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4 Best Online Bookkeeping Services for Freelancers

The best online bookkeeping services for freelancers prioritize tracking income and expenses to file an annual Schedule C tax return. Ideally, they are also affordable and provide access to a dedicated bookkeeper or an expert who can assist with questions. Many top online bookkeeping firms also offer add-on services, such as tax filing and catch-up…

Written By

Danielle Bauter

Nov 15, 2024

14 minute read

The best online bookkeeping services for freelancers prioritize tracking income and expenses to file an annual Schedule C tax return. Ideally, they are also affordable and provide access to a dedicated bookkeeper or an expert who can assist with questions. Many top online bookkeeping firms also offer add-on services, such as tax filing and catch-up bookkeeping, which can help you save time and be more efficient.

Here are my recommendations for the five best online bookkeeping services for freelancers:

Brainy Advisors: Best overall online bookkeeping service for freelancers
Merritt Bookkeeping: Best for high-income freelancers
Bench: Best for freelancers who want tax returns with Schedule C
Bookkeeper360: Best for help with invoicing and bill pay

As an entrepreneur myself, I am dedicated to researching the software and services that will streamline accounting processes, ultimately saving time and money. I leverage my expertise and extensive research capabilities to address the questions that the Fit Small Business audience has—and this ensures that content is rooted in knowledge and accuracy.

The Fit Small Business editorial policy is rooted in the company’s mission, which is to deliver the best answers to people’s questions. Fit Small Business maintains stringent parameters for determining the “best” answers, including accuracy, clarity, authority, objectivity, and accessibility, and these see to it that our content is trustworthy, easy to understand, and unbiased.

Have been a bookkeeper since 2000
Have been working with QuickBooks Pro since 2000
Have owned Check Yourself, a bookkeeping and payroll service that specializes in small businesses, since 2002
Have been evaluating and writing about accounting software since 2020
Served on the Board of the National Association of Women Business Owners

Quick Comparison of the Best Online Bookkeeping Services for Freelancers
Brainy Advisors: Best Overall Online Bookkeeping Service for Freelancers
Merritt Bookkeeping: Best Value for High-income Freelancers
Bench: Best for Freelancers Wanting Their Individual Tax Return With Schedule C Included
Bookkeeper360: Best for Help With Invoicing and Bill Pay
How to Choose Your Online Bookkeeping Service as a Freelancer
Frequently Asked Questions (FAQs)
Bottom Line

Quick Comparison of the Best Online Bookkeeping Services for Freelancers

Monthly Price	Free Trial	Supported Bookkeeping Software
From $229	1 month	Any
Visit Brainy Advisors
Flat $250	✕	QuickBooks Online
Visit Merritt Bookkeeping
From $299	1 month	Bench’s proprietary software and FreshBooks
Visit Bench
From $399	✕	Xero and QuickBooks Online
Visit Xendoo

Brainy Advisors: Best Overall Online Bookkeeping Service for Freelancers

Personal Bookkeeper: 4.50 out of 5

Bookkeeping Services: 5.00 out of 5

Pricing: 4.70 out of 5

User Reviews: 0.00 out of 5

Pros

Offers A/R and A/P management as an add-on service
Doesn’t charge for bookkeeping and other financial-related inquiries
Has bookkeepers who are licensed CPAs in the Philippines

Cons

Doesn’t offer tax preparation and filing services
Can’t accommodate nonprofits and businesses with international arrangements
Doesn’t offer payroll services

Plans Pricing	Startups & Small Businesses: $229 per month (monthly contract) or $195 a month (annual contract) for businesses with less than $30,000 in COGS and expenses Medium-sized Businesses: $379 per month (monthly contract) or $325 per month (annual contract) for businesses with $30,000 to $80,000 in COGS and expenses Large-sized Businesses: $699 per month (monthly contract) or $595 a month (annual contract) for businesses with $80,000 to $150,000 in COGS and expenses Enterprise Solutions: Custom quote for businesses with over $150,000 in COGS and expenses
Add-ons Pricing	Catch-up bookkeeping: 20% off the standard monthly rate but is only available to new clients who sign a one-year bookkeeping services contract A/R and A/P management: $49 per hour
Free Trial	One month
Supported Bookkeeping Software	Any
Assigned a Personal Bookkeeper?	✓
Bookkeeper Communications	Phone or email
Monthly Account Reconciliations & Financial Statements	✓
Back-office Services, Such as Customer Invoicing and Bill Pay	✓
Full-service Payroll Available	✕
Tax & Consulting Services Available	✕
Average User Review Rating	N/A

My overall best online bookkeeping service for freelancers is Brainy Advisors because it is inexpensive and provides a wide range of services that can be customized based on your needs. It uses CPAs from the Philippines to deliver exceptional bookkeeping services at rates priced based on your COGS and expenses. Considering the work is completed by CPAs, I find it very affordable.

