9 Best Online Bookkeeping Services for 2020

[Tested and Reviewed]

Business owners know best that time is money.

This is why we made a list of the top online bookkeeping services for 2020.

Besides service reviews, we have included:

  • A buyer’s guide
  • The benefits of outsourcing your bookkeeping 
  • Frequently Asked Questions

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1. Bench

If you are looking for a simple online bookkeeping plan - look no further! As a Bench client you will have access to only the best. A dedicated bookkeeping team will categorize your transactions and prepare your financial statements. And you can use it on all of your devices! Full Review

  • Desktop and iPhone app
  • Free trial
  • Scalable plans
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If you are looking for a simple online bookkeeping plan - look no further! As a Bench client you will have access to only the best. A dedicated bookkeeping team will categorize your transactions and prepare your financial statements. And you can use it on all of your devices! Full Review

Categorized transactions

Yes

Reconciled transactions

Yes

Dedicated team

Yes

Real-time cash flow tracking

Yes

Detailed expense tracking

Yes

Financial statements and reports

Yes

iPhone app

Yes

Tax services

Optional

2. Bookkeeper.com

Bookkeeper.com has lumped a tax service and a CFO advisory service, in addition to the regular bookkeeping services. Most companies charge extra for those services. With bookkeeper.com you get all the goodies in one place! Full Review

  • Uses QuickBooks
  • CFO and business advisory service
  • Accrual and cash
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Bookkeeper.com has lumped a tax service and a CFO advisory service, in addition to the regular bookkeeping services. Most companies charge extra for those services. With bookkeeper.com you get all the goodies in one place! Full Review

Account reconciliation

Yes

Monthly financials

Yes

Business consulting

Yes

Tax planning

Yes

Software training

Yes

Document storage

Yes

Software setup

Yes

Expense management

Yes

3. Bookkeeper 360

The Bookkeeper 360 accounting packages are fully customizable: cash or accrual, monthly or weekly, tax, prep add-on or not - you’re the boss! Bookkeeper 360 is great for small and medium-sized businesses that need a full package online accounting service. And the Payroll & HR add-on is just $45 per month! Full Review

  • Cash flow and burn analysis
  • Perfect for Xero users
  • Real-time metrics
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The Bookkeeper 360 accounting packages are fully customizable: cash or accrual, monthly or weekly, tax, prep add-on or not - you’re the boss! Bookkeeper 360 is great for small and medium-sized businesses that need a full package online accounting service. And the Payroll & HR add-on is just $45 per month! Full Review

Dedicated accountant

Yes

Monthly reconciliation

Yes

Profit and loss

Yes

Balance sheet

Yes

Tax prep and planning add-on

Yes

Payroll solution add-on

Yes

Inventory management add-on

Yes

CFO advisory

Yes

4. Merritt Bookkeeping

At just $190 per month, Merritt has to be the most affordable QuickBooks professional bookkeeper. And if you are behind on your bookkeeping, Merritt offers to create or review a QuickBooks file for your previous months at a discounted monthly rate. The right option for QuickBook fans! Full Review

  • Uses QuickBooks
  • 90-day money back
  • Discount for previous months
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At just $190 per month, Merritt has to be the most affordable QuickBooks professional bookkeeper. And if you are behind on your bookkeeping, Merritt offers to create or review a QuickBooks file for your previous months at a discounted monthly rate. The right option for QuickBook fans! Full Review

Monthly reports

Yes

Categorized transaction

Yes

Account reconciliation

Yes

Balance sheet

Yes

Profit and loss statements

Yes

Income and expenses

Yes

Catch-up bookkeeping

Yes

Set-up fee

No

5. inDinero

inDinero is the perfect accounting solution for startups and small businesses that want to grow and improve their performance. If you customize your plan to include the extra services, you will be able to talk with your CFO and discuss your business strategy. You can also use it with QuickBooks! Full Review

  • CFO services
  • Mobile app
  • Account manager
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inDinero is the perfect accounting solution for startups and small businesses that want to grow and improve their performance. If you customize your plan to include the extra services, you will be able to talk with your CFO and discuss your business strategy. You can also use it with QuickBooks! Full Review

