The term "online bookkeeper" comes up more and more often, but what does it actually mean? Does it mean you never see your bookkeeper again, or is it mainly about the way you exchange documents and collaborate? In this article we explain how an online bookkeeper works in practice, and for whom this way of working pays off.
Short answer
An online bookkeeper is a bookkeeper who organises most of the collaboration digitally: you exchange invoices and receipts via an app or cloud portal, your administration is kept in an online accounting package, and consultation takes place by phone, video or email instead of by default at an office. That does not mean personal contact is impossible, but it does mean you do not have to visit in person for day-to-day matters. For entrepreneurs who value flexibility and speed, this often works pleasantly. Those who prefer to go through everything in a face-to-face conversation should check whether in-person consultation also remains possible.
What exactly is an online bookkeeper?
An online bookkeeper essentially carries out the same work as a traditional bookkeeper: processing your administration, taking care of your VAT return, and preparing your annual accounts or income tax return. The difference lies in how the collaboration is set up. Instead of periodically bringing in a folder full of paperwork, you work with digital tools: a scanning app for receipts, a cloud package for invoicing, and a shared environment where both you and your bookkeeper can log in to view the current figures.
Important to know: "online" says something mainly about the process, not automatically about the quality or personal involvement. An online bookkeeper can think along with you about your figures just as well by phone or video call as a bookkeeper you only speak to at an office. The difference lies in the logistics: less travel time, and documents you can submit at any time of day instead of only during office hours.
How does the collaboration work in practice?
Most online bookkeepers work with a cloud-based accounting package, in which you can create invoices yourself, photograph receipts with your phone, and link your bank account so that transactions are read in automatically. Your bookkeeper processes and checks that data remotely, books it to the right place, and flags it when something is missing or doesn't add up.
For consultation, several channels are usually available: phone contact for quick questions, video calls for a more extensive conversation about, for example, your year-end figures, and email or a messaging feature within the accounting package for everything in between. Some entrepreneurs go months with only a few messages and a short call once a quarter, others prefer to check in a bit more often. A good online bookkeeper adapts to your preference, rather than imposing a fixed pattern.
A concrete example: a freelancer running a webshop takes a photo of the day's receipts and shipping costs with her phone after every working day, and that data automatically ends up in the accounting package. Once a quarter she calls her bookkeeper for half an hour to go through the figures and the VAT return. She has never physically been to the office, yet has monthly insight into her turnover and costs.
Who does an online bookkeeper work well for?
This way of working suits entrepreneurs who are themselves digitally organised, for example because they already work with a bookkeeping app or online banking. Entrepreneurs who travel a lot, work from home or operate from changing locations also often benefit from a bookkeeper who is not tied to a fixed location. Think of freelancers, self-employed people with varying clients, or entrepreneurs who simply prefer not to spend time travelling to and from an office for something that can also be done digitally.
In terms of pace, too, it can be pleasant: asking a question via an app and getting an answer the same day is often faster than waiting until a physical appointment fits into the diary.
When is face-to-face contact still valuable?
Not every entrepreneur feels comfortable with fully digital contact, and that is a valid preference. For bigger decisions, such as whether or not to set up a BV, or in a complicated tax situation, many people prefer a conversation around the table, where it is easier to ask follow-up questions and sketch out together on paper how something works. Those who are less comfortable with digital tools may also feel more at ease with personal contact when a new system is explained.
It is therefore not a matter of online versus face-to-face: many bookkeepers, including online bookkeepers, offer the option of occasionally coming into the office, for example for an annual review meeting. Feel free to ask about this before making a choice, so you know whether personal contact remains an option should you need it.
What should you pay attention to when choosing an online bookkeeper?
- Which accounting package is used, and is it one you can work with comfortably yourself?
- How quickly do you usually get answers to questions, and through which channels can you ask them?
- Is there room for a phone call, video call or occasional face-to-face consultation if needed?
- What are the agreements about submitting documents, and what happens if you are late with that on occasion?
- Does the bookkeeper's experience match your sector, for example with the VAT rules that apply to your industry?
Frequently asked questions about the online bookkeeper
Do I need to buy bookkeeping software myself if I have an online bookkeeper?
Usually not separately. Most bookkeepers work with a licence for an accounting package that you use together, and the cost of that is often already included in the bookkeeper's fee. Ask about this explicitly when requesting a quote, so you know exactly what is and isn't included.
Is an online bookkeeper cheaper than a traditional bookkeeper?
Not by definition. The price mainly depends on the size and complexity of your administration, not so much on working online versus in person. Working online can be more efficient because there is less travel time and paperwork involved, which in some cases is reflected in the price.
Can I work with an online bookkeeper as a starting freelancer?
Certainly, many starting freelancers choose this form precisely because it is flexible and easy to combine with a busy start-up phase. You can often work with an accounting package from the very beginning, so you build a structured administration right away.
What happens if I want to consult in person after all?
With most online bookkeepers that is perfectly negotiable. Simply mention this to your bookkeeper, especially if it concerns an important topic such as a major investment or a change in your business structure.
Is my data safe with an online accounting package?
Reputable accounting packages work with secured cloud environments and encrypted connections. If in doubt, feel free to ask which security measures a bookkeeper and the package used apply, especially where sensitive financial data is concerned.
Curious what online bookkeeping looks like with us? Read more about our way of working as an online bookkeeper, or see our services for freelancers and sole proprietorships.
