How to Start a Virtual Bookkeeping Business The Ultimate Guide

This is starting a business, and you’ve got to have not just book smarts, but street smarts. Have that grit to find answers when you’re the only one that can find the answers because you’re the business owner and everything stops with you. Since then, we have trained over 8400 people how to start a bookkeeping business – all because Kelly had lost her job. So, again, there’s a little bit of overlap or a lot of overlap in the two. But they’re both…it’s always said that accounting and bookkeeping is the language of business. They’re doing things that the doctors used to do so that the doctors can now focus on the things that they truly do.

You can start an online bookkeeping business with as little as a computer, internet connection, and basic knowledge of bookkeeping and accounting. Some virtual bookkeepers also use collaboration tools, accounting software, and bookkeeping software to make work easier. The capital for starting a virtual bookkeeping business should cover costs like creating a website and a subscription to a bookkeeping software solution. That’s in the case that you already own a desktop computer or a laptop.

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Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more. Business checking account and, as your business grows, you may also opt for a business savings account to let your excess funds earn interest. Both traditional, brick-and-mortar banks and online institutions offer attractive banking options, so shