Today’s freelancers, work-at-home parents, and small-business owners have more choices than ever when it comes to accounting and bookkeeping services. Gone are the days when you needed to collect receipts in a shoebox and deliver them to a professional bookkeeper each month.
Several cloud-based accounting and bookkeeping applications are easy to use and inexpensive for businesses of all sizes.
We’ve identified the best online bookkeeping services, looking into their cost, features, and customer experience.
Best Online Bookkeeping Services
1. Kashoo
Currently used in more than 180 countries, Kashoo allows multicurrency invoicing and immediately shows you the exchange rate impact.
Pros:
- Integrates with several other applications, including Square for point-of-sale tracking and Stripe for credit card processing.
- Automatically pulls transactions from your bank feed and sorts them into the right expense categories.
- Supports over 100 global currencies with daily exchange rate downloads and multiple tax jurisdictions.
- Allows you to customize the design and layout of invoices.
- Free support via email, phone, and chat. You can also schedule a 30-minute call to get help with setup.
Cons:
- No dashboard for visualizing key performance indicators (KPIs) and business performance.
- No app for Android users.
Products:
- TrulySmall Invoices. This free version provides customizable invoice templates for PDF, Word, and Excel. Then you can send and track invoices and collect payments via credit card or direct deposit.
- TrulySmall Accounting. This paid package is a good option for very small businesses. With this version, you can send invoices, accept payments, track income and expenses, and create basic reports. However, it doesn’t integrate with payroll applications, so it isn’t a good option for businesses with employees.
- Kashoo. For $30 per month, Kashoo offers all the features of TrulySmall Accounting, plus multicurrency support, check printing, inventory tracking, project cost tracking, and payroll integrations.
Both TrulySmall Accounting and Kashoo offer a free 14-day trial so that you can try the application out for yourself.
2. Xero
Xero is a detailed and comprehensive accounting software program geared to international small businesses and freelancers.
Pros:
- Bank feeds mean you can import and categorize bank statements, credit card accounts, and PayPal, Stripe, and TransferWise information automatically.
- Supports more than 160 currencies.
- Updates foreign exchange rates hourly.
- Dashboard displays account balances, outstanding invoices, unpaid bills, and total cash in versus total cash out.
- Integrates with more than 1,000 third-party apps, including Gusto for payroll, HubSpot for customer relationship management, Bill.com for paperless receivables payables, and Harvest for time tracking.
Cons:
- If you aren’t familiar with accounting and bookkeeping acronyms and phrases, Xero may be overwhelming.
- Support is available over email or DIY via the website’s extensive support articles and videos. There’s no option to get live help.
Plans:
Xero offers three different monthly plans:
- Early. For $3.75 per month, you can send up to 20 invoices per month, enter five bills, reconcile bank transactions, and capture bills and receipts with Hubdoc.
- Growing. For $10.50 per month, you get all of the features of the Early plan, but with unlimited invoices and bills, plus the ability to bulk reconcile transactions.
- Established. For $19.50 per month, you get all of the features of the Growing plan, plus multicurrency support, project tracking, and the ability to manage employee expense reports.
All packages offer a free 30-day trial with no credit card required.
See our Xero review for more information.
3. Block Advisors
Block Advisors is a specialized arm of H&R Block aiming to lighten the load for freelancers and small business owners, with separate bookkeeping, payroll, and business formation services. Here’s an overview of its bookkeping services.
Pros:
- Block Advisors has full-service package rates up to 50% less than a typical accountant.
- You can choose the level of service you need, with a DIY bookkeeping option and full-service plans with your own dedicated accountant.
- You can schedule a free consultation with Block Advisors and get a personalized quote from the team during your first call.
- Block Advisors can seamlessly transfer data from your Quickbooks account.
- Dedicated financial advisors can be reached by phone, video chat, or in-person.
Cons:
- Bookkeeping and payroll services are separate, rather than being included in a single package.
- You may be required to schedule a consultation to determine your monthly rates for full-service plans.
Plans:
- Self-Serve: At $39 per month, the Self-Serve Plan comes with a Bookkeeping 101 guide, a streamlined receipt capture tool, income and expense management, and standard reporting.
- Full-service: Starting at $175 per month, this plan offers additional features such as a dedicated accountant, a year-to-date review of your books, and custom financial statements.
- Premium: Starting at $299 per month, the Premium plan is designed for complex business needs, with tools such as mileage, inventory, and expense management, project tracking with quotes and estimates, and multiple currencies,
Get your first month of Bookkeeping, free. Mention promo code: BKFREE during your consultation.*
4. Invoicera
Based in India, Invoicera is well-suited to small to midsize businesses with global services and customers.
