How to Choose a Virtual Bookkeeping Service That Grows with Your Business

What is Virtual Bookkeeping?

Definition of virtual bookkeeping

Virtual bookkeeping refers to online bookkeeping services that perform financial tasks remotely. [3]Unlike traditional bookkeeping where records are typically stored in the office, a virtual bookkeeper can handle tasks like posting transactions, processing payroll, monitoring cash flow, reconciling accounts, and updating statements from any location using a laptop or mobile device with an internet connection. Virtual accounting services offer the flexibility and convenience needed in today’s digital age.[3] [4]The main difference is that a virtual bookkeeper does not require a physical office presence. Virtual accounting services and online accounting and bookkeeping services enable businesses to manage their finances without the need for an in-house bookkeeper.[4]

Benefits of virtual bookkeeping services

Virtual bookkeeping offers several advantages over traditional bookkeeping methods:

1. Cost savings: With no need for dedicated office space, supplies, insurance, or employment taxes for contractors, virtual bookkeeping can significantly reduce overhead costs for businesses. Virtual accounting and bookkeeping services help streamline financial operations while cutting expenses.[4]
2. Flexibility: Virtual bookkeepers can work as much or as little as needed, making it an ideal solution for businesses with fluctuating financial service requirements. Virtual accounting services provide the flexibility to scale up or down based on your business needs.[4] They also offer flexible availability, appealing to those seeking work-life balance. [4]
3. Accessibility: Cloud-based document management allows virtual bookkeepers, business owners, and other authorized parties to access financial records from anywhere, anytime, using any internet-connected device. Platforms like QuickBooks Online enhance the efficiency of virtual accounting and bookkeeping services.[1]
4. Integration: Online accounting services, such as QuickBooks Online, can seamlessly integrate with other tools like online banking, time tracking, and inventory management software, streamlining processes through effective accounting software integration.[1]
5. Intuitive interface: Virtual bookkeeping platforms, including QuickBooks Online, often feature user-friendly interfaces, eliminating the need for specialized skills or extensive training.[1]
6. Automation and efficiency: With automated approval flows and notifications, businesses can delegate bookkeeping tasks while maintaining control over their finances, boosting productivity through platforms like QuickBooks Online.[3]
7. Scalability: Larger businesses can leverage virtual accounting and bookkeeping services to easily scale their accounting operations as the company grows.[3]
8. Up-to-date compliance: Online accounting software, such as QuickBooks Online, is promptly updated to reflect changes in accounting regulations or tax laws, ensuring compliance.[1]
9. Enhanced security: Cloud services employ robust security measures like encryption, antivirus protection, and unique security controls to safeguard financial data in secure data centers, making them a reliable choice for virtual accounting and bookkeeping services.[1]

By leveraging virtual accounting and bookkeeping services, businesses of all sizes can benefit from cost-effective, flexible, and secure financial management while focusing on core operations and growth strategies.[2] [6]

Cost of virtual bookkeeping service

The cost of virtual bookkeeping services varies depending on several factors related to your business’s financial complexity. Bookkeeping services estimate the time and effort required to maintain your books, which is reflected in their bookkeeping pricing packages.[7]

When searching for bookkeeping packages, three primary factors impact the pricing:

1. Number of Accounts

How many bank accounts, credit cards, and payment processing accounts (like Stripe or Square) does your business use? The more accounts you have, the higher the cost.[7]

2. Number of Transactions

The number of bank and credit card transactions your business conducts in a given month affects the workload for bookkeepers. More transactions generally translate to higher pricing.[7]

3. Monthly Expenses

Your business’s average monthly expenses, including inventory, services, and payments, influence the complexity of bookkeeping tasks and, consequently, the cost.[7]

Accurate bookkeeping is critical to monitor expenses and streamline taxes. Regardless of your budget, you can find a pricing package that suits your business needs.[7]

Monthly cost

Many virtual bookkeeping services offer monthly pricing plans based on the factors mentioned above. Here are some examples of bookkeeping pricing and bookkeeping plans:

Maxim Liberty

All Maxim Liberty plans include cash or accrual accounting, unlimited accounts, data entry, categorization, bank reconciliation, and financial reporting.[7]

Bookkeeper360

*Annual billing saves you 10%. [8]

Streamline Bookkeeping

[8]

1-800Accountant

[8]

Weekly cost

Some virtual bookkeeping services also offer weekly pricing plans, which may be more suitable for businesses with higher transaction volumes or those requiring more frequent updates. These bookkeeping pricing options ensure flexibility in bookkeeping plans.