Dedicated accounting team

Yes

Monthly reconciliation

Yes

Employee reimbursement

Yes

Accounts receivable/payable tracking and reporting

Yes

Taxes

Add-on

CFO services

Add-on

Bill pay

Add-on

Mobile app

Yes

6. QuickBooks Live

There is a high chance you are already using QuickBooks for bookkeeping. And for a good reason - it’s rich in features, offers free consultations, personalized reports and, as of recently, a certified QuickBooks online bookkeeper. Things just keep getting better! Full Review

  • Dedicated bookkeeping team
  • Free consultation
  • Virtual support
Visit Website

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There is a high chance you are already using QuickBooks for bookkeeping. And for a good reason - it’s rich in features, offers free consultations, personalized reports and, as of recently, a certified QuickBooks online bookkeeper. Things just keep getting better! Full Review

Financial reports

Yes

Categorized transactions

Yes

Account reconciliation

Yes

Payroll services

Add-on

QuickBooks setup

Yes

Trial balance

Yes

Income statement

Yes

Balance sheet

Yes

7. Pilot

Pilot offers a financial solution for all types of businesses: big, small, growing. So no matter what needs you have, Pilot’s got you covered. CFO, AP/AR, tax and other supplemental services can be purchased at an extra cost. Pre-revenue companies may even qualify for a discount! Full Review

  • Offers Xero migration
  • Support included
  • Pre-revenue company discount
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Pilot offers a financial solution for all types of businesses: big, small, growing. So no matter what needs you have, Pilot’s got you covered. CFO, AP/AR, tax and other supplemental services can be purchased at an extra cost. Pre-revenue companies may even qualify for a discount! Full Review

Dedicated expert

Yes

Cash flow statement

Yes

Balance sheet

Yes

Profit and loss statement

Yes

Monthly phone reviews

Yes

Inventory tracking

Yes

CFO services

Yes

Tax services

Yes

8. KPMG Spark

KPMG Spark offers a great alternative to an in-house accounting team - an outsourced online one! Each client has a dedicated bookkeeper and manager, at a surprisingly low cost. For those, looking for an affordable solution, this is a no-brainer! Full Review

  • Third party integrations
  • Dedicated representative
  • Add-on services
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KPMG Spark offers a great alternative to an in-house accounting team - an outsourced online one! Each client has a dedicated bookkeeper and manager, at a surprisingly low cost. For those, looking for an affordable solution, this is a no-brainer! Full Review

Payroll services

Yes

Tax preparation

Yes

Dedicated online bookkeeper, manager and CPA

Yes

Expense tracking

Yes

Invoicing and payments

Yes

Income tax return preparation

Add-on

Business licensing

Add-on

R&D Credit Feasibility Study

Add-on

9. Ignite Spot Accounting

Ignite Spot can provide small business owners with a QuickBooks Pro Certified accountant, online accounting and bookkeeping services, detailed financial reporting, tax prep and planning, CFO services, etc. It comes with everything you need. It’s A+ BBB rating proves it! Full Review

  • A+ rating with the BBB
  • Free 30min CFO session
  • Tax services
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Ignite Spot can provide small business owners with a QuickBooks Pro Certified accountant, online accounting and bookkeeping services, detailed financial reporting, tax prep and planning, CFO services, etc. It comes with everything you need. It’s A+ BBB rating proves it! Full Review

Payroll processing

Yes

Custom financial reports

Yes

Tax preparation

Yes

Tax planning

Yes

CFO services

Yes

Account receivable/payable

Yes

Monthly company performance reviews

Yes

Audit support

Yes

The Best Online Bookkeeping Services for 2020

  • Bench – Best for bookkeeping only 
  • Bookkeeper.com – Best value for money 
  • Bookkeeper 360 – Best for medium-sized businesses 
  • Merritt Bookkeeping – Most affordable bookkeeping service 
  • inDinero – Best for growing companies
  • QuickBooks Live – Best for QuickBooks online bookkeeping
  • Pilot – Best for pre-revenue companies 
  • KPMG Spark – Best for online accounting 
  • Ignite Spot Accounting – Best for detailed reporting 

Detailed Reviews

Bench
Bench

BEST FOR

Bookkeeping only

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  • Desktop and iPhone app
  • Free trial
  • Scalable plans
  • Dedicated bookkeeper

Bench prides itself in being a simple, yet affordable online bookkeeping service for entrepreneurs. It’s an online service with a human touch. 

