A bookkeeping company is a business that specializes in maintaining and organizing financial records for other companies or individuals. A bookkeeping company’s specialties include recording transactions, bank reconciliation, and preparing financial statements. An established bookkeeping company may also offer tax preparation and payroll management services.
Benefits of Using a Bookkeeping Company
There are several benefits of using a bookkeeping company, including:
- Time savings: A bookkeeping company can handle your financial tasks, allowing you to focus on running your business.
- Expertise: Bookkeeping companies employ trained professionals with the knowledge and experience to handle your finances effectively.
- Accuracy: A bookkeeping company can ensure that your financial records are accurate and up-to-date, reducing the risk of errors and potential financial penalties.
- Better financial decision-making: A bookkeeping company can provide you with accurate financial reports, allowing you to make informed business decisions.
- Cost savings: In the long run, outsourcing your bookkeeping tasks to a professional company can save you money by reducing the need for in-house staff.
- Compliance: The bookkeeping company will ensure your business complies with tax laws and regulations.
- Backup and recovery: Bookkeeping companies will ensure that your financial records are backed up regularly and can be recovered in case of data loss.
Best 7 Small Business Bookkeeping Companies
Many small business bookkeeping companies can help you manage your finances. The best 7 bookkeeping companies are listed below:
NumberSquad is a small business bookkeeping company that provides professional bookkeeping services to small businesses, self-employed, and non-profits, including bank reconciliation and financial statement preparation. Unlike other bookkeeping companies, NumberSquad is affordable and offers all-in-one accounting and tax solutions, including outsourced bookkeeping services, tax filing, and payroll services. In addition to accurate bookkeeping services, NumberSquad offers free incorporation and personal financial statement tools.
Bench is a fully remote bookkeeping company that provides virtual bookkeeping services to small businesses. They offer a variety of plans to fit your business needs.
3. Bookkeeping 365
Bookkeeping 365 is a bookkeeping company that provides bookkeeping services such as accounts payable and receivable, bank reconciliation, payroll, and financial statement preparation.
5. The Bookkeeping Artist
The Bookkeeping Artist is a virtual bookkeeping company that specializes in helping creative small businesses with their finances. They offer a range of bookkeeping and consulting services.
InDinero is a bookkeeping company that provides start-ups and small businesses with an online platform for tracking their finances, including invoicing, expenses, and financial reporting.
Pilot is a financial management platform that helps businesses automate their financial operations. The platform is designed to make it easy for companies to manage their finances in one place, including bookkeeping, invoicing, and expense tracking.
It’s essential to research and compares different companies to find one that best suits your business needs.
Services Offered by a Bookkeeping Company
Bookkeeping companies offer a variety of services and bookkeeping tips to help businesses manage their finances. Some of the most common services provided by bookkeeping companies include:
- Accounts payable and receivable: This includes managing invoices and bills, tracking payments, and reconciling bank statements.
- Payroll: The payroll service includes tracking employee hours, calculating payroll taxes, and issuing paychecks or direct deposits.
- Financial statement preparation: This includes creating balance sheets, income statements, and cash flow statements to provide a snapshot of the business’s financial health.
- Budgeting and forecasting: This includes creating budgets for the business and forecasting future financial performance.
- Tax preparation: This includes preparing and filing business taxes, including sales tax, payroll taxes, and income tax.
- Accounts reconciliation: This includes reconciling bank statements, credit card statements, and other financial accounts to ensure accuracy and completeness.
- Invoicing: Invoicing includes creating and sending customer invoices, tracking payments, and managing accounts receivable.
- Expense management: This includes tracking and categorizing business expenses, such as office supplies, travel, and employee expenses.
- Financial analysis: This includes analyzing financial data to identify trends and make recommendations for improving financial performance.
- Compliance: This includes ensuring that the business complies with local, state, and federal tax laws and regulations.
Every business has different needs and requirements. It’s essential to research and compare other outsourced bookkeeping services to choose the one that offers the services you need at a price that fits your budget.
How to Choose a Bookkeeping Company for Your Business?
Choosing a bookkeeping company for your business can be a difficult task, but there are a few key factors to consider when making your decision:
- Experience and expertise: Look for a bookkeeping company with experience in your industry with a trained professional team.
- Services offered: Make sure the bookkeeping company provides your needed services, such as accounts payable and receivable, payroll, and financial statement preparation.
- Technology: Look for a bookkeeping company that uses up-to-date technology, such as cloud-based software, to ensure your financial records are secure and easily accessible.
- Communication: Choose a bookkeeping company that is responsive and easy to communicate with.
- Price: Compare prices and services offered by different bookkeeping companies to find one that fits your budget.
- Credibility: Research the company’s credentials, and check their reviews and ratings. Look for a registered company with a good reputation in the industry.
- Compliance: Make sure the company is aware of the tax laws and regulations and will keep your business compliant.
- Backup and recovery: Make sure the company has a plan in place for backing up and recovering your financial records in case of data loss.
It’s also important to schedule a consultation with a few different bookkeeping companies to get a sense of their services and determine the best fit for your business.
Bookkeeping Company Pricing
Bookkeeping pricing can vary depending on several factors, such as the size of your business, the complexity of your financial records, and the services you require. Generally, bookkeeping companies offer different pricing plans to suit the needs of small businesses. Here are a few examples of how bookkeeping companies might structure their pricing:
Some bookkeeping companies charge an hourly rate for their services, which can range from $50 to $200 per hour, depending on the bookkeeper’s level of experience and expertise.
Other bookkeeping companies charge a flat monthly fee for their services, ranging from one hundred dollars to a thousand dollars depending on the services provided.
Some bookkeeping companies offer package deals, which bundle together different bookkeeping solutions at a discounted rate.
A la Carte
Some bookkeeping companies offer a la carte pricing, where you can pick and choose the services you need and pay for them separately.
Some bookkeeping companies offer subscription-based pricing, where you pay a monthly fee for access to their services.
It’s important to note that many bookkeeping companies offer free consultations, where they can provide you with a customized quote based on your specific needs.
Which Software Bookkeeping Companies Integrate With?
Bookkeeping companies typically use a variety of software programs to manage their client’s financial records. List of 7 most popular software that bookkeeping companies might use:
- QuickBooks: QuickBooks is one of the most widely used accounting software programs, particularly for small and medium-sized businesses. It offers features such as invoicing, expense tracking, and financial reporting.
- Xero: Xero is accounting software that offers invoicing, expense tracking, and financial reporting features. It also offers integrations with other apps and software, such as payment processors and inventory management systems.
- FreshBooks: FreshBooks is a cloud-based accounting software designed for small businesses and freelancers. It offers features such as invoicing, expense tracking, and time tracking.
- Wave: Wave is free and cloud-based accounting software that offers features such as expense tracking, billing, and financial reporting.
- Zoho Books: Zoho Books is a cloud-based accounting software offering invoicing, expense tracking, and financial reporting features. It also offers integrations with other apps and software, such as payment processors and inventory management systems.
- Sage: Sage is software that is used to manage accounting, payroll, and payments. It is widely used in the UK and other countries.
- MYOB: MYOB is an accounting software that is widely used in Australia and New Zealand. It offers features such as invoicing, expense tracking, and financial reporting.
It’s important to note that some bookkeeping companies may develop their own proprietary software or use multiple software programs to meet the needs of their clients.