Xendoo

[8]

Bench

[8]

Reconciled

[8]

By comparing pricing packages from reputable virtual bookkeeping services, you can find a cost-effective solution that aligns with your business’s financial needs and growth trajectory. Evaluating different bookkeeping pricing and bookkeeping plans can help you make an informed decision.[7] [8]

Top Virtual Bookkeeping Services

Overview of the best virtual bookkeeping providers

Virtual bookkeeping services make it possible for you to outsource this crucial task at very affordable rates. In fact, research shows that using virtual accounting and bookkeeping services can save your business over 83% compared to hiring an in-house bookkeeper.[11]Online bookkeeping services combine the automation of accounting software with the guidance of a professional bookkeeper, maintaining accurate records your business can depend on to make important financial decisions and save on taxes. QuickBooks Online is a popular choice for many businesses.[11]

We looked at dozens of popular virtual bookkeeping services and narrowed it down to those that will work best for your business. Each offers slightly different services and features, so choose the one that best suits your needs.[11]

1. Maxim Liberty Bookkeeping Services: A reputable virtual bookkeeping service provider catering to businesses and accounting firms. Known for top-quality service at a very affordable price, Maxim Liberty supports all widely used bookkeeping software.[11]
2. THE ZOH Bookkeeping Services: A premier virtual bookkeeping service dedicated to empowering businesses and accounting firms. Renowned for delivering meticulous and reliable financial management, THE ZOH offers competitive pricing and exceptional service quality. Proficient in all major bookkeeping software, we ensure seamless integration and efficient financial operations for our clients.
3. Bookkeeper360: A full-service accounting platform developed for business owners. You can choose monthly or weekly reconciliation, and like most virtual bookkeeping services, the pricing is based on your business’s monthly expenses and whether you use cash basis or accrual accounting. QuickBooks Online is a popular choice for many.[11]
4. Streamline Bookkeeping: A virtual bookkeeping service that specializes in helping small businesses and professional service firms. Most clients have 1-20 employees and include doctors, attorneys, chiropractors, web designers, architects, consultants, real estate investors, and non-profits.[11]
5. 1-800Accountant: Ideal for small and growing businesses, 1-800Accountant is a comprehensive digital solution for accounting procedures. By combining localized financial expertise with a cloud-based accounting platform like QuickBooks Online, the company helps business owners obtain optimal tax savings while minimizing time spent crunching numbers.[11]
6. Xendoo: Xendoo has earned a reputation for excellent customer service with their dedicated support and being easy to use. Backed by a team of bookkeepers and CPAs, Xendoo can get your business financials under control through expert guidance and regular check-ins. Xendoo is also an affordable option that can scale with your business, offering competitive bookkeeping pricing.[11]
7. Finaloop: A top choice due to its exceptional customer service, tailored support, and user-friendly platform that completely automates bookkeeping for eCommerce brands. And with full-featured plans starting at only $65 a month, it’s also a great deal for ecommerce bookkeeping.[11]
8. Reconciled: One of the fastest-growing accounting businesses in the U.S., Reconciled has an array of bookkeeping and accounting services ranging from cleanup to ERP implementation, including specialized bookkeeping cleanup services.[11]

Key features and pricing details

Here are some key features and pricing details of the top virtual bookkeeping services to help you make an informed decision, including competitive bookkeeping pricing.[12]

Bookkeeper360:

• Best for overall bookkeeping service
• $49/month plus hourly cost for support for Pay-As-You-Go plan
• $399/month for monthly cash basis bookkeeping
• $549/month for weekly cash basis bookkeeping
• $549/month for monthly accrual basis bookkeeping
• $749/month for weekly accrual basis bookkeeping

Merritt Bookkeeping:

• Best for businesses on a budget
• $190/month

Bench:

• Best for new businesses
• $299/month for the Essential plan
• $499/month for the Premium plan
• One free month of bookkeeping

Pilot:

• Best for fast-growing startups
• $499/month for the Starter plan (pre-revenue companies)
• $699/month for the Core plan
• Custom pricing for the Plus plan
• First-year $200 monthly discount for pre-revenue companies

QuickBooks Live:

• Best for QuickBooks users
• $200/month if your average monthly expenses are $0 to $10,000
• $300/month if your average monthly expenses are $10,001 to $50,000
• $400/month if your average monthly expenses are $50,001 or more
• Plus first-month cleanup fee, price increases as average monthly expenses increase

1-800Accountant:

• Best for tax support
• $139/month for the Business plan (accounting support but no bookkeeping)
• $239/month for the Corporation plan (accounting and tax support but no bookkeeping)
• $399/month for the Enterprise plan (includes accounting, tax and bookkeeping support)

