A Comparative Review of Top Bookkeeping Services for Accounting Firms

Finding the best virtual bookkeeping service can be a daunting task for accounting firms and small businesses alike.

In this comparative review, we outline the key factors to consider when selecting a bookkeeping provider, compare pricing models across top services, and summarize how to choose the right fit for your needs - whether that prioritizes industry expertise, scalability, integrations, or data security.

You'll walk away better informed to evaluate bookkeeping services like QuickBooks Live, Outsourced Accounting Pros, Moneycatcha, AcctTwo, and LedgerSource against your business' unique requirements and budget.

Introduction

Accounting firms face mounting administrative tasks as they grow, making it difficult to scale operations efficiently. Outsourcing routine bookkeeping activities allows firms to optimize internal resources for higher-value advisory services. This enables sustainable business expansion without excess hiring or infrastructure costs.

Popular outsourced bookkeeping solutions provide dedicated accounting support at a fraction of the price of in-house staff. Key capabilities like bank reconciliations, account reconciliations, financial report preparation, and data entry can be cost-effectively handled by specialized teams. Leading providers leverage process automation and advanced software to deliver services with precision and speed.

When evaluating bookkeeping partners, accounting firms should assess service scope, delivery quality, security protocols, and pricing models. The top solutions offer robust compliance measures, US-based account management, and integration with major accounting platforms. As demands fluctuate, customizable solutions allow capacity to scale up or down on-demand.

How to find the best virtual bookkeeping service for your business?

Hiring a virtual bookkeeping service can provide significant cost savings and efficiency benefits for accounting firms. However, with many options to choose from, it's important to find one that best fits your firm's needs.

When evaluating virtual bookkeeping services, first consider the types of deliverables you require to operate your firm smoothly. For example, accurate and up-to-date financial statements like profit-loss statements and balance sheets are essential. Verify that the service can provide these on a consistent and timely basis.

You'll also want to assess the bookkeeping platform's usability and automation capabilities. Opting for more automated solutions can maximize your firm's productivity. Evaluate if the platform seamlessly integrates with your existing systems. This ensures continuity of workflows without major disruptions.

Furthermore, examine the breadth of accounting tasks the virtual bookkeeper can handle. Assessing tax returns, processing payroll, or conducting audits may also be required by your firm. Choose a service that aligns with the scope of responsibilities your team needs assistance with.

Finally, compare service pricing to find one that matches your budget parameters. Just ensure that cheaper hourly rates don't lead to hidden fees over time that exceed your accounting firm's savings goals.

How do I choose a bookkeeping service?

As an accounting firm looking to outsource bookkeeping tasks, it's important to partner with the right bookkeeping service provider to ensure quality work and seamless operations. Here are some key factors to consider when evaluating bookkeeping services:

Industry Experience

Choose a bookkeeping service with experience working with firms in your industry. They will understand the common transactions, terminology, and reporting needs. Specialized experience leads to greater efficiency.

Service Offerings

Examine the specific bookkeeping services offered. Consider your current and future needs. Standard offerings include accounts payable/receivable, financial reports, bank reconciliations, etc. Choose a partner that can scale with your changing needs over time.

Technology Integration

Evaluate technology integration capabilities. Modern solutions allow integrating bookkeeping platforms directly with your accounting software for ease of access and minimal manual work. This increases accuracy and saves time.

By keeping these factors in mind while researching providers, accounting firms can find the ideal bookkeeping partner to seamlessly handle routine finance and accounting tasks. This frees up their internal teams to focus more on high-value services. The result is higher capacity, productivity, and profitability for the firm.

Reputation

Choose an established bookkeeping service with a strong professional reputation. Check their client testimonials, ratings on review sites, membership in industry associations, published thought leadership, and more. An excellent reputation over many years of service indicates a reliable partner.

Communication and Accessibility

Assess the provider's communication structures. You need transparency into their processes and real-time access to documentation. Clearly defined channels for queries and issue resolution prevent potential problems down the line.

