Let’s talk about monthly bookkeeping services.
Your stacks of receipts and deposit slips are piling up, but you’re not sure where to start with reducing that pile.
While it might be intimidating to get started with the bookkeeping for your business, it is possible with the right software and bookkeeping partner to ensure your financial data is accurate and up-to-date.
How do we know? Because we’ve been doing it for 100s of clients for years and we’ve seen it done right for our own companies as well.
With that in mind, let’s talk about what monthly bookkeeping involves and why it is so critical to the long-term success of your business.
TL;DR – 10 Best Monthly Bookkeeping Services
Here’s a curated list of the best monthly bookkeeping services:
- AccountsBalance
- EcomBalance
- Pilot
- bookkeeper.com
- bench.co
- KPMG Spark
- Merritt Bookkeeping
- inDinero
- Bookkeeper360
- Ignite Spot
Accurate bookkeeping is at the core of any business, and it can make or break it. Finding the right bookkeeping service can significantly improve your decision-making process. Take it seriously and make sure you find a bookkeeper that’s the BEST fit for your specific business.
As you explore the 10 best monthly bookkeeping services that we’ve curated for this article, reach out to us at AccountsBalance for more information on how we can help you with your bookkeeping.
If you’d like, schedule a free consultation with our founders!
What Is Monthly Bookkeeping?
Monthly bookkeeping involves taking all the transactions from that month, categorizing them, and inputting them into your accounting software.
Then the accounts are reconciled by comparing your list of transactions with your bank and credit card statements.
Finally, financial reports are run to give you current financial statements, thus allowing you to complete analysis and determine the overall financial health of your business.
Why Is Monthly Bookkeeping Important for My Business?
Regular monthly bookkeeping is key to understanding whether your business is profitable or not. You can also analyze spending to determine what categories might need to be trimmed or where your budget might need to be adjusted. As you analyze your updated financials, you can also see where sales are coming from to decide what products should be expanded or which ones should be eliminated. If you are looking for capital to expand, having updated financials are key to getting financing for your business from different financial institutions. You also have the ability to review your cash flow, balancing out expenses from quarter to quarter.
When an effective bookkeeping system is in place, businesses have the knowledge and information to allow them to make the best financial decisions. Tasks, including establishing a budget, planning for your fiscal year, preparing for tax filing, and establishing your investment strategy, are all easier to accomplish when financial records are accurate.
With that in mind, lets focus on a few of the key benefits you enjoy with regular monthly bookkeeping.
What Are the Benefits of Monthly Bookkeeping Services?
Here are a few of the benefits of monthly bookkeeping, which incorporates a number of tasks critical to your finances and understanding your financial health.
- Accurate and up-to-date financial records
- Timely tracking of income and expenses
- Improved financial decision-making
- Easy identification of financial trends and patterns
- Efficient tax preparation and compliance
- Better cash flow management
- Reduced risk of errors and financial discrepancies
- Access to comprehensive financial reports
- Improved financial transparency for stakeholders
- Enhanced financial planning and forecasting
As a business owner, the biggest benefit is “peace of mind.” You know that your bookkeeping is handled every month, you’ll receive them on time, and you’ll be able to make smart decisions for your business based on accurate financials.
To enjoy these benefits though, you must have a set of processes in place to handle your bookkeeping tasks in a timely manner. Proper planning and scheduling are key to accomplishing multiple components, including:
- Recording every financial transaction
- Sending invoices and processing payments
- Preparing financial statements
- Maintaining and balancing a general ledger
- Conducting daily banking activities
Many businesses opt to tap into the expertise found through bookkeeping services to meet their monthly bookkeeping needs. Here are what those services offer and how they can align with your company.
Who Needs Monthly Bookkeeping Services?
While the notion may suggest bookkeeping is only for business owners, it is essential for anyone who needs to manage their finances for better financial health.
Let’s look at who all needs monthly bookkeeping services:
- Small Business Owners: Entrepreneurs may lack the time and expertise to manage books.
- Medium-Sized Businesses: Growing businesses often deal with complex bookkeeping, which can be difficult to manage without expertise.
- Freelancers: Professionals such as graphic designers, writers, consultants, and photographers.
- Startups: Business entities that have just begun would not have the resources to handle bookkeeping.
- Nonprofits: They require proper maintenance of financial statements as various regulations legally bind them.
- E-Commerce Businesses: Retailers selling on platforms like Shopify, Amazon, or Etsy.
- Real Estate Professionals: Realtors, brokers, and property managers need help managing commissions, rental income, and expenses.
- Doctors, Lawyers, and Other Professionals: Individuals with private practices, like doctors, veterinarians, and others with legal firms, often have to deal with complex expenses and revenue streams.
