Being a contractor or freelancer means freedom—but it also means juggling taxes, GST, invoices, and the IRD. If you’re tired of late nights with spreadsheets or just want someone to make sure you’re not paying too much tax, you’re not alone.
The good news? Online accountants are making life easier for self-employed people across New Zealand. Whether you’re a designer in Wellington, a tradie in Taranaki, or a coach running Zoom calls from your kitchen, there’s now a faster, more affordable way to get your books sorted—without stepping foot in an office.
In this guide, we’ll break down the best online accounting options for freelancers and contractors in NZ, what to look for in a provider, and how to pick the one that suits your business best.
Why freelancers and contractors need a good accountant
Being your own boss comes with freedom—but also responsibility. And when it comes to finances, the stakes are high. Here’s why a good accountant isn’t just helpful—it’s essential.
You’re responsible for your own taxes
Unlike salaried employees, freelancers and contractors don’t get PAYE deducted automatically. You’re on the hook for everything: GST, provisional tax, ACC, and end-of-year returns. A single mistake can cost you time and money.
IRD penalties are no joke
Miss a deadline? File the wrong return? The IRD doesn’t mess around. Late payments or errors can lead to penalties, interest, and stress you don’t need. A qualified accountant helps you stay compliant and on time.
Time spent on accounting is time not earning
Every hour spent figuring out GST is an hour you’re not working on client projects. A great accountant helps you focus on what you do best—while they handle the rest. You can also read our related article: How much cost a personal accountant.
What is an online accountant (and how does it work)?
Online accountants combine the power of cloud-based software with real human expertise. Here’s how it works—and why it might be a better fit than traditional in-person accounting.
Cloud-based tools and real-time access
From Xero to Henry, most online accountants use smart platforms to track income, expenses, and tax obligations in real time. You can log in anytime, from anywhere—even from your phone.
Human support vs software-only
Some services are just tools. Others give you access to real accountants who answer questions, prepare returns, and offer advice. Know what level of support you need before signing up.
Monthly pricing and flat fees
Say goodbye to surprise hourly charges. Online accountants usually work on a monthly subscription, with fixed packages based on your income level or needs.
Best online accountants for freelancers and contractors in New Zealand
There’s no shortage of options when it comes to online accounting, but not all services are built the same. Some focus on freelancers, others on contractors. Some include human advice, while others are fully automated. Here’s a breakdown of the most popular options in NZ.
Comparison Table: Online Accounting Options in NZ
| Service | Best For | Price (est.) | Human Support | Key Features |
|---|---|---|---|---|
| Henry | Sole traders, contractors | From $0/month* | Yes | Tax filing, invoicing, GST, mobile app |
| Xero + Advisor | Contractors with growing income | $70–$150+/month | Yes | Full-service accounting + software |
| Relax Accounting | NZ freelancers & contractors | Custom pricing | Yes | IRD experience, small business support |
| Outside Accounting | Tradies and self-employed NZers | Custom pricing | Yes | Business advisory + tax planning |
📝 *Henry charges based on income—they deduct a fee from each payment.
Henry
Henry is designed for NZ sole traders who don’t want to think about tax ever again. It handles invoicing, tax calculation, and even pays the IRD on your behalf. Ideal if you’re just starting out or hate paperwork.
Xero (with an accountant)
Xero is powerful accounting software, but to get the most from it, pair it with a human accountant. Many NZ advisors offer packages combining Xero with GST returns, advice, and annual filing. Great for growing contractors. Please read our article here to know if Xero or Hnry is a better suit for your business.
Relax Accounting / Outside Accounting
These local firms offer a human touch—with online convenience. You’ll deal with real accountants who know the NZ tax system, work with tradies and creatives, and tailor services to your situation.
👉 If you’re after a friendly expert who understands Kiwi business and can guide you through GST, ACC, or IRD letters, we can help connect you to the right person through BH Accounting. It’s free, and we only recommend trusted professionals.
Key features to look for in a freelance-friendly online accountant
Not all online accountants are built the same. Here’s what to look for if you’re self-employed in New Zealand:
- NZ tax expertise (GST, Provisional Tax, ACC) They should understand local rules inside out—especially how freelancers and contractors interact with GST, provisional tax, and ACC levies. Bonus if they can explain things in simple terms.
- Real-time reporting and app integration You want tools that show live data, not end-of-year surprises. Look for platforms like Xero or MYOB that integrate with your bank, invoicing apps, or mileage trackers.
- Ongoing support and tax advice Can you ask a question in July—or only in March? A good online accountant should offer ongoing advice, not just one-off annual reports.
- Scalability as your business grows If you grow your business, will your accountant grow with you? Look for someone who can support you as you move from sole trader to small business, including help with payroll, company setup, or GST registration.
Common accounting challenges for contractors and freelancers
Even the most organised freelancers can run into trouble with taxes and accounting. These are the most common pain points we see—and how a good online accountant can help you avoid them:
- Mixing business and personal expenses Buying lunch for a client meeting? Business. New headphones for Netflix? Personal. It’s easy to blur the lines—and risky if you get audited. Want to claim your gym membership? It could be both. A good accountant helps you keep it clean (and deductible).