Pros:
- If one of the packages doesn’t meet your business’s needs, paid add-on services and integrations provide further flexibility to customize your online bookkeeping experience.
- Currently supporting more than 125 different currencies, Invoicera offers invoices in over 15 languages and 14+ payment gateways.
- The 30-day free trial and free Starter plan do not require a credit card.
- Additional time tracking features are available.
- All plans let you automate recurring expenses and late payment reminders and customize and schedule invoices.
Cons:
- Help is only available by submitting a support ticket online or via chat. However, the chat feature appears to be offline during business hours in the Western Hemisphere. No customer support is available via phone or email.
- Doesn’t offer live bank feeds, so users have to spend more time entering transactions and classifying expenses.
Plans:
Invoicera features four different monthly plans:
- Starter. The free option supports one staff member and up to 100 clients. Features include unlimited invoices and the ability to add additional businesses for a low fee.
- Business. The $39-per-month Business plan increases the clients to 1,000 and allows you to add up to 10 additional users, granting API access and an invoice workflow.
- Enterprise: The $79-per-month Enterprise Plan allows for 20 staff members and 2,000 clients, with the added perk of PDF batch exports.
- Infinite. The $119-per-month Infinite plan includes unlimited clients and staff members, with custom integration and development.
5. Quickbooks Online
Quickbooks Online has four different plans to choose from — not including any of its on-premises solutions. With over 7 million customers globally, Quickbooks Online offers pretty much every accounting and bookkeeping option a small business needs.
Pros:
- Apps for Android and iOS have built-in mileage tracking and allow you to categorize trips as either business or personal miles easily.
- Users can take a photo of receipts with the app, and QuickBooks will automatically match and categorize the transaction.
- Features a built-in quarterly tax calculator to help small-business owners know how much money they need to set aside for taxes.
- Customers can pay online through their invoice via credit card, debit card, or ACH.
- Built-in payroll features allow you to manage accounting and payroll in one place.
Cons:
- Auto-categorization of bank transactions isn’t very accurate, so you may need to take some time to review and categorize expenses.
- Features like payroll, time tracking, credit card payment processing come with an extra monthly fee.
Plans:
Small business owners can choose from Quickbooks Online’s four monthly packages. They all offer free 30-day trials.
- Simple Start. For $15 per month, Simple Start offers more than a dozen features, such as invoices, receipt capture, cash flow, and bill management.
- Essentials. The $30 Essentials Plan also offers multiple currencies, additional seats, and the ability to enter time.
- Plus. The $40-per-month Plus package offers all the features available in Essentials, plus tools for inventory, project profitability, and financial planning.
- Advanced. Running $100 per month, the Advanced package offers all the features of Plus with even more features, including employee expense tracking, batch invoices, and workflow automation.
Quickbooks Online often has a promotion offering 50% off your subscription for three months, so you can save some money by signing up during a promotional period.
6. Freshbooks
Canada-based FreshBooks is a comprehensive bookkeeping and time tracking system used by customers in over 160 countries.
Pros:
- Available as a mobile app for Android and iOS.
- Built-in time and mileage tracking
- Includes collaboration and team management tools.
- Fast and helpful customer support is available via phone or email.
- Users can track expenses, time, and billing and accept payments via credit card or bank transfer.
Cons:
- Eliminated the free version for very small businesses and freelancers.
- Payroll features are only available for an additional monthly fee through Gusto.
Plans:
- Lite. The Lite version of FreshBooks costs $19 per month and allows you to send unlimited invoices to up to five clients. You can also track expenses, send client estimates, track sales tax, and accept payments via credit card and bank transfer.
- Plus. The Plus package costs $33 per month and gives users access to 50 clients. It also allows you to set up recurring billing and client retainers and track mileage using the mobile app for iOS and Android. The Plus plan also features double-entry accounting so that you can print a balance sheet and accounts receivable reports. You can also invite your accountant to access your account.
- Premium. The $60-per-month Premium plan includes all the features of the Plus plan but supports an unlimited number of clients, tracking accounts payable, and project profitability. It also offers more customization for email templates and email signatures.
- Select. The Select plan is for businesses with more complex needs. FreshBooks will customize pricing to meet your needs. It includes all the Premium features, plus a dedicated account manager, help migrating your accounting from another software platform, and the ability to remove FreshBooks branding from your client emails. You also get access to lower credit card transaction fees.
FreshBooks often offers promotional pricing for new users. Currently, the FreshBooks pricing page offers 60% off for four months, plus 10% off the annual subscription. Adding additional users will cost you an additional $11 per person per month.
See our FreshBooks review for more information.
7. Harvest
Harvest offers time tracking with online invoicing as an added feature.
Pros:
- Time tracking app is available for both Android and iOS.
