How to start a bookkeeping business in 9 steps

However, certain industries, particularly accounting and finance, have embraced this modern paradigm. Perhaps you would like to work with attorneys as a virtual accountant. Niching down is one of the keys to success as an online bookkeeper. Even if you end up being one of the many freelance bookkeepers, you can stand out because of your niche.

Remember to focus on providing clients convenient and valuable experiences. Look, we don’t want to toot our own horn — but if you need more help on getting started in bookkeeping, you’re in the right place. A trustworthy software will help you stay on top of your clients’ how to start a virtual bookkeeping business bookkeeping and better manage the workflow. Having the right tools and support in place makes a big difference, and your clients will love you for it. This helps you keep clients files organized, protected, and backed up on a cloud you can access from anywhere.

Are you ready to start your virtual bookkeeping business

As a potential client goes through your site, they should find it easy to contact you by email or phone. After you decide your business name and its structure, it’s time to register with your state. Accounting principles change country-by-country, but bookkeeping is a universal language spoken the same no matter where a client is based. Some clients will want you to handle all or most bookkeeping tasks; like invoicing, billing customers, or preparing payroll. You may even need to email invoice copies to a client for approval and have a signature stamp for paying invoices. You can log in from home and access records and documents just as if you were sitting in their office with them.

With solid bookkeeping practices, you have a better idea of which invoices clients need to pay and which vendors you need to pay. When you have a better idea of when money is coming and going, you can get ahead of potential cash flow issues. In fact, you can even deduct your home office space from your annual tax returns. This can be a great option for freelancers and online bookkeepers looking to keep their startup costs to a minimum. You can also become certified in using accounting software, such as QuickBooks Online. As you launch your virtual bookkeeping business, you must decide on your pricing strategy, draft your service agreements, and provide dependable customer service.

Here’s How to Start a Work-From-Home Bookkeeping Business (You Could Earn $69/Hr!)

Yes, I could get login information for all of my clients to their banks and download the files that I need. It’s an investment at $20/mo per client, but I feel like I am saving at least that much of my time by utilizing their system. If I run across a client that utilizes a bank that doesn’t work on Hubdoc, then I simply don’t put them on it. Hubdoc is all about saving me time and increasing my gross margins. The term “Technology Stack” will be something you will hear a lot once you start a virtual bookkeeping business.

You can apply for a business credit card using your personal credit score and income; business credit is not a requirement. If you’re considering a business credit card, you might want to look for one that offers a generous rewards program and/or charges no annual fee. QuickBooks ONLINE is the accounting software most used by virtual bookkeepers. So it’s important when setting up a virtual bookkeeping business to note that the entire industry is still relatively new, and that terminology is still being debated. When you start a virtual bookkeeping business, you need to think about the process. Will it just be yourself doing the work, or are you going to have colleagues, and if you are, how will you communicate and work with one another if you aren’t in the same office together.

The Ultimate Guide for Success in the World’s #1 Most Profitable Business

Likewise, you don’t need to have experience running a business, but that could also prove helpful. If you’re specifically interested in working as a bookkeeper remotely, establishing a website and social media profiles may be a starting point for your marketing plan. Both can make it easier for potential clients to find you in online searches. You can also leverage social media to build your brand and increase your visibility.

Keep in mind that your choice of business entity will influence how you pay your taxes, as well as what type of liability protection you’ll receive—if any. No matter how intuitive software might be, people simply don’t have time to learn all the tricks. They’ll happily pay their bookkeeper to make sure they’re using it effectively. Your pricing strategy is one of the essential decisions you will make as a virtual bookkeeper. You need to factor in your experience, the level of expertise required by the client, and the volume of work before deciding on a pricing structure. Keep reading to learn the basics about virtual bookkeeping and what you need to know to get started.