Online bookkeeping services have matured to a point where they can not only save you time and money but they can also improve the quality of bookkeeping. However, with hundreds of firms and individuals offering such services, it can be quite confusing to find the best bookkeeping solution for your business.

We have carefully researched numerous firms and selected the top 5 bookkeeping service providers. We have selected these firms based on longevity, quality, affordability, features, flexibility, and reputation.

Best Online Bookkeeping Services

1. Maxim Liberty
2. Bench Accounting
3. Punch Financial
4. Bookkeep
5. Xendoo

1. Maxim Liberty

We picked Maxim Liberty as our #1 choice because it offers high quality bookkeeping at the lowest rates.

Longevity

Maxim Liberty, a specialist in providing online bookkeeping services, started its operations in 2005. Over the almost 20 years, Maxim Liberty has earned customer trust as it has remained 100% focused on bookkeeping.

Quality

Their focus on quality and customer satisfaction is second to none. All of their bookkeeping plans include built-in supervision which means your books have gone through at least one round of quality checks before they get to you. And their supervisors are compensated based on quality and customer satisfaction. They back up their focus on quality with a 100% money back guarantee on your 1st payment.

Affordability

Maxim Liberty allows you to save 90% on bookkeeping solutions and do not want you to break the bank. Their plans start at $50 per month. Even their full-service daily update plan is only $200 per month. And they offer a special plan for accounting firms that cost only $225 per month for 30 hours of service.

Features

Maxim Liberty's basic plans offer manual and automated data entry, catch-up, bank reconciliations, categorizations, financial reporting and an electronic filing cabinet. Their full-service plan offers daily updates and adds accounts payable, accounts receivable, payroll processing, sales tax filing and tax preparation (for CPAs).

Flexibility

Their plans are very flexible and priced on an hourly basis with no limits on the number of financial accounts. You have monthly, weekly and daily update plans to suit your needs. You get to use whatever bookkeeping software you like, be it the Desktop version or Online. And they will work with the CPA of your choice or a CPA from within their network.

Reputation

Thousands of clients use their services. All sources we researched showed glowing 5-star reviews. We even spoke to their clients and CPAs who rave about their services.

2. Bench Accounting

Bench Accounting is a financial technology firm. It started its operations in 2012. It uses proprietary software to automate bookkeeping. It also employs this solution in providing financial services for small business owners.

The following brought Bench Accounting among the best providers of bookkeeper services.

All-in-one package

Bench Accounting makes matters easy for its clients. Your business will benefit from its all-in-one package that features bookkeeping, tax, banking, and advisory.

Cost-effective

Bench Accounting eases your financial worries regarding your business. After all, you do not have to pay the expensive CPA price tag when you avail of its services.

Helpful professionals

If you choose Bench Accounting, you will experience the guidance a team of experts provides. These professionals work hard to know your books.

They support you and your business in every step of your journey. Moreover, its experts seamlessly deliver accounting, bookkeeping, and tax preparation solutions.

They link your existing financial service providers and bank accounts. Its tax advisors are also on deck all-year-round for tax planning.

Easy-to-use application and software

You will not encounter a learning curve with Bench Accounting's application and software. The company designed its application for small business owners that are too busy.

The application also combines all the data you need to make intelligent business decisions.

It lets you experience high-quality bookkeeping services, with accurate, quick, up-to-date financial statements and reports, without switching between applications.

3. Punch Financial

Punch Financial is a bookkeeping solutions provider based in Los Angeles, California. It began its operations in 2015.

Punch Financial is among the best bookkeeping firms in North America. It goes beyond the service of bookkeeping and delivers the following benefits to clients.

Multiple services

Punch Financial offers many financial services to its clients that can help with online bookkeeping services. It also offers virtual services, accounts payable, accounts receivable, and automation. This company can assist you if you need other solutions like cash flow management, outsourced chief financial officer or CFO consulting, and key metrics.

Reliable specialists

Punch Financial's team of CFOs, bookkeepers, and accountants are specialists. They work with high-growth firms and are proficient in using Quickbooks Online.

You can benefit from the team's management of your daily function and accounting.

You will enjoy their presence as they work like your company personnel's extension. Additionally, each client account gets assigned to a CFO, Director, and staff accountant.

Unparalleled bookkeeping and accounting resources

Punch Financial has a forward-thinking professional team. They comprehend technology well and possess the necessary experience and resources.

These unmatched solutions can aid you in managing any financial problems your business may encounter.

Furthermore, Punch Financial will assist you in streamlining your back-office needs. It will give you actionable data to make you more proactive as an entrepreneur.

4. Bookkeep

Bookkeep is a company offering smart accounting automation software. You will find this firm's solution helpful, as it facilitates optimum business bookkeeping.

Automated bookkeeping

Bookkeep's smart accounting automation software automatically summarizes sales into everyday journal entries from the sales platform to the accounting system.

This accounting automation software is for daily sales reconciliation and automated bookkeeping. It now supports complete U.S. sales tax automation to set aside money daily for payment and filing.

