how to start a virtual bookkeeping business

Besides that, if you choose reliable and secure software, your customer can also check and benefit from stats, graphs, and records of their company at any time through the software. The more tech-savvy virtual bookkeeping you are, the easier it is to attract clients and retain them. If you haven’t taken a course in bookkeeping or accounting, you can still become a bookkeeper by getting the certification.

how to start a virtual bookkeeping business

This can be a tricky part of the process, but I recommend as you start out charging by the hour. A great starting place is $40 an hour, and you can raise your prices as you go along and gain more experience. Eventually you’ll want to charge a fixed rate each month for your clients. This will depend on how large your client’s business is. You will want to get some kind of insurance to protect you even further since you are in the service industry and working directly with clients. You can just call around to various insurance companies, let them know you’re opening a business, and share with them that you want to be protected with business insurance. I have zero bookkeeping experience and was worried about my ability to get clients.

How much can a bookkeeper charge per hour?

Create a contract of employment for new clients to sign. You want to set expectations of you and your client upfront so there are no surprises. Make sure you’re taking steps to protect yourself and your business. My Bookkeeper Business Coach class walks you through the starting processes if you’re looking for some accountability and help walking through setting up your systems and your business specifically. As Ben teaches his students, “the number one tool, and the hub for everything you will do for your client, is a bookkeeping software called Freshbooks.

We do not at any time provide legal services of any type. You can look at freelance sites, such as Upwork, to see what others are charging for bookkeeping services, but you can also learn a lot by asking around. Talk to businesses in your area to see what they are currently paying for bookkeeping services.

How to Start a Virtual Bookkeeping Business: A Simple …

If you’re not a CPA and you want to prepare tax returns, I recommend becoming an Enrolled Agent through the IRS. EAs must initially pass an examination and then complete annual continuing education to renew their certification every three years. While no formal education or classes are required, the examinations are difficult and will prove you have the knowledge to serve tax clients properly. A guide to help you work through the big decisions around starting a bookkeeping business. Although no bookkeeper license is required, bookkeepers may have to obtain other licenses or permits to operate a business from their location. CorpNet can also help you identify which licenses and permits you will need.

  • With our talented workforce we have developed the capability to cater to the needs of CPAs and EA firms worldwide.
  • This will govern how you pay taxes as a small-business owner, but also what kind of liability protection you have in case something goes wrong and how you’ll structure your business.
  • This step is critical in learning how to start a virtual bookkeeping business.
  • Please note that the information provided on this page may change at any time as a result of legislative action, court decisions or rules adopted or amended by any state or the federal government.
  • Now let’s look at some common marketing channels you can use to promote your business.
  • When starting out, you should keep your costs low by setting up a home office.

Make sure to showcase your skills and any certifications you have, and put up any testimonials from existing or previous clients. You need a few critical pieces of infrastructure before kicking off your business, namely, your website and business bank account. Virtual bookkeeping businesses provide the much needed support to businesses looking to outsource this key part of their operations. Regarding the number of employees that you are expected to kick start the business with, you should consider your financial capacity before making the decision.

Relax—run payroll in just 3 easy steps!

Prioritizing decisions, projects, and initiatives when starting a firm is impossible without a clear vision. After establishing your firm’s purpose, you’ll need to define your ideal client early in your first year.

How much should a self employed bookkeeper charge?

The average hourly rate for freelance bookkeepers ranges from $29.21 to $43.40 per hour. Depending on your geographic location, this amount will be more or less than the average national rate of $37 per hour.

Errors in bookkeeping can be stressful at best and financially disastrous at worst. We’ve laid out how to start a bookkeeping business in 15 steps. You’d better bookmark this page—you’re going to want easy access to this info as you build your bookkeeping business. If you’re reading this, it means you see the opportunity, and you’ve already asked https://www.bookstime.com/ yourself the important questions every entrepreneur needs to answer. You want to help businesses by starting your own bookkeeping business. And we want to help you figure out how to get out there and land your first client. The most important thing to open up your shop and register your business is choosing the right type of business entity.

Market Your Bookkeeping Business

Also, take the necessary precautions (anti-virus software with malware protection) to prevent cybersecurity disasters. Help businesses with an overview of their finances to help them understand their habits.

  • At the end of the day, businesses will always need to record their profits, and doing this requires a bookkeeper.
  • But at the heart of a virtual bookkeeper’s toolbox is accounting software, such as Quickbooks Online, according to Robinson, which helps keep startup costs low.
  • It shows that you know what you’re doing, why you’re doing it, and how you will continue to grow in a positive direction over time.
  • After networking and getting referrals, you can market your services using social media, blogging, guest posting, paid ads, and more.
  • To do that, there’s no better way than attending local networking events.
  • If not and you feel comfortable with it, you can send the documents via Dropbox or even Slack.

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