And our advice can grow with your company, from simple startup CPA accounting to part-time CFOs. Whereas a traditional small business focuses on their bank account balance, startups focus on the KPIs that help them raise their next round of funding. Choose an advisor who “gets” early-stage, Silicon Valley-style businesses. At Kruze, we would argue that a VC-backed startup should have an accountant/CPA (and not just a bookkeeper). Businesses with over six months of runway should consider hiring a real accountant. Merritt Bookkeeping is by far the least expensive online bookkeeping service available on this list.

She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.

What are the five basic accounts in bookkeeping?

A user-friendly option for small business accounting, FreshBooks makes it easy to track income and expenses and includes a self-employed version just for you. If you’re still on the fence about handling basic bookkeeping or accounting for your business, you’re not alone. If the thought of doing your books is overwhelming, you have plenty of other options including enlisting the help of a CPA. You can also hire an experienced bookkeeper or accountant for your business, or just outsource the entire process.

For example, if you sell products, you’ll want an application that offers inventory management, while those that offer services will find time-tracking capability a major plus. There’s good news for business owners who want to simplify doing their books. Business owners who don’t want the burden of data entry can hire an online bookkeeping service. These services are a cost-effective way to tackle the day-to-day bookkeeping so that business owners can focus on what they do best, operating the business. For business owners who don’t mind doing the data entry, accounting software helps to simplify the process.

Financial Records to Maintain

Consider starting your search into business entities for bookkeepers by looking into sole proprietors and LLCs. The latter could be a great option if you might bring in some help down the line. Regardless of the type of business you run, all business owners should write a business plan. Reference your initial business plan — what business startup accounting and bookkeeping services type of clientele are you aiming to serve? In fact, even after you secure funding for your startup, you will need these numbers to report the financial performance of your company to investors. While many startup founders choose to hire an accountant, it is possible to do accounting yourself or by using accounting services.

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