I also like that Brainy Advisors can assist with extremely complicated scenarios, such as consolidating parent and subsidiary corporations. While it mainly works with QuickBooks and Xero, its CPAs are knowledgeable enough to tailor their services to whatever bookkeeping software you prefer.

Standout Features

Catch-up bookkeeping: Brainy Advisors will review your books and provide an estimated cost and timeline after a one-on-one assessment call. You’ll be kept in the loop during the process to ensure that any issues are resolved and they will work with you in the future to ensure that you don’t fall behind again.
Budgeting and forecasting: With this add-on, Brainy Advisors will assist with preparing a budget and forecasting cash flow. It will also monitor actual financial results against your projections and help you set financial goals.
Streamlined organization: Brainy Advisors handles categorizing your transactions, reconciling bank accounts, and creating monthly reports. This helps to save time and ensure your finances are organized and accurate.
Tax season support: Although Brainy Advisors can’t prepare and file your income tax return like Bench can, it will generate a complete tax package for your tax preparer and serve as a liaison for any questions. It will also close your year-end books and reconcile them with your tax filings.

Use Cases

Businesses seeking bookkeeping with several add-on services: Brainy Advisors offers additional services like A/R and A/P management or advanced reporting like pro forma P&L projections at $49 per hour.
New business owners: It’s important to have a strong understanding of your finances when you’re just starting. Brainy Advisors can help you set up a bookkeeping system from scratch and ensure you’re tracking your income and expenses accurately.
Business owners who are unfamiliar with accounting software: Brainy Advisors can train you on how to use popular accounting software like QuickBooks and Xero. Or, if you prefer, it can handle your bookkeeping entirely.

Brainy Advisors received a high mark in the personal bookkeeper criterion because it provides dedicated bookkeepers. It could have aced the category if it offered invoicing and bill pay as part of its regular services. Still, you can elect to add customized A/R and A/P management.

The platform nearly nailed the pricing category because of its low starting price for small businesses. However, costs increased for larger businesses—though the hourly rate of $49 for add-on services is very affordable. As Brainy Advisors is a new company, user reviews are currently unavailable, so those were not factored into its score.

Merritt Bookkeeping: Best Value for High-income Freelancers

Personal Bookkeeper: 3.00 out of 5

Bookkeeping Services: 4.50 out of 5

Pricing: 5.00 out of 5

User Reviews: 4.98 out of 5

Pros

Has no setup fees and budget-friendly flat-rate pricing
Offers discounted catch-up bookkeeping
Provides a quick setup and initiation process
Has a 100% money-back guarantee if you’re dissatisfied with its services

Cons

Doesn’t offer personal access to your QuickBooks files; only a client portal
Lacks payroll, tax, and invoicing
Has no accrual-based accounting

Plans Pricing	Flat rate of $250 per month
Add-ons Pricing	Catch-up Bookkeeping: $100 to $200 per month
Free Trial	✕
Supported Bookkeeping Software	QuickBooks Online—but you won’t have access to the file
Assigned a Personal Bookkeeper?	✓
Bookkeeper Communications	Telephone and email
Monthly Account Reconciliations & Financial Statements	✓
Back-office Services, Such as Customer Invoicing and Bill Pay	✕
Full-service Payroll Available	✕
Tax & Consulting Services Available	✕
Average User Review Rating	4.98 out of 5; see what users have said in our review of Merritt Bookkeeping

Merritt Bookkeeping offers a flat rate of $250 per month, with no restrictions on the number of monthly transactions or the frequency of service. The price is the same regardless of the size of your business or the number of employees. I feel it’s the best value for high-income freelancers because if you make over $30,000 in annual income, it is cheaper than Brainy Advisors.

I recommend Merritt’s services to any freelancer who categorizes expenses and reconciles bank statements. You’ll have direct access to a dedicated account manager, allowing for continuity of service.

Standout Features

Intuitive UI: The easy-to-access client portal lets you review reports and see how your transactions are categorized. If there are any errors, you can correct yourself through the custom interface.
1099 filing: Merritt Bookkeeping will assist with filing 1099s for your contractors for an additional fee of $75 for the report preparation and $10 per form.
Financial reports: You’ll be sent your profit and loss (P&L) statement and balance sheet monthly. You can also access these via your client portal.
Bookkeeping catch-up: Merritt Bookkeeping offers catch-up work if you’ve fallen behind on your books. If you have a QuickBooks file, the monthly fee is $200 monthly. The monthly fee drops to $100 if your books require less than 10 transactions to be updated.
90-day money-back guarantee: Merritt Bookkeeping doesn’t offer a free trial, but you can test it out for three months with zero risk. If you’re unsatisfied with the service after that time, you’re entitled to a full refund.

