6 Best Online Accounting Firms for Small Business

Running a small business with a limited number of employees and a tight budget is a serious challenge. From managing payroll and taxes to bookkeeping and financial planning, there are a lot of administrative tasks that can take your focus away from growing your business. That’s why an increasing number of small businesses are turning to online accounting firms for help.

Whether you’re busy searching for the best small business loans or figuring out the best investments for your business, you’ll need a reliable accounting partner to help you make it all come together. To make it easier for you, we’ve put together a comprehensive list of the best online accounting services for small businesses in 2023. Each of these firms offers unique services, specialties and qualifications that make them great options for small businesses. Read on to discover the perfect accounting firm for your small business.

Our Top Picks for Best Online Accounting Firms for Small Business

• inDinero - Best overall
• Block Advisors - Best for tax support
• Bookkeeper360 - Best for hourly bookkeeping services
• Pilot - Best for startups
• QuickBooks Live Bookkeeping - Best for QuickBooks users
• Xendoo - Best for e-commerce

Best Online Accounting Firms for Small Business Reviews

Why we chose it: inDinero is our pick for the best overall online accounting firm because of its large variety of accounting services, top-notch customer support and team of knowledgeable in-house experts who are available to clients. With an easy-to-use interface and convenient mobile app, inDinero allows you to access your up-to-date financial data and contact a team of experienced advisors whenever you need it.

inDinero has been establishing itself as a major player in the online accounting space for nearly 14 years. All of the company's plans offer a strong suite of fully outsourced accounting services, including bookkeeping, monthly reconciliations, employee reimbursements, revenue recognition and unlimited on-demand financial report creation. In addition, inDinero's website and mobile app allow you to quickly get in touch with a team of financial experts and accountants that can answer your questions and advise you on the best course of action for your business.

In terms of pricing, inDinero's plans start at $750 per month for the Essential plan for small businesses using cash-basis accounting and at $1,250 a month for the Growth plan, which is meant for more established businesses using accrual-basis accounting. Accrual-basis is not offered for the Essential plan.

The Executive plan requires customized pricing and comes with advanced budget analysis and forecasting, fractional CFO services (a contract CFO who can come in and help you with strategy), equity management and cash flow projections. inDinero also offers seamless integration with both QuickBooks and NetSuite.

While the company offers an exceptionally impressive array of features and services, its higher-than-average pricing might make it prohibitively expensive for some small businesses. Furthermore, the cost of the advanced services and add-ons can be difficult to estimate without getting in touch with a sales representative. Nonetheless, if you're looking for the highest quality and most comprehensive service offered by an online accounting firm, then inDinero is an attractive option.

Why we chose it: As a part of the H&R Block family, Block Advisors provides users with full bookkeeping services and outstanding tax preparation and filing support.

Block Advisors is a bookkeeping service offered by H&R Block, a well-known tax preparation company. The company provides two tiers of bookkeeping services, payroll services, business formation assistance and support for tax preparation and filing. The company's bookkeeping services come in two tiers: the Starter plan, which costs $50 per month, and the Full-Service plan, which costs $150 per month.

The Starter plan includes a review of your bookkeeping records for the year, a quarterly plan of action and on-demand expert accounting assistance as needed. Onboarding comes with support from your dedicated account manager, who will walk you through the basics and help you set up your Xero accounting software. The Full-Service plan includes everything in the Starter plan as well as monthly reconciliations delivered to your inbox, financial statement creation and delivery, real-time transaction categorization and a guarantee for your books to be ready by tax time.

The payroll services begin at $59 per month for self-employed individuals and run up to $79 a month plus $10 per employee per pay run. Two tax options are provided for self-employed individuals: a do-it-yourself option for $115 that includes a guided process with access to experts through chat and an option to work directly with a dedicated tax professional for $220. For companies (S corps, C corps, partnerships), there is only the option to work directly with a dedicated tax advisor for $260.

Unfortunately, these services cannot be purchased together, so you'll have to pay for each one separately. Another downside worth noting is that their bookkeeping services only integrate with Xero accounting software, meaning those who want to stick with other accounting software will have to look elsewhere. That said, Block Advisors presents an ideal solution for those who are looking for specialized tax support along with their accounting services.

Why we chose it: Alongside its monthly packages, Bookkeeper360 also offers hourly bookkeeping services for those who prefer to pay as they go or only need intermittent support.