Pricing and Scalability

Evaluate both current pricing and the ability to scale up services over time. Fixed monthly costs offer predictable accounting expenses for your firm. Highly scalable solutions allow adding expert accounting capacity without disruption. Look for providers that offer flexible scaling to match your changing business needs.

What is the difference between bookkeeping and accounting services?

While they are closely related, bookkeeping and accounting services have important differences. Bookkeepers focus on accurately recording day-to-day financial transactions, including tasks like:

• Invoicing clients
• Paying bills
• Tracking payments received
• Reconciling bank and credit card statements

Accountants take the recorded financial data and analyze it to gain business insights, advise management, meet compliance requirements, and make strategic decisions. Common accounting tasks include:

• Preparing financial statements
• Filing tax returns
• Conducting audits
• Forecasting revenues and expenses

In simple terms, bookkeepers compile the raw data and accountants interpret and report on what the numbers mean. Businesses need both disciplines to have a complete financial picture. While bookkeepers handle regular data entries, accountants provide big-picture guidance and ensure the books comply with accounting standards and regulations. Many firms offer both services.

For accounting firms specifically, accurate bookkeeping lays the foundation for all downstream accounting work. Poor recordkeeping makes audits, tax preparation, and advisory services much harder. So bookkeeping services ensure accounting firms have clean data to work with. Top providers also specialize in the bookkeeping needs of accounting practices.

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Is Quickbooks Live bookkeeping worth it?

Quickbooks Live provides small businesses and accounting firms access to dedicated bookkeepers and access to financial reports through an easy-to-use online dashboard.

With Quickbooks Live, you are matched with an experienced bookkeeper familiar with your industry. They handle tasks like reconciling accounts, collecting and organizing documents, entering transactions, paying bills, invoicing clients, tracking expenses, and more. This frees up your time to focus on serving clients and growing your firm.

Some key benefits include:

• Cost Savings: By leveraging overseas assistants, Quickbooks Live provides bookkeeping services at a fraction of the cost of hiring locally. Packages start at $200/month.
• Convenience: Bookkeepers enter data directly into Quickbooks desktop or online so you have access to up-to-date financial reports.
• Accuracy: Seasoned bookkeepers are experts at properly recording transactions. This helps minimize mistakes come tax time.
• Peace of Mind: Certified bookkeepers handle sensitive information securely and confidentially. Quickbooks Live also includes access to US-based accountant support.

Overall, Quickbooks Live is an affordable way for smaller firms to benefit from accurate, up-to-date bookkeeping and access richer insights into the business. The cost savings from avoiding hiring an in-house bookkeeper can be substantial. As an added benefit, gaining back hours each week allows accounting firms to take on more advisory work and fuel growth.

Key Considerations When Choosing a Bookkeeping Service

To find the best bookkeeping service, accounting firms should evaluate factors like the service's industry specialization, integrations, security compliance, and more based on their specific needs.

Industry Expertise

Prioritizing services with expertise in your target verticals ensures accurate financial tracking and reporting tailored to your needs. Look for bookkeeping providers with deep knowledge of your industry's specific regulations, terminology, and standard practices. This experience translates into more precise categorization of financial transactions without needing constant guidance.

For example, bookkeepers experienced with ecommerce companies understand issues like sales tax nuances across different states, how to classify marketplace fees, and typical scenarios seen in online retail. This industry-specific insight catches abnormalities early and also enables insightful reporting.

Integration Capabilities

The ability to integrate essential platforms you already use like payroll, accounting software, CRM, etc. streamlines workflows between systems. Rather than manually exporting and uploading data between disparate tools, choose automated syncing for real-time accuracy without effort.

Common small business integrations like QuickBooks, Xero, Gusto, and Bill.com eliminate duplicate data entry and reduce risk of errors that occur from re-keying figures. As accounting firms scale, such flexibility ensures scalability by interoperating with preferred stack components.

Data Security

Any bookkeeping vendor handling sensitive financial data must have robust security protections and protocols in place. Look for 256-bit SSL encryption during data transmission along with authentication safeguards like 2-factor verification.

