How to Start Your Own Bookkeeping Business: Essential Tips

how to start a remote bookkeeping business

Bookkeeping is the regular practice of updating a company’s financial records to reflect all financial transactions, credits, and debits. The first step in getting started is getting yourself set up with the tools and know-how. I know plenty of people with big home office setups, but you can easily start your bookkeeping business with a humble laptop. Take that laptop and go online to set up a free account with a cloud provider. For now, though, you’ll likely want to get a business credit card to fund your bookkeeping business.

This could help you build credibility inside that segment, as well as help you hone your skills. Additionally, determining your target audience will be simple if you have a specialty. To help determine your niche, you should also research the market to determine what bookkeeping businesses are already established and which industries they serve.

Consider Getting Certified in Bookkeeping

Bookkeepers deal with straightforward, day-to-day financial tasks, like processing transactions and reconciling bank statements. Starting a bookkeeping business requires paying attention to some essential legal and tax matters. Because bookkeepers handle confidential information and financial data, clients will want to be sure they choose a professional who is knowledgeable, reliable, and trustworthy. Usually, bookkeepers in the United States do not have to be licensed or certified. However, becoming licensed or having a certification behind your name can instill customer trust and confidence in your abilities. As more people move to working from home, freelancing, or starting their own businesses, you may want to learn how to become a virtual bookkeeper.

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Depending on the service, we charge roughly $60-$80 per hour, but of course, we don’t word it that way to the client. We offer extreme value at a price they are willing to pay, making it a win-win for everyone. At this point, my workdays look a lot different than they did when I first started. One of the easiest ways to reach your exact audience is through Facebook advertising. You can promote videos, images, or offers to people by age, interest, behavior, and location — needless to say, it’s the most targeted type of advertising.

What About Previous Professional Experience?

Experience is important for so many careers, but for bookkeeping, experience isn’t a make-or-break deal. Sure, it certainly helps to have previously worked in financial transactions, but it isn’t mandatory. If you have previous experience in small-scale accounting, that experience can make a huge difference when landing clients for your own business. Chad Davis, CPA (Canada), had been successfully working remotely for years when the coronavirus pandemic forced many accounting firms to go fully remote.

  • People who knew I had been laid off were asking me about my “job seeking” prospects and I would tell them that I was starting my own bookkeeping business.
  • Ensure all of their financial data is accurately migrated or converted to your client’s QuickBooks Online account.
  • These tools support and streamline operations, covering tasks ranging from bookkeeping and financial analysis to client communication and data storage.
  • Good customer service often results in repeat clients and referrals, driving business growth.
  • You will likely want to establish a business banking account and credit card.

It’s also helpful to understand how to market your services and manage the financial side of running a business. If you would rather be your boss, you can start your own bookkeeping business. Unlike traditional bookkeeping jobs, it’s up to you to figure out how to set up the processes and framework for working from home. SmartBooks works specifically with small businesses to offer services designed to fit their needs and budgets. The company offers bookkeeping, accounting, tax, payroll, CFO services and HR help.

How to Become a Bookkeeper (A Complete Guide)

They give small business owners vital information to make better financial investments down the road. Some small businesses choose to do their own bookkeeping to save on costs, remote bookkeeping services while others prefer to hire bookkeeping professionals. If you’re going to start working as a full-time bookkeeper single-handedly, you can choose to form a sole proprietorship.

how to start a remote bookkeeping business

This will give you the spending power to set up your company and put all of your business expenses in one place. That’s not only important for separating your business and personal finances, but can help you with your own bookkeeping come tax season. When setting up an online bookkeeping business, you should also take steps to protect yourself. Box for any paper correspondence, so you can control who has access to your personal address.

How to start a virtual bookkeeping business step-by-step

In the steps below, we’ll dive into what each point means and why it’s essential for your bookkeeping business success. Alright, we know you may be a little tired — but we promise you can get started on your virtual bookkeeping practice in eight steps. One of the biggest benefits of virtual bookkeeping is helping companies save a ton of time and money versus hiring an in-house bookkeeper. So you set the number of clients, hours, and the amount of time you want to work each week. To become a virtual bookkeeper, you should have the same essential qualifications as an on-site bookkeeper.

A virtual bookkeeper helps companies stay on financial track, understand their bigger financial picture, and decide where to spend money. In this guide, we’ll be covering everything you need to know about starting an online bookkeeping services company and more. As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely. You will likely want to establish a business banking account and credit card. This can help you keep your own business expenses organized and separate.

Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Often, you can find a variety of bookkeeping jobs posted across the different platforms.

  • He and Josh Zweig, CPA (Canada), founded LiveCA, a fully virtual accounting firm in Canada in 2013.
  • By hiring a Remote Bookkeeper you only pay for the business requirements saving a lot on additional expenses you would have spent on a dedicated in-house bookkeeper.
  • By taking precautions and having actionable steps for when something does happen, you will be able to prevent large-scale damage to your company.
  • Bookkeepers deal with straightforward, day-to-day financial tasks, like processing transactions and reconciling bank statements.
  • Remote work also has shown to reduce mental health-related sick days, meaning employees use PTO for positive vacation experiences that facilitate better work-life balance.
  • However, investing in a course will help you launch your business the right way, start earning faster, and avoid costly mistakes.

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