Bookkeeping from Home: 9 Steps to Starting a Bookkeeping Business

As you know, there are hundreds of options from which to choose. Just search for any of these platforms for the bookkeeping software that you use and find some communities that you can utilize for support when you need it. Before you take the leap out on your own, you need to prepare yourself and plan for the type of virtual bookkeeping business you want to create. Setting up your online bookkeeping business is easy if you follow all of the steps we’ve discussed above in this article. Firstly, bookkeeping services are in high demand as everyone needs to keep records and manage finances – be it freelancers, solopreneurs, small business owners, or corporations. The cost of starting a virtual bookkeeping business depends on the tools and resources you use.

Not only is it going to eat up a lot of your time and energy, thus preventing you from fully focusing on growth, but it may also cause you to make inaccurate income and expense entries. This will lead to a big headache come tax season because then you’ll need to pay a lot of money to an accountant to go back and clean up your books. Businesses of all sizes can benefit greatly by opting for a virtual bookkeeping service. Hiring an internal bookkeeping team is going to cost far more than the virtual option. It’s also more convenient than a conventional bookkeeping company. There’s no need to make appointments to visit your bookkeepers in person.

Best Virtual Mailboxes Compared

Adding services offers you an opportunity to expand your market and as well grow in the domain which will help you to attract new clients. Unlike other professions, bookkeeping positions are entry-level. Do an online course, or work at some local bookkeeping firm, as the skills are necessary to land a position. There are several such jobs available online, often overlooked. Being an entry-level job, you can apply for such jobs online without any prior work experience. The growing world of the internet and technology has evolved the ways how we did business.

It is scalable, has tons of integrations, and includes a responsive mobile app for working on the go. If you’re not ready to go all-in as a full-time, self-employed bookkeeper, you can start slowly by taking one or two clients as a side hustle. That gives you the chance to make sure that bookkeeping is really for you before quitting your day job to hang out your shingle.

What is the best way to market my virtual bookkeeping services?

Bookkeepers.com is currently the best bookkeeping course for getting your business off the ground. Bookkeepers.com Launch program will walk you through setting up your business and teach you the tools to run it. Regardless of the type of business structure you choose, you should open a separate account for your new business. A business bank account also makes it easier to keep your financial records organized, makes it easier to file your tax returns, and helps protect your assets.

Obtain Business Licenses and Permits – Although no bookkeeper license is required, bookkeepers may have to obtain other licenses or permits to operate a business from their location. CorpNet can also help you identify which licenses and permits you will need. The taxes and fees a bookkeeping business must pay will depend on the business structure and where the company is located.

Step 2 – Choose Your Web Pages

The business license usually needs to be renewed every year so you can keep up practice in your given location. I just don’t deal with hardware issues or needing IT support with my Mac. The problem I finally ran into was needing more storage space on my MacBook. Certification is also available within certain software products, too — for instance, you can get certified in QuickBooks.

In addition, owning an accounting business typically requires a bachelors degree in accounting or finances—whereas owning a bookkeeping business does not require certification or a degree. This includes tasks like reconciling accounts, organizing statements, recording financial transactions, and other financial reports. Having it done remotely instead of in-house comes with a host of benefits for business owners. Being good with numbers, organized and methodical are all great skills to have when wanting to become a virtual bookkeeper and you can easily learn how by taking an online course.

Set Up a Business Bank Account

Also, you don’t need a degree, plenty of experience in the field, or a bunch of money to become a successful bookkeeper. No, a separate office isn’t necessary for a bookkeeping business. As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely.

If you florida income tax rate the latter, the average salary of a bookkeeper in India is above Rs/month. We’re on your team and are passionate about helping you achieve your career goals, even if it means we don’t make a dime. If you’ve established a corporation or LLC, the entity needs to get registered with your state. Sole proprietorships do not require formation filings, though they often require business licenses. Practical business and financial insights, lessons, perspectives, and know-how brought right to your inbox.