Seamless partner

This automated bookkeeping solution is ideal for your business. It is a way to efficiently automate bookkeeping. This service is also suitable for your firm if your team has Xero or QuickBooks Online.

Professional bookkeeping and accounting staff

Bookkeep's professional team are data specialists, business owners, and accountants. They understand the significance of accurate and accrual-based financial reporting.

With Bookkeep, you can enjoy this solution's automatic posting of everyday sales summary financials to various accounting platforms.

Bookkeep can also help you reconcile payment deposits. It does this activity for all commercial applications like Amazon Seller, Shopify, and Square.

5. Xendoo

Xendoo Business Services LLC is a full-service bookkeeping and accounting solutions provider. It started its operations in 2016, in Fort Lauderdale, Florida.

You will find Xendoo a favorable option for cloud-based bookkeeping and accounting platforms, especially if you are a small business owner, since Xendoo is a specialist for small and medium businesses across different industries.

Satisfied clients gave Xendoo high ratings, for it has helped them grow their enterprises faster. This financial solutions provider gets your business finance matters in order. It delivers the following benefits:

Personalized services

Xendoo professionals are trained in efficient bookkeeping and accounting processes. They leverage best-in-class technology in custom-tailoring programs.

Additionally, Xendoo's professional team members do their best to free you from the day-to-day, tedious bookkeeping and accounting functions. Therefore, you can concentrate on growing your business.

Multiple solutions

Xendoo is a full-service bookkeeping and accounting company. You can enjoy various financial services that your business needs. They include bookkeeping, accounting, and bill payment. Xendoo also offers payroll, tax preparation, sales tax filings, and advisory services.

Affordable and top-quality bookkeeping services

You do not have to worry about breaking the bank when availing of outsourced bookkeeping services. Xendoo offers its clients high-quality monthly services that are budget-friendly.

Summary

Maxim Liberty, Bench Accounting, Punch Financial, Bookkeep, and Xendoo are today's best-rated providers of bookkeeping solutions. You can opt for their many offerings, including accounting and online bookkeeping services.

These five providers of bookkeeping services are worth considering. After all, they deliver their optimum solutions at a customer-friendly price and with helpful guidance from their professional teams.

Frequently Asked Questions (FAQ)

Should I use an online bookkeeping service or should I hire an in-house bookkeeper?

With the right service provider, online bookkeeping services can save you 50% or more not just because of affordable bookkeeping rates but also because they require much less commitment in terms of hours per week.

What's the difference between accounting services and bookkeeping services?

Accounting services and bookkeeping services are closely related but have distinct differences in terms of the tasks and responsibilities they involve. While there may be some overlap between the two, they generally serve different purposes in the financial management of a business. Here's a breakdown of the differences:

Bookkeeping Services

• Recording Financial Transactions: Bookkeeping primarily focuses on recording and organizing financial transactions of a business, such as sales, purchases, receipts, and payments. This involves maintaining a general ledger and subsidiary ledgers.
• Bank Reconciliations: Bookkeepers reconcile the company's bank statements with the corresponding financial records to ensure accuracy and identify any discrepancies.
• Accounts Payable Management: Bookkeepers handle the management of accounts payable, which includes recording and tracking the company's expenses, invoices, and payments to vendors and suppliers.
• Accounts Receivable Management: Bookkeepers manage accounts receivable by recording and tracking customer invoices, payments received, and following up on any outstanding payments.
• Financial Reports: Bookkeepers may prepare basic financial reports like profit and loss statements, balance sheets, and cash flow statements based on the data they have recorded.
• Sales Tax Filing: Bookkeepers can assist with calculating, tracking, and filing sales tax returns to ensure compliance with tax regulations.

Accounting Services

• Financial Analysis and Interpretation: Accountants go beyond bookkeeping and provide a deeper analysis and interpretation of financial data. They analyze financial statements, ratios, and trends to assess the financial health and performance of a business.
• Financial Planning and Strategy: Accountants assist in the development of financial plans, budgets, and long-term strategies to achieve business goals and optimize financial resources.
• Payroll Processing: Accountants may handle complex payroll processes, including calculating employee salaries, tax deductions, benefits, and ensuring compliance with payroll regulations.
• Tax Preparation and Planning: Accountants offer tax planning strategies and prepare tax returns for individuals and businesses, taking advantage of applicable tax deductions, exemptions, and credits while ensuring compliance with tax laws.
• Auditing and Assurance: Accountants perform internal and external audits to assess the accuracy, completeness, and reliability of financial records, providing assurance to stakeholders and regulatory bodies.

While bookkeeping services form the foundation of financial record-keeping, accounting services provide a higher level of financial analysis, planning, and decision-making support. Larger businesses often require both bookkeeping and accounting services to effectively manage their financial operations.

Are online bookkeeping services secure?

Numerous frauds are committed by in-house bookkeepers because they have keys to the kingdom which include access to your physical address and checkbooks. Online bookkeeping is usually done using a remote bookkeeper who does not have the same level of access. In addition, the most established online bookkeeping services follow standard security protocols like role-based access (RBAC), multi-factor authentication, data-at-rest encryption (D@RE) and https (SSL).