Top Accounting Solutions for Managing Small Business Finances

All small businesses must track their cash flow and develop financial reports to increase profitability. However, it’s not always possible or sensible to hire an entire accounting team. Luckily, there are outsourced and online accounting services available to fill these needs for you. Here’s a guide for small businesses.

What is an Accounting Service?

An accounting service is a third-party provider that goes over your books and provides insights to help your team make financial decisions. Unlike accounting software, this type of service includes a financial advisor or other professional to help you. Here are some functions accounting services usually offer:

• Measure cash flow
• Study balance sheets to help you pay off debt or cut expenses
• Develop financial reports to inform your decisions going forward
• Create projections for future profits
• Track payroll services and benefits for employees
• Provide tax services to limit your end-of-year payments
• Manage accounts payable and accounts receivable
• Keep a general ledger of transactions

Why You Should Consider Using Small Business Accounting Services

Small business accounting services can benefit nearly every company, but especially those that need help managing finances without the resources to hire an accountant. Here are some specific benefits for small businesses:

• Make better financial decisions: Accountants provide an overall picture of your financial status to improve decision-making.
• Stay on top of tax returns: An accounting service should also track your tax commitments so you can pay quarterly and track all potential deductions.
• Save time on bookkeeping and accounting services: Your team’s time may be better spent on high-level work than on catch-up bookkeeping tasks.
• Avoid overpaying for various services: Accounting services also track expenses, which may inform areas where you can make cuts or switch to less expensive providers.
• Stay up to date with payments: Falling behind on payments may lead to late fees or interest payments.

Best Accounting Services for a Small Business

If you are a small business owner in search of an accounting service provider, here are several excellent options to consider.

1-800Accountant

1-800Accountant offers online accounting software and calls with real accountants. Services include taxes, bookkeeping, payroll, and business formation. There’s a free plan available. Paid plans start at $125 per month.

Pros:

• Free phone consultation
• Personalized advice from a CPA
• 30-day money-back guarantee

Cons:

• Ongoing payments instead of on-demand services
• Smartphone apps not available

1-800Accountant provides direct assistance from accountants and bookkeepers; however, its platform is not the most advanced or user-friendly option available.

inDinero

inDinero is one of the top online accounting services available for small businesses. The service offers software along with insights from real CFOs. Pricing starts at $300 per month.

Pros:

• Real-time financial insights
• Scalable solutions for businesses at various stages
• Integrates with payment solutions like Bill.com and Expensify

Cons:

• You may work with different CFOs during each call
• Pricier than some other options

If you’re looking for a software-as-a-service accounting solution, inDinero’s proprietary software and CFO access may help.

Block Advisors

Operated by H&R Block, Block Advisors provides personalized business advice online. Their services begin at $50 per month, with each option billed individually.

Pros:

• 100% accuracy guarantee on taxes
• Tax pros receive ongoing training each year
• Free consultations available

Cons:

• Does not integrate with QuickBooks or other popular bookkeeping options
• Services billed separately

Block Advisors is an ideal choice for those needing extra help with taxes or those focusing on just one area.

Sunrise

Sunrise is a free accounting service that provides insights on everything from cash flow to expenses. There’s also a paid plan available.

Pros:

• No cost
• Connect to your bank account
• Create and send branded invoices

Cons:

• Still requires you to update expenses and payments
• Takes payment processing fees

Sunrise is a solid solution for those with a low budget for financial services and those who want to manage their own accounting.

QuickBooks Live

QuickBooks Live offers real experts to help with your books. This solution is easy to integrate into the tools you already use. Pricing starts at $12.50 per month, with a free trial available.

Pros:

• Easily integrate with your existing books
• Accuracy guarantee
• Get paired with an ongoing bookkeeper

Cons:

• Doesn’t include invoicing
• No bill payment features

QuickBooks Live is an additional feature for those who already use QuickBooks software,

Read More: hire an accountant

Pilot

Pilot offers a comprehensive range of financial services within a single plan. You have the flexibility to customize the services you need and will benefit from the support of a dedicated team. Pricing begins at $599 per month.

Pros:

• Financial reports tailored to each industry
• Access to a dedicated bookkeeper
• Add on services are available

Cons:

• More expensive than many other services
• Must purchase different services for bookkeeping, tax, and CFO services

Pilot offers customizable offerings for businesses that can afford the ongoing expense.

Paro

Paro is a finance app that uses AI to help you find the best experts and services for your needs. You get a list of experts who match your requirements and work directly with them. Prices vary based on services and level of experience.

Pros:

• Completely customizable.
• Get a dedicated CFO
• Ability to compare skills and services

Cons:

• Each expert controls their own hourly rate
• Experience may vary widely

Paro is a marketplace rather than an accounting agency. But it can help you find relevant professionals.

Best Bookkeeping Services for Small Business

Bookkeeping includes keeping an ongoing ledger of transactions, rather than providing analysis or financial insights. If you’re interested in outsourcing bookkeeping, these services may help.

BookKeeper.com

BookKeeper.com offers a variety of virtual bookkeeping services. They offer various plans with DIY options, online support, and monthly calls. Pricing starts at $399 per month.

Pros:

• Dedicated bookkeeper
• Integrates with QuickBooks
• Ability to add on services

Cons:

• It can be costly for new businesses
• Some features are DIY

BookKeeper.com offers an all-in-one solution that can be customized to your needs

Bench

Bench offers a team of bookkeepers along with a DIY platform for users. Their pricing begins at $249 per month, and they also provide a free trial for new customers.

Pros:

• One-to-one support
• Integrates with payment solutions
• Offers financial reports

Cons:

• Specialized and catch-up bookkeeping are added costs
• Doesn’t integrate with popular bookkeeping platforms

Bench pairs proprietary software with real bookkeepers to customize services for small businesses.

Bookkeeper360

Bookkeeper360 offers cloud-based bookkeeping through Xero, QuickBooks, and Gusto. Monthly plans start at $349.

Pros:

• Monthly, accrual, and pay-as-you-go plans are available
• Integrates with multiple bookkeeping solutions
• Dedicated account manager

Cons:

• Extra financial solutions are billed separately
• The smallest plans don’t include unlimited support

Bookkeeper360 includes a variety of bookkeeping options and services, with various payment options for businesses with different needs.

How to Choose the Best Bookkeeping and Accounting Services

If you’re looking for the best accounting services for your small business, here are some tips:

• Prioritize financial services: Do you need help with financial reports? Taxes? Bookkeeping? Payroll? List the services you need and look for platforms that support those options.
• Look for essential integrations: It’s easier to get started if your service integrates with the bookkeeping or tax services you already use.
• Consider your budget: How much can you afford each month? Or does it make more sense to pay on demand? Some services even offer free options.
• Explore various options: Numerous accounting services provide free trials. Take advantage of these trials or register for demos to determine which ones are the most user-friendly for your needs.

Do all businesses need accounting services?

No, you can instead hire in-house accountants or handle financial analysis on your own. However, many small businesses can benefit from outsourcing accounting services.

What is the average cost of accounting services for small businesses?

The cost of accounting services varies based on the type of plan and add-on services you choose. Many offer custom pricing options, and a few even have free plans. However, the average monthly fee often falls around $200 to $300.

Image: Depositphotos

This article, "Top Accounting Solutions for Managing Small Business Finances" was first published on Small Business Trends