Firms should also validate if platforms are SOC 2 Type II audited to guarantee proper internal controls for data confidentiality and privacy. Finally, transparent security processes around access rights, data deletion policies, and employee screening provide additional assurance.

Scalability

As your accounting business evolves, bookkeeping workload demands fluctuate so the platform must readily scale. Aside from baseline performance metrics like transaction volumes supported, also check if pricing plans flexibly align to usage levels month-to-month.

Ideally, the service should readily scale to support sudden workload surges around tax seasons and then scale back down cost-effectively afterwards without locking you into fixed tiers.

Usage-based plans with no long-term commitments maximize flexibility to pivot as operational needs change over time. With expected accounting firm growth, pick a bookkeeping vendor positioned to readily scale in parallel.

Comparing the Top Bookkeeping Services for Best Accounting Service Selection

We review key capabilities of the most popular bookkeeping services used by accounting firms and small businesses today.

Outsourced Accounting Pros

A global bookkeeping service provider focused on accounting firms and small businesses. Offers dedicated account managers and tailors services to industry needs.

Outsourced Accounting Pros provides specialized bookkeeping services for accounting firms and small businesses looking to save costs while optimizing accuracy. With dedicated account managers and industry-specific customization, Outsourced Accounting Pros is a top contender for quality bookkeeping.

Some key benefits include:

• Dedicated Account Managers: Each client works directly with an account manager who oversees the bookkeeping process and serves as a single point of contact. This enables highly tailored services based on the unique needs and priorities of the business.

• Industry Specializations: Outsourced Accounting Pros offers dedicated teams for various industries like ecommerce, healthcare, real estate, and more. These teams understand the accounting nuances of their focused vertical and can provide more relevant bookkeeping support.

• Accuracy Guarantee: An intensive multi-step quality control process is used to ensure a guaranteed accuracy rate of at least 95%. This saves accounting firms and businesses time in auditing and gives confidence in the financials.

• 24/7 Access: Cloud-based software provides anytime access to view financial reports, statements dashboards. This enables real-time visibility and tracking of cash flow.

For accounting firms and small businesses seeking tailored bookkeeping from industry specialists, Outsourced Accounting Pros is a top choice to consider that balances customization with efficient, accurate services.

Moneycatcha: An Online Bookkeeping Service for Small Business

Provides automated bookkeeping software and dedicated accountants for data cleanup, reconciliation, reporting, and more. Specializes in ecommerce companies.

Moneycatcha focuses specifically on providing scalable online bookkeeping services for ecommerce businesses. Leveraging automation and AI, Moneycatcha can rapidly process high transaction volumes with efficiency.

Benefits of Moneycatcha include:

• Ecommerce Expertise: With dedicated ecommerce accounting teams, Moneycatcha understands unique needs like marketplace reconciliation, advertising cost management, and sales tax automation.

• Automated Syncing: Automatic data feeds and API connections with popular platforms like Shopify and Amazon enables seamless, real-time syncing of transactional data.

• Smart Ledgers: Proprietary machine learning algorithms can automate the classification and coding of common transactions for faster processing. Humans still review for accuracy.

• Custom Reporting: Schedule fully customized financial statements, KPI dashboards, and reports tailored to the exact accounting needs of your executive team.

For high-volume ecommerce businesses, Moneycatcha provides a strong automated bookkeeping solution to consider that balances efficiency with human insight.

AcctTwo's Remote Bookkeeping Services

Leading provider of outsourced bookkeeping tailored to accounting industry needs. Offers US-based accounting teams and personalized services.

As a top bookkeeping provider focused on accounting firms, AcctTwo offers robust reconciliation, reporting, and record management services from US-based teams.

Key advantages include:

• US-Based Accountants: Get quality bookkeeping support from US-based teams fluent in US accounting practices, taxation, and regulations.

• Client Account Managers: Dedicated account managers serve as a single point-of-contact, learning clients' unique needs and priorities for tailored services.

• Secure Cloud Platform: Robust user permissions, access controls, and data encryption protect sensitive financial information while enabling anywhere access.

