7 Best Virtual Bookkeeping Services For 2022

Typically, this includes a mailing address, local telephone number, receptionist to answer calls, physical office space, and access to a conference room that you can rent by the hour. 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 are working. Writing a business plan is something that everyone should do before they start their own business. While a business plan can be used to obtain funding for your business, the real value is the thought that goes into the process of writing a plan. I’m Rebecca, a side-hustling single mom who’s figured out the secret to making six figures from home. I help people just like you learn how to start money-making side hustles, get control of their budgets and achieve financial freedom! If you’ve already got those three things, then the next step is learning the ropes of bookkeeping.

A locking file cabinet where you store client documents is advisable, and it is good practice to have a business phone number and email address where clients can reach you. Choose a Structure – Different website platforms have many different styles and structures to choose from. Find a clean, manageable layout that will not distract visitors from your services. The former is primarily for sending invoices, along with the ability to track what clients owe you, whilst the latter also allows you to generate reports, estimates, and cash flow statements. You’ll also have access to tutorials and webinars to ensure you continuously learn more about your trade.

Is Starting A Bookkeeping Business A Good Idea?

My Dell cost me maybe $500 and it’s still going strong after 5 years. Remember to keep receipts for business purchases and pay for those things from the business account. Bookkeeping may seem like an easy job (especially compared to a CPA’s job), but I firmly believe you either get it or you don’t. Not every state requires businesses to carry liability insurance, but I recommend doing it anyway. 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. I’ve found that calling & talking to a human gets clearer results than searching the state’s website. That means there are more tax factors involved, so I absolutely recommend discussing with a CPA.

And taking an online bookkeeping course can be helpful if you have zero knowledge of what bookkeeping is or you need a refresher on the fundamentals. According to ZipRecruiter, the national average salary for virtual bookkeepers was $38,193 as of 2020. And again, all of these things can be done online using financial software programs, email and Zoom chats if it’s necessary to chat with clients. Their virtual bookkeeper does all the heavy lifting of managing the books from a remote location. Get yourself the right accounting software and learn how to use it efficiently.

Steps To Start A Virtual Bookkeeping

Virtual accounting companies serve numerous clients at one time; thus, they can bear the cost of experienced professionals. In a way, you can get experienced bookkeeper services under your budget by hiring a virtual bookkeeping company. Getting the required experience and skills will help you to get better to deliver credible virtual bookkeeping services that will attract more clients and ensure that your clients are satisfied at all times.

• While customer support is knowledgeable, it can take up to 24 hours to get a response.
• After passing your exams and obtaining your certification, the next step is to comply with a series of rules and regulations.
• Also, ask about how you can earn additional income by joining the CorpNet Partner Program.
• Of course, having this much flexibility means that you’re going to work harder than traditional bookkeepers, especially if you decide to go the freelance route and seek clients on your own.
• I have over 20 years experience in bookkeeping and management and have made the decision to start working for myself and being in more control of my own destiny and success!

They don’t teach you enough about modern bookkeeping software OR about how to be a small business owner. And unless you go all the way through you still don’t end up with the credentials that actually equip you to do your job.

Business Filings

Despite its name, good accounting software isn’t just for accountants. It can be used for your bookkeeping business, allowing you to view your clients’ finances and create financial reports, among other things. If you have no experience in bookkeeping but want to start a bookkeeping business, you will need to be prepared to invest in yourself and in the tools of the trade. Get a good computer, reliable internet, and top bookkeeping software. While you don’t actually need experience to be a bookkeeper, you should definitely do some training courses and learn how to use accounting software. Virtual bookkeepers have the benefit of working from a home office. All you will really need to get started is a good computer and high-speed internet.

If you are starting from home this will immediately cut down costs because there will be no office rent to pay. For example, in Texas, you register your business through the Department of State and you need a license to be an accountant, but not a bookkeeper. You can notify the federal government of your business by applying for an Employer Identification Number . You can also create a business name for yourself and file a “Doing Business As” or “DBA” notice. Talk to your local Department of Commerce and Department of Licensing to receive the forms that you need to establish your business and to learn if you need a license to do bookkeeping. It could be expensive to purchase and update various accounting software.

