Quick answer
Online bookkeeping services for small businesses usually start around $150 to $400 a month. Tax return preparation is often an add-on.
- Lowest cost: Wave Advisors (from about $149/month) and Bench (from about $199/month).
- Budget with no tax prep: Merritt Bookkeeping (about $250/month).
- Tax prep included: 1-800Accountant (from about $469/month, billed annually).
- For QuickBooks users: QuickBooks Live (from about $300/month).
- For scaling businesses: Bookkeeper360, Pilot or Xendoo (about $299 to $399/month).
Bench shut down abruptly on December 27, 2024, and was then bought by Employer.com. It reopened in 2025. Prices are approximate as of September 2026, so check each provider.
What happened to Bench?
Bench was one of the best-known online bookkeeping services for freelancers. On December 27, 2024, it told customers the platform would be immediately inaccessible, weeks before tax season.
Within days, Employer.com announced it was acquiring Bench. Bench resumed operations in January 2025 as an Employer.com subsidiary and still operates under the Bench brand.
The lesson for any service: own your data.
- Keep your accounting file in a platform you control, such as QuickBooks Online or Xero, where possible.
- Download financial statements and transaction exports every month or quarter.
- Keep copies of receipts and bank statements outside the provider. See Receipts and Records.
Comparison table
| Service | Starting price (approx.) | Tax prep | Best for |
|---|---|---|---|
| Wave Advisors | $149 to $199/mo | Varies by plan | Wave users on a budget |
| Bench | $199/mo | Add-on | New, simple businesses |
| Merritt Bookkeeping | $250/mo | Not included | Budget monthly bookkeeping |
| Pilot | $299/mo (annual) | Separate plans | Venture-backed startups |
| QuickBooks Live | $300/mo | Separate | QuickBooks Online users |
| Xendoo | $355/mo (annual) | Add-on | Owners who want a free book review first |
| Bookkeeper360 | $399/mo | Add-on | Growing businesses, Xero or QuickBooks |
| 1-800Accountant | $469/mo (annual) | Included | One provider for books and taxes |
Starting prices usually cover a limited number of transactions or accounts. Catch-up work on past months costs extra.
What a bookkeeping service does, and does not do
Usually included:
- Categorizing bank and card transactions each month
- Reconciling accounts to statements
- Monthly profit and loss statement and balance sheet
- A year-end package for your tax preparer
Often extra or not included:
- Filing your tax return (Schedule C, Form 1120-S or 1065)
- Quarterly estimated tax planning
- Payroll and sales tax filings
- Catch-up bookkeeping for prior months
Ask whether you get a named bookkeeper or a rotating team. Many services assign a team.
Worked example: does outsourcing pay?
Lena is a marketing consultant who bills $75 an hour. She spends about 5 hours a month on bookkeeping.
| Item | Annual amount |
|---|---|
| Service at $300/month | $3,600 |
| Time freed: 5 hours × 12 months × $75 | $4,500 |
| Net gain if she fills those hours with paid work | $900 |
If Lena cannot fill the extra hours with paid work, the service is a cost, not a saving. At a lower-priced service such as Wave Advisors at $149/month ($1,788 a year), the math is easier.
Bookkeeping fees are a deductible business expense on Schedule C, which lowers the real cost further.
Alternatives to a full service
- Software only: QuickBooks Solopreneur, Wave, Zoho Books or FreshBooks. See Best Accounting Software for Freelancers and Self-Employed.
- A local bookkeeper: often priced hourly and good if you want one person who knows your business.
- A CPA firm: some bundle bookkeeping with tax prep and planning. See Do You Need a CPA as a Freelancer?
For many solo freelancers with one bank account and a few dozen transactions a month, software plus a year-end review by a tax preparer is enough.
A hybrid also works well. You categorize transactions yourself during the year, then pay a bookkeeper for a quarterly or year-end cleanup. This costs far less than a monthly plan and still gives your tax preparer reconciled books. Ask for a flat quote based on your transaction count.
How to choose
- Count your transactions. Pricing tiers often depend on monthly volume.
- Check the software. Most services work in QuickBooks Online or Xero, or their own platform.
- Decide on tax prep. Bundled or separate.
- Confirm data access. Can you export everything at any time, and keep the file if you leave?
- Ask about catch-up pricing if your books are behind.
Red flags when hiring a bookkeeping service
- No clear data export. You should be able to download your ledger and statements at any time.
- Vague pricing. Ask what happens if your transaction count grows.
- No reconciliation. Books that are never matched to bank statements are not reliable.
- Tax prep promises without credentials. Ask whether a CPA or Enrolled Agent reviews or signs the return.
- Long contracts with big exit fees. Monthly terms reduce your risk if the provider changes, as Bench customers learned.
A good provider will also explain which records you must keep yourself, such as mileage logs and receipts.
Frequently asked questions
Is Bench still operating?
Yes. After shutting down in December 2024, it was acquired by Employer.com and resumed operations in January 2025. Check its current plans directly.
How much should bookkeeping cost for a freelancer?
Online services commonly start around $150 to $400 a month. Freelancers with simple books often use software for much less.
Do bookkeeping services file taxes?
Some do, such as 1-800Accountant. Many charge separately or refer you to a tax preparer.
Are bookkeeping fees tax-deductible?
Yes. Fees for business bookkeeping are an ordinary and necessary business expense.
This article is general information, not tax advice. Prices are approximate and change often. Consult a CPA or Enrolled Agent for your situation.
Related guides
- Best Tax Software for Self-Employed (2026)
- Best Business Bank Accounts for LLCs and Freelancers (2026)
- QuickBooks Self-Employed vs FreshBooks vs Wave (2026)
- Best Tax Software for Self-Employed (2026)
About this guide
Written by the Freelancer Tax HQ editorial team, based on our professional experience, official US government sources (IRS, SSA and other agencies) and reputable informational articles listed in the sources below. Last reviewed on . Tax rules change often, and we update this guide when they do. Read our editorial policy or report an error.
Sources
Wikipedia: Bench Accounting; NerdWallet: Best online bookkeeping services; Wave pricing. Example figures are FreelancerTaxHQ illustrations.
Official resources linked in this guide: IRS: Tax preparer credentials.