Every plan comes with a dedicated bookkeeping team. If there is a need to, they can get your books up to date. Just one of the things you’ll never have to worry about if you choose Bench!

As a small business owner, you will be provided with the following online bookkeeping services

  • Dedicated team + support 
  • Categorized and reconciled transactions
  • Financial reporting (income statements, balance sheet, expense tracking, etc)
  • Desktop and iPhone app 
  • Tax prep and filing (additional service)

Regarding the tax services, Bench will prepare everything you need to file and work with you or your CPA. Or, if you purchase the BenchTax service as an add-on, they will even file your taxes for you! 

The only thing lacking is CFO advisory services – not offered at all. If you needed help with your financial strategy, we recommended looking into other online accounting firms.

Bench offers scalable plans, depending on your monthly expenses:

  • Starter (up to $1.000 in monthly expenses) – $169/month 
  • Micro ($1.000 to $7.500 in monthly expenses) – $189/month
  • Boutique ($7.500 to $25.000 in monthly expenses) – $219/month
  • Venture ($25.000 to $50.000 in monthly expenses) – $279/month
  • Corporate (up to $1 million in monthly expenses) – $349/monthly

The prices listed above apply if you are paying on a month-to-month basis. Annual payments are discounted. 

If you are not sure whether Bench is the right choice for you, you can start a trial and get free online bookkeeping services for a month.

Bookkeeper.com
Bookkeeper.com

BEST FOR

Value for money

Visit Website
  • Uses QuickBooks
  • CFO and business advisory service
  • Accrual and cash
  • Optional KPI report

Bookkeeper.com has been providing small businesses with bookkeeping and accounting services for 30 years.

Besides small business accounting services and bookkeeping, Bookkeeper.com can manage your payroll, prepare and plan your taxes, and manage your bills. If you have a fast-paced business, having someone else handle those tasks can be lifesaving.

With this service, you get the following bookkeeping services:

  • Account reconciliation of bank and credit card accounts and electronic transactions into Quickbooks
  • Monthly financials: balance sheet, profit and loss, general ledger, statement of cash flows
  • Advice (business consulting, tax planning, necessary software training)
  • Essential document storage
  • Accounting software setup
  • Expense management

Bookkeeper has three pricing plans:

  • Small Business (up to 125 transactions per month) – starting at $285/month
  • Small Business Plus (126-250 transactions per month) – starting at $495/month
  • Small Business Advanced (250+ transactions per month) – custom rate 

What we like most about Bookkeeper.com – or the Small Business Plus to be more specific – is the fact that you can get all the services that other companies offer as an add-on, included in the same plan. Tax planning, business consulting, and a monthly performance report can all be included in one plan.

Payroll services, tax preparation, and bill management can be purchased as additional services.

Bookkeeper 360
Bookkeeper 360

BEST FOR

Medium-sized businesses

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  • Cash flow and burn analysis
  • Perfect for Xero users
  • Real-time metrics
  • Covid-19 discount

Bookkeeper 360 is one of Xero’s top partners. The company employs a team that specializes in online accounting services, payroll services and tax preparation and planning. Rest assured you’re in good hands!

Bookkeeper 360 offers two types of business accounting packages – Monthly and Weekly

The Monthly plan includes the following:

  • Dedicated Accountant
  • Monthly Reconciliation
  • Monthly Profit and Loss and Balance Sheet
  • Phone, email, and chat support
  • Bookkeeper360 App (Xero only)

The Weekly plan includes everything in the Monthly Plan, plus a dedicated accounting team, weekly updates, advanced Reporting, and white-glove support.

