8 Best Online Bookkeeping Services 

Starting a new business is an exhilarating journey filled with dreams, ambitions, and countless decisions. But amidst the excitement of launching your venture, there’s one crucial element that can’t be overlooked: bookkeeping. 

Gone are the days when maintaining financial records meant wrestling with piles of paper and complex spreadsheets. Today, innovative online bookkeeping solutions offer a lifeline for entrepreneurs eager to keep their finances in check without losing focus on growth. 

doola Bookkeeping is an online platform that simplifies the bookkeeping process, making it easy for even those without any accounting background to use. Its user-friendly interface, time-saving automation, and detailed reporting make it an ideal choice for all businesses.

In this blog, we’ll guide you through the eight best online bookkeeping solutions tailored specifically for new businesses—so you can start smart and position yourself for success from day one! 

Whether you’re looking for simplicity or scalability, we’ve got you covered as you embark on this thrilling adventure. Let’s dive in!

What Is Bookkeeping, and Why Is it Important for Businesses?

Bookkeeping involves tracking all income, expenses, assets, and liabilities to create accurate financial statements. These records are crucial for businesses as they provide an overview of their financial health, simplify the tax filing process, and help make informed decisions.

The benefits of bookkeeping cannot be overstated for new businesses. As a new entrepreneur, you may be focused on launching your products or services and may not prioritize bookkeeping. However, neglecting this aspect can have serious consequences for your business.

By maintaining detailed records of all financial transactions, businesses can know exactly how much money is coming in and going out. This information is essential when creating budgets and making strategic decisions regarding investments or expansion plans.

Moreover, proper bookkeeping also ensures compliance with tax laws and regulations. Businesses are required to pay taxes on their profits, and accurate record-keeping makes it easier to calculate the amount owed to the government. 

Having organized financial records can save time and prevent potential penalties in case of audits or inquiries from tax authorities. Furthermore, bookkeeping provides insight into a business’s overall performance. 

By regularly reviewing financial statements such as income statements, balance sheets, and cash flow statements, entrepreneurs can identify areas where they need to cut costs or increase revenue. 

Additionally, having well-maintained books increases credibility with investors and lenders. When seeking funding or loans from external sources, businesses must present detailed financial reports to prove their stability and potential for growth. 

8 Best Online Bookkeeping Services for Small Businesses

Online bookkeeping solutions offer convenience, efficiency, and accuracy in managing financial records that manual bookkeeping lacks. However, choosing the right one from all the top online bookkeeping services can be challenging. 

To help you make an informed decision, we have compiled a list of the top 8 online bookkeeping solutions for businesses.

1. doola Bookkeeping

doola Bookkeeping is a popular online bookkeeping solution that offers comprehensive services designed specifically for new businesses. It automates tedious tasks like categorizing expenses, reconciling accounts, and preparing your books for tax season. 

This saves hours of manual work and spares you from costly mistakes. You don’t need to be tech-savvy either.

With an intuitive interface, doola Bookkeeping is designed for entrepreneurs with limited time and patience for complex software.

Standout Features:

• Integration: It seamlessly integrates with your bank accounts and keeps everything organized. This feature automatically imports all banking transactions into the system, eliminating the need for manual data entry. 

• Automation: You can easily track your income and expenses, create invoices, manage accounts payable and receivable, and reconcile bank transactions. It allows you to make quick decisions to keep your business finances on track.

• Cash Flow Management: You can categorize expenses based on projects or clients, set up recurring invoices, and collect payments via Stripe Integration. This ensures that businesses get paid on time, streamlining their cash flow management.

• Dedicated Support: If you want to let the pros handle it all, doola’s Bookkeeping expert will ensure that your books are accurate, up-to-date, and fully compliant with tax laws.

Pricing:

In terms of pricing, doola offers four affordable plans that cater to the needs of different businesses. The plans start at $25/month.

They also have an all-in-one plan starting at just $249 per month, which includes all essential features, such as bookkeeping software, dedicated support from bookkeepers, and tax filing assistance.

With its intuitive dashboard, automated bank feeds, invoicing capabilities, and affordable pricing plans, doola Bookkeeping is undoubtedly a top contender for the best online bookkeeping services for new businesses.

Book a demo to find out more.

2. FreshBooks

FreshBooks is an online bookkeeping software designed specifically for small businesses and freelancers. Founded in 2003, it has become a popular choice for new businesses due to its user-friendly interface, affordable pricing, and comprehensive features.

Standout Features:

• Simple and Intuitive Interface: Perfect for entrepreneurs who are just starting and do not have the time or resources to learn complex accounting software

• Invoicing: Allows users to create professional-looking invoices and send them directly to clients through email

• Expense Tracking: Users can upload receipts or connect bank accounts to track expenses automatically

Pricing:

Pricing-wise, FreshBooks offers three different plans with varying prices depending on the number of clients you have.

• Lite Plan: Starts at $15 per month (billed annually). It includes basic features such as unlimited invoicing and expense tracking. 

• Plus Plan: Costs $25 per month (billed annually). It includes advanced features such as time tracking and team management.

• Premium Plan: Costs $50 per month (billed annually). It offers all the features of the previous plans plus personalized training and support.

3. Xero

Xero is cloud-based accounting software designed specifically for small businesses and freelancers.

Founded in 2006 in New Zealand, it has quickly become one of the most popular online bookkeeping solutions, with over 2 million subscribers worldwide.

Standout Features:

• User-friendly Interface: Clean, modern, and easy to navigate dashboard

• Invoicing: Set up automatic reminders for overdue payments, ensuring that you get paid on time. Xero also allows you to customize your invoices with your company logo and branding for a more personal touch.

