5 Best Online Bookkeeping Services for Freelancers

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 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.

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.

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.

I selected QuickBooks Live for this roundup because of how easy it is to communicate and manage the bookkeeping service. QuickBooks Live is built into the QuickBooks Online dashboard and can be activated with a few clicks. It’s an excellent option if you don’t need assistance with managing customer invoices and paying bills.

Although you need to pay a separate fee for your QuickBooks Online subscription, it’s reassuring to know that you’ll be working with a QuickBooks expert who will answer questions, provide bookkeeping assistance, and help set up your account.

Standout Features

• Account setup: Your QuickBooks Live professional will assist in setting up your QuickBooks online account, which includes setting up customers and vendors and customizing your chart of accounts. They’ll also help you set up bank and credit card account connections so that transactions will be downloaded automatically. We ranked QuickBooks Online as the overall best small business accounting software.
• Reporting: At the end of each month, your bookkeeper will send you PDF copies of key financial reports, including your P&L and balance sheet, with additional reports provided upon request. You can also generate specialized reports and filter these by class or location.
• Ongoing bookkeeping assistance: As part of ongoing bookkeeping, your QuickBooks Live bookkeeper will categorize your transactions and reconcile your accounts. They also have the support of an extended team, which provides personal connections with individuals familiar with your business. You can even request assistance with bookkeeping practices and troubleshoot transactions with the help of your bookkeeper.
• 100% Accurate Books Guarantee: With this, users can be assured of 100% accuracy with their books. At your request, it’ll conduct a free audit of your bookkeeper’s work anytime.
• Enhanced communication: QuickBooks Live offers many different options for meetings, including via phone and one-way videoconference.

Use Cases

• QuickBooks Online users who handle their own day-to-day bookkeeping tasks: QuickBooks Live bookkeepers can help you set up your account, reconcile your bank and credit card accounts, and generate reports that provide an overview of your financial picture.
• Freelancers who want enhanced communication with their bookkeeper: QuickBooks Live offers more ways for you to connect with your bookkeeper than any other provider—they are available via phone, email, live chat, or one-way videoconferencing, which allows you to share documents. You can meet virtually with your bookkeeper as needed, although most users meet once or twice per month.
• QuickBooks Online users seeking a QuickBooks ProAdvisor: Once you enroll, you’ll be assigned a dedicated bookkeeper who is typically a QuickBooks ProAdvisor. Your bookkeeper will be on hand to address your questions and offer insights based on your monthly reports.

While QuickBooks Live publishes its pricing, it is a little difficult to find as it’s in the fine print—and you must click the link to see it. While it starts at $300 per month for monthly expenses up to $10,000, the price jumps to $500 per month for $10,000 to $50,000 in monthly expenses. It took a hit in my assessment for this reason.

Additionally, it doesn’t provide a phone number to call, which costs QuickBooks Live points in our personal bookkeeper category—although you can request a callback. It also lacks a mobile app that you can use for communicating with your bookkeeper, so I couldn’t award it higher marks.

It also took a hit in the bookkeeping services criterion because it lacks invoicing and bill pay services. If you want all of these features, Bookkeeper360 is an excellent solution.