Use Cases

Self-employed individuals who need basic income and expense tracking: Merritt Bookkeeping helps those who don’t have the time, knowledge, or resources to handle their bookkeeping tasks themselves and want to ensure that their financial records are always accurate and up-to-date.
Freelancers on a budget: Merritt Bookkeeping’s services may be suitable for business owners who want to save money on hiring an in-house bookkeeper and prefer to outsource their bookkeeping tasks to a third-party provider.
Freelancers who don’t want to invest in accounting software: Merritt Bookkeeping handles all your bookkeeping, so you don’t need your own bookkeeping software. You can log into the client portal to view reports and how transactions have been categorized.

Merritt Bookkeeping aced my pricing assessment because of its affordable monthly flat rate of $250, regardless of the size of your business or its income and expenses. It has also received excellent user reviews, the highest of all the providers on our list, which proves its customer satisfaction.

It did, however, suffer in the personal bookkeeper category because while it offers a dedicated bookkeeper, it doesn’t provide video meetings, a phone number to call, or a mobile app. Bookkeeper360 offers all three, so it’s a good solution if that’s what you’re looking for.

Bench: Best for Freelancers Wanting Their Individual Tax Return With Schedule C Included

Personal Bookkeeper: 4.25 out of 5

Bookkeeping Services: 4.50 out of 5

Pricing: 4.50 out of 5

User Reviews: 4.20 out of 5

Pros

Provides access to a team of in-house bookkeepers
Supports unlimited users
Has no learning curve
Offers an iOS app

Cons

Has proprietary software that integrates only with FreshBooks
Makes it difficult to switch to another provider
Requires separate software for invoicing, bill payment, payroll, and inventory
Lacks an Android app

Plans Pricing	Essential: $299 per month for monthly bookkeeping ($249 per month if paid annually) Premium: $499 per month for monthly bookkeeping, annual tax filing, and tax advisory services ($399 per month if paid annually)
Add-ons Pricing	Catch-up bookkeeping services: Starting at $199 per month
Free Trial	One prior month of bookkeeping
Supported Bookkeeping Software	Bench’s proprietary software and FreshBooks
Assigned a Personal Bookkeeper?	✓
Bookkeeper Communications	Telephone and in-app messaging
Monthly Account Reconciliations & Financial Statements	✓
Back-office Services, Such as Customer Invoicing and Bill Pay	✕
Full-service Payroll Available	Gusto integration
Tax & Consulting Services Available	✓
Average User Review Rating	4.20 out of 5; see what users commented in our review of Bench

I selected Bench as the best bookkeeping for freelancers wanting their individual tax returns with Schedule C included, which is available with the Premium plan. It provides bookkeeping support at a lower cost than its competitors while offering tax assistance and specialized services, such as chief financial officer (CFO) advisory.

It tops our list of the best online bookkeeping services, with a range of services offered at a great value. Freelancers working remotely will appreciate the iOS mobile app that provides real-time cash flow updates and financial reporting functionality.

Standout Features

Dedicated bookkeeper: Bench’s bookkeepers are all in-house employees, not contractors. Your dedicated bookkeeper will serve as your point of contact and handle all aspects of your account.
Tax assistance: Bench’s Essential plan includes preparing a year-end financial package to file your taxes. If you need more assistance, you can upgrade to the Premium plan, which includes unlimited bookkeeping and tax support and filing for sole proprietors, contractors, and businesses. Bench partners with Taxfyle to file your returns.
Financial reports: You’ll receive financial reports every month, and you can also access these through your dashboard. This provides real-time updates on your financials and allows you to customize reports for the data you’re seeking. You can tag transactions with labels like products, clients, and locations to view your company’s performance.

Use Cases

Freelancers seeking tax advice and tax preparation: Bench provides a comprehensive range of services for small business owners looking for tax advice and tax preparation. These services can easily be integrated with the company’s monthly bookkeeping services, creating a convenient one-stop shop for small business owners.
Freelancers who have fallen behind on their bookkeeping: Bench offers a catch-up bookkeeping add-on for freelancers in which your bookkeeper will handle your prior months or years of bookkeeping.
FreshBooks users: By integrating with FreshBooks, Bench streamlines the process of syncing your accounting software transactions and accessing FreshBooks support. Bench doesn’t currently offer integration with QuickBooks Online or Xero.

