How to start a virtual bookkeeping business in 5 steps

You may even need to email invoice copies to a client for approval and have a signature stamp for paying invoices. You should check with the local authorities to see if you need any licenses to make your bookkeeping business stay legally compliant. We have partnered with the most trusted insurers to help small business owners like you get the right coverage for your business. But the good part is that it’s easy to register your business as a sole proprietor. You just need to fill out a simplified application and we’ll take care of the legal formalities at a much more reasonable rate than hiring a lawyer.

Bookkeepers are often responsible for performing financial audits and keeping accurate records of sales and expenses. If you’re looking for a creative, hands-on work experience, then you should consider a bookkeeping job. Bookkeeping is a field that involves dealing with finances and tracking transactions. This can be a fun and rewarding experience, as you’ll be able to help your clients keep their books in order and make informed decisions.

How do accountants make money from home?

Meeting clients with reliable, cloud-based software helps make the bookkeeping work easier. Before you start to get clients, it’s a good idea to have a professional and slick website, plus a branded email address. However, you still need to decide how you’ll fund your business before you get started. It’s these types of questions your clients will have in and around data security.

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. Upwork, which is the largest marketplace for freelance services, is an excellent place to start your search for freelance bookkeeping https://www.bookstime.com/ jobs. It’s never been easier to find a great-paying online job — even when you don’t have prior experience in a particular field. And many people are surprised to learn that online bookkeeping, which is among the most lucrative remote work options, falls into that category.

Is Bookkeeping a Profitable Business?

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. A full-charge bookkeeper is the same as a bookkeeper, except that the “full charge” part of the title designates the person as being solely responsible for accounting.

• Time is a non-renewable resource, and when it’s monopolized by accounting tasks, your ability to focus on core business operations diminishes.
• With a remote bookkeeper, you pay for only the hours you need and nothing more.
• Tell your friends and family about your business and gather contacts of business owners who could be potential clients.
• It helps you close the deal faster because they can see the positive results you’ve produced for other businesses.
• There are two pieces of the business plan that deserve a little extra consideration.

If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations. You want your business name to reflect you as a person and the type of services you provide. Your remote bookkeeping services business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do. One thing to consider is whether you want to work on a desktop or laptop.

Freelancing as a Virtual Bookkeeper

Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. To find out more about starting your own bookkeeping business, see the Bookkeepers, where they offer a FREE 3-part training series. Bookkeeping is quickly changing with new cloud technology and being able to work remote with clients. Virtual bookkeepers have to embrace it to give your business the edge on your competition.

• There are free resources all over the internet that can teach you everything you need to know.
• For example, accounting software is used for tracking financial transactions, creating financial reports, and ensuring compliance with tax laws.
• As a contractor, you’ll be responsible for invoicing for your time and receiving payment according to your policy.
• If you’d like to build a solid foundation that leads to a thriving bookkeeping business, I highly recommend Bookkeeper Launch and their free discovery series.
• ZipBooks quality services and real-time advice any time, anywhere.
• The next step is to choose a legal business entity type for your virtual bookkeeping business.

Holly graduated from the University of Texas and has been featured in Yahoo Finance, Woman’s World Magazine, CNN, and many others. Obviously, you are only one person, so you can only take on so many clients by yourself. It’s also important to note that those clients’ books have different levels of complexity that can take more time. I have bookkeeping friends who are maxed out at five clients and make a good living. I also have a friend who had 24 clients but was getting overwhelmed with the workload. Remember to focus on providing clients convenient and valuable experiences.

Business Services

If you’re good with software, have a knack for organization, and enjoy numbers and problem-solving, bookkeeping could be an excellent remote job for you. If you do have accounting experience, you’ll be able to leverage that to command better rates. You don’t need a college degree or any type of certification to work as an online bookkeeper (although having one or both can help you earn higher rates).

The next step is to choose a legal business entity type for your virtual bookkeeping business. Read on this comprehensive step-by-step guide to set up your virtual bookkeeping business and start making money. Learn how to start a virtual bookkeeping business and start earning early. On average, a virtual bookkeeper earns over $42K per year and you can do that as well.