How to start a bookkeeping business in 9 steps

how to start a virtual bookkeeping business

SquareSpace is a very easy way for beginners to create basic websites. WordPress is the most common recommendation for new bloggers, but that platform is more complicated to learn. You can either encourage your clients to move to your preferred software or become acquainted with the software they’re already using.

Steps to Start a Successful Virtual Bookkeeping Business

  • If you’re just starting out and limited on funds, you might consider a sole proprietorship.
  • Another popular option is Xero, but there are plenty of bookkeeping apps to choose from.
  • The specific tasks and responsibilities of a bookkeeper may vary depending on the company they work for and the nature of their role.
  • Instead, upload the documents to a cloud-based document storage system like Google Drive or Dropbox.
  • A Limited Liability Corporation (LLC) is a simple type of business entity that can be composed of one or more people.
  • Management of financial statements takes more than just calculating numbers, managing books, or keeping books.
  • Running your own bookkeeping business can be a highly profitable venture, given that you equip yourself with the right know-how and tools.

It’ll also enable you to learn what the hottest trends in the industry are and what’s becoming obsolete. A great conference to attend is QuickBooks Connect, which is hosted by Intuit. The 2023 details for QuickBooks Connect haven’t yet been announced. A document-sharing program will allow you to share information—such as bank statements, copies of receipts, invoices, and accounting files—with your clients no matter where you’re working. My recommendation is that you use QuickBooks Online, which we rated as the overall best small business accounting software. As discussed earlier, you can get QuickBooks Online Accountant for free when you join the QuickBooks Online ProAdvisor program, which is also free.

How a Bookkeeper Is Different Than an Accountant

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 how to start a virtual bookkeeping business easy to set up a Gmail email address using my website address. There’s a good chance you’ll need to create PDF documents to share with clients.

Specializing by industry, service, or technology

Non-accounting degree holders who would like to pursue a bookkeeping career can take bookkeeping courses online. It’s significantly shorter than a full accounting college course. We recommend choosing courses that provide a certificate so that you can include it on your resume. You can get bookkeeping courses from Accounting Coach, Coursera, or LinkedIn. The best niches to consider are those that have unique bookkeeping challenges. While choosing a niche will greatly reduce your available client base, it makes it much easier to gain expertise and distinguish yourself from your competitors.

how to start a virtual bookkeeping business

Step 5: Get the Right Accounting Software

If your team is in different locations, you won’t always be able to see what they’re working on, so a to-do list won’t cut it. 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. You do not need an expansive or expensive website to get started. You can create a simple website for less than $50, including the domain name. If you don’t have experience, you can find many predesigned websites online or have one put together for less than $500.

  • Accounting & related professions, including bookkeeping, seem to come naturally to some people.
  • The market is there; small business owners and large corporations need bookkeepers.
  • Starting an online bookkeeping business comes with plenty of advantages – you get to make your own schedule, work with any companies you’d like, and make a living working from home.
  • If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations.
  • The market is filled with companies and banks that offer outstanding business banking account deals.
  • It impacts tax obligations, personal liability, and your ability to raise capital, so it’s important to consider the advantages and disadvantages of each type.
  • An upgrade will get you redaction capabilities, which would be nice but may not be necessary.

You may find yourself working closely with their tax preparer, and together, you can provide outstanding service to your mutual clients. To form an LLC, you’ll need to file Articles of Organization with the Secretary of State’s office and pay the state filing fee. You will also have to file for an EIN (Employer Identification Number) with the IRS. It is essential for paying taxes, hiring bookkeepers and other employees, and opening a business bank account. The next step is to choose a legal business entity type for your virtual bookkeeping business. Since you are starting a bookkeeping business, I’m sure that you have already given some thought (or made a decision) on which accounting software to use for your business.

how to start a virtual bookkeeping business

If you want to sell yourself to potential clients, you should know how valuable you are to their small business. Some clients will do work at their site, like entering bills, writing checks, sending invoices, and more. In this case, you’ll be responsible for ensuring they make proper entries, reconcile accounts and bank statements, get financial documents, and more. Virtual bookkeeping is a way to record, store, and manage all financial transactions for a business from a remote location.

Create efficient remote workspaces

Your goal is to make them feel secure with leaving their most valuable company information in your hands. 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.

how to start a virtual bookkeeping business

I print checks to pay my clients’ bills, documents that I want to write on while working, and invoices to send to my clients. You can easily use separate banks, just remember to account for delays in processing between banks. If you set up a corporation in a state that collects state income taxes, you might need to obtain an identification number for state income tax withholdings.

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