Bookkeeper360 is an online bookkeeping and accounting service that offers monthly packages, weekly plans and hourly bookkeeping services. The company integrates with a variety of third-party accounting and payroll solutions, including Xero, QuickBooks, Gusto, Bill.com and Expensify. Aside from bookkeeping, the company also offers payroll and HR, tax filing, back-office support and even fractional CFO services in which you can work directly with a CFO to get strategic guidance and help manage your finances.

The bookkeeping packages are priced at $399 for cash-basis monthly service, $549 a month for service involving weekly updates and advanced reporting and $125 per hour for pay-as-you-go support from a dedicated bookkeeper. Unfortunately, the prices increase to $549 and $749 for the monthly and weekly plans if you’re using accrual accounting. Additionally, pay-as-you-go requires a minimum retainer of $500. Prices for add-on services start at $1,000 per month for the CFO advisory service, $800 per business and $300 per individual for tax filing, $46 per month for payroll and HR services and $150 per month for back-office support.

Why we chose it: Pilot is designed specifically for startups, offering scalable bookkeeping and accounting solutions with expert support and guidance.

Pilot is an online bookkeeping, tax filing and CFO service that specializes in helping fast-growing startups by offering discounts for pre–revenue companies, assistance in claiming specialized tax credits for startups and access to financial experts who are knowledgeable in venture capital and fundraising. The company's products also feature seamless integration with several popular third-party business software solutions, including Stripe, Shopify, Gusto, Expensify and NetSuite.

Pilot's Core bookkeeping service is separated into five pricing tiers based on monthly expenses (from $0 to $199,999 a month) that range from $499 a month to $839 a month when billed annually. This includes full-service bookkeeping, a dedicated finance expert assigned to your business, financial reporting and burn rate calculations. A $200 monthly discount is also available for pre-revenue companies. Businesses with expenses of $200,000 or more will have to sign up for Pilot's Plus service, which has customized pricing starting at $1,500 a month.

In addition to the core bookkeeping package, Pilot also offers many add-on services such as corporate tax filing (either $2,450 or $4,950 per year) and CFO services (priced at $2,250, $4,050 or $6,750 per month). On the downside, Pilot charges an onboarding fee equal to the first month's subscription for its bookkeeping service and only supports QuickBooks Online for its accounting software. In addition, Pilot doesn’t offer support for cash-basis accounting.

Why we chose it: QuickBooks Live Bookkeeping is a great choice for businesses that use the popular accounting software, offering perfect integration and a 100% accuracy guarantee with no extra charge for any mistakes.

QuickBooks Live Bookkeeping is specifically designed for businesses that use the QuickBooks Online accounting software. This online bookkeeper integrates perfectly with the software, allowing businesses to connect their bank accounts and credit cards for a seamless experience. The company makes an effort to match each business with a dedicated bookkeeper who has experience with their industry. An unlimited amount of meetings are available with the bookkeeper, and all services are backed by a 100% accuracy guarantee, which means that any mistakes made will be corrected for free.

QuickBooks Live Bookkeeping services include setting up the books, categorizing transactions and reconciling accounts. Although the service's pricing starts at a reasonable $200 per month, it also charges a mandatory introductory fee for the first month to clean up existing data. In addition, the service doesn’t offer any additional services such as payroll, invoicing or inventory management and only supports cash-basis accounting.

Why we chose it: Due to its strong integration capabilities with e-commerce platforms, Xendoo makes it easy for online businesses to keep track of their income and expenses.

Xendoo offers a comprehensive bookkeeping solution for e-commerce businesses. It integrates with the two most popular accounting software solutions — Xero and QuickBooks Online — making it easy to keep track of data and create financial reports. The company also integrates with most major e-commerce platforms, such as Shopify, Amazon, Etsy, Walmart and BigCommerce, as well as Gusto for payroll. This makes it easy for businesses to automatically sync their transactions and financial data for an accurate view of their business performance.

Xendoo has three tiers of pricing based on your company's total monthly expenses. The Essential plan costs $395 per month (up to $50,000 in expenses), the Growth plan costs $695 per month (up to $75,000 in expenses) and the Scale plan costs $995 per month (up to $125,000 in expenses). Companies with total monthly expenses above $125,000 will need a custom plan.

Although Xendoo offers a strong core of bookkeeping services, it doesn’t offer many add-on features such as tax filing, invoicing or bill pay. In addition, the service only supports cash-basis accounting, meaning those who are set up on an accrual basis will need to go with another service.

