Online bookkeeping is when a qualified bookkeeper keeps your books up to date remotely, working directly in your cloud accounting software (Xero, MYOB or QuickBooks Online) using bank feeds, digital receipts and video calls instead of visiting your office. You get the same reconciliations, payroll, BAS and monthly reports as with an on-site bookkeeper, usually faster and for less, from a bookkeeper anywhere in Australia.
Key takeaways
- Online bookkeeping covers everything an on-site bookkeeper does: reconciliations, payables and receivables, payroll, BAS and reporting.
- Because bank feeds update daily, an online bookkeeper often sees problems sooner than someone who comes in once a week.
- Only a registered BAS agent can lodge your BAS for a fee, so check the TPB public register.
- Give your bookkeeper their own login with the right permissions. Never share your password.
What is online bookkeeping?
Online bookkeeping (also called remote, virtual or cloud bookkeeping) means your bookkeeper logs in to your accounting software over the internet rather than working at a desk in your office. Your bank, credit card and payment accounts feed transactions into the software each day. Receipts and bills arrive digitally. Your bookkeeper codes, matches and reconciles them, runs payroll, prepares your BAS and sends you reports, all without needing to be in the same room.
It is not a different kind of bookkeeping, just a different way of delivering it. If you want a refresher on what the job involves, see what a good bookkeeper actually does.
How online bookkeeping works, day to day
- Connect: your bookkeeper is invited as a user in your Xero, MYOB or QuickBooks file and bank feeds are connected.
- Capture: you photograph receipts or forward supplier bills to a receipt app, which attaches them to transactions automatically.
- Process: the bookkeeper codes and reconciles transactions, enters bills and chases overdue invoices on an agreed schedule (weekly, fortnightly or monthly).
- Pay: payroll is run each pay cycle, with Single Touch Payroll reporting and super calculated.
- Lodge: BAS and IAS are prepared, sent to you for approval and lodged by a registered BAS agent.
- Report: you receive a monthly profit and loss, balance sheet and cash position, with a short explanation of anything that needs a decision.
- Talk: questions are handled by email, phone or video call. Many clients rarely need a meeting once everything is running.
Online bookkeeper vs on-site bookkeeper
| Online bookkeeper | On-site bookkeeper | |
|---|---|---|
| Where they work | Remotely, in your cloud software | At your premises, on set days |
| How current your books are | Bank feeds update daily, so issues can be picked up quickly | Often only as current as their last visit |
| Cost | No travel time or desk space to pay for | Travel time and office space are part of the cost |
| Who you can choose | Any qualified bookkeeper in Australia | Limited to people who can travel to you |
| Continuity | A firm or established bookkeeper can cover leave | Work can stop when they are sick or on leave |
| Paper records | Need to be scanned or photographed | Can work directly from paper |
| Best for | Most small and medium businesses already on cloud software | Paper-heavy businesses, or where in-office admin help is also needed |
If you are weighing up hiring a local bookkeeper or an employee instead, our guide to whether “bookkeeper near me” really needs to mean local covers the trade-offs in more detail.
What an online bookkeeper can handle for you
- Bank and credit card reconciliations, kept current rather than left until BAS time
- Accounts payable: entering and scheduling supplier bills
- Accounts receivable: invoicing and chasing overdue payments
- Payroll for weekly, fortnightly or monthly pay runs, including Single Touch Payroll and Payday Super
- BAS and IAS preparation and lodgement by a registered BAS agent
- Monthly management reports and, if you want them, Virtual CFO reporting and cash flow forecasts
- Catch-up work if the books have fallen behind
- Year-end files ready for your tax accountant
Is online bookkeeping safe?
It can be safer than paper and spreadsheets, as long as access is set up properly:
- Separate logins: invite your bookkeeper as their own user. Never share your own password.
- Right permissions: give access to what they need (for example, no ability to pay bills unless you want that).
- Multi-factor authentication: turn it on for every user in your accounting software.
- Secure file sharing: send documents through a secure portal or shared folder, not open email attachments.
- Registered agent: registered BAS agents must follow the Tax Practitioners Board Code of Professional Conduct, which includes confidentiality obligations.
What does online bookkeeping cost?
There is no one price, because the work varies a lot between businesses. The main things that drive cost are:
- How many transactions you have each month
- Whether you run payroll, and how many employees
- How many bank accounts, cards and payment platforms need reconciling
- How up to date and well set up your books are now
- Extras such as trust accounting, TPAR or management reporting
At Dedicated Bookkeeping we agree the scope first, then quote a fixed monthly fee or an hourly rate. For typical market costs, see outsourced bookkeeping services in Australia: what is included and what it costs.
Is online bookkeeping right for your business?
Online bookkeeping usually suits you if:
- You already use Xero, MYOB or QuickBooks Online, or are happy to move to one
- Most of your transactions go through a bank account or card
- You want up-to-date numbers each month, not just at BAS time
- You would rather choose the best bookkeeper for your business than the closest one
An on-site bookkeeper may suit you better if most of your records are on paper, or you need someone physically in the office to help with other admin.
How to choose an online bookkeeper
- Check registration: confirm they are a registered BAS agent on the TPB public register.
- Software experience: ask which systems they work in every week. For example, if you use QuickBooks, look for a QuickBooks ProAdvisor.
- Who does the work: will you deal with the same person each month?
- Response time: how quickly do they reply, and how?
- Clear scope and price: get it in writing before work starts.
- Industry experience: trades, health, real estate and law firms each have their own quirks. See the industries we specialise in.
Getting started with online bookkeeping
With Dedicated Bookkeeping, it starts with a discovery call of about 30 minutes to understand how your business runs. We then agree a scope and price, get access to your accounting software, tidy up anything that needs fixing and move onto a regular schedule. You get direct access to Ed throughout. Read more about our bookkeeping, BAS and payroll services.
Frequently asked questions
Is online bookkeeping legitimate in Australia?
Yes. Online bookkeeping is now the normal way most small businesses keep their books. What matters is who does it: anyone who prepares or lodges your BAS for a fee must be a registered BAS agent or tax agent, which you can check on the Tax Practitioners Board public register.
Do I need an on-site bookkeeper, or can it all be done online?
For most small and medium businesses, it can all be done online. Bank feeds, receipt apps and cloud accounting software let an online bookkeeper see your transactions as they happen. An on-site bookkeeper mainly makes sense if you have lots of paper records or need someone physically in the office for other admin work.
What software does an online bookkeeper use?
Usually Xero, MYOB or QuickBooks Online, plus a receipt capture app and secure file sharing. A good online bookkeeper works in the software you already use and will only suggest a change if it would genuinely help.
Can an online bookkeeper lodge my BAS?
Yes, if they are a registered BAS agent. They can prepare and lodge your BAS and IAS electronically and may give you access to later agent lodgement dates. Dedicated Bookkeeping is registered with the Tax Practitioners Board (TPB 93634002).
How do I send receipts to an online bookkeeper?
Most clients photograph receipts with a receipt app or forward supplier emails to a dedicated address, and the receipt is attached to the transaction automatically. Paper records can be scanned and shared through a secure folder.
How much does online bookkeeping cost?
It depends on your number of transactions, whether you run payroll, how many bank accounts you have and how up to date your books are. We agree the scope first and then quote a fixed monthly fee or an hourly rate, so there are no surprise bills.
Looking for an online bookkeeper you can actually talk to?
Dedicated Bookkeeping provides online bookkeeping, BAS and payroll to growing businesses Australia-wide from Hope Island on the Gold Coast. Book a free discovery call and we will reply within 24 hours, or see our frequently asked questions.