Staying on top of the business’s financial records can be challenging for a small business owner since it can be time-consuming and intricate when balanced with other responsibilities at hand.
Affordable online bookkeeping services offer an unparalleled solution in helping keep track of finances without overspending.
In this guide, we will look into the necessity of bookkeeping, the pros of using affordable online bookkeeping services for small businesses, what to check in the provider, and which providers are best suited.
Importance of bookkeeping for your small business’s growth and success
Accounting is part of an administrative task, but also important to run a successful business. It includes the collection, classification, and summarization of financial transactions so that there can be an accurate representation of what the company’s finances are. Here are some of the reasons why bookkeeping is noteworthy for small businesses:
Effective management of cash flow: Having complete control over your income and spending allows you to plan and avoid cash shortages in the future.
Compliance and ease of filing taxes: Taxes can be filed and paid in a timely fashion and accurately, without any penalties or interests owed to the IRS, because the books are up to date and accurate.
Informed Business Decisions: Accurate financial reporting highlights significant trends, curbs unproductive and unnecessary expenditures, and leads to better resource allocation and management.
Attracting Investors or Securing Loans: For an investor or lender to offer capital or funding, reliable financial records must be presented, and without proper bookkeeping, you are practically running your business blindly.
How Online Bookkeeping Is Transforming Small Business Finance
The traditional way of bookkeeping involved either hiring a full-time accountant or dealing with a local firm, both of which can be costly and ineffective.
The Age of the Internet brought Online Services that Utilize Experienced Virtual Bookkeepers for Efficient Financial Management through cloud-based platforms. This approach is geared toward freelancers, remote teams, and entrepreneurs seeking cost-effective and flexible solutions.
With Online Bookkeeping, you get powerful accounting software integrated with human support, helping you access your financial data anytime. Bookkeepers are available for collaboration no matter where you’re located or what service industry you’re in.
Key Advantages of Using Affordable Online Bookkeeping Services
Small businesses will particularly benefit from the features offered by affordable online bookkeeping services. Let us understand why they are a perfect fit:
1. Compared to Traditional Methods of Bookkeeping, They Save You Cost
The salary of an in-house bookkeeper can range anywhere from $50,000. Most online services offer monthly plans that start anywhere from $100 to $300 per month. There is a lot of flexibility within these packages as businesses can scale either up or down depending on their growth.
2. Getting to Focus on Growing Your Business
You can focus on other matters in your business, like marketing, sales, and customer service, by outsourcing the bookkeeping duties. Not spending time on bookkeeping will help you save money in the long run, meaning, time is freed up for business owners.
3. Information gained through cloud-based services is in real time
User-friendly dashboards that allow clients to view the real-time financial information are standard with most online services. Instantaneous viewing of income statements, balance sheets, and expense reports enables businesses to make better decisions.
4. Flexibility and Scalability for Growing Businesses
Your bookkeeping requirements will continually evolve as your business grows. Online bookkeeping services are tailored to scale along with your business by adding services such as payroll, invoicing, budgeting, and even CFO advisory services.
5. Expert Guidance and Support from Professional Bookkeepers
Online bookkeeping services are provided by professionals who possess a wealth of experience dealing with small businesses. Many companies offer personalized attention by assigning a dedicated bookkeeper or CPA to your account. That means one-on-one assistance and attention throughout the year.
What to Look for When Choosing the Best Online Bookkeeping Service for Your Small Business
Choosing from an array of online bookkeeping services can be daunting, so ensuring that the one you pick meets your business requirements and budget is essential. Keep these fundamental traits in mind:
Transparent and Predictable Pricing: Providers should have straightforward pricing that does not incorporate hidden charges or additional fees.
Customized Packages for Your Business Type: Freelancers, e-commerce stores, or service providers. Choose a package that reflects your industry-specific needs.
Cloud-Based Technology and Mobile Access: Your financial data should be accessible to you from any device and location, at any time.
Compliance with Tax Laws and Industry Regulations: Verify that your vendor adheres to the applicable federal and state tax policies.
Ongoing Support and Easy Communication: Work with a provider who guarantees timely responses to customer inquiries and has a dedicated bookkeeper or support personnel.
Best Online Bookkeeping Services For Small Businesses At Reasonable Prices
Some of the widely accepted and low-cost online bookkeeping service providers tailored towards small businesses and startups include:
1. EasyBooks by Easyfiling
Best For: Startups, foreign-owned U.S. LLCs, and digital entrepreneurs.