The following services can be purchased as an add-on: CFO Advisory, Tax, Payroll & HR, Back-Office (invoicing, inventory management, etc). 

The cost depends on your monthly expenses, accounting method (cash or accrual), and the billing frequency (monthly or annually).

For example:

  • Monthly plan/cash basis accounting/up to $20.000 expenses/billed monthly – $399/month
  • Weekly plan/cash basis accounting/up to $20.000 expenses/billed monthly – $549/month
Merritt Bookkeeping
Merritt Bookkeeping

BEST FOR

Users looking for affordable bookkeeping service

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  • Uses QuickBooks
  • 90 day money back
  • Discount for previous months
  • Affordable

Merritt Bookkeeping Services, Inc. was founded in 2010. The company offers virtual bookkeeping services. But only the most basic business bookkeeping services – tax planning or payroll services aren’t available, even at an extra cost.

However, we have some good news for QuickBooks addicts! Meritt is the top choice for online accounting software working with QuickBooks.

Here’s how it works:

Meritt categorizes your transaction using QuickBooks. It then emails you your monthly reports. As no tax services are available, you would need to email the reports to your CPA. 

There is just one plan, at $190 per month

What we like about Merritt is that it offers the most affordable bookkeeping services, along with a 90-day money-back guarantee. What we don’t like is that there is no option to purchase additional services (tax, CFO). 

If you already have someone on your team that can prep your taxes, file them, etc. then you can use Merritt’s services to save some time. However, if you need extra help from a virtual accountant, you may want to hire a company that offers a full package of services.

inDinero
inDinero

BEST FOR

Growing companies

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  • CFO services
  • Mobile app
  • Account manager
  • Tax preparation and filing

Founded in 2009, inDinero is not the typical provider. Its basic plan is aimed at new companies that require online bookkeeping services. However, it also offers a custom plan for growing companies. inDinero has its own accounting software, but you can also use it with QuickBooks Online. 

You get quite a lot of goodies:

  • Account manager
  • Automated transaction imports
  • Mobile app
  • Document management
  • Monthly reconciliation
  • Profit and loss
  • Balance sheet
  • Employee reimbursement
  • Accounts payable/accounts receivable tracking and reporting

With the add-on features offered, inDinero can provide you with all the online accounting and bookkeeping services your company needs. You can choose from:

  • Revenue recognition
  • Inventory reconciliation
  • Cash flow projection
  • Payroll support
  • CFO services 
  • Tax preparation and filing 

inDinero offers only two plans:

  • Essential (cash basis accounting) – starting at $300/month
  • Custom (accrual accounting) – custom rate 

Customizing your plan and scaling up the features will increase your monthly costs. If it turns out that you need extra help (and would like to continue doing business with inDinero), you can get a full package from the same company. You get the best of both worlds.

QuickBooks Live
QuickBooks Live

BEST FOR

QuickBooks online bookkeeping

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  • Dedicated bookkeeping team
  • Free consultation
  • Virtual support
  • Personalized reports

QuickBooks Online is among the most popular and most widely accounting software solutions. It’s the cool kid on the block because it just keeps getting better. Recently, it added the option for clients to hire a QuickBooks bookkeeper to manage and maintain their books. 

With QuickBooks you get:

  • Transaction categorization
  • Account reconciliation 
  • Key financial report (profit and loss statement, balance sheet)

Payroll services can be purchased at an additional cost.

There are three pricing tiers of QuickBooks Live BookKeeping

  • Low-volume bookkeeping (up to $25.000 in monthly expenses) – $200/month
  • Medium-volume bookkeeping ($25.001 – $150.000 in monthly expenses) – $400/month
  • High-volume bookkeeping ($150.000+ in monthly expenses) – $600/month

The cost of a monthly QuickBooks Online subscription is not included in the price. 

