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. There are two pieces of the business plan that deserve a little extra consideration. Order business cards and create a logo to begin branding yourself and your business.
As with most services, the amount of clients for your bookkeeping business depends on your level of skill and experience. For a basic idea, the average number of clients once you are up and running, per bookkeeper is 30. Of course, you can’t run a profitable business unless you’re good at what you do, no matter how much potential the industry has. Before you decide to pursue a bookkeeping business, you need to make sure it suits your skillset and strengths. As a result, a bookkeeping business offers the chance to help your clients grow their businesses by offering them advice as well as getting nerdy with the numbers. It can be an enjoyable and fulfilling career path for the right person.
How to start a bookkeeping business in 8 steps
Besides college, you can alternatively acquire an accounting certificate from reputable online bookkeeping and accounting platforms such as QuickBooks. Even though not a basic necessity, most clients will prefer a professional bookkeeper. This is because they are entrusting you with confidential information about their finances. Having a certificate also boosts your market value on leading https://www.bookstime.com/ freelancer job boards. If you are a novice in online bookkeeping, you only need to have a computer, internet connection, and a payment account. This is because you’ll be working online, either from your home or on the go, anywhere in the world. Basically, when you get hired as an online bookkeeper, you are granted exclusive access to all business documents including bookkeeping software.
As with any other business, capital is the root requirement to fund your venture. You, therefore, need to have a rough figure of the startup cost. This includes reporting profits and losses every financial year. With such software, all changes take effect in real-time, both on your computer and at the office. That said, accessing such apps require you to have secure login credentials from your employer.
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This is a website you and your clients can log into, and you’ll be able to see each of your clients in your account. The LLC is to form your business into a legal structure, and you only need to do the set up one time. As an entry-level bookkeeper, how to start a virtual bookkeeping business you can start charging around $40/hour, and as you gain experience, increase that to upwards of $80/hour. You should also consider health insurance as an added expense, especially if you previously had health insurance through your employer.
Microsoft Office Suite used to be a requirement, but many virtual bookkeeping businesses use the free Google Workspace products. 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.
Michelle L. Long, CPA – QuickBooks® Consulting, Training, Speaking and Writing
Do you like working with numbers and want the freedom and flexibility that comes from being your own boss. Starting a virtual bookkeeping business may be the perfect work at home online career for you. Check out this free course to help you determine if starting a bookkeeping business is a good fit for your lifestyle. Perfect for beginners looking for a new side hustle or full time online business . I know this was information overload, but I wanted to create an ultimate guide for you as you start your online bookkeeping business. I’ve created an easy checklist for all the things we talked about today for you, so make sure to check it out.
- Some bookkeepers also prepare financial statements and do tax work as well.
- Like a business bank account, a business credit card allows you to differentiate between personal and professional spending.
- If I have to handle accounts payable for a client, I utilize Bill.com.
- In additions she was named a Top 10 ProAdvisor — Social Media Leader.
- Probably about half the people I told said that they needed or they knew someone who needed a bookkeeper, so I was already handing out my business cards.