Quick Answer: How much does a bookkeeping service cost for a small business?
A bookkeeping service for a small business is usually priced as a monthly fee covering transaction categorization and basic financial statements. For providers that bundle their service with specific accounting software, the cost usually scales with your monthly expense volume and the software tier you choose. For example, QuickBooks Experts (formerly QuickBooks Live Bookkeeping) requires a QuickBooks Online subscription, and Intuit does not publish the bookkeeping service's own price on its pricing page. Conversely, if you are looking for an all-in-one compliance and tracking tool for a new entity, a service like ZenBusiness Money Pro costs $30 per month.
Choosing the right bookkeeping service involves balancing budget constraints against the complexity of your business finances. When you start researching cheap bookkeeping services, the options can seem overwhelming. The most important initial steps have nothing to do with software. The foundation of good bookkeeping is separating your business finances from your personal finances.
According to the Internal Revenue Service in Publication 583, "One of the first things you should do when you start a business is open a business checking account. You should keep your business account separate from your personal checking account." This single step simplifies any service you hire later. The IRS instructs business owners to use the business account for business purposes only and to indicate the source of deposits and the type of expense in the checkbook. The business checkbook is "your basic source of information for recording your business expenses."
For a reader who is just starting out, forming an entity and keeping money separate comes before selecting software. If you are forming a new company and need to navigate the initial setup, ZenBusiness accounting provides a pathway to handle your entity formation, get an EIN, and establish a framework for your records. Once your accounts are separate, you can accurately evaluate providers.
Below is an alphabetical list of popular bookkeeping services and software ecosystems available to small business owners.
Bench provides a done-for-you bookkeeping service using its own proprietary software. The company pairs business owners with a dedicated bookkeeping team that categorizes transactions and prepares monthly financial statements. Bench charges a monthly fee by tier: as of October 6, 2026, Bookkeeping Light is $199 per month and Bookkeeping $399, and Bookkeeping + Tax at $649 adds tax preparation and filing. This structure works well for business owners who want to hand off the work entirely and do not require traditional double-entry accounting software.
Bookkeeper360 is a financial technology firm that integrates with existing platforms like Xero and QuickBooks Online. Instead of requiring you to use proprietary software, Bookkeeper360 layers its human bookkeeping team over the software you already use. The company offers both pay-as-you-go pricing and monthly subscription plans starting at $399 per month. They provide dedicated accountants, payroll integration, and tax services, making it a flexible option for growing businesses that need more than just basic categorization.
Merritt Bookkeeping focuses on a very specific segment of the market: small businesses needing simple cash-basis bookkeeping at a predictable price. Merritt charges a flat monthly rate of $250 per month regardless of your transaction volume or revenue. They use QuickBooks to do the back-end work but provide you with a simplified user interface to review and approve transactions. This strict flat-rate pricing makes Merritt an attractive option for business owners who want a cheap bookkeeping service without worrying about sudden price hikes as they grow.
QuickBooks Experts (formerly known as QuickBooks Live Bookkeeping) is Intuit's in-house bookkeeping service. To use QuickBooks Experts, you must first have an active QuickBooks Online software subscription. Intuit does not publish the bookkeeping service's own price on its pricing page, so get a quote before comparing it with a flat-fee provider. You are paired with a certified bookkeeper who cleans up your accounts, categorizes transactions, and reconciles your bank feeds every month. This is a strong option if your operations are already deeply embedded in the QuickBooks ecosystem.
Wave is well known for offering its core accounting and invoicing software completely free of charge. As of October 6, 2026, Wave's payroll add-on starts at $25 per month and card processing is 2.9% + $0.60 per transaction. For bookkeeping help, the company offers Wave Advisors. This is a paid service where professionals manage your bookkeeping within the Wave software starting at $149 per month. Because the underlying software is free, combining it with Wave Advisors can be a cost-effective route for very small businesses or freelancers with simple needs.
Xero is a major competitor to QuickBooks in the cloud accounting software market. Xero operates on a monthly subscription model, from $27 per month (Early) to $97 per month (Established) as of October 6, 2026, and offers unlimited users on all its plans, which is a structural advantage for businesses with multiple managers. While Xero does not provide an in-house bookkeeping service directly, it boasts a massive directory of certified Xero advisors and independent bookkeepers who specialize in the platform.
