9 Best Online Bookkeeping Services for Startups 2024

Accurate and timely bookkeeping is essential for startup financial wellness. Not only does effective bookkeeping keep your business’s finances up to date, but it can also prepare you for tax season and issue important financial documents such as a profit and loss (P&L) statement or balance sheet. 

Using an online bookkeeping service ensures that your financial transactions are documented, and any financial data is organized well. Plus, while there are benefits to hiring an in-house bookkeeper, online bookkeeping services tend to be cheaper than traditional bookkeeping services. 

We’re here to help you find the right digital bookkeeping service for your startup with this list of the best online bookkeeping services for startups this year.

1. 1-800Accountant – Best Online Bookkeeping Service Overall
2. QuickBooks Live – Best for Small Businesses 
3. Xendoo – Best Reporting Capabilities for Businesses 
4. Collective – Best for Solopreneurs
5. Pilot – Best for Venture-Backed Startups 
6. Bench – Best for Sole Proprietorships 
7. Bookkeeper360 – Best for A La Carte Pricing 
8. Decimal – Best for SaaS Startups 
9. Merritt Bookkeeping – Best for Startups on a Budget

For dedicated startup bookkeeping that you can trust, look no further than 1-800Accountant. Their bookkeeping services are done by Certified Public Bookkeepers (CPB) dedicated to each account. 

Additional features include bookkeeping advisory and software, financial reporting, accounting services, payroll services, and business entity formation. 

Pros

• Bookkeeping done by Certified Public Bookkeepers (CPBs) 
• Free consultation available 
• Dedicated bookkeeper for each account 
• Easy-to-use online portal 

Cons

• Bookkeeping only available with the Enterprise plan 
• Higher cost than some competitors 

Pricing

With 1-800Accountant, you will receive a free consultation to test out the bookkeeping services. However, to utilize their 1-800Accountant bookkeeping services, you will need to buy their Enterprise plan at $399 per month, billed annually. 

QuickBooks Live is a virtual bookkeeping service that offers guaranteed services by real QuickBooks-certified bookkeepers. To start, a bookkeeper will review your startup’s books and update them, as well as conduct a detailed review of your transactions to ensure they are cataloged correctly. 

The service will then create valuable reports such as a profit and loss statement and balance sheet and prepare your books for tax season. 

Pros

• Creates valuable reports 
• Real bookkeepers with an average of 10 years experience
• Free consultation available 
• Tax preparation support 

Cons

• Bookkeepers are not all CPAs 
• Initial “clean up” is an additional fee 

Pricing

For QuickBooks Live’s bookkeeping services, you can expect to pay $200 per month minimum. Costs are dependent on the average monthly business expenses. You will also be required to pay a “clean-up fee” to begin your bookkeeping membership; however, this price is dependent on tax filing status, sign-up month, and business start date.

Xendoo offers a variety of financial services for startups and small businesses, including bookkeeping, tax preparation, and fractional CFO services. 

Their bookkeeping services alone provide valuable, time-saving support from bookkeepers, accountants, and CPAs. Their comprehensive bookkeeping platform offers services for monthly reporting, accounting, bookkeeping, and financial management.

Pros

• Dedicated team of experts 
• Trusted by major companies 
• Monthly reports and trend graphs 
• Free consultation available 

Cons

• Higher cost than some competitors 
• Tax services only offered for an additional cost 

Pricing

Xendoo offers three plans: the Essential plan for $395 per month, the Growth plan for $695 per month, and the Scale plan for $995 per month.

Built for self-employed entrepreneurs, Collective is an all-in-one financial management solution with services for bookkeeping, accounting, formation, taxes, and payroll. 

Collective centers many of its services around S corp formation, making it ideal for startups that want to structure their business as an S corp. By signing up to be a Collective customer, you receive an extensive list of features from formation services to tax preparation and filing to bookkeeping and accounting. 

Pros

• Ideal for self-employed entrepreneurs
• All services are included in the price – no hidden add-on fees 
• Each customer receives advising services from a dedicated finance team
• Comprehensive formation services included 

Cons

• Not ideal for entrepreneurs with a team
• Geared toward S corp alone 

Pricing

Collective offers two payment options: monthly pricing at $349 per month or yearly pricing at $296 per month billed annually.

Pilot is a digital bookkeeping service dedicated to startups and growing businesses. Their roster of startups that have utilized the platform includes OpenAI, Lattice, and Airtable. In addition to bookkeeping services, Pilot also offers tax and CFO support at an additional cost. 

Since this service is built for fast-scaling startups and growing businesses, its platform is equipped to handle all of the finance management needs of a business built to scale. Which hopefully means your startup won’t outgrow the service. 