- Allows you to bill clients for time spent working or a flat fee per project, plus bill for mileage, travel expenses, and other costs.
- Includes team management features that allow you to see how people are spending their time.
- Integrates with a variety of other apps, including Asana, PayPal, Salesforce, and Slack.
Cons:
- Not suited to product-based business.
- Limited reporting capabilities.
Plans:
Harvest offers two monthly plans:
- Free. The free plan has no time limit, but it’s limited to one user (referred to as “seats” in Harvest) and two projects.
- Pro. For $12 per month, you get an unlimited number of projects and seats.
Harvest offers a free 30-day trial, and you can get 10% off by paying annually rather than monthly.
8. Square Invoices
Square Invoices offers a great all-in-one invoicing and payment processing solution that provides your customers with several payment options.
Pros:
- Very easy to use with a well-organized interface.
- Allows customers to pay your invoices via credit or debit card, Apple Pay, Google Pay, check, cash, ACH bank transfer, or gift card.
- Send unlimited invoices and estimates for free, and only pay for processing when you accept debit or credit card payments.
- Integrates with many other e-commerce apps, including Wix, WooCommerce, WordPress, and BigCommerce.
- Payments can be transferred to your bank account as soon as the next business day or instantly for an additional fee.
Cons:
- Limited customization of invoices.
- No multicurrency support.
Pricing:
Square Invoices is different from its competitors in that you can send unlimited invoices and estimates for free. You only pay when you take a payment with the Free version.
At $29 per month, the Plus Plan offers advanced features tailored to restaurants, retailers, and appointment-based businesses. You can upgrade or cancel your Plus services at any time. Square also offers custom Premium plans to meet your business’s needs, with varying prices.
How to Choose the Best Online Bookkeeping Service
Given the vast array of options, it’s important to determine your needs before attempting to select the best bookkeeping app. So consider these questions as you review the available options:
- How many billable clients or customers does my business have, and how many total invoices do I generate each month?
- What is my monthly bookkeeping budget?
- Is a cloud-based bookkeeping app the best option for me, or am I more comfortable with a downloadable option?
- Does my business require other applications or integrations, such as customer relationship management, payroll, scheduling, e-commerce, inventory management, or time tracking?
- Do I need invoicing options in more than one currency?
- Do I need an app that accepts payment by check, PayPal, Stripe, Venmo, direct deposit, and credit card?
- How many users — including my employees and third parties like my tax professional — need access to the software?
- Do I need customizable templates to include my company header, or is a preset template okay?
- How comfortable am I with accounting and bookkeeping terminology?
- What other features do I require in an online bookkeeping app?
When reviewing bookkeeping and accounting apps for your business, note those that most closely meet your requirements.
If you can’t find the perfect invoicing or accounting package, look for one with add-on options, such as easy integration with other applications or the option to increase the number of users for an additional charge.
Also, take into consideration your comfort with accounting. Some bookkeeping and accounting apps require familiarity with accounting and bookkeeping terminology, whereas others do not.
Our Methodology
Here are the areas we focused on to determine the best online bookkeeping platforms for your small business:
- Features: We honed in on features like invoicing, expense tracking, payroll processing, and financial reporting and prioritized platforms that offer these services.
- User experience: Ease of use is crucial. We tested each platform’s interface for intuitiveness and accessibility.
- Customer Support: We examined the availability and responsiveness of support teams through chat, email, and phone, favoring companies with accessible support.
- Integration: Integration with other tools like project management software and CRM systems can boost efficiency. We looked at the range and ease of integrations each service offered, favoring those with seamless connections.
- Pricing: Cost matters. We compared different pricing tiers and the features they offered. Transparent pricing models with no hidden fees scored better in our review.
Final Word
Life is a lot easier for small-business owners who use cloud-based accounting software. You don’t have to buy expensive software, download it to your computer, and purchase expensive upgrades.
Whether you’re a freelancer or a small-business owner with several employees, you can find anything from basic invoicing to more complex accounting platforms that integrate with other apps you use in your business.
Remember, technology and software change quickly, especially cloud-based software, so be sure to visit the vendor sites directly to get the most current feature and pricing information before choosing the best one for your business.
And don’t feel overwhelmed by the choices. Decide what features you absolutely must have, identify your budget, and spend some time researching your options.
*Free month of full-service bookkeeping for new clients only. Valid 12-month engagement letter required. After the application of the discount in this offer, you will be charged monthly at the amount in the engagement letter. Discount may not be combined with any other offer or promotion. Available virtually and at participating locations. Void if transferred and where prohibited. Discount code must be presented prior to purchasing bookkeeping services. A new client is an individual who has not used H&R Block or Block Advisors for bookkeeping services. No cash value. H&R Block employees are excluded.