The QuickBooks Live Bookkeeping Setup costs $50 per session and is refundable prior to the session. This includes: 

  • setting up a chart of accounts 
  • customized invoices 
  • setup reminders 
  • connecting bank accounts and credit cards
  •  bookkeeping tips via one-time virtual access to a Live Bookkeeper

QuickBooks Live does offer a virtual bookkeeper offering expert QuickBooks online bookkeeping services. However, the services are limited. It won’t manage your inventory, pay your bills, manage your payroll, or offer financial advice.

Pilot
Pilot

BEST FOR

Pre-revenue companies

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  • Offers Xero migration
  • Support included
  • Pre-revenue company discount
  • CFO/tax services offered

Pilot is a US company that offers accounting and bookkeeping services for small business companies and startups. 

It offers extensive financial services – separate plans for bookkeeping, CFO services and tax services. The CFO and tax packages are usually purchased as an add-on to the bookkeeping plan, though they are optional.

Pilot can help you with:

  1. Bookkeeping
  • Dedicated finance expert
  • Automatic transaction import
  • Accrual basis bookkeeping
  • Profit and loss, balance sheet, cash flow statements 
  • Payroll and balance sheet reconciliation 
  • Burn rate calculations
  • Banks, credit card, and payment processor connection
  • Chart of accounts
  • Transactions (bills, invoices, checks and reimbursements)
  • Advanced bookkeeping services and concierge services (not included in all plans)
  1. CFO services
  • Expert CFO team
  • Custom financial support
  • Additional services (depending on the plan)
  1. Tax services
  • Dedicated tax preparer
  • Streamlined online process
  • Full tax prep service
  • Additional services (depending on the plan)

There are three different plans for the bookkeeping services, depending on the monthly expenses of the company. And there are two pricing plans for the CFO and tax services.

The cost of bookkeeping services for small business companies with up to $29.999 in monthly expenses is $599/month for the Core plan, and $849/month for the Select plan. The Plus plan is targeted at larger businesses and it has a custom rate. 

Additional services can be purchased as add-ons. The cost of online accounting services increases as your business grows. Even if you have prepaid for the year, you may still be billed more if your books are growing. Pilot also charges a one-time onboarding fee, equal to the monthly cost of your subscription

All plans are prepaid annually and canceling would only stop your subscription at the end of your billing cycle. 

A special discount is offered to pre-revenue companies – $200 off per month for the first year.

KPMG Spark
KPMG Spark

BEST FOR

Online accounting

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  • Third party integrations
  • Dedicated representative
  • Add-on services
  • Free consultation

KPMG Spark provides online accounting services for small business companies. The company uses its own online accounting software and pairs business owners with online bookkeepers.

With KPMG Spark you get:

  • Online accounting 
  • Payroll services
  • Tax preparation 
  • Dedicated bookkeeper, manager and CPA
  • Expense tracking
  • Invoicing and payments

The pricing depends on the number of accounts you need bookkeeping to be performed on. It goes like this:

  • 1 to 3 accounts – $195/month
  • 4 to 6 accounts – $395/month
  • 7 to 10 accounts – $495/month
  • Custom – custom pricing 

The prices above are applied if you are paying on a month-to-month basis; paying annually is cheaper. Outsourced bookkeeping services and a dedicated account representative is included in all plans. 

At an extra cost, you can purchase income tax return preparation, business licensing, and an R&D Credit Feasibility Study.

Ignite Spot Accounting
Ignite Spot Accounting

BEST FOR

Detailed reporting

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  • A+ rating with the BBB
  • Free 30min CFO session
  • Tax services
  • QuickBooks Pro Certified accountant

Ignite Spot is an outsourced accounting company for small businesses. Its main goal is to make business more profitable. The firm strives to coach business owners, instead of just doing their books. 

Ignite Spot can provide small businesses with a full package of outsourced accounting services – something not usually offered by the competition. 

The financial reports are also detailed: a monthly review of your company performance is included. This is a great service for business owners that want to set targets. 

Lastly, business owners that want to scale up their companies can outsource an expert CFO. The chief financial officer can create a custom financial plan for you, aiming to increase your profits and minimize your losses. 

The semi-monthly bookkeeping services package starts at $575/month. The weekly package starts at $1.200/month and the semi-weekly package starts at $3.750/month.