Other companies we considered

Bench

Bench is a cloud-based accounting firm that offers full-service bookkeeping for both cash-basis and accrual-based accounting. When you sign up with Bench, you are assigned a team of accountants dedicated to your business who take over the entire bookkeeping process from start to finish.

Bench’s pricing is one of its biggest selling points. The company's Essential plan starts out at $299 per month with a one-year contract ($249 if paid up front or $349 if paid monthly with no contract).

While the use of the company's proprietary software can work well for newly established businesses, it can be difficult to switch from this system over to another accounting software such as QuickBooks or Xero. Furthermore, the lack of add-on services such as payroll and bill pay may be a dealbreaker for some users who require these services.

Merritt Bookkeeping

Merritt Bookkeeping is focused on providing bookkeeping services to small businesses with a flat rate of just $190 a month. This service doesn’t include any hidden pricing tiers and has no setup fees or contracts, making it one of the most affordable online bookkeepers currently on the market. It also offers a discounted rate for catch-up bookkeeping of $140 for each month of catch-up needed.

Currently, Merritt Bookkeeping only offers cash-basis accounting and doesn’t provide any add-on services such as tax filing, payroll or CFO support. While this may leave some searching for a more comprehensive solution, Merritt Bookkeeping is a solid option for small businesses on a budget in need of basic bookkeeping services.

Online Accounting Firms for Small Business Guide

Just as when searching for the best accounting software or researching the best property management companies, there is a lot to understand when choosing a bookkeeping or accounting service. Factors such as pricing, services offered and user experience should be taken into account in order to make the best decision for your business.

Main things to know before choosing online accounting firms for small businesses

The following are some of the most important questions to ask when considering an online accounting service for your small business:

• What are the services offered? Some services are more comprehensive than others, so it’s important to understand exactly what is included in each package.

• What are the pricing options? Different companies offer different tiers of pricing, so make sure you understand the costs associated with each option.

• How user-friendly is the platform? Knowing how easy it is to use the platform is a key factor in making your bookkeeping process as efficient as possible.

• How secure is the data? Data security is paramount, so make sure the provider you choose takes data security seriously.

• What are the customer service options? Understanding what kind of customer support is available will ensure you get the help you need when you need it.

• What reviews can be found online? Doing a bit of research on the company you are considering is always a good idea. Reading reviews from other customers can provide valuable insight into the service they offer.

What is the average monthly cost of online accounting firms?

The average monthly cost of online accounting services varies significantly depending on the type and scope of services offered. Generally, most companies offer packages starting at around a few hundred dollars per month, with more comprehensive services costing up to thousands of dollars per month.

How do online accounting firms work?

Online accounting firms generally offer a suite of services designed to help businesses manage their finances. This can include bookkeeping, payroll, tax filing, CFO consulting, financial forecasting and more. Some accounting firms offer these services as bundled packages, while others allow customers to select the services they need on an a la carte basis. The services are delivered via a secure online platform and can be accessed from any device with an internet connection. If you need help catching up on taxes, you might need to consider services from tax relief companies as well.

Why are online accounting firms important?

Online accounting firms are important because they provide businesses with an efficient and cost-effective way to manage their finances. This can help small business owners save time and money while also providing them with valuable insights into their financial situation. Additionally, the services provided by online accounting firms can help businesses stay compliant with applicable tax laws and regulations.

How We Found the Best Online Accounting Firms for Small Business

When evaluating online accounting firms, we considered a variety of factors, including services offered, pricing and integrations. The following are some of the most important criteria we used to find the best online accounting firms for small businesses:

• Range of services. We looked at each firm’s list of services to ensure they offer the necessary accounting tools and services needed for small businesses.

• Pricing. We compared pricing plans from each company and looked for packages that provide value for money.

• Integrations. The ability to integrate with other software is essential for businesses, so we looked for firms that offer a wide range of integrations.

• Security. We reviewed each firm’s security policies to make sure that customer data is properly protected.

• Access to expert advice. We looked for firms that have access to experienced accountants and financial advisors.

• Customer support. We considered the quality of customer support offered by each firm, as this can make a big difference when it comes to using the services.

• Usability. We looked for firms that have user-friendly dashboards and account setup processes.

Summary of the Best Online Accounting Firms for Small Business of 2023

• inDinero - Best overall
• Block Advisors - Best for tax support
• Bookkeeper360 - Best for hourly bookkeeping services
• Pilot - Best for startups
• QuickBooks Live Bookkeeping - Best for QuickBooks users
• Xendoo - Best for e-commerce