How To Start A Virtual Bookkeeping Business

Then it’s just a matter of tailoring your core offering around solving these pain points. If you can do that, you’re one step closer to getting clients how to start a bookkeeping business to sign up with you. Your network will grow and some of these local businesses and small business owner contacts will turn into new clients eventually.

There aren’t formal certifications or training necessary (although, it’s never a bad idea to become certified). You can become a specialist in one accounting application for increased marketability. When you decide to go into business for yourself, a big part of your decision may be the thought of making your own hours and working less. The only way to make that transition a reality is by time management. Keep these in mind when you’re faced with decisions like taking on an extra client, increasing your fees, or hiring your first employee.

Next, set up a separate meeting to present the 3 service options you’ve created to your client to be rather than just blindly sending a proposal. Today, I believe most new clients like a subscription model where they pay one fixed monthly price in return for a total solution.

Do You Want To Create Your Own Online Store?

As a virtual bookkeeper, it’s up to you to decide what services you want to offer based on your skills, experience and interests. It’s offered by theBookkeeper Launch team and it covers all the basics of how to get your online bookkeeping business up and running. This audiobook is by UK author Lisa Newton who started her own bookkeeping business for £150 in 2004. She used £100 from her overdraft and got £50 ‘investment’ from her mum – and made it work. There are plenty of horror stories to keep you on your toes and plenty of useful content to help you to make that transition from full time employee to full time business owner.

• This chart forms the skeletal structure that holds your entire bookkeeping system together.
• And if you start your business as a side hustle before going full-time, they’ll be even lower.
• I am not opposed to starting small like filing and AP/AR and doing data entry.
• Bureau of Labor Statistics, the median pay for bookkeeping, accounting and auditing clerks, who produce financial records and check them for accuracy, is $41,230 per year or $19.82 per hour.
• The course is designed for beginners with no previous experience.
• It might sound intimidating, but a business plan doesn’t have to be complicated or even all that formal.

This is a personal decision with your services being influenced by your interests. In this guide, I am going to cover everything on how to start a virtual bookkeeping business. Last but not least, you’ll need to decide how much you want to charge for virtual bookkeeping services and what kind of clients you want to work with. Running a business as a sole proprietor versus an LLC is usually the easiest way to go. But there are pros and cons to each one so it’s helpful to weigh those when deciding how to set up your online bookkeeping business. And I actually came across a free training that walks you through everything you need to know to start a virtual bookkeeping business. It’s entirely possible that you could make even more money offering online bookkeeping services.

Small Business Accounting Faq

Paper receipts can be stored in something as simple as a shoebox, but it’s much better to keep those receipts organized — whether by date, in alphabetical order, or with some other system. Electronic receipts can live on your computer or in an online storage system, such as Expensify. Accrual accounting records revenues when they are earned, which may be long before the customer actually pays the business. Similarly, expenses are recorded when the business incurs them, not when it pays for them. Businesses with revenues under $5 million per year may use either cash accounting or accrual accounting to track how money flows into and out of the business.

The Bookkeeper Business Launch course comes with all the information and resources you need to launch your own successful bookkeeping business. You will get video lessons, worksheets, checklists, templates, quizzes, scenarios, case studies, and much more. Even if you have no prior experience, you can still start a successful bookkeeping business. With training from Bookkeeper Business Launch, you could be well on your way to offering your services to business owners and entrepreneurs in your area or across the country. If you ever want to get a bank loan for your business, you’ll probably need a more formal business plan.

Basically, when you get hired as an online bookkeeper, you are granted exclusive access to all business documents including bookkeeping software. You will also need professional accounting software, such as Quickbooks. Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy. Your cash flow statement will show you whether you had a positive or a negative cash flow at a certain point. You can also compare your cash-flow statement to your income statement for the same period. If your cash flows are consistently lower than your income, it’s time to figure out why you’re having trouble collecting money.

If you don’t have the space for this, aim to have a desk with locking drawers where physical paperwork can be kept. Also, make sure your computer is password-protected, and that no one but you signs into it. According to ZipRecruiter, the average hourly pay for a bookkeeper in the USA is $19 per hour. If you become a professional bookkeeper, you can charge a higher fee for your bookkeeping services. CorpNet offers registered agent services in all 50 states, which makes it easy if bookkeepers decide to expand their services or relocate to another state.

Decide On The Online Bookkeeping Services To Offer

This is because they are entrusting you with confidential information about their finances. Having a certificate also boosts your market value on leading freelancer’s job boards. If you lack any of the above skills, there exist online platforms where you can learn and become a certified bookkeeper in a short time. These companies are just a few of the many that offer remote bookkeeping services.

Enrolled Agents must initially pass an examination and then complete annual continuing education to renew their certification every three years. While no formal education or classes are required, the examinations are difficult and will prove you have the knowledge to serve tax clients properly. The following are the eight steps to start your own bookkeeping business.