No one is exempt of needing monthly bookkeeping services.
If you’re making a profit with your business and still spending time on doing your own bookkeeping or have your CPA handling them that doesn’t fully understand your business, you 100% need a monthly bookkeeping service.
Monthly Bookkeeping Services vs. In-House Bookkeepers
You may not be convinced about hiring monthly bookkeeping services and think that an in-house bookkeeper will serve just as well. Let’s go through the following points to help you make an informed decision.
- Costs: In-house bookkeepers cost more than just their base salary. You will need to add benefits and pay for training, office space, equipment, software updates, payroll taxes, and potential bookkeeping errors. Monthly bookkeeping service costs are fixed and predictable, and often lower than the total cost of hiring an in-house bookkeeper. They include access to software, professional advice, and support.
- Expertise: An in-house bookkeeper has limited experience with different industries and business types. They work in isolation, not having access to peer reviews. They are prone to making accounting mistakes, which can be costly. Professionals with diverse experience across businesses and industries work in monthly bookkeeping services. They offer expertise and value that a single in-house bookkeeper cannot match.
- Scalability: Once you hire an in-house bookkeeper, you cannot downgrade their salary even if your business has scaled down. If your business grows, you have to increase their salary as well. On the other hand, monthly bookkeeping services can scale up or down based on your needs and the services that you get from them. They are flexible and can adjust to your business’s changing needs.
- Access: An in-house bookkeeper is easily accessible, giving you insights on the spot. However, they cost more in the long run. Monthly bookkeeping services are also easily accessible because they use cloud-based software that allows everyone to access the information and communicate with the team from anywhere.
The bottom line is that small and medium businesses are better off with monthly bookkeeping services as they are more flexible, cost-effective, and scale with the business. In-house bookkeepers are appropriate for large enterprises where the business and accounting are more complex, demanding constant attention to their financials.
Features to Look For in Monthly Bookkeeping Services
Look for features in monthly bookkeeping services that align with your needs and provide accuracy, compliance, and convenience.
If you’re unsure what a good bookkeeping service should look like, keep an eye out for these features:
- Accuracy and Reliability: An accurate and reliable bookkeeping service is basic for any service as it ensures every transaction is recorded correctly and balances are maintained.
- Integration with Accounting Software: As the bookkeeping service would be entirely online, it should integrate well with accounting software like QuickBooks, Xero, or FreshBooks for seamless record-keeping.
- Tax Compliance: Your financial records should comply with local and state tax laws, and your books need to be tax-ready for a smooth filing process.
- Reconciliation Services: Regular comparison of bank statements is a must to maintain the accuracy of your books.
- Scalability and Customization: As you have a different vision for your business, your bookkeeping service should, too. It should grow with your needs and provide industry-specific expertise.
- Security and Confidentiality: Your finances should only be accessible to authorized personnel. Additionally, bookkeeping services should back up your records to avoid future emergencies.
- Communication and Support: A good service will always provide a consistent contact person for your account. You should be able to communicate your queries and resolve them when required.
- Cost Transparency: A clear pricing structure is important to avoid hidden fees.
The 10 Best Monthly Bookkeeping Services & Pricing
Bookkeeping is an integral part of your business, and it needs to be organized, compliant, and detailed for decision-making.
There’s tons of online bookkeeping services if you search on Google or LinkedIn, but it’s important you take into account who are the best ones for your business.
Here, we’ve compiled the 10 best monthly bookkeeping services that will help you keep your books accurate and reliable. We analyzed these businesses in depth making sure they’re well reviewed, their books are accurate, and their pricing isn’t exorbitant.
AccountsBalance
With an online bookkeeping service, AccountsBalance provides strong processes that can keep your business on track. They focus on providing these services for agencies, SAAS, and small businesses while becoming an integral part of your team. Plus, your dedicated online bookkeeper will get all your payment processors, bank accounts, and credit cards integrated into Quickbooks or Xero.
Features
Monthly bookkeeping and financial reporting, catch-up bookkeeping, and integration with multipu8le applications
Pricing
Starts at $399 per month. One time cost for any Catch Up and/or Clean Up work.
EcomBalance
At EcomBalance, they offer monthly bookkeeping services for growing eCommerce businesses selling on Amazon, Shopify, Walmart, Ebay, and more. Their goal is to become an integral part of your team with proven processes that provide a foundation for your business.
Features
Monthly financial analysis, regular financial statements, findings & recommendations, catch-up bookkeeping, integrate sales channels and tools with Quickbooks Online or Xero
Pricing
Starting at $499 per month. One time cost for any Catch Up and/or Clean Up work.