• Guaranteed Turnaround Times: Strict adherence to service delivery timelines for key tasks like bank reconciliations, journal entries, and custom reporting based on tiered pricing plans.

For personalized and domestic bookkeeping support, AcctTwo is a reliable service for accounting firms to consider that focus on quality, accuracy and timeliness.

LedgerSource: Online and Scalable Bookkeeping

Cloud-based bookkeeping platform with online dashboard for tracking financials. Uses AI and automation for efficient, scalable services.

LedgerSource is an innovative bookkeeping platform using technology like AI and RPA to enable speed, efficiency, and flexibility. Perfect for rapidly scaling businesses.

Advantages include:

• Automated Data Entry: Advanced OCR technology extracts data from invoices, receipts, and other documents for rapid classification and coding without human effort.

• Intelligent Transaction Review: Machine learning algorithms review transactions for any errors before posting, reducing manual quality checks.

• Customizable Cloud Dashboards: Fully configurable real-time dashboards to monitor company financial performance, cash flow, profits/loss, payables, and other metrics.

• API Integrations: Connect apps like Stripe, PayPal, Xero directly to LedgerSource for automated data feeds and seamless syncing.

For on-demand scale and leading innovation, LedgerSource provides an award-winning bookkeeping solution to consider, especially for high-growth businesses.

Bookkeeping Services Price List Comparison

We break down the typical pricing models of top outsourced bookkeeping platforms for easy comparison.

Fixed Monthly Packages

Some services offer pre-set tiers priced monthly based on expected workload and needs. Popular packages include:

• Basic: Covers essentials like bank reconciliations, financial report preparation, and payroll support. Ideal for small businesses. Costs approximately $200-300 per month.

• Standard: Adds more advanced functions like invoicing, bill payments, expense tracking. Better suits growing companies. Runs $400-600 monthly.

• Premium: Provides full suite of accounting tasks. Best for larger companies needing specialized expertise. Ranges from $800-1500+ per month.

Tiers allow predictable budgeting, though unique needs may require custom quotes. Upgrades or downgrades offered to match changing workloads.

Per Transaction Model

Other platforms charge per transaction processed based on complexity to optimize costs. Fees range on factors like:

• Document type - Bills and invoices cost more than bank imports or journal entries.

• Level of analysis - Reconciling accounts requires greater review than data entry.

• Time intensity - Tasks taking over an hour incur premium rates.

This à la carte model brings flexibility. However, costs can be hard to estimate month-to-month for budgeting needs. Useful for intermittent accounting support.

Remote Accountant Rates

Hiring a full-time remote accountant can provide more tailored support at hourly or monthly rates. Common billing models:

• Hourly: Range from $25-50 per hour based on experience level. No long-term commitment, paying only for work performed.

• Monthly Retainer: Starts around $1000-2000 covering an agreed upon number of weekly hours. Steady costs useful for consistent needs.

• Project or Task Basis: One-time fees quoted for specialized initiatives like systems implementation or tax preparation.

While pricier upfront, dedicated accountants allow customization and strategic finance guidance beyond basic bookkeeping.

Choosing the Right Bookkeeping Service: An Executive Summary

In summary, compare services across key criteria like specialization, security, integrations, and pricing models to find the best fit for your firm.

Align Specialties

Match industry expertise for optimal accuracy in financial tracking. Consider services specialized in your firm's focus areas, like construction, e-commerce, or healthcare, to leverage relevant accounting knowledge.

Seamless System Integrations

Choose platforms that readily connect with the other tools you rely on. Seek bookkeeping services offering native or third-party integrations with your existing systems to enable efficient financial data flows.

Ensuring Data Security

Validate vendors safeguard confidential financial information. Review security protocols like data encryption, access controls, and compliance audits before deciding on a bookkeeping provider to handle sensitive data.

Planning for Scalable Capacity

Opt for services built to grow cost-effectively alongside your firm over time. Evaluate pricing models and staffing structures to confirm bookkeeping partners can flexibly meet rising operational demands down the road.

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