Niche And Virtual Bookkeeping Businesses

how to start a virtual bookkeeping business

As we hold onto this professional’s mentality, let’s now shift our focus to the exact tools, technology and certifications you need. To help him finish the job to the best of his ability, in the least amount of time possible, to deliver a high-quality finished product. Okay, if I did my math right – that means your estimated startup costs are about $1,404. 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.

how to start a virtual bookkeeping business

In addition, you will need accounting software such as Quickbooks Online to run your client’s books. It can be simple to start your own bookkeeping business if you have the necessary professional bookkeeping experience as well as knowledge of accounting software. Startup costs are minimal and you do not need formal training or certification but you may face significant possible liability issues. For those of you who have been wondering about payroll, I’ve listed many of the details you’ll need to address. This information is intended to give you a general sense of what’s involved and is not a substitute for professional legal, accounting, and tax advice. One of the fastest ways to gain credibility with potential clients is to prove that you have the knowledge necessary to do bookkeeping, payroll, and perhaps tax returns. Their ‘Bookkeeper Launch’ course is one of the best products out there for learning how to launch a virtual bookkeeping business in the twenty-first century.

Get Insurance So Youre Protected

It’s time to cover the most common mistakes you will probably make in QBO. Every bookkeeper makes some mistakes, but this lesson will let you know what to watch for. Be Your Own Boss – Check out this Free Discovery Series that shows you how to own successful digital bookkeeping biz.

  • At the rate I’m bringing on clients, I expect to hit my target income of $5,000/month within 3 months.
  • To protect yourself in the unlikely event of a legal claim against your business, consider getting the peace of mind through insurance policies.
  • One of the big things that we did in our CPA firm is that we did bookkeeping.
  • To help you save on your legal costs and ensure your paperwork is completed accurately, CorpNet’s filing experts can handle your business formation filings for you.
  • As with any freelancer career, go for bookkeeping tasks that genuinely interest you.

What I like about freelancing websites is that you’ll find jobs regardless of your skills and experience. There exist all types of bookkeeping jobs for both beginners and experts.

Is There Insurance For A Bookkeeping Business?

QuickBooks Live is a monthly subscription service intended to fill gaps for small businesses and self-employed who aren’t currently connected to ProAdvisors® and accounting professionals. Many who use QuickBooks Online are connected to ProAdvisors through our Find-a-ProAdvisor platform, but research shows that 40% of small businesses don’t currently work with ProAdvisors or bookkeepers. That said, 89% of small businesses say they’re more successful when working with accountants. If your home cannot work as an office space and you don’t yet have the means to rent physical office space, you can consider renting virtual office space. It is a remote working solution that provides the benefits of a physical office space but at a lower monthly rate. Credit card financing is a type of unsecured loan that is a good starting point for those who may not qualify for a small business loan. A business credit card is a great financial tool for managing cash flow and expenses, floating working capital expenses, and earning rewards.

how to start a virtual bookkeeping business

Get your free guide, business plan template and cash flow forecast template to help you boss your business and achieve your goals. Setting up your own bookkeeping business can be very rewarding, not only financially but as a lifestyle choice. Then you’ll need to decide whether you want to work from home or in an office. There are likely to be more costs associated with setting up in an office space, with rental costs being one expense to consider. You’ll find plenty of information about the bookkeeping profession on its website. For example, the professional exams and qualifications people have to take in order to qualify as a bookkeeper. It could cover recording cash receipts, making bank deposits, paying supplier invoices, maintaining an annual budget, payroll management, and so on.

How Much Can You Make Per Client?

Your client doesn’t have to pay for your time-off, health insurance, 401k, and share of payroll taxes. There are few boundaries to who can become a great virtual bookkeeper. You don’t need a college degree, or a bunch of money or business experience to get started. All you need is the drive to want to make extra income from home.

To protect yourself in the unlikely event of a legal claim against your business, consider getting the peace of mind through insurance policies. Types of insurance many bookkeepers secure include professional liability (sometimes called “errors and omissions”) and general liability. It would be helpful to check with a trusted insurance agent to get recommendations, and also with the state to see if any type of insurance is required for your bookkeeping business. In addition to federal income tax (and self-employment taxes if the business is a pass-through entity), there may be other taxes at the state and local level. The taxes and fees a bookkeeping business must pay will depend on the business structure and where the company is located. Some of the possibilities include state and local income tax, gross receipts tax, franchise tax, and state and local sales tax. Most people operating a part-time bookkeeping business with no employees will operate as a sole proprietorship, which generally works fine.