Milestone
At Milestone, they offer monthly bookkeeping services for small and growing businesses that want clear, reliable financials. Their goal is to act as an extension of your team by managing day-to-day bookkeeping and providing financial insight that helps owners make confident decisions.
Features
Monthly bookkeeping, bank and credit card reconciliations, accounts payable and receivable, month-end close, balance sheet reconciliation, financial statements, cash-flow reporting, outsource CFO support, payroll coordination, and back-office financial support.
Pricing
Custom pricing based on business size, complexity, and service needs. Monthly plans with optional catch-up or clean-up services available.
Pilot
This company works with thousands of startups, ranging from small businesses to hundred-person teams, providing accounting for professional services, e-commerce, and startups.
Features
Monthly bookkeeping, inventory tracking, tax prep, and CFO advisory functions
Pricing
Starter plan at $349/month billed annually
Core plan at $499/month billed annually
Bookkeeper.com
This online service offers a dedicated team of bookkeepers and accountants to provide high-quality bookkeeping services for small businesses, online companies, and professionals.
Features
Monthly bookkeeping, payroll, tax, bill pay, financial planning, and dedicated bookkeeper and account manager
Pricing
Starting at $399/monthly
Bench.co
This company provides small businesses with dedicated experts and easy-to-use financial software. Your business has a dedicated in-house, professionally-trained bookkeeper, along with a research team to provide informed answers to complex questions.
Features
Monthly bookkeeping and financial statements, expense overviews, year-end tax package, tax advisory support, and catch-up services
Pricing
Starting at $299/monthly
KPMG Spark, now Decimal
Acquired by Decimal, this company provides accounting operations for small- and medium-sized businesses. They also provide technology setup/support and other accounting services.
Features
Monthly bookkeeping, paying bills, invoicing, and data integration
Pricing
Starting at $395/monthly
Merritt Bookkeeping
This online bookkeeping service also offers accounting and tax prep, while also providing a platform for clients to use without going into Quickbooks. They also can work with your CPA to provide the information needed for tax filings and more.
Features
Offers easy user interface, issues 1099s, automatic bank statement retrieval, fundamental business insights
Pricing
Starting at $250/month
inDinero
This accounting and bookkeeping company provides a reliable guide for bookkeeping and accounting while offering insightful counsel. Their goal is to give you the tools for budgeting, forecasting, cash flow management, and strategic planning.
Features
Payroll, account reconciliation, CFO services, tax planning and filing
Pricing
Essential plan starting at $750/month
Growth plan starting at $1250/month
Custom plans are available
Bookkeeper360
This online bookkeeping service provides dedicated bookkeepers, offering a team-based approach to ensure you get the knowledge and expertise necessary for your business.
Features
Bookkeeping, payroll, tax, and CFO advisory, work directly with your tax professionals, HR services, and back-office duties
Pricing
Starting at $399/monthly, offer hourly rates for custom services
Ignite Spot
This accounting service takes the time to get a 360-degree view of your company, working closely with your team to find the best possible financial solutions while also creating and analyzing month-end financial statements and reconciliations.
Features
Virtual bookkeeping services, processing invoices, bill payments outsourced CFO services, controller oversight
Pricing
Starts at $417/monthly
How to Choose the Best Bookkeeping Services for Your Business
To pick the right service for you, it is important to look for options that fit the needs of your business based on your industry. Research what they offer, what tasks you want to outsource, and the pricing for those services. When comparing services, be sure that you are comparing similar options, otherwise, you might find that you are missing key elements.
Additionally, it is essential to know whether you will be dealing with the same bookkeeper from month to month or if you will have a team working on your financials, as well as the communication channels available.
At AccountsBalance, we specialize in customized bookkeeping solutions tailored to your industry. Some of the packages we offer include:
- Bookkeeping for marketing agencies
- Bookkeeping for self-employed
- Bookkeeping for real estate investors
- Bookkeeping for dentists
- and more.
Our team ensures consistency, industry expertise, and reliable communication so you can focus on growing your business.
Red Flags to Watch When Hiring Bookkeeping Services
Despite ticking all the boxes when choosing the best bookkeeping services for your business, there are still some red flags you should be aware of.
- Unusually low pricing: Compare the pricing of your potential bookkeeping service with others. An unusually low price signals inexperienced bookkeepers or limited services.
- Inconsistent work records: Look at the service’s past work and client feedback. If you see gaps, inconsistencies, or negative feedback, it’s a sign that the bookkeeper may not be reliable.
- Vague deliverables: If the bookkeeping service doesn’t clearly share what tasks they will do and which reports they will provide, that’s a red flag.
- Lack of communication: Consistent missed calls or texts, delayed responses, and excuses are signs of poor communication that can become a significant problem later.