Bench almost aced my pricing evaluation and took a slight hit in the personal bookkeeper category because it doesn’t offer video meetings or provide a phone number to call for support. However, you can schedule a telephone meeting through the Bench platform. If access to video meetings and a phone number to call for support are important to you, I recommend Bookkeeper360.

Bench also lacks some important bookkeeping features, including full-service payroll and paying bills, costing it some points for bookkeeping services. It also doesn’t let you customize services to create your own plan, so Bookkeeper360 is a good solution—as it nailed my assessment of its bookkeeping services.

Bookkeeper360: Best for Help With Invoicing and Bill Pay

Personal Bookkeeper: 5.00 out of 5

Bookkeeping Services: 5.00 out of 5

Pricing: 3.10 out of 5

User Reviews: 4.80 out of 5

Pros

Is compatible with Xero and QuickBooks accounting software
Offers a dedicated bookkeeper
Provides free consultations
Has accrual basis accounting

Cons

Is incompatible with FreshBooks
Requires a $500 initial retainer for the Pay-As-You-Go plan
Is more expensive than other options
Has largely quote-based pricing, although starting prices are listed online

Plans Pricing	Pay-As-You-Go: Starting at $49 per month plus $125 per hour Monthly: Starting at $399 per month Weekly: Starting at $549 per month
Add-ons Pricing	Setup and catch-up bookkeeping: Starting at $1,000 Taxes: Starting at $1,000 for businesses and $350 for individuals Payroll administration with Gusto: Starting at $200 per month Sales Tax with Avalara: Starting at $125 per month Inventory management: Starting at $150 per month Invoicing and bill pay: Starting at $150 per month CFO advisory: Starting at $1,500 per month
Free Trial	✕
Supported Bookkeeping Software	Xero and QuickBooks Online
Assigned a Personal Bookkeeper?	✓
Bookkeeper Communications	Telephone, video meeting, or live chat
Monthly Account Reconciliations & Financial Statements	✓
Back-office Services, Such as Customer Invoicing and Bill Pay	Additional fee
Full-service Payroll Available	Additional fee
Tax & Consulting Services Available	Additional fee
Average User Review Rating	4.80 out of 5; read user feedback in our review of Bookkeeper360

I picked Bookkeeper360 as the best for help with invoicing and bill pay because it lets you sign up for invoicing and bill pay services for an additional fee, which are services that aren’t always offered by its competitors. The cash management features are especially useful for freelancers wanting to maintain an overview of their finances and cash management insights.

I was also impressed with Bookkeeper360’s seamless integration with Xero’s cloud-based accounting software as a Xero Platinum partner. Although it checks all of the boxes in the comparison table, it’s more expensive and offers many features that freelancers don’t need, such as CFO advisory, payroll, and HR management.

Standout Features

Dedicated bookkeeper: Upon enrolling, you’ll be assigned a dedicated bookkeeper who’ll work with you to determine the best strategy for your business. This includes determining the frequency of service and deciding whether you require any services in addition to bookkeeping. Then, you’ll connect Bookkeeper360 to your accounting system (QuickBooks Online or Xero) and work online with your bookkeeper to manage your finances.
Mobile app: Bookkeeper360’s mobile app is available with all plans and connects to your Xero or QuickBooks Online account. It allows you to view your financial data, track your goals, and access your accounting experts in one place.
Back office: The back-office solution provides merchant services that can integrate with QuickBooks Online and Xero. It includes next-day funding as well as receivables and payables management. It can also help you manage inventory by assisting in order management, costing, pricing, and maintaining optimal stock levels.
Cash management: The Bookkeeper360 app gives you a clear picture of your cash flow. It uses easy-to-understand charts to show you where your money is coming from and where it’s going. You can see this information for different periods, like the last 12 months. The app also includes a “cash runway” feature, which calculates your cash burn rate and predicts how many months your current funds will last.

Use Cases

Freelancers seeking help with invoicing and bill pay: Bookkeeper360 provides both services as an add-on starting at $150 per month.
Freelancers using accrual-based accounting: Bookkeeper360’s accrual-based accounting services include inventory tracking, deferred revenue, and accrued expenses.
Xero users: While it is also compatible with QuickBooks Online, Bookkeeper360 is a Xero Platinum Partner and a great option for freelancers already using Xero.
Freelancers needing only occasional bookkeeping assistance: Bookkeeper360’s pay-as-you-go option is ideal if you don’t anticipate the need for monthly or weekly service.

Bookkeeper360 aced our personal bookkeeper and bookkeeping services categories and nearly nailed our user review category. Its main flaw is the cost of its services, which starts at $399 per month and increases quickly for firms with over $20,000 in monthly expenses. If you’re seeking more affordable pricing, Bench is a good option, although it has its proprietary accounting software.

