How to Start a Bookkeeping Business

It is a comprehensive document that explains not only your services but also your market and the competitive advantage you’ll have in your business. This document does tend to be lengthy, but it’s important to do. It’ll help you focus your business and run efficiently out of the gate. Communication is absolutely crucial to a successful online practice. You need to keep your clients who are business owners up-to-date on the state of their business, and you need them to provide you with details in a timely manner. It can be tempting to load up on tons of shiny apps, but it will serve your firm and your clients best to focus on just a few that get the job done.

Another popular option is Xero, but there are plenty of bookkeeping apps to choose from. You can get certified in each of these programs, which can not only help you become a power user but can also help you market yourself as an expert. Online marketing can be especially impactful and allow you to reach prospective customers everywhere across the United States. Make sure that your website and LinkedIn profile showcase your education, credentials, and services. And please, upload a professional-looking headshot on LinkedIn.

Taking the effort to understand what virtual bookkeeping is and how it works will help you start an excellent business. If you’re going to market on social, make sure you’re profile is focused only on bookkeeping tips and information. It helps potential customers get all the details they need from you. You can add value to your business over time, and each time you include a new offer you can also up your prices.

Choose a Business Structure

They work exclusively with CPAs and bookkeepers, and can create a site designed with your logo, images, and content. Most software runs on either PC or Mac — so the type of computer you choose is personal preference. Some states may require a business license in order to file for LLC and get an EIN for your business. After you decide your business name and its structure, it’s time to register with your state.

Even if a few characters or words are different, you’ll want to avoid confusing future customers. This will help avoid confusion with any other existing businesses and may help avoid embarrassing or confusing coincidences. If not, will you be able to buy it or create a variation of it? Use Name.com to see if the domain name you’re interested in is available. My clients all enter into a contract with me knowing about my daughter’s needs. They know I may be unavailable temporarily if she is hospitalized out of state again.

You get to establish your own management style.

Keep in mind the significance of accounting equationing to advertise yourself as you examine how to become a virtual bookkeeper. A virtual bookkeeper is essentially someone who tracks, records, and manages the business expenses of small to medium enterprises. As a bookkeeper, you can offer small business owners solutions to their record-keeping problems. More often than not, it is the business owners themselves who maintain the records of business and financial transactions.

Virtual businesses sometimes forget about networking, but several online platforms help businesses to meet and grow virtually. If you’d prefer not to bill hourly, you can set a fixed fee or retainer bill for each client. This method rewards you for working efficiently as long as you’re getting the work done. When you finish your work, you can stop for the day or focus on getting more clients. You should also consider a reputable webcam and headset for client meetings. You should also consider health insurance as an added expense, especially if you previously had health insurance through your employer.

As you gain experience, you can increase your rates to match your skills. These companies are just a few of the many that offer remote bookkeeping services. Also, as a freelancer, you will find bookkeeping gigs in popular job marketplaces such as Upwork and FlexJobs. Let’s begin with the basics of starting a virtual bookkeeping business from home. In this guide, I am going to cover everything on how to start a virtual bookkeeping business.

Hire an Answering Service

If possible, plan to meet your clients at their offices or virtually. I don’t recommend inviting clients to your home office unless you know them very well and have a private room where you can work. Read our home office setup ideas to learn about the must-haves and productivity hacks.

One of the most rewarding parts of building your own business is that whatever you put into it, you will see the outcome and reap the benefits. As you move along in your business plan, you get to decide how much time, energy, and motivation you have to give to your endeavor. Business owners alike know that the more you put in, the more you’ll get out. When you dial in your business structure, accounting system, brand, and target audience, you’re ready to showcase it on a professional bookkeeping website. As a small business owner, you get to decide how many clients you want to take on, how much money you want to make, and how many hours you want to work during the day.

How Do I Become A Virtual Bookkeeper With No Experience?

You will be asked to share W-9s with other businesses, so they can properly report funds paid to you, and that form requires a tax ID number…. Which means you lose control over who has access to your SSN. Instead, I can make my own hours and choose to do work I enjoy. As for software, most programs will run on a PC or a Mac, so it’s a matter of personal preference. Considering that bookkeepers rely on the power of technology daily, they should invest in quality hardware and software.

This membership includes regular meetups and entry to a mastermind, as well as the most advanced strategies available. Certification is also available within certain software products, too — for instance, you can get certified in QuickBooks. Help businesses with an overview of their finances to help them understand their habits. Email is the obvious place to make a request, but you can also ask via text, social media chat, on your website (especially download thank-you pages), or even a line on invoices. They don’t take much ongoing effort, so make sure you get them set up right away.

Still, there are equipment and technology tools you’ll want to invest in so that you can work productively and provide exceptional service to your clients. We recommend choosing a bank that offers free, online business accounts because they’ll work perfectly for your virtual bookkeeping business. With these accounts, you can open an account in minutes and easily make payments, deposit checks, and schedule money transfers. One of the most critical steps to take in your virtual bookkeeping business is to invest in professional liability insurance, also known as errors and omissions (E&O) insurance. This insurance will cover you against claims you made a mistake in preparing a client’s books.

Create a business entity that separates your business from your personal finances and liability. While an LLC company comes with more responsibility, you can also use LLC services to help you form an LLC company more efficiently. Starting with a sole proprietorship and transitioning into an LLC as your business grows is also a possibility.

Of course, this is a challenging route that not many people will be able to take. You could feasibly make a six-figure salary if you work a lot, and you’re an excellent bookkeeper, but ultimately your salary will be capped. You can’t expect to earn a living from bookkeeping unless you actually know how to bookkeep. If you want an in-depth idea of the principles of bookkeeping then it’s a good idea to consult a training program or book on the topic, but here are some key aspects. There are a few different ways you could structure a bookkeeping business. 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.

A google search for pricing plus bookkeeping probably will give you a ton of information. And I have hired a marketing company to get my name out there. Alternatively, you might also want to check out Melio Payments or Veem if you need a less advanced system for your clients. These insurance policies will cover you should there be any legal issues that arise between you and your clients. Another way to protect yourself is by getting the right business insurance coverage.

• Depending on which plan you choose, you may not find all the features available.
• However, there are things that you need to take care of to get started.
• They help small-business owners get a handle on their cash flow — one of the most important barometers for a healthy business.
• The entrance hurdles are minimal and you can start making money quicker than a full-time job.
• Make the ask in writing and include a link directly to the review page on whatever platform you’re targeting.

Bookkeepers are essential for other businesses to thrive, making sure that they’re keeping track of their financials correctly and on the right track to grow. When it comes to partners, colleagues, and employees, it’s important to think about more than just workflows and software. A successful work-from-home team balances work and home life, and establishes healthy boundaries. Try to focus more on the outcomes and getting the work completed than on activity and clocking a set number of hours per day during a fixed window. Things will come up, and anxiety will be greatly reduced if you can be flexible.

Then, find a hands-on, roll-up-your-sleeves bookkeeping course. One that rocks and shows you how to be a great bookkeeper in a “paint by numbers” format. See our guide on How Much Bookkeepers Charge for an up-to-date review of bookkeeping rates by state. The capital covers purchasing hardware equipment such, as a laptop, and subscribing to various bookkeeping-related software like QuickBooks. Google Ads or purchase ads space in other blogs and websites where you can find interested clients.