Get Certified

This “why” is the purpose of your accounting firm and it’s important that the purpose of your accounting firm is incredibly clear to you, your team, and your clients. There are several important decisions that must be made before you can start servicing customers. This step is important because it establishes your business as legitimate and may help to limit your personal liability if your company is ever sued. Whether you are doing this part-time or full-time, you don’t want to skip this step. Figuring out what to charge is any small-business owner’s greatest challenge.

Ben is a great teacher and he knows how to break down the content so that anyone can learn it. I actually got my first client before the class even ended. People who knew I had been laid off were asking me about my “job seeking” prospects and I would tell them that I was starting my own bookkeeping business. Probably about half the people I told said that they needed or they knew someone who needed a bookkeeper, so I was already handing out my business cards.

Continue Learning And Expand Your Offerings

Bookkeepers are in demand as most businesses and freelancers need to keep records to calculate taxes and manage finances. The best way to plan for a career in accounting and finance is to get a full picture of your options. Each state and local jurisdiction has its own rules for establishing a business. You’ll want to make sure you check with your Secretary of State to find out what licenses you may need. When you’re a CPA branching out on your own, you can increase your marketability by specializing.

This can be as creative as you’d like, and include short-term and long-term goals that you have for your bookkeeping business. The great thing about starting your own bookkeeping business is that all of these decisions will be yours to make. You will be the one putting the work in, so creating a personalized business model will be what sets you apart from competition, and what will get you the most fulfilling feedback. There are some things you should consider when thinking about starting your own bookkeeping business. Learn the benefits of starting out on your own small business venture that will encourage you to take that leap.

Business owners know other business owners and a personal referral goes a long way in this industry. Are you ready to get started with your own bookkeeping business?

What I like about freelancing websites is that you’ll find jobs regardless of your skills and experience. With such software, all changes take effect in real-time, both on your computer and at the office. That said, accessing such apps require you to have secure login credentials from your employer.

For now, the important thing is to walk yourself through the steps you’ll need to take to be successful. Quickbooks online is a fantastic software for small businesses, as it is one of the most widely-used accounting tools available. It is scalable, has tons of integrations, and includes a responsive mobile app for working on the go.

Though prior bookkeeping experience is a plus, it’s by no means necessary. Just be sure to have a thorough game plan sketched out prior to launching your business. FreshBooks is a cloud-based accounting and invoice management software for small businesses. It offers expense management, core accounting, and everything you need to take care of basic bookkeeping. Wave is a web-based accounting solution built for small businesses. With its bank reconciliation feature, you can link your bank accounts, PayPal accounts, and other data sources to see real-time business transactions.

Companies want to hire virtual bookkeepers to help with the tasks they’d rather not do themselves. It’s a time-saver and it can be a money-saver for businesses if they’re working with a reputable bookkeeper who knows their stuff. For example, with my freelance writing business, I have to keep track of invoices, expenses and quarterly tax payments.

Not only does it allow you to see a profit early, but it also allows you to adjust your service menu to attract clients with lower-than-normal prices. While there is usually a monthly fee to use these spaces, the benefits they provide are often worth the cost . You might have prior professional experience that can serve as a springboard to gaining new clients and serving them well. Virtual bookkeeping jobs are widely available yet often overlooked. Many people don’t think they have the skills necessary to land a position. Despite its closely related accounting cousin, bookkeeping positions are often considered entry level. You can contact new businesses in your area to see if they need the help of a bookkeeper to handle their finances.

Posting constant content can help with visibility and, ultimately, increasing your customer base. However, there is a difference between a website presence and social media. In most cases, a website is static and allows businesses to transmit basic, evergreen information such as phone number, services provided, and credentials. Social media, on the other hand, can drive business in a longer and more indirect fashion. Google Ads can be capped at $20 and make for productive investments to help drive local searches for accounting firm.

• If you’ve already got those three things, then the next step is learning the ropes of bookkeeping.
• You can choose to go the DIY route and use software like QuickBooks or Wave.
• For example, QuickBooks costs between $15 and $150 depending on the package you choose – and since you’re a professional, it makes sense to choose the Advanced option.
• Before the internet was invented, a bookkeeper would keep the book of business in books and ledgers.
• Websites, social media, and various other online presences are a great way to establish credibility in the market.

It’s tough to stay on top of new trends and changes in the industry. This is a trend that is completely changing how bookkeepers and accountants do business, so it’s important that you understand how it works since it will have a direct impact on your business. If you’re just starting a bookkeeping business, it’s likely that you’ll just be working solo, at least for the beginning. Consider starting your search into business entities for bookkeepers by looking into sole proprietors and LLCs. The latter could be a great option if you might bring in some help down the line.

By standardizing core processes, you’ll be able to better streamline your operations and ensure quality control when deliveringclient accounting services. After potential clients contact you, you’ll schedule a meeting for your initial consultation, aka discovery call. This is arguably the most critical step in the entire process to acquire and find new clients. If people start sending you LinkedIn connection invites coming from these groups and from local businesses, you know you’re on the right track. If you are targeting restaurant owners as bookkeeping clients, perhaps they’re on Instagram instead. Always consider where your target market hangs out before engaging in any social media marketing activities. Collect business cards from every new business owner you meet.