- Missing GST or provisional tax deadlines Forgetting to pay on time can lead to interest and penalties. Online accountants usually send reminders—or better, file and pay on your behalf.
- Claiming too much—or not enough Some people miss out on legit deductions like home office, phone, or travel. Others overclaim and raise red flags with the IRD. A pro helps you get it right, so you save money without stress.
How much should you expect to pay?
Online accounting services can vary widely in price, depending on what you need and how hands-on you want them to be. At the low end, you’ll find free or low-cost software solutions—often under $30/month—that automate the basics like invoicing and expense tracking. These are great if you’re comfortable handling your own tax filings and just want a simple tool to stay organised.
If you’re after something more hands-on, hybrid models that combine software with access to real accountants usually sit between $70 and $150 per month. These are ideal for freelancers and contractors who want to hand off their GST, provisional tax, and annual returns without going fully bespoke.
At the higher end, full-service online accountants—those who’ll act as your tax agent, offer one-on-one support, and provide strategic advice—can range from $150 to $300 per month or more. This is usually worth it if your income is higher, your situation more complex, or you want proactive help with ACC, business planning, or even asset protection.
And remember: in most cases, these costs are fully tax deductible.
Online vs Traditional Accountants: What’s better for you?
Both online and traditional accountants can help you stay compliant and grow your business—but they offer very different experiences. Choosing the right one depends on your work style, tech comfort level, and the kind of support you need.
Traditional accountants tend to work in-person, often charging by the hour. You might have to book appointments, drop off receipts, or wait days for a reply. Some people love the personal connection—but for busy freelancers, it can feel like extra admin.
Online accountants, on the other hand, offer more flexibility. You get real-time dashboards, digital receipts, and faster responses. Many offer flat monthly pricing and chat support, so you’re not paying for every five-minute question.
Comparison Table: Online vs Traditional Accountants
| Feature | Online Accountant | Traditional Accountant |
|---|---|---|
| Access | Anytime, from anywhere | In-person or limited office hours |
| Communication | Email, chat, video calls | Face-to-face or phone |
| Cost | Flat monthly fee (usually cheaper) | Hourly or annual billing |
| Tools | Cloud-based (Xero, apps, dashboards) | Often use internal or offline systems |
| Tax Support | Strong for GST, IRD, ACC | Also strong, may include tax planning |
| Ideal For | Tech-savvy freelancers and contractors | People who prefer in-person meetings |
If you’re looking for speed, affordability, and control, an online accountant is likely your best bet. But if you value face-to-face chats or have a complex situation, a traditional setup might still suit you better.
👉 Not sure what type of accountant fits your needs? At BH Accounting, we connect contractors and freelancers with trusted accounting professionals across New Zealand. Tell us what you need—we’ll match you with someone who speaks your language (and the IRD’s).
Ready to choose an online accountant? Here’s what to do next
Picking the right accountant doesn’t have to be complicated. Start by thinking about what you need help with—just tax returns, or ongoing advice? Are you okay with just an app, or do you want to speak to a real person who knows your business?
Before signing up with anyone, ask these questions:
- Are they experienced with NZ freelancers or contractors?
- Do they know how to handle GST registration, ACC and provisional tax?
- Will you get access to a real accountant, or just a support team?
- Are their fees fixed, transparent, and within your budget?
- Can they grow with you if your business expands?
A little research upfront can save you stress (and money) later.
Conclusion
Running your own business as a freelancer or contractor can be incredibly rewarding—but handling the finances alone? Not so much. That’s where a good online accountant comes in. From managing GST and provisional tax to answering your “can I claim this?” questions, they free you up to focus on what you do best: your work.
Investing in the right accounting support it’s crucial for your business.
👉 Need help finding the right accountant? Let BH Accounting match you with a trusted expert who knows the ins and outs of the New Zealand tax system. It’s free, fast, and tailored to your needs.
FAQ: Online Accountants for Contractors and Freelancers
Do I need an accountant if I use software like Xero or Henry?
It depends. Xero is a powerful tool, but it doesn’t give you advice or check your tax strategy. Henry is more hands-on, but it may not fit every business type. A real accountant ensures nothing’s missed and helps you plan ahead.
What taxes should I pay as a freelancer in New Zealand?
Most freelancers deal with income tax, GST (if earning over $60,000), and ACC levies. Provisional tax often applies too. An accountant helps make sure you pay the right amount, at the right time.
Can online accountants help with GST and ACC?
Yes—most reputable online accountants in NZ will handle your GST returns, liaise with the IRD, and help you estimate and manage ACC bills.
What’s the difference between a bookkeeper and an accountant?
Bookkeepers record your transactions. Accountants go further—they interpret the numbers, file your taxes, and give advice to help you grow or stay compliant.
Is Henry better than Xero for freelancers?
Henry is great if you want a hands-off experience where tax is handled automatically. Xero is better if you want more flexibility and already have an accountant to work with. It depends on your work style and budget.
Disclaimer
This article is for information only—not legal, financial, or tax advice. Every business is different, and rules change, so don’t make major decisions based on what you read here. If you’re unsure, talk to a professional—it’s cheaper than fixing a costly mistake later.