How to Start a Bookkeeping Business Step-by-Step Guide

It’ll focus on designing a website that increases revenue, improves client loyalty, and drives brand awareness. It even offers a free 30-day trial so that you can see if it works for your business. You can create a dropbox for each client, and they can start submitting their information. This system is much more secure than sending files via email or flash drive. To access the information in the document-sharing program, you need a user ID and password.

• If you lack any of the above skills, there exist online platforms where you can learn and become a certified bookkeeper in a short time.
• They have detailed guides whether you are starting, growing, or scaling.
• If you’re unsure which structure suits your business needs best, getting professional advice from an attorney can help you to make the right decision.
• The good news is that there aren’t many costs involved in starting a bookkeeping business.
• When you are trying to build your portfolio to attract your won clients, you will be relying heavily on your laptop and a good and stable internet connection.

You will be able to collaborate with clients across the United States and many other countries. According to ZipRecruiter, as of September 2020, a virtual bookkeeper salary is an average of $38,193 a year. Most countries have strict privacy laws on personal, financial, and sensitive data.

budgeting report 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. We make it easy for you to create a life of freedom with free training, resources, and more on how to start and grow a profitable bookkeeping business — from anywhere in the world.

One of the biggest benefits of virtual bookkeeping is helping companies save a ton of time and money versus hiring an in-house bookkeeper. Fast-growing businesses may also turn to you, as their bookkeeper, to manage payroll and payroll taxes too. So it’s important you make timeliness and accuracy a critical part of your business. You can choose from a bunch of certification courses or classes to learn new skills and take your business to the next level. A virtual bookkeeper helps companies stay on financial track, understand their bigger financial picture, and decide where to spend money. I actually offer a master course for people starting out and building a bookkeeping business.

Step 2: Register Your Bookkeeping Business

A Limited Liability Corporation is a simple type of business entity that can be composed of one or more people. The net income of the business “flows through” to be reported on the personal taxes of the owner. Finally, a business financial monitoring software tool can help you offer the best bookkeeping services by taking care of your own finances. Regarding hardware tools, you should decide whether you want to work on a desktop computer or a laptop. A bigger screen will help reduce eye fatigue, but a laptop is a better choice if you plan to travel the world while offering bookkeeping services. You will likely want to establish a business banking account and credit card.

And more importantly, there’s no need for physical backup because files are in the cloud. This step is important because it establishes your business as legitimate and may help to limit your personal liability if your company is ever sued. Whether you’re doing this part-time or full-time, you don’t want to skip this step. 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.

How to Start a Virtual Bookkeeping Business?

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. One of the easiest ways to reach your exact audience is through Facebook advertising.

Inform your family and loved ones of your new virtual bookkeeping job, and make use of the connections you currently have. Solicit recommendations from others so that you may get clients and expand your network. Bookkeeping can be self-taught thanks to the sea of online courses available for you to choose from. Provided that you dedicate certain hours of a day to elevate your bookkeeping experience. The two essential tools in remote bookkeeping jobs are laptops and a steady internet connection. Even if you’re just testing the waters, you still want to provide high-quality service to clients so they can accomplish their objectives and save time by hiring you to do the job.

How To Start a Bookkeeping Business in 8 Steps for 2023 + Checklist

EINs are free and obtained through the I.R.S. If you don’t have the time or don’t want to handle the paperwork on your own, CorpNet can help you apply for your EIN. I have websites through both providers and SquareSpace is definitely the easier option. It meets my needs for my bookkeeping business and it was very easy to set up a Gmail email address using my website address. I have lists for each client so I can keep important notes and communications with them easily accessible.

You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use. Before you dive into your discovery of the EXACT tools, technology and professional certification you need to start a bookkeeping business, there is a critical mindset you must adopt. You can refer to our guide on how to open a business bank account. It includes a checklist of required documents per entity type. As a one-person operation, you may find it hard to get back to clients right away, especially during tax season.

The digital age has brought endless possibilities to start online businesses of all shapes and sizes, so there’s something out there for all types of people. There are some things you should consider when thinking about starting your own bookkeeping business. Learn the benefits of starting out on your own small business venture that will encourage you to take that leap. If your clients will be sending you things such as receipts or statements, you might want to consider the tool that you’ll use to share files. A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to.

However, it’s important when starting out to choose the best software for your own accounting. In a nutshell, when a company hires a virtual bookkeeper, they give the bookkeeper (you!) remote access to their bookkeeping software, and financial documents. 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.

Create a Business Plan

If you’re having trouble coming up with the perfect name for your virtual bookkeeping business, many tools can make this process much simpler. For instance, a business name generator can create a potential business name in just a few clicks and save you a lot of time and effort. Writing a business plan is the first step to launching any business, including a virtual bookkeeping one. Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs. You can also choose to become a certified public bookkeeper to market yourself better as a bookkeeping professional.

When it comes to scheduled meetings, anyone can set up a video call and easily join from a computer or smartphone. When you’re trying to reach prospects nationally instead of locally, marketing becomes more complex. You need to find a balance and set boundaries between work and home life.

If you can show your clients that you are aware of this and that you take their privacy seriously, this is an added value that you can give to them. You can register your business as a sole proprietor or a private company, depending on how you prefer your tax liabilities to be structured. This free course gives you all the basic knowledge you need to become the boss of your own bookkeeping business. You can equip yourself with these digital bookkeeping skills by learning from experience and figuring things out through trial and error. Start with registering your business and building a website to get your first clients. You should focus on delivering great service to retain existing clients and attracting referrals.

Even if your business is a one-man show, you can’t use a personal bank account for business transactions. Dividing personal from professional costs is essential to maintain a healthy balance between life and work. Business plans can be more or less detailed, depending on what future virtual bookkeepers decide to disclose in them. You want your business name to reflect you as a person and the type of services you provide.

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. Obtain an EIN – Even if you don’t have employees, you may need an EIN. Also known as a Federal Tax ID Number, an EIN is a unique nine-digit number used for identifying a business on tax forms and other documents. Most banks will require an EIN before they will open a bank account for a business.

For many, remote work has become the new norm, whether that’s working from home for an employer, or as a service business owner. According to a recent PWC study, financial services firms saw a major shift in work-from-home with COVID-19. This free, online tool helps small business owners navigate the process of picking the right business structure for their new business. 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.