The virtual CFO services start at $500 and go up depending on your needs. 

While the plans may be pricey for some business owners, Ignite Spot is a good option for businesses that want to see growth. Their accountants are QuickBooks Pro Certified and CPAs, which is quite a bonus.

What Are Online Bookkeeping Services?

When it comes to bookkeeping, small business owners have the following options:

  • Do their own books
  • Hire an in-house employee
  • Hire an outsourced bookkeeping team

An online accountant or bookkeeper provides accounting or bookkeeping services online. This can save small business owners valuable time and money. 

What Are the Benefits of Using Online Bookkeeping Services for Your Business?

But why do you need such a service? Well:

Saves time 

Small business owners usually do everything on their own. Online bookkeeping companies can relieve some of that burden; leaving business owners with one less responsibility. 

Saves money

The average salary of a bookkeeper in the USA is around $40,000. The average salary of an accountant is around $50,000. Not every business owner can afford (nor has the need for) in-house bookkeepers and accounts. Online bookkeeping services for small business companies cost less, making them a more cost-effective option. 

Access to virtual accounting services

Virtual bookkeeping companies don’t just help you with your books – some even offer online CPA services. Depending on the plan you purchase, you can outsource all the accounting-related tasks of your business. 

What Should You Look for in a Bookkeeping Service?

Here are some tips on how to find the best bookkeeping services for your business:

Decide which services you need 

As we previously mentioned, you can find a variety of online accounting companies that aren’t limited to professional bookkeeping services.

Decide whether you wish to outsource everything related to bookkeeping or accounting, or whether you prefer to handle some level of your finances in-house. 

After you determine the level of service you need, you’ll be able to find a fitting company. 

Certification 

If this isn’t disclosed prior to purchasing, make sure you inquire about the certification and industry experience of the online accountants and bookkeepers you are hiring. Hiring someone experienced guarantees a good experience. 

Security 

It goes without saying that security is paramount for anything business-related. You don’t want just anyone to access your financials! Make sure the company you are hiring safeguards your information and limits access to your accounts. 

Targeted businesses (related to business size)

Does the company provide accounting services for small business companies or large businesses? Does it work with startups? The size of your business is another factor that should influence your decision. 

Affordable cost

It is true that you are getting what you have paid for. However, you will find that there are a few virtual accounting companies that offer the same level of service yet the cost difference is enormous. Don’t hesitate to shop around in order to find a service that is within your budget. 

Yet, when it comes to business finances, it is better to go with a quality service, rather than pinch pennies. 

Wrap Up

Outsourcing your accounting duties will bring great relief. If you choose the right company, that is.

We have reviewed the top online bookkeeping services, and have featured the best types for different budgets. You won’t regret trusting them!

You may also be interested in:

5 Best Tax Software

10 Best Accounting Software

10 Best Expense Management Software

10 Best Payroll Software

 

FAQ

What do online bookkeepers do?

Online business accountants or bookkeepers handle your bookkeeping in the same way as in-house bookkeepers or accountants. The difference is that you are paying a monthly or yearly subscription for someone to do the work remotely, instead of hiring in-house employees.

How much does monthly bookkeeping cost?

The most affordable service on our list is Merritt Bookkeeping. The firm charges $190 per month. Most companies however charge more than $200 per month. The cost also depends on the level of service and the size of your business.

What is the best online accounting software?

QuickBooks Online and Xero are the most used accounting softwares. Most of the online bookkeeping services on our list use QuickBooks. Some use their own software.

What is the difference between accounting and bookkeeping?

A bookkeeper is someone that solely handles your books – or records your transactions. An accountant analyzes those reports and can provide financial advice (e.g. tax advice). A certified public accountant (CPA) is an accountant that has passed the state exam and received a license.

Is virtual bookkeeping legit?

The only difference between a virtual bookkeeper and an in-house bookkeeper is the fact that a virtual bookkeeper works remotely. They still need to have the same level of education and experience. Small business owners that cannot afford to hire a full in-house accounting team, can consider online bookkeeping services as an alternative.