• Integrations: Connect seamlessly with bank accounts and credit cards. This means that transactions are automatically imported into the software, reducing the need for manual data entry and saving you time. 

Pricing:

Xero subscription plans start at $29 per month for basic bookkeeping needs. The offerings can also cost up to $62 per month for advanced features like multi-currency support. 

4. Wave Accounting

Wave Accounting is a popular online bookkeeping solution for small businesses and freelancers.

It offers a comprehensive set of features that make it easy for new businesses to track their finances and manage their books efficiently.

Standout Features:

• Ease of Use: The platform is easy for even non-accounting professionals to use. The dashboard provides a clear overview of your business’s financial health in real-time.

• Expense Categorization: Easily upload receipts and categorize expenses to keep track of where your money is going. This feature comes in handy when you need to provide accurate records for deductions or reimbursements.

• Invoicing: Wave Accounting offers seamless invoicing capabilities. You can also accept payments directly through the platform, eliminating the need for separate payment processing services.

• Payroll: The tool also offers payroll services at an additional cost. This includes managing employee profiles, calculating taxes and deductions, and filing tax forms on behalf of your business.

Pricing:

One aspect that sets Wave apart from other online bookkeeping solutions is its price point—it’s completely free!

However, there are paid add-ons available, such as credit card processing fees and a return fee of $15 per returned bank payment, either for account closure or insufficient funds. 

5. Zoho Books

Zoho Books is an online bookkeeping solution designed specifically for small and growing businesses.

It offers features such as invoicing, expense tracking, inventory management, and financial reporting to help business owners manage their finances.

Standout Features:

• User Interface: Clean and intuitive layout that makes it easy for even those with no accounting background.

• Customized Invoices: Create customized invoices and utilize online payments through various payment gateways. Furthermore, expenses can be assigned to different categories, such as travel, supplies, or marketing costs.

• Reporting and Analytics: Access detailed financial reports such as profit & loss statements, balance sheets, cash flow statements, and more.

Pricing:

• Standard Plan: Starts at $20 per month and includes all essential bookkeeping and accounting features.

• Professional Plan: Starts at $50 per month.

• Premium Plan: Starts at $70 per month, which offers more customization capabilities. 

Each plan has different features and limits, so you can select the plan that best suits your needs.

6. Bookkeeper360

Bookkeeper360 is a cloud-based online bookkeeping solution designed specifically for small and medium-sized businesses.

It offers a comprehensive range of services to help streamline your financial management processes.

Standout Features:

• Real-Time Data Synchronization: Stay in real-time sync with data from your bank accounts, credit cards, and other financial institutions, ensuring that your records are always up-to-date.

• Automated Categorization System: The platform uses artificial intelligence (AI) technology to accurately categorize expenses and income without any manual entry. 

• Personalized Support: In addition to the above features, you also get personalized support from certified bookkeepers who are available to answer any questions or concerns. 

Pricing:

Furthermore, Bookkeeper360 offers scalable pricing plans tailored to suit the needs of different businesses.

You can choose between their Bookkeeping plan, starting at $399 per month, or a more advanced Controller plan with all popular add-ons, starting at $1,149 per month.

7. QuickBooks Online

QuickBooks Online is cloud-based accounting software that has gained immense popularity in recent years, especially among small business owners and self-employed professionals.

It offers a range of features and tools that make bookkeeping and accounting more efficient and accurate. 

Standout Features:

• User-Friendly: Intuitive and easy to navigate, even for those without prior accounting knowledge, so new businesses can quickly get up and running with their bookkeeping tasks.

• Expense Categorization: Automatic categorization of transactions from linked bank accounts and credit cards. You can also set up recurring invoices or payments to be processed automatically.

• Reporting: Real-time financial reporting helps business owners access detailed reports on cash flow, profit and loss statements, balance sheets, tax summaries, and more with just a few clicks. 

Pricing:

QuickBooks Online offers several plans to suit different business needs.

Its most value-for-money plans start at $28 per month and, for advanced features, go up to $76 per month.

8. Bench Accounting

Bench Accounting is an online bookkeeping service that offers a streamlined and simple solution for new businesses.

With its user-friendly platform and team of dedicated bookkeepers, it has become a top choice for small businesses to manage their finances.

Standout Features:

• Automated Bookkeeping Process: Business owners can save time and effort by not having to enter data or reconcile accounts manually. 

• Integrations: Seamless integrations with major bank accounts, credit cards, and other financial platforms, make it easy to import all transactions directly into the system.

• Personalized Support: Businesses are assigned a team of bookkeepers who work with them to handle all aspects of their finances. This allows for more efficient bookkeeping processes.

Pricing:

Bench Accounting’s pricing starts at $249 per month to cover your bookkeeping and basic financial reporting needs.

They also have an advanced plan priced at $399 per month that includes full-service bookkeeping with income tax filing and advisory.

Set Your Financial Record Straight with doola Bookkeeping

As a small business owner, you don’t have to worry about keeping track of receipts, invoices, and other financial documents. With doola Bookkeeping, a user-friendly platform supported by experienced bookkeepers, you can say goodbye to the hassle of manual bookkeeping.

We ensure that your financial records are kept in compliance with tax regulations. The platform generates accurate tax reports and provides timely reminders for important deadlines so you are not caught off guard by unexpected penalties or fines.

So, you can focus on growing your business while having peace of mind that your finances are well-organized and accurate by getting the best online bookkeeping services from doola.

Book a demo today!