how to start a virtual bookkeeping business

It’s important to do your research before starting out so you’re clear about the path you want to follow and the goals you’d like to achieve. And by using a cloud accounting solution, you’ll be able to access the numbers on any device, wherever you are. Use special skills due to the analytical and complex nature of accounting. In this guide, I am going to cover everything on how to start a virtual bookkeeping business. When you’re working from your home, you must reassure your clients that you’re actively and carefully securing their data. Having an actual home office with a locking door is the best way to do this. If you don’t have the space for this, aim to have a desk with locking drawers where physical paperwork can be kept.

  • Unlike certified public accountants, bookkeepers don’t file tax returns or audit financial statements.
  • The good news is that there aren’t many costs involved in starting a bookkeeping business.
  • This is a necessary document if you think you might seek financing from a bank or other investors.
  • Practical business and financial insights, lessons, perspectives, and know-how brought right to your inbox.
  • Over 8400 people have gone through the training, with the majority being inexperienced candidates.
  • Still, there are equipment and technology tools you’ll want to invest in so that you can work productively and provide exceptional service to your clients.

Small businesses everywhere need bookkeeping services to support the financial health of their business. Some clients will even let you do their taxes, manage invoices, and prepare financial statements on behalf of their company. As such, having a virtual bookkeeper as part of your staff is just another way of outsourcing bookkeeping services. These subcontractors work independently or as part of an agency that recruits freelancers.

Step #2: Register Your Bookkeeping Firm As a Legal Business Entity

You can deduct repairs and maintenance to the area used for business and a portion of utilities, real estate taxes, and insurance on your home. Look at our guide on how to become a Certified Bookkeeper for the details of these, plus other, bookkeeping certification programs. The great thing about paid ads on Google or Facebook is that they can bring you instant traffic, which might sound appealing when you’re just starting. Try to develop content that catches your prospects’ eyes. You should study the topics that help the clients solve a problem related to your services. It particularly depends on your style of client management. So, if you are a new company, you should focus on micro-businesses .

Customers in all businesses complain of the lack of a personal, human touch in business. 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.

Step 2 – Define Your Target Market

If you’re the type of person who wants to learn everything all at once and wants all the support, this is the perfect program. Even if you haven’t started making money yet, it’s important to set up that bank account so it’s separate from your personal finances and ready to go once you do start bringing in the cash. Tim worked as a tax professional for BKD, LLP before returning to school and receiving his Ph.D. from Penn State. He then taught tax and accounting to undergraduate and graduate students as an assistant professor at both the University of Nebraska-Omaha and Mississippi State University.

  • As such, having a virtual bookkeeper as part of your staff is just another way of outsourcing bookkeeping services.
  • Maybe it’s numbers-oriented like hitting $1,000,000 in revenues or servicing 1,000 small businesses.
  • This system is much more secure than sending files via email or using a USB.
  • When you run a fully virtual bookkeeping business, honestly, there’s not much need for a phone.
  • The exact process will vary depending on how you plan on structuring your business and where you’re planning to do business.
  • But worry not, this guide will direct you to the best online bookkeeping courses.

Find the companies who match your desired projects and rates, and send them your information. Even if you don’t get the job, you have a new contact in your network. This content is very general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent Attorney, CPA, EA or CFP based on your specific requirements & personal circumstances. Insuring your company is your choice, but insurance is the best way to prepare yourself for bigger problems.

Write a Business Plan

I simply enter all of the data into a spreadsheet, match it with my receipts, and send it to a bookkeeper to complete. You can send your documents to a secure vault that many bookkeepers and accountants have. If not and you feel comfortable with it, you can send the documents via Dropbox or even Slack.

10 Best Online Bookkeeping Services (2022) – Forbes Advisor – Forbes

10 Best Online Bookkeeping Services ( – Forbes Advisor.

Posted: Thu, 08 Sep 2022 07:00:00 GMT [source]

This just ties you down geographically and kills your earning potential. 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. I recommend putting in an initial owner’s investment of around $400, and then as you incur small expenses of setting up your business, you can pay for them directly from your business account.

Are You Ready to Start a Virtual Bookkeeping Practice?

You will want to make sure you register with the accountant version. Did you know that bookkeeping is consistently named among the most profitable at-home businesses to start? The start-up costs are minimal, and the earning potential is high, which makes for a great side hustle or full-time career. You’ll want to open a business credit card account soon. A business credit card will likely be the first form of financing you’ll qualify for, and it can be a great financial tool to help you with cash flow or necessary expenses early on in your business.