What About Previous Professional Experience?

You should focus on delivering great service to retain existing clients and attracting referrals. Quality of service will help grow your business in the long run.

As a note, each country/state has different rules, it’s important therefore to counter-check their rules and regulations. Angie Nelson began working from home in 2007 when she figured out how to take her future into her own hands and escape the corporate cubicle farm. Angie’s goal is sharing her passion for home business, personal finance, telecommuting, and entrepreneurship, and her work has been featured on Recruiter, FlexJobs and Business News Daily. For more information on the right insurance coverage, check out our article on Bookkeeper, Accountant, and CPA Insurance.

Bookkeeping Business Plan

Whether this is your side gig or full-time business, you can get a website customized for your business with a company that offers specialized marketing services, like CPA Site Solutions. It will have one of their webmasters reach out to you for a quick 15-minute conversation before it goes on to create your website fitted with your logo, images, and content. After completing your business plan, you will have a good idea of what your estimated startup costs will be. In general, the startup costs for a bookkeeping business can be low if you work out of a home office as opposed to leasing office space, which we will discuss in the next section. The experts say that you should always have at least six months’ worth of expenses in the bank. Since you are starting a bookkeeping business, I’m sure that you have already given some thought―or made a decision―about which accounting software to use for your business. As you know, there are hundreds of options from which to choose.

Here are a few steps that you can take to “stay in the loop” on what’s going on in the bookkeeping/accounting industry. You can deduct repairs and maintenance to the area used for business and a portion of utilities, real estate taxes.

And by using a cloud accounting solution, you’ll be able to access the numbers on any device, wherever you are. Generally, you’ll charge either an hourly rate or a monthly fixed fee. You may even negotiate a retainer fee with some of your clients. Characteristics of becoming a bookkeeper include being accurate in your work and having a good understanding of financial topics. The terms ‘bookkeeper’ and ‘accountant’ are occasionally used interchangeable, but they are in fact two different roles.

With an increasing number of businesses going virtual, offering your service as a remote bookkeeper could become a lucrative home business if you have the talent and know-how. When you start a bookkeeping business, there are a few different approaches you can take. You can approach your business as a chance to be self-employed and create work for yourself, or you can aim to hire employees and eventually how to start a bookkeeping business create a self-sufficient business. Unlike the other software discussed, Insightly doesn’t directly help with the bookkeeping process – instead, it’s a customer relationship management and project management tool. As a result, it’s probably not going to be your program of choice as a professional bookkeeper – but it’s smart to know what it is and how it works in case you encounter clients who use it.

Virtual bookkeeping is the process of keeping up with a business’s financial records from a remote location. Virtual bookkeeping can be accomplished through software and telecommunications technology to connect to various accounting machines. In this article, we covered basic business start-up steps and more details about the technology needed for working virtually. If you’re ready, start your own virtual bookkeeping business. And bookkeeping jobs are in high demand because many small business owners don’t have the resources or time to employ an in-house bookkeeping team. So, that leaves several of such businesses to rely on virtual bookkeeping services for their day-to-day bookkeeping needs.

It’s very important to set up a separate business checking account. Once you’re working as a bookkeeper, you’ll understand the pain of clients who mingle personal and business expenses. It makes bookkeeping messy, wastes time, and can make your business look less legitimate.

Office Phone And Internet Service

Many community colleges offer continuing education courses in professional bookkeeping, and there are a variety of online bookkeeping programs online. I actually offer a master course for people starting out and building a bookkeeping business. I’m a CPA and I started my career working for a local CPA firm in Atlanta, GA over 15 years ago. My mission was always to help small businesses through my accounting knowledge. I gained experience in forensic accounting, auditing, recruiting, and using technology to help streamline operations. To be successful, independent bookkeepers need to be thorough, dependable and accurate as well as skilled in using accounting and sometime spreadsheet software. You must enjoy paying attention to details, and honesty and integrity are crucial.

You can definitely build a practice, but you get out what you put into it – and you have to do it strategically. You’ll want to reach out to your contacts to let them know you are in business, but it could take a while for a business to realize they need someone or that they need someone else. I’d say at least 3-6 months to start seeing your marketing to have continuous results.