- Absence of a monthly closing process: Bookkeeping must be closed monthly to ensure the books are accurate and up-to-date. If the bookkeeping service you want to hire doesn’t follow a monthly closing process, that’s a major red flag.
- Gap in software knowledge: A bookkeeping service that’s not familiar with the accounting software your business uses or doesn’t know how to integrate your system with theirs is likely to make errors, leading to inaccurate financial records.
Common Monthly Bookkeeping Mistakes Business Owners Should Avoid
Even if you hire a monthly bookkeeping service, as a business owner, you should be alert and avoid making the following bookkeeping mistakes.
- Incorrect categorization: Ensure the transactions are entered under the right category. Otherwise, you won’t get a true picture of cash flows, and this will also affect your tax filing.
- Ignored software updates: Failing to update your accounting software can lead to errors in inputs and financial reporting, leading to inaccurate financial statements.
- Neglected monthly closings: Ignoring the monthly books closing process creates cracks through which transactions can slip, accounts reconciliation remains incomplete, and financial reports become unreliable.
- Irregular financial report reviews: Business owners must review their financial statements and reports monthly to monitor costs, profitability, and growth patterns.
- Irregular communication with the bookkeeper: As your business grows or moves through various stages, you need to stay in touch with your bookkeeping team to keep them on the same page.
What Is AccountsBalance?
AccountsBalance is a monthly bookkeeping service specialized for agencies & SaaS companies.
We take monthly bookkeeping off your plate and deliver you your financial statements by the 15th or 20th of each month.
You’ll have your Profit and Loss Statement, Balance Sheet, and Cash Flow Statement ready for analysis each month so you and your business partners can make better business decisions.
Interested in learning more? Schedule a call with our CEO, Nathan Hirsch.
Frequently Asked Questions (FAQs)
Many bookkeeping services are available, and choosing the right one can be challenging. Here are some commonly asked questions to help you with the process:
Can I Do My Own Bookkeeping?
While you can do your own bookkeeping, having a bookkeeping service means you tap into the financial expertise of certified bookkeepers to meet the needs of your business.
How Do Monthly Bookkeeping Services Differ From Annual Or Quarterly Bookkeeping Services?
Monthly bookkeeping services keep your financials updated and accurate while reducing the risk of mistakes or transactions going unrecorded.
What Tasks Are Included In Monthly Bookkeeping Services?
Categorizing and recording all financial transactions for your business, monthly reconciliation, and creation of your financial statements. Depending on your bookkeeping service, other tasks can be incorporated as well, including payroll, invoicing, and payment management.
Can I Customize The Services Included In Monthly Bookkeeping?
Based on the company you choose, you may have the option to add other services and customize your experience.
What are the Typical Bookkeeper Hourly Rates?
Typical bookkeeper hourly rates depend on location, the complexity of the business, years of experience, skills, and education. However, according to Payscale, the average hourly rate for a bookkeeper is $20.71.
Another source claims that small businesses need to pay $30 to $60 per hour for a bookkeeper with a QuickBooks certification, $75 to $100 per hour for a bookkeeper who offers advisory services and more advanced bookkeeping, and $125 to $200 per hour for a Certified Public Accountant (CPA).
What Does a QuickBooks Bookkeeper Do?
Using the QuickBooks accounting software, a QuickBooks bookkeeper performs tasks such as daily transactions categorization, credit card and bank accounts reconciliation, P&L and balance sheet creation to generate financial reports, payroll, accounts payable and receivables, and invoice management, compliance, and tax preparation.
How Are Bookkeeping Services for Small Businesses any Different?
Since small businesses have limited scope and resources, bookkeeping for these businesses involves transactions categorization, compliance, and tracking core financials such as cash flow, revenue, and expenses. Bookkeeping for small businesses scales as the business grows, works for a predictable monthly fee or package, and provides basic financial statements.
Bookkeeping for larger companies includes more than just transaction recording and reconciliation. It involves financial statement interpretation and business strategy suggestions.
What Reports Should I Expect From Monthly Bookkeeping Services?
Your monthly bookkeeping service should provide profit and loss (P&L) statements to check revenue and expenses, balance sheets for viewing assets, liabilities, and equity, cash flow statements to monitor cash inflow and outflow, and budget vs actual reports to measure performance and discrepancies.
Conclusion
Monthly bookkeeping services can help to take data entry tasks off your plate, allowing you to focus on growing your business while keeping your financials updated and accurate.
Choosing a monthly bookkeeping service also means you avoid the costs of catch-up bookkeeping.
With a monthly bookkeeping service, you also can maintain your compliance, thus avoiding potential penalties and fees related to your tax liabilities.
By hiring a bookkeeping service, you give your business a solid foundation for the future and put processes in place to keep your financials accurate and timely.
