9 Best Online Bookkeeping Services for Startups 2024

July 25, 2024

| Written by

Being able to accurately assess your startup’s financial performance starts with good bookkeeping. Online bookkeeping services provide a fast, easy, and cost effective way to manage your business’s financial transactions and utilize data to make meaningful decisions about your startup.

If you’re considering an online bookkeeping service for your startup or small business, look no further. These are the best online bookkeeping services for startups in 2024.

Our #1 Pick: 1-800Accountant

Get dedicated, certified bookkeeping tailored to your startup’s needs. Schedule a free consultation today.

Get Started

Unsure if 1-800Accountant is right for you? Continue reading our comprehensive review below to learn more and explore your options.

Top Startup Bookkeeping Services

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.

9 Best Online Business Bookkeeping Services of 2024:

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

Trust 1-800Accountant for Your Startup’s Books

Get certified bookkeeping, financial reporting, and dedicated support all in one place. Book your free consultation today.

Start Now

1. 1-800Accountant

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.

Boost Your Financial Accuracy with 1-800Accountant

Ensure precise financial records with Certified Public Bookkeepers assigned to your account. Book your free consultation now.

Get Started

2. QuickBooks Live

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.

Elevate Your Financial Reporting with QuickBooks

Access real QuickBooks-certified bookkeepers for your startup’s financial needs.

Get Started

3. Xendoo

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.

Streamline Your Bookkeeping with Xendoo’s Expert Team

Let bookkeepers, accountants, and CPAs handle your financial tasks.

Get Started

4. Collective

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.

Simplify Your S Corp Management with Collective

Access all-in-one financial management, including bookkeeping, accounting, and tax services.

Get Started

5. Pilot

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.

6. Bench

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.

7. Bookkeeper360

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.

8. Decimal

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).

9. Merritt Bookkeeping

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.

How to Choose an Online Bookkeeping Service

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.

Price

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.

Features

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.

Customer Service

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.

Hidden Fees

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.

FAQs

What is online bookkeeping?

Online bookkeeping is a digital alternative to traditional bookkeeping services. With online bookkeeping, you can manage financial transactions, balance accounts, and prepare for tax season.

While some businesses opt for an in-house or staff bookkeeper, online bookkeeping typically provides the same service at a fraction of the cost.

What is the difference between bookkeeping and accounting?

Bookkeeping involves documenting and organizing financial data for a business. Accounting takes this data and uses it to provide valuable information on the company’s financial performance as well as prepare for tax season.

Do startups need a bookkeeper?

One area you do not want to let fall to the wayside as an entrepreneur is managing and organizing your financial transactions. A bookkeeper or online bookkeeping service is necessary for startups and small businesses as it ensures that your financial data is accurate for tax filing and compliance, as well as to make informed decisions about your business.

Is QuickBooks good for startups?

QuickBooks is a popular software platform used by small businesses and startups alike. It can be a great option for startup bookkeeping services, depending on the needs of your business.

What is the best online bookkeeping for startups?

The best online bookkeeping for your business depends largely on your startup’s budget, bookkeeping needs, monthly expenses, and additional features you require. Our top recommendation for an online bookkeeping service for startups is 1-800Accountant. Not only will your books be kept by Certified Public Bookkeepers (CPB), they are also lower cost than many competitors.