How To Find Clients For Your Bookkeeping Business

Local colleges may offer bookkeeping courses, and there are plenty of options online. LinkedIn offers online courses and access to expert-led tutorials for $19.99/month-following a 14-day free trial. Contact a company like CPA Site Solutions that will customize a website with your business logo, images, and content and offer you specialized marketing services.

You just need a laptop, an internet connection, the right bookkeeping software, and a marketing budget to get started. Upwork is one of the largest websites for freelance work and has millions of potential customers looking for services like yours. You can create a profile on Upwork and showcase your skills and experience. You can also set up productized services, hourly rates, or monthly packages so that customers know exactly what they’re getting with your service. The best way to market your services will depend on your target audience. However, you should start with a website and then use social media, email marketing, and search engine optimization to reach potential customers.

Remember that you should initially charge below the rate of your competitors. You can determine how much to charge by comparing other virtual bookkeeping services and local players. Then, work out the lowest amount you can charge after your operational expenses.

In this article, we’ll outline the steps to build your business so you can get up and running and build a full client roster. The best place to start to find clients is in your network. Tell your friends and family about your business and gather contacts of business owners who could be potential clients. After networking and getting referrals, you can market your services using social media, blogging, guest posting, paid ads, and more.

Considering that bookkeepers rely on the power of technology daily, they should invest in quality hardware and software. Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. Forbes Advisor adheres to strict editorial integrity standards.

Some of the possibilities include state and local income tax, gross receipts tax, franchise tax, and state and local sales tax. Many bookkeepers prefer to form limited liability companies to limit personal liabilities and enjoy the benefits of flexible management structures and taxation options. As a new business owner, you may also look for a mentor or consultant to guide you through the process of starting a bookkeeping business.

To get to know who’s out there, there’s no better way than attending local networking events to collect some business cards. 2) To get clients, showcase a simple “how it works” process so that visitors know the steps they’ll need to follow to reach the benefits and outcomes that you have listed above. Meaning, technology cannot be ignored if you want to get bookkeeping clients, or even land your first client. Think about what you want your bookkeeping business or CPA firm to achieve by that target date.

• Just make sure you have a plan to pay off the balance before the introductory offer ends and a variable APR sets in.
• When you finish your work, you can stop for the day or focus on getting more clients.
• I was able to grow my public accounting firm quickly by hiring certified public accountants and professional bookkeepers thanks to many of the marketing strategies that worked well.
• “I was initially confused on the entire process of getting my business up and running in the USA as an Australian. One call with Doola and I signed up straight away.
• By doing so, you’ll start to get known in those social media circles and you’ll start to get people connecting with you.

For a bookkeeping business, you may also want to include information regarding your niche and any certifications that you have as well. Bookkeeping is a profitable business to start for those with an eye for detail and a head for figures. Taking on the responsibility of assisting other business owners with their bookkeeping needs will become a part of your daily routine. Small business owners don’t care about which automated software they’re on, so just pick the one you like best. 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.

Anyone operating in the US needs to make sure that they’re aligned with GAAP when working on financial reporting. GAAP forms the basis for all bookkeeping businesses and outlines the assumptions, principles and standards used to analyze transactions. GAAP standards were created and are regularly updated by the Financial Accounting Standards Board . Have an expense log ready, and track expenses paid through personal accounts. Set up separate accounts for your business, just like you’d want your clients to do.

Ask family and friends for input and try out your name on some potential clients to see what they think. Bookkeepers have been moving away from traditional by-the-hour rates and moving towards flat fees. 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. This surely needs to be shared in order for others to know. As Ben teaches his students, “the number one tool, and the hub for everything you will do for your client, is a bookkeeping software called Xero.

You may have to unlearn some of what you already know so you can implement the course lessons and launch a successful bookkeeping business. There is more to starting a bookkeeping business than just being good at math (although it sure helps!). If you’re good at organizing financial information for business owners, you might want to consider starting a bookkeeping business. Bookkeepers build a business’ financial foundation, helping entrepreneurs make decisions about the future success of their business. Another aspect of marketing is dialing in your brand, which goes hand in hand with the type of clients you want to bring in. Knowing the market and what makes you stand out from other competitors will naturally draw your potential client base to your bookkeeping services.