Bookkeeping

What is a Virtual Bookkeeping Company and How Can It Help?

how to start a virtual bookkeeping business

There’s no shortage of business accounting software to use. Some popular options include QuickBooks, Xero, FreshBooks and Zoho Books, among others.

  • But, over 10 years ago, QuickBooks Online was still very under-appreciated among bookkeepers.
  • These services, however, depend highly on your skills and experience.
  • Upgrade your internet plan to something with decent download speeds (100mb/second+).
  • I am not opposed to starting small like filing and AP/AR and doing data entry.
  • Journal entries have very specific reporting requirements when you’re working with someone from another country.
  • This chapter will show you a great way how to create a productized service offering and why it’s important when you start an accounting firm.
  • Usually, bookkeepers in the United States do not have to be licensed or certified.

It doesn’t happen in one day; it can take a couple of meetings before you both trust each other enough to commit to building a relationship. So my answer to if a bookkeeper is an accountant or not is Yes and also a No. An accountant’s task is more complex and goes beyond bookkeeping and marking transactions.

Register Your Business and Get Insured

They will help you decide your logo, content, website, tagline, and marketing strategies. Discuss your experience and what you can do to help the business. Organized financial records and properly balanced finances produced by the bookkeeping and accounting processes are both key factors to this success. Some business owners learn to manage their finances on their own, while majority opt to hire a professional so that they can focus on the parts of their business that they really love. The best part of this kind of business is you can work remotely.

how to start a virtual bookkeeping business

The best point of take-off is to know the meaning of book keeping, which is simply an activity that bothers on the recording of business transactions. Book keepers are also known as account bookkeeping for small business clerks, accountants etc. Book keeping is therefore an occupation concerned with maintaining financial accounts, auditing business records and preparing financial reports for a business.

About Xero

As a note, each country/state has different rules, it’s important therefore to counter-check their rules and regulations. That’s not all, your job may extend to filling taxes while working together with the in-house tax professional. This makes it possible for you to log in and access all records in the comfort of your home. If you need to communicate with other employees in the office, you can do so through video conferencing apps like Zoom, Google Hangouts, and Skype. Hearst Newspapers participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. And you can ask for some tips about how to start an official client engagement. So sign up and get some great, free mentorship and access to lots of local learning opportunities.

A niche bookkeeper usually focuses on a certain industry. Becoming an expert in a sector can let you stand out from the crowd. You can develop services that address their specific needs. Each industry has its own financial challenges to focus on. Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more. PayScale, a site that tracks salaries and rates, puts the average hourly rate for a bookkeeper around $17 per hour ($10 on the low end and $24 on the high end). You might also want to look into freelance and for-hire contractor sites, such as UpWork or Fiverr, where people list their rates.

Bookkeeping from Home: 9 Steps to Starting a Bookkeeping Business

Writing out your business plan will help you see what your business will look like and will help identify your strength, challenges, and any areas that need more improvement or development. Make sure that your website contains all of the information that your potential clients may need. 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.

  • A business credits card is the easiest way to get financing for your company in the early stages.
  • You don’t need to have years of experience as a practicing bookkeeper to start your small business.
  • A great starting place is $40 an hour, and you can raise your prices as you go along and gain more experience.
  • Over 8400 people have gone through the training, with the majority being inexperienced candidates.

A great starting place is $40 an hour, and you can raise your prices as you go along and gain more experience. Eventually you’ll want to charge a fixed rate each month for your clients. You will want to get some kind of insurance to protect you even further since you are in the service industry and working directly with clients. You can just call around to various insurance companies, let them know you’re opening a business, and share with them that you want to be protected with business insurance. I have zero bookkeeping experience and was worried about my ability to get clients.

What Is Virtual Bookkeeping?

And if you’re working remotely with your new clients and/or your team, there is just no replacing a video call. 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. Conversely, without uncovering that pain point, potential clients would likely be more price sensitive. With this interaction, you have uncovered a pain point, which then increases the value of what you’re offering making it easier to get clients.

how to start a virtual bookkeeping business

And then quickly move on to another industry to get hustling in if the videos don’t resonate with you. It is pretty important to work with your public relations consultants to help you map out publicity and advertising strategies that will help you walk your way into the heart of your target market. First and foremost, you should ensure that your brand is visible and well communicated which is why you should make provisions to work with different class of people in the society. Every day, go door to door to businesses, handing out your brochure and business card. There could be significant liability issues, you need to take measures to ensure all client data is kept secure. For more information on the right insurance coverage, check out our article on Bookkeeper, Accountant, and CPA Insurance.

Brainstorm Possible Ways to Retain Clients & Customers

By developing a clear target client market, you’ll be able to better focus your marketing activities which we’ll later discuss. Bookkeepers are in great demand in the United States, especially if you’re a certified bookkeeper. We have partnered with the most trusted insurers to help small business owners like you get the right coverage for your business.

Sending prospective customers to voicemail when they need your services can cost you business. Go Answer is a bilingual answering service that connects your customers to live customer service agents via phone, text, web chat, or email 24/7. The following are the eight steps to start your own bookkeeping business. Even though your bookkeeping service is virtual, you will want to consider both traditional and online marketing tactics. Many small business owners choose an LLC because it provides limited liability protection to you as the owner and it benefits from pass-through taxation. Virtual bookkeeping businesses provide the much needed support to businesses looking to outsource this key part of their operations. Information provided on Forbes Advisor is for educational purposes only.

As your business grows, you can upgrade to LLC as most virtual bookkeepers do. You can, however, consult with an attorney on the best options depending on your vision. Also, consult other business professionals on the pros and cons of each business structure. You will also need some basic info on starting a business. These concepts can really be applied to the freelance sub-contractor, too. Instead of marketing directly to small business owners who need bookkeeping, you market yourself to CPAs and larger bookkeeping operations who need staff.

What percent of small-business owners work more than 40 hours per week?

It's a common one for entrepreneurs. Almost half of all business owners clock more than 50 hours per week, and 82 percent work more than 40 hours, according to a poll by the Alternative Board, a small-business adviser. Worse, fewer than half put in those hours happily or enthusiastically.

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