How I Evaluated the Best Online Accounting Services for Freelancers

I evaluated the best online accounting services for freelancers based on the following criteria:

Methodology weights

Personal Bookkeeper 20%

Bookkeeping Services 25%

Pricing 35%

User Reviews 20%

How to Choose Your Online Bookkeeping Service as a Freelancer

Freelancers have unique accounting needs, so selecting the right online bookkeeping service can make a big difference in managing finances effectively. Generally, most are simply looking to track income and expenses for tax purposes, which pretty much all online accounting services will do. However, if you need help invoicing customers or paying bills, select a provider who can do that too. You may also want to consider a service that can assist with tax preparation.

Here are some important factors that freelancers should consider when choosing an online bookkeeping service:

Evaluate pricing options.

If tracking income and expenses is all you want, then price, along with customer service, is what you should focus on. Some providers charge a flat fee, while others charge depending on the scope of services you need. Be aware of any additional fees, such as transaction fees or fees for extra features.

Look for a service with good customer support options

, including email, phone, and chat support. You might also look at reviews from current customers to see their experience with customer support.

Find a service with your must-have features

, such as invoicing, mileage and expense tracking, tax preparation, and financial reporting. Also, consider whether the service is customizable and scalable, so you can adjust as your business grows. You can save money by not selecting a provider or plan that offers features you don’t need.

Consider the service’s integrations

; for example, a payment processor or time-tracking tool that will integrate with the software your bookkeeping service uses.

Seek a platform with a user-friendly interface

that is easy to navigate. A complicated interface can make it difficult to use the service efficiently.

Frequently Asked Questions (FAQs)

If you’re a freelancer who wants to perform your own bookkeeping, I suggest reading our key bookkeeping tips for self-employed and freelancers. It suggests actions like keeping detailed records, tracking and reimbursing business mileage, and invoicing regularly.

Freelance bookkeepers specialize in various accounting software, the most common being QuickBooks Online. Other accounting software includes FreshBooks, Zoho Books, and Wave. For more information, check out our guide to the best accounting software for freelancers.

The rates for freelance bookkeepers depend on your geographical location, your level of education, your certifications obtained, and the software you use. For a general guide, read our article on how much bookkeepers charge.

Bottom Line

Freelancers needing to track income and expenses can do so with Merritt Bookkeeping, which costs only $250 per month, regardless of the number of transactions or the amount of your sales. If you’re using QuickBooks Online, then Bookkeeper360 is a great option, depending on your specific needs. Meanwhile, Bench can also help with your Schedule C tax return, which is helpful if you want to keep all your accounting needs with the same company.

Danielle Bauter

Danielle Bauter has 25 years of experience as a Full-Charge Bookkeeper and has owned her own bookkeeping and payroll service for over two decades, working with various accounting software.

4 Best Online Bookkeeping Services for Freelancers

Quick Comparison of the Best Online Bookkeeping Services for Freelancers

Brainy Advisors: Best Overall Online Bookkeeping Service for Freelancers

Standout Features

Use Cases

Merritt Bookkeeping: Best Value for High-income Freelancers

Standout Features

Use Cases

Bench: Best for Freelancers Wanting Their Individual Tax Return With Schedule C Included

Standout Features

Use Cases

Bookkeeper360: Best for Help With Invoicing and Bill Pay

Standout Features

Use Cases

How I Evaluated the Best Online Accounting Services for Freelancers

How to Choose Your Online Bookkeeping Service as a Freelancer

Frequently Asked Questions (FAQs)

Bottom Line

Danielle Bauter

Company

Categories

4 Best Online Bookkeeping Services for Freelancers

Why You Can Trust Fit Small Business

Quick Comparison of the Best Online Bookkeeping Services for Freelancers

Brainy Advisors: Best Overall Online Bookkeeping Service for Freelancers

Standout Features

Use Cases

Merritt Bookkeeping: Best Value for High-income Freelancers

Standout Features

Use Cases

Bench: Best for Freelancers Wanting Their Individual Tax Return With Schedule C Included

Standout Features

Use Cases

Bookkeeper360: Best for Help With Invoicing and Bill Pay

Standout Features

Use Cases

How I Evaluated the Best Online Accounting Services for Freelancers

How to Choose Your Online Bookkeeping Service as a Freelancer

Frequently Asked Questions (FAQs)

How can I do bookkeeping as a freelancer?

What software do freelance bookkeepers use?

How much should I charge as a freelance bookkeeper?

Bottom Line

Danielle Bauter

Company

Categories