Best Virtual Bookkeeping Services in 2025

In 2025, it takes more than a great product or service to continue growing a successful business. Evolving tax laws, stricter payroll compliance, and ongoing reporting requirements make bookkeeping a mission-critical function for entrepreneurs and owners working toward their next business milestone. 

The best virtual bookkeeping solution for your small business won't simply help you record transactions—it will ensure your business stays compliant, tax-ready, and positioned for long-term growth.

Key Highlights

• Virtual bookkeeping in 2025 is crucial for saving time, mitigating compliance risks, and adapting to new reporting requirements.

• The best providers offer more than software: access to real CPAs, EAs, bookkeepers, and tax professionals, and scalable services matter most.

• 1-800Accountant ranks as the #1 all-in-one choice, delivering bookkeeping, tax, payroll, and advisory under one roof for an affordable, tax-deductible fee.

• Competitors like Bench, QuickBooks Live, and Pilot offer strong alternatives but may fall short in terms of flexibility, pricing, or comprehensive service capabilities.

• Choosing the right solution depends on your budget, growth stage, and whether you need a comprehensive partner vs. a single-function provider. 1-800Accountant can tailor a package that fits your business budget. 

Why Virtual Bookkeeping Matters in 2025

The business landscape in 2025 is more digital—and more regulated—than ever before. Small business owners now face stricter IRS payroll deposit rules, quarterly estimated tax obligations, and new 1099 reporting requirements due to the passage of the One Big Beautiful Bill Act. Missing deadlines can trigger costly penalties, such as fines ranging from 2% to 15% for late payroll tax deposits, as outlined in the IRS payroll deposit rules.

Virtual bookkeeping for small businesses is designed to help owners efficiently fulfill their compliance obligations. There are numerous benefits of embracing outsourced bookkeeping services, such as:

• Time Savings: Automated transaction tracking, categorized expenses, and monthly statements reduce errors and hours spent on manual work.

• Tax Readiness: Well-organized, reconciled books simplify quarterly filings and annual tax prep. Tax-ready books are essential during an audit and when real-time data is required to support complex business decisions.

• Peace of Mind: Professional oversight ensures compliance with payroll and reporting deadlines, helping you stay on top of tax deadlines.

Affordable bookkeeping online and digital-first bookkeeping services are no longer a “nice-to-have”—it’s the backbone of small business financial health in 2025. 

What to Look for in a Virtual Bookkeeping Service

Before engaging with virtual bookkeeping prospects and their bookkeeping software alternatives, it's essential to have a list of features and other must-haves. When comparing providers and evaluating their bookkeeping vs accounting services, keep these key features in mind:

• Accuracy & Compliance: Services should support payroll filings, 1099s, and federal deadlines. Missing an IRS Form 941, Employer's Quarterly Federal Tax Return submission, or quarterly tax payment can result in penalties and distractions.

• Expert Support: Software-only tools can’t replace the value of a dedicated CPA, EA, bookkeeper, or tax professional. Look for bookkeeping with CPA support, not just data entry.

• Integration & Technology: Some services utilize proprietary platforms (such as 1-800Accountant’s ClientBooks), while others rely on integrations with QuickBooks or Xero.

• Pricing Transparency: Subscription-based pricing offers predictability, whereas hourly billing can lead to unexpected costs.

• Scalability: As your business grows, you may need additional support, such as payroll or advanced tax planning. Choosing a provider that offers both bookkeeping and broader financial services ensures you won’t have to go through the hassle of switching providers later.

Best Virtual Bookkeeping Services in 2025

Below, we’ve compared the top online bookkeeping companies for 2025.

1. 1-800Accountant (Editor’s Choice – Best Overall)

1-800Accountant, America's leading virtual accounting firm, is the top choice for small business owners seeking comprehensive virtual bookkeeping services. Unlike most competitors, it provides more than bookkeeping—it delivers tax preparation and planning, payroll, entity formation, and advisory, all in one place for maximum efficiency and a minimal tax burden.

• Services: Bookkeeping, tax preparation, payroll, advisory, and entity formation.

• Technology: Proprietary ClientBooks platform with secure, industry-standard document management.

• Pricing: Flat-rate, never hourly. Packages start around $179/month (annual billing).

• Savings: Clients save an average of $12,000 per year in taxes.

• Support: Dedicated CPA, EA, bookkeeper, or tax professional or team is assigned to each client.

• Reputation: Backed by nearly 10,000 1-800Accountant reviews with a 4.4/5 "Excellent" Trustpilot rating.

For entrepreneurs who want an all-in-one solution and predictable pricing built for small businesses, 1-800Accountant is unmatched.

2. Bench Accounting

Bench, which is in the midst of rebranding to Mainstreet, combines intuitive bookkeeping software with human bookkeepers. It’s an affordable option for very small businesses.

• Monthly financial statements and tax-ready bookkeeping.

• Particularly beneficial for small businesses seeking clean and organized records.

• Pricing may increase as transaction volume grows, making it less scalable for high-growth businesses at an affordable price. 

3. QuickBooks Live Bookkeeping

QuickBooks Live integrates directly into QuickBooks Online and is part of the popular QuickBooks family of products. 

• 1-on-1 bookkeeping support plus seamless access within QuickBooks.

• A solid option for businesses already invested in the QuickBooks ecosystem.

• Support may be more transactional than advisory, and costs scale with complexity, which are viewed as limitations. 

4. Pilot

Pilot is designed for startups and VC-backed companies. Founders in particular appreciate where Pilot excels: automation, a polished interface, and its focus.

• Offers accrual-based bookkeeping, CFO services, and financial modeling.

• A strong fit for tech companies and growth-focused businesses.

• Comes at a significantly higher cost than most competitors.

5. Bookkeeper360

Bookkeeper360 has been catering to small and mid-sized businesses since 2012 with bookkeeping and financial advisory services.

• Integrates with both QuickBooks and Xero.

• Offers payroll, HR, and CFO-level services.

• Flexible and growth-oriented, but pricing can add up with its many add-ons.

6. Merritt Bookkeeping

Merritt is known for its affordability and simplicity, and may appeal most to entrepreneurs seeking only bookkeeping support. 

• Low-cost monthly pricing.

• Handles essential bookkeeping well.

• Lacks advanced services like payroll or tax preparation.

7. Xendoo

Xendoo specializes in serving small businesses and franchises. The service was founded by a small business owner who experienced the inefficiencies of traditional accounting solutions.

• Provides monthly bookkeeping plus tax return services.

• Its industry focus is primarily on retail, restaurants, and franchises.

• Limited advisory or expansion services compared to full-service providers.

How to Choose the Right Service for Your Business

With this guide, choosing the optimal virtual bookkeeping service for your small business should be a little less complicated. The best choice depends on your unique business needs and requirements:

• Budget-Conscious Owner: Merritt or Xendoo may be sufficient early on.

• Growth-Oriented Startup: Pilot or Bookkeeper360 could be the right fit in the early phases.

• Small Business Seeking All-in-One Support: 1-800Accountant is the most comprehensive option, combining bookkeeping, tax preparation, and payroll support for small businesses that scales as your business grows.

Bookkeeping is just one aspect of managing your finances. The real value comes when your trusted service provider helps you plan, save the most money on taxes, and efficiently adapt to regulatory changes, such as the One Big Beautiful Bill Act. 

That’s where 1-800Accountant stands apart—acting not just as a bookkeeper, but as your ongoing financial partner. Schedule a free 30-minute consultation to get started.