Pros

• Built for scaling companies 
• Integrations with widely used applications and software
• Trusted by successful startups 
• Stock and R&D tax credit services available 

Cons

• Higher cost than many competitors
• Tax and CFO services cost extra

Pricing

Pilot’s offerings include three packages: the Starter plan, which starts at $499 per month; the Core plan, which starts at $699 per month; and the Plus plan for a custom price. The amount that you pay for each plan is dependent on your business’s monthly expenses. 

Bench is an online bookkeeping service for small businesses. Boasting over 25,000 small businesses served, Bench is an experienced digital bookkeeping solution. 

In addition to their bookkeeping services, they also offer income tax filing and user-friendly financial software, including personal tax filing for sole proprietors and contractors. Overall, Bench offers a variety of helpful bookkeeping and financial services at a fraction of the price of many competitors. 

Pros

• Lower cost than some competitors
• Easy-to-use interface 
• Financial reports available 
• Free trial available 

Cons

• Tax filing services only available in the Premium plan 
• Catch-up and specialized bookkeeping cost extra 

Pricing

Bench offers two packages: Essential at $249 per month billed annually and Premium at $399 per month billed annually. 

Bookkeeper360 offers a rare pay-as-you-go alternative to many online bookkeeping services. With each of their plans, they provide a dedicated accountant as well as helpful bookkeeping, reporting, and customer service opportunities. 

One thing to note about this service is that there is a shift in pricing for cash versus accrual accounting. Therefore, if you are required to use an accrual accounting method for your startup, you will need to pay extra. 

Pros

• Pay-as-you-go option available 
• Dedicated accountant for every plan 
• Services available on-demand 
• Cash and accrual accounting methods offered 

Cons

• Tax, CFO, payroll, and back-office services cost extra
• Higher cost than some competitors for weekly and monthly plans 

Pricing

Bookkeeper360 offers three plan options that vary depending on monthly expenses. Their pay-as-you-go option costs $49 per month plus $125 per hour for support and a $1,000 start fee. From here, they have a monthly plan starting at $399 per month and a weekly plan starting at $549 per month if using a cash-based accounting method.

Decimal is a fixed-price bookkeeping service that boasts a variety of bookkeeping services, such as cash and accrual accounting, transaction categorization, loan reconciliation, bill and invoice payment matching, and more.

Decimal works with a variety of industries, including ecommerce, software-as-a-service (SaaS), agencies, real estate, and restaurants. Their services are tailored to each business's needs to ensure their finances are taken care of by a team of experts. 

Pros

• Dedicated expert support on-demand 
• Several helpful add-on services available 
• Additional hours of service aren’t billed 
• No hidden fees

Cons

• Many features cost extra 
• All plans are based on a one-year commitment 

Pricing

Decimal offers three plans: Essentials (starting at $265 per month), Plus (starting at $895 per month), and Premium (custom pricing only).

Merritt Bookkeeping is by far the least expensive online bookkeeping service available on this list. Their single package includes the basics of bookkeeping, QuickBooks use, automatic bank retrieval, 1099 insurance, and an easy-to-use interface. 

If you are looking for cost-effective bookkeeping services, Merritt Bookkeeping may be the choice for your startup. Plus, they will communicate directly with your CPA to ensure tax season runs smoothly. 

Pros

• Easy-to-use interface
• Money back guarantee
• Low cost compared to competitors
• No hidden fees or contracts 

Cons

• Limited features available 
• Only one package to choose from

Pricing

Merritt Bookkeeping only offers one package at a flat rate of $190 per month. No hidden fees. 

Effective bookkeeping is essential to the financial management of your startup, accurate tax filing, and financial reporting. To determine the right online bookkeeping service for your business, there are a few factors to consider, like price, features included, service, and hidden fees. 

Online bookkeeping services range in price, with some as low as $49 per month and some as high as $995 per month. Determine your budget before shopping around for services to make sure you are choosing the right one for your startup’s financial needs. 

Consider the features you want (and don’t want) before signing up for a bookkeeping service. For example, if you want additional help with tax filing and payroll, you may opt for a service that bundles these services with their bookkeeping services. Alternatively, ensure the service you’re choosing isn’t requiring you to pay for features you don’t want or need. 

Being able to communicate with the provider that is doing your bookkeeping, taxes, or accounting can eliminate some of the headaches of startup financial management. A bookkeeping service that provides dedicated bookkeepers or accountants as well as on-demand services is a plus. 

While some bookkeeping services offer a guaranteed fixed price or membership cost, there are some with hidden fees and additional hourly rates. To ensure your bookkeeping services meet your startup’s budget needs, do your research on the platforms that utilize hidden fees and extra costs before you sign up.