ZenBusiness is primarily a business formation and compliance company that also offers a bookkeeping service called ZenBusiness Money Pro. The service costs $30 per month and covers custom invoicing, revenue and expense tracking, and tax preparation tools. ZenBusiness also offers a free accounting consultation to customers who form an entity through them. For a business owner who wants one provider to handle formation, registered agent duties, compliance, and basic bookkeeping support, ZenBusiness Money Pro bundles those needs effectively.
When comparing Merritt Bookkeeping directly against QuickBooks Experts, the primary difference lies in their pricing structures and software requirements. Merritt Bookkeeping operates on a strict flat-fee model of $250 per month. This creates predictability. Small business owners know exactly what their bill will be every month. The trade-off is that Merritt handles simple, cash-basis bookkeeping and does not offer complex accrual accounting or advanced inventory tracking.
QuickBooks Experts requires you to pay for both the QuickBooks Online software and the bookkeeping service. Intuit does not publish the service's price, so ask for a quote and ask how it changes as your business grows. However, staying within the QuickBooks environment allows you to utilize advanced reporting, deep app integrations, and accrual accounting features if your business requires them. A low-cost, low-volume business might find Merritt's flat fee cheaper, while a scaling business that relies on Intuit's tools will lean toward QuickBooks Experts.
Regardless of which service you choose, keeping accurate records is not just a best practice. It is a legal requirement enforced by multiple federal and state agencies. No software or bookkeeping service absorbs your legal liability. You are responsible for retaining the proper documents for the required lengths of time.
The Internal Revenue Service provides strict guidelines on document retention. The agency states that you must keep records for 3 years. The exceptions require significantly longer retention periods. You must keep records for 6 years if you do not report income that you should report and it is more than 25% of the gross income shown on your return. You must keep records for 7 years for a claim for a loss from worthless securities or a bad debt deduction. Furthermore, you must keep records indefinitely if you do not file a return, or if you file a fraudulent return.
If you have employees, your requirements expand. The IRS requires you to keep employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later.
The U.S. Department of Labor also enforces strict recordkeeping rules under the Fair Labor Standards Act. According to DOL Fact Sheet 21, "Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records." Additionally, the DOL mandates a two-year retention period for FLSA supporting records. These include time cards, piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages.
State regulations can add another layer of compliance. For example, businesses operating in California must adhere to the rules set by the California Department of Tax and Fee Administration. CDTFA Publication 116 states that businesses must retain California sales and use tax records for at least 4 years. Furthermore, the publication notes that records must be kept longer if you are being audited: you must retain all records covering the audit period until the audit is complete.
To meet these retention requirements, your chosen bookkeeping service will need source documents. IRS Publication 583 names specific supporting documents that business owners must retain. For gross receipts, you must keep cash register tapes, bank deposit slips, receipt books, invoices, and credit card charge slips. For purchases and inventory, you must retain canceled checks, cash register tape receipts, credit card sales slips, and invoices. For expenses, the IRS requires canceled checks, cash register tapes, account statements, credit card sales slips, and invoices. Finally, for assets, you must keep purchase and sales invoices, real estate closing statements, and canceled checks.
The most effective way to manage these requirements is to address compliance upstream of your software choice. Open a dedicated business checking account, route every business transaction through it, and retain the underlying documentation for the federal and state maximums. Once that system is in place, you can confidently compare flat-fee providers like Merritt Bookkeeping against software-integrated services like QuickBooks Experts to find the right cost balance for your company.
Sources
- Internal Revenue Service, "How Long Should I Keep Records?"
- Internal Revenue Service, "Recordkeeping"
- Internal Revenue Service, "Publication 583, Starting a Business and Keeping Records"
- U.S. Department of Labor, "Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)"
- California Department of Tax and Fee Administration, "Publication 116, Retaining Records"
- U.S. Small Business Administration, "Manage Your Business"
This article provides general information and is not intended as legal, tax or accounting advice; requirements vary by jurisdiction and change over time.