarding period than many of its competitors.
It works just like Bookkeeper360.com and can replace your in-house accountant. These are slightly more expensive than the average. But you get more than you pay for. The following services are available to all plans:
- Bookkeeper and Account Manager
- Reconciliation of bank/credit card accounts
- Statement of cash flows, P&L, balance sheet
- Both accrual-based and cash accounting are possible
- Secure document storage (limited to the small business plan only)
- Online Support
- Let’s look at the other benefits of Bookkeeper.com as a virtual bookkeeping service.
- Limited services available for a free trial
- Both accrual-based and cash accounting options are available
- Monthly bills for all fixed plans
- It might not be right for you if your monthly transactions are small. The pricing of the service is based on volume.
- Only compatible with QuickBooks
- No mobile app
Bookkeeper.com is more expensive than other bookkeeping software, but it does more for your business than any other. You won’t need to change your virtual bookkeeping software once your business grows due to the many additional services it provides.