Why It Stands Out:
EasyBooks by Easyfiling is a bookkeeping solution built specifically for today’s global business environment. EasyBooks accommodates both non-U.S. residents looking to start U.S. businesses and U.S. domestic entrepreneurs with growing client bases. The service is appreciated for:
- No hidden fee promise and clear monthly pricing
- Real-time tax-ready financial reporting
- Supported by qualified professionals who assist with all the small business details
- Fast onboarding even for foreign clients
- Plugging along with U.S. tax compliance and LLC formation services, becoming a one-stop shop
EasyBooks works best for entrepreneurs who need help with accurate bookkeeping, simplified processes, unlimited support, and most importantly, favorable pricing.
2. Bench
Best For: Solopreneurs, consultants, creatives, and small businesses needing visually appealing reports
Why It Stands Out:
Bench has a sophisticated yet simple modern bookkeeping interface that transforms reports into aesthetic visuals. It is ideal for business owners who appreciate detail but do not want to work with complicated spreadsheets. Bench offers:
- Full bookkeeping services with a dedicated bookkeeper for your business every month.
- Financial Statements (Income statements, Balance sheet) and other Monthly bookkeeping services
- Support during tax periods with year-end financial documents prepared for CPAs.
- Pictorial Power Dashboards highlighting business performance
- Other services like BenchTax, which provides comprehensive tax and tax payment services
Service-focused independent professionals and other self-employed people consider Bench their favorite because of its wide-ranging offerings with an emphasis on ease of use and design.
3. QuickBooks
Best For: Companies already using QuickBooks and need additional assistance managing their books.
Why It Stands Out:
QuickBooks Live is a fantastic choice for businesses leveraged by the accounting software QuickBooks. It connects you to certified bookkeepers who ensure your records are accurate and up-to-date, prepared in time for the tax season. Key features include:
- Automatic changes to your financial data within QuickBooks
- A bookkeeper dedicated to account reconciliation and transaction categorization
- Comprehensive reviews of financial statements to ensure they meet accuracy standards every month
- Shared access to onboarding experts to assist in the proper configuration of all components
- Flexibility to accommodate businesses of varying sizes and requirements
This service caters to users who want to centralize everything into one automated software system, as it works directly with the QuickBooks application.
4. Bookkeeper360
Best For: Startups and businesses experiencing growth that require more than standard bookkeeping services.
What Makes It Great:
Bookkeeper360 is powerful for those companies that need comprehensive financial solutions services beyond basic bookkeeping. It is most helpful for fast-scaling businesses that need additional help with services like payroll processing, business intelligence, and CFO consulting. Some of the features include:
- Your preference for Cash or Accrual bookkeeping is available
- Enhanced capabilities of payroll and inventory, and expense tracking
- Thorough and actionable performance dashboards
- Experts like CPAs, advisors, and account managers are accessible
- Bookkeeping on weekly or bi-weekly intervals is available for high-volume clients
Custom plans are available for greater hands-on involvement, for strategy and reporting are customizable for various levels of engagement for complex financial needs. Bookkeeper360 offers flexibility that enhances strategy and reporting.
5. Merritt Bookkeeping
Best For: Businesses looking to cut costs and seeking reliable service will benefit the most.
Why It Stands Out:
Merritt Bookkeeping is flexible with pricing since it has a simple, flat rate structure that does not include hidden costs and caters to small business owners. Freelancers, small agencies, and even real estate investors find value in it. Other notable features include:
- No setup fees or length of contract make it easier to access services
- Arranged an easy-to-use client portal
- Transactions are reconciled every week
- Income and expense reports are issued monthly.
- Bestseller support is well-received due to the swift response time and service
No add-ons or fees are charged, and services are fairly priced, allowing small business owners to have their bookkeeping done accurately.
Conclusion
When paired with efficient online bookkeeping, clear finances, compliance assurance, and effective growth planning all become a reality. There is no longer bookkeeping busywork to deal with or having to fork out thousands a year. Best of all, these savings translate to time and money for the business.
Take advantage of an online bookkeeping service if you want to streamline your accounting processes and get help specific to small businesses. Assess yourself first, then benchmark your requirements against the services offered, and select one that is scalable along with your business.
Ease the management of your business’s finances using EasyBooks by Easyfiling, which is tailor-made for professionals and priced competitively compared to other bookkeeping services.
Swostika Silwal
