Go Niche or Virtual Starting a Bookkeeping Business

Because each plan depends on many factors, we looked at the value provided in terms of the time and potential money that you’re saving by using the service. Block Advisors uses Xero accounting software, which can be limiting if you would prefer to use QuickBooks or another software. Bench is offering a limited time offer for Fit Small Business readers. You’ll receive two free months of service with no credit card required if you sign up for Bench by March 31, 2023. While Bench offers a mobile app for iOS, it doesn’t have an Android app.

Our AccountingDepartment.com staff members are spread all throughout the United States and are always here for our clients. Plus, there are many ways for clients to keep in touch with their virtual bookkeeper. This means that there is no longer a need for staffing a department to handle the internal bookkeeping needs of the company. Monthly financial reports, payroll services, utilization of bookkeeping software, and much more are handled by a virtual bookkeeping company. The trend these days is heavily in favor of virtual bookkeeper services as they deliver significant benefits over conventional options.

How to start a bookkeeping business in 15 steps

Best of all, you are connected with hundreds of other virtual bookkeepers just like you. Bookkeepers is a company that knows that you want to work for you, not some random faceless company. That’s why they’re committed to giving you the tools to help you build a bookkeeping business that you can continue to grow. Bookkeepers, like many freelancers, are typically charged by the hour rather than making a steady salary. Assuming a 40-hour workweek, this is equivalent to a salary of $35,000 a year. However, bookkeepers can make up to $60 per hour if they receive the right bookkeeping training.

QuickBooks Live is best for business owners who want to get their bookkeeping in order but don’t have the time or resources to do it. Sometimes, people want the security of knowing that they will always have work coming in without chasing it down. This is a scenario where you might want to work virtually for a bookkeeping company. With their instructive online bookkeeping business video series and a team of knowledgeable bookkeeping professionals, Bookkeepers can help you create a virtual business that is lucrative and flexible. If you are new to online bookkeeping and want to find some gigs easily, try out Fiverr. Fiverr is an online job board where you can list your bookkeeping experience for people to view online.

NerdWallet’s Best Online Bookkeeping Services for Small Businesses of April 2023

You can log in from anywhere at any time to help manage your clients’ books or answer questions. Bookkeepers offers a service called Bookkeeper Launch, which teaches you the ins-and-outs of bookkeeping and how to build a sustainable, virtual bookkeeping business. They will also teach you about all the software you need to operate to bookkeep in the 21st century.

• Errors in bookkeeping can be stressful at best and financially disastrous at worst.
• There is a significant need for these services that extend well beyond a person’s local reach.
• Determine What Contracts You’ll Need – As a self-employed business owner, it pays to make sure you protect yourself.
• Repetition of your UVP on your website, business cards, and all other marketing materials will help define your company’s identity to potential clients.
• You can log in from anywhere at any time to help manage your clients’ books or answer questions.
• Running a successful bookkeeping business does not mean you have to have a fancy office.

Consider both traditional and online marketing tactics to help you get the word out about your business. Document Management Software – You and your clients will exchange a lot of information. Consider what solution will enable you to receive, share, and file documents and data effectively. Examples of tools that can help include Google Drive, G Suite, Hubdoc, Expensify, Wave, Shoeboxed, OneDrive, and Dropbox.

Step 2 – Choose Your Web Pages

Each plan comes with a finance expert, automated transaction imports, P&L, balance sheet and cash flow statements. You’ll also get burn rate calculations, which is helpful for startups that need to closely track their spending. The purpose of a balance sheet is for business owners and investors alike to use to gauge the general financial health of their organizations. A balance sheet is a financial document that offers a snapshot of the assets, liabilities, and equity of a business at the end of an accounting period.

Don’t limit yourself to only bookkeepers; you should consider adding administrative assistants or marketing specialists to your team. There is also no reward for working efficiently since fewer hours means less billing. As a virtual bookkeeping firm, you’ll need to determine a reasonable rate for your clients, even if they’re located in other areas.

How much can a bookkeeper charge per hour?

An EIN gives you several benefits and is a necessary component of starting a bookkeeping business. Bookkeepers need certification (which we’ll go over later) and a working knowledge of accounting software, best practices, laws, and, in some cases, the tax code. Cash basis accounting focuses on the movement of cash, so expenses are recorded when payments are made and revenues are recorded when payments are received. No integration with QuickBooks, Xero or other accounting software. Business owners have to use Bench’s proprietary software, which could make it hard to move to another provider in the future.

Bookmark these resources to keep learning about what’s new in the bookkeeping industry, best client practices, and how to grow your business. We’ve already talked about your ideal customer; your market and client research should help to inform you where they spend their time. Now let’s look at some common marketing channels you can use to promote your business. There are several necessary insurance policies for bookkeepers.