How to Start a Virtual Bookkeeping Business

A business bank account also makes it easier to keep your financial records organized, makes it easier to file your tax returns, and helps protect your assets. A website isn’t a requirement, but it makes it easier for clients to find you and your contact information online. Your how to start a bookkeeping service site doesn’t have to be complicated—a single page with your name, what services you offer, contact information, and some testimonials is plenty. Consider the costs of having a site created (if you don’t have the skills to do it yourself), web hosting, and domain registration.

Liability protection can cover lawyer fees and settling costs. Although insurance isn’t required, it could potentially save your business from taking a huge loss. Bookkeeping certifications aren’t regulated by the government, so it’s important to go through a well-known organization for certification. The top two are the National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB). Both provide coursework and exams in all things bookkeeping.

Legal

Take note of the packages they offer and the prices they charge. Bookkeepers typically work a regular 40–hour work week although they may need to work extended hours during busy periods such as tax season or at the end of a fiscal year. Although bookkeepers are not responsible for filing a business’s taxes, they do often act as financial interpreters between companies and accountants.

Accountants are meant to be qualified individuals who can financially study and forecast the business. Generally, Bookkeepers are not certified with a degree or diploma. Bookkeeping by itself is a part of accounting, and cannot be compared with accounting as a whole. With private-label or white-label accounting software, you get the freedom to customize the application as per your needs. You can host it on your server, distribute it under your brand and sell it at your price.

How a Bookkeeper Is Different Than an Accountant

If you don’t have experience, you can find many predesigned websites online or have one put together for less than $500. For a bookkeeping business just beginning, an insurance policy costs less than your daily cup of coffee. You should request quotes from several agencies to ensure you get a good deal. Hi Ryan, really productive and useful content you have shared. Bookkeeping is a profitable business to start for those with an eye for detail and a head for figures. Taking on the responsibility of assisting other business owners with their bookkeeping needs will become a part of your daily routine.

• And by using a cloud accounting solution, you’ll be able to access the numbers on any device, wherever you are.
• Check out how many other bookkeeping businesses there are that specialize in the same industry.
• The good news is that there aren’t many costs involved in starting a bookkeeping business.
• Also, consider joining a bookkeeping group or association that offers information and support from peers in the industry.
• However, these courses can help you build the knowledge and reputation necessary to be successful.
• Registering your business and/or business name is an important step.

It is without saying, bookkeeping software is the engine of a bookkeeping business. There is plenty of reputed accounting software that is available online. If you are a beginner and not sure which one to buy, then go for Quickbooks Online accounting software. This bookkeeping software is easy to use and is widely popular. While people are making comparatively more money than they did a decade back, thanks to the internet, growing opportunities, and financing options. But, while an array of people are making money, most of them don’t know how to manage it.

Business

Your website will allow you to serve customers all over the world and market yourself as an expert. Your business plan allows you to organize your ideas and methods for your bookkeeping business in one place. It can guide your decision-making, but you can also adjust it in the future if anything changes. Check out how many other bookkeeping businesses there are that specialize in the same industry.

• You’ll need something that tracks your tasks, deadlines and provides for one central place to communicate on work.
• You’ll set up a long-term vision of what you want your own business to achieve and work backward to arrive at immediate priorities to focus on.
• Furthermore, your marketing plan should include a SWOT analysis that clearly outlines your current strengths, weaknesses, opportunities, and threats.
• You should figure out the business structure you want to create.
• Accountants are meant to be qualified individuals who can financially study and forecast the business.
• A strong bookkeeper must have extensive training in math, excellent organizational skills, and a lot of integrity.
• Whatever system you choose, make sure you do some research on what other bookkeepers charge.

You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future. Our partners cannot pay us to guarantee favorable reviews of their products or services. You could use your personal email at least at the beginning, but it is nice to separate business from personal at some point. I created my website on Wix, and it is $17 a month to host it there, so that’s what I’m budgeting for this example. You can hire it out and have someone build it for you or host it for you, so the budget may look slightly different based on what you prefer to do.

Step 1 – Research your market

The most expensive thing I could think of that bookkeepers need to spend is on QuickBooks software, which is a cornerstone of your bookkeeping business. You can charge your client for their subscription, but I personally like to add it into their bookkeeping plan with me. The simplest option is to start as a sole proprietorship – this means you’re a self-employed individual rather than a business. Although it’s easier to set up as a sole proprietor, it can also be riskier since you’ll be personally responsible for anything that goes wrong with the company. Starting a virtual bookkeeping business won’t help you become an overnight billionaire. You’ll need bookkeeping insurance as you’re providing an essential service for businesses.

You should consider the licensing fees when deciding where to locate your virtual bookkeeping business. You have beautifully explained how we can start up with an online bookkeeping business and how can it save you alot of money and your precious time. You have beautifully explained how to start a bookkeeping business from scratch and get success. Attending local events would be fruitful in making new connections and acquiring new clients.

Here are the 12 Steps to Start a Bookkeeping Business

They will also often help businesses produce crucial financial statements such as the profit and loss statement and balance sheet. Any business that survives beyond the startup phase knows this instinctively. https://www.bookstime.com/ Going over the top with customer service, is what makes you stand out. Do you have a network of trusted professionals you can refer clients to when they need something outside of your expertise?

As a bookkeeper, you will get to encounter several projects. Starting as an independent bookkeeping firm will need a legal business registration. You have to register your business to start operating legally. First, file an official name, and then choose a business structure.