Preparing a business plan is essential for everyone should do before they start a business. As any good bookkeeper knows, one of your primary jobs is making sure your clients’ financial data is safe and secure. That means communicating with them about who should have access to information and how you prioritize security. As a bookkeeping service, you can provide companies with better and more comprehensive data. And because you work from home, you may work with fewer distractions (and stress!), which in turn makes you more efficient. Some clients will want you to handle all or most bookkeeping tasks; like invoicing, billing customers, or preparing payroll.

And bookkeeping jobs are in high demand because many small business owners don’t have the resources or time to employ an in-house bookkeeping team. So, that leaves several of such businesses to rely on virtual bookkeeping services for their day-to-day bookkeeping needs. Planning to start a virtual bookkeeping business is not that difficult as long as you have ideas on how to start it in the right way.

It’s not only good for margins, but also for attracting new clients. A trustworthy software will help you stay on top of your clients’ bookkeeping and better manage the workflow.

how to start a virtual bookkeeping business

Project management software—such as Trello, Asana, Active Collab, and Slack—can help things from falling through the cracks. Also, consider joining a bookkeeping group or association that offers information and support from peers in the industry. Online communities, such as groups on Facebook and LinkedIn, can be helpful outlets for bouncing ideas and asking questions.

So it’s important you make timeliness and accuracy a critical part of your business. Bookkeepers are experts at managing the day-to-day finances of a business. They give small business owners vital information to make better financial investments down the road. If you want to sell yourself to potential clients, you should know how valuable you are to their small business.

Starting a bookkeeping business requires paying attention to some essential legal and tax matters. To ensure you have accurate information, know what you’re responsible for, and understand how your decisions will affect you, seek professional advice from an attorney, accountant, and tax advisor. Marketing is one of the most difficult things for accountants and bookkeepers to master.

The Ultimate Guide For Success In The Worlds #1 Most Profitable Business

All businesses need to keep bookkeeping records by law, and someone has to do that work for them. Although I was expecting for a little bit of exact information regarding bookkeeping, it is fairly understandable why Ben did not brought up all the gross vs net necessary things. Instead, what the post gave is a certain degree of inspiration. It gives hope to those who are really aspiring to learn how bookkeeping works but are not CPA’s or didn’t have the proper education with regards to such field.

Now if you are in the United States you have a greater advantage with demand wise, however, what you will learn as to how to get a start and scale your business internationally. But the country-wise accounting knowledge is important unless you know how to find the best freelance bookkeepers providers and build your business in a manner to cater to all the main countries. You can see over 2.4K worldwide and the best way to tap in that is by going online and starting your own bookkeeper services business.

Also, consult other business professionals on the pros and cons of each business structure. Keep in mind that a remote bookkeeping business means working as an independent contractor. You, therefore, need to register your business and adhere to other obligations. As a note, each country/state has different rules, it’s important therefore to counter check their rules and regulations.

Start A Loyalty Program

This article and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”). Please do not copy, reproduce, modify, distribute or disburse without express consent from Sage. This article and related content is provided as a general guidance for informational purposes only. Accordingly, Sage does not provide advice per the information included. This article and related content is not a substitute for the guidance of a lawyer , tax, or compliance professional. When in doubt, please consult your lawyer tax, or compliance professional for counsel.

Which Software For Bookkeeping Should I Use?

If you want to know how much you can make as a virtual bookkeeper, the answer is it depends. But on average online bookkeepers make from $40 to $60 per hour. And annually if at a salaried job people makes around $50,000 but with more qualification, you can earn more. And that you can learn at SeekaHOst University SEO training course.

They don’t see each other as competition because frankly they’re not. I don’t remember two bookkeepers in our group ever crossing paths or competing with one another because it’s a big, big market out there who needs bookkeeping services. For us, an example is we’ve helped people start bookkeeping businesses and tax businesses. If we were just trying to help people to start businesses, we probably would not have this success that we have today. One of the big things that we did in our CPA firm is that we did bookkeeping. I trained at the time about 120 bookkeepers over the course of my career on how to do bookkeeping services and how to do them right. I’m looking at switching to OnPay because I think I can get the same service for half the cost.

Take your own knowledge, experience, and qualifications, as well as your target clients’ budgets, into account when setting your fees. There are many bookkeeping and accounting packages, such as QuickBooks, Xero, and FreshBooks, so you will need to research the best option for you, personally.

You can find various bookkeeping contract templates online to use as a starting point. An attorney can help you identify what contracts you need and ensure that the language within them covers all the bases. A bookkeeping business consists of tracking income and expenses, processing payroll, and how to start a virtual bookkeeping business possibly preparing tax returns for business clients. Bookkeeping is a great home-based business that’s easy to start with very little cash. Whether you’re looking to make a little extra money or wanting to grow a business to support you and your family, our eight steps will help get you there.

Author: Craig W. Smalley, E.A.