Decimal:

• Best for project-based businesses
• $395/month for the Essentials plan
• $995/month for the Plus plan
• Custom pricing for the Premium plan

inDinero:

• Best for midsize businesses
• Starting at $750/month for the Essential plan
• Starting at $1,250/month for the Growth plan
• Custom pricing for the Executive plan

Some common services offered by virtual bookkeeping providers include recording transactions, reconciling bank statements, handling accounts receivable, running financial reports, managing payroll, and preparing tax forms. They also manage accounts payable and sales tax liability.[12]

When choosing a virtual bookkeeping service, consider factors like compatibility with your accounting method, integration with your accounting software such as QuickBooks Online, need for add-on services, requirement for catch-up bookkeeping, desired frequency of communication with your bookkeeper, and your budget, including bookkeeping pricing.[12]

Choosing the Right Service

Factors to consider when selecting a virtual bookkeeping service

When selecting a virtual bookkeeping service for your business, there are several key factors to consider to ensure a seamless fit.[15]

1. Software Compatibility: Inquire about the software applications and ecosystem they utilize to provide their services. A reputable virtual bookkeeping service should have a robust setup covering core accounting/general ledger, remote conferencing, project management, communication, and file/document management tools, including popular options like QuickBooks and QuickBooks Online for seamless accounting software integration.[15]Ensure they use the same accounting software as your business, such as QuickBooks or QuickBooks Online, to streamline integration and avoid compatibility issues.[15]
2. Online Presence: Evaluate the virtual bookkeeper’s online presence, including their activity on social media platforms like LinkedIn and Facebook. A strong online presence, coupled with thought leadership content, demonstrates their expertise and commitment to staying up-to-date with industry trends.[15]
3. Industry Experience: Inquire about the service provider’s experience within your specific industry. Virtual bookkeepers who specialize in a few industries are better equipped to understand your business’s unique needs and leverage compatible applications.[15] Request customer testimonials to validate their industry expertise.
4. Client Processes: Assess the service provider’s processes for client onboarding, communication, and deliverables. An efficient virtual bookkeeping service should have a well-defined onboarding process, prompt response times, and the ability to provide scheduled reports and review sessions, ensuring a smooth bookkeeping setup.[15]
5. Pricing Structure: Opt for virtual bookkeeping services that offer flat-rate, monthly pricing based on a defined set of deliverables. Hourly pricing models may indicate a lack of alignment with cloud-based bookkeeping best practices and can complicate bookkeeping pricing and plans.[15]

Evaluating your business needs and budget

Choosing the right virtual bookkeeping service is a critical business decision that will impact your financial management and growth potential.[16] Before selecting a provider, carefully evaluate your specific business needs and budget:

• Number of clients/customers and invoices [16]
• Product-based or service-based business model [16]
• Number of contractors and employees, and growth plans [16]
• Current and projected annual revenue [16]
• Preferred payment methods [16]
• International client/customer base [16]
• International contractor requirements [16]
• Need for legal formation and tax election setup assistance [16]
• Desired level of tax support throughout the year and during tax season [16]
• Preference for overseeing the bookkeeping process or fully outsourcing it [16]
• Willingness to manage a dedicated contractor or employee [16]

Assess the trade-offs between various bookkeeping options, such as hiring a virtual bookkeeper for personalized service (but higher costs and management overhead), using accounting software (cost-effective but time-consuming and inflexible), or outsourcing to a service provider like Collective, which balances personalized services and affordability without the need for direct management, all while considering bookkeeping pricing.[16]

By carefully evaluating your business needs, budget, and the factors outlined above, you can select a virtual bookkeeping service that aligns with your requirements and positions your business for sustainable growth.[15] [16]

Conclusion

In the realm of financial management, ensuring accurate and up-to-date bookkeeping is crucial for businesses of all sizes. Virtual bookkeeping services offer a convenient and cost-effective solution, providing access to professional expertise without the overhead costs associated with in-house bookkeepers. By leveraging the power of cloud-based technology and automation, these services streamline financial processes, ensuring compliance with regulations and enabling informed decision-making. 

Try out THE ZOH’s virtual bookkeeping service to experience seamless financial management for your business.

As your business grows and evolves, choosing a virtual bookkeeping service that can adapt to your changing needs is essential. Factors such as software compatibility, industry experience, and transparent bookkeeping pricing structures should be carefully considered when selecting a provider. By evaluating your business requirements and budget, you can identify the service that aligns best with your financial goals and empowers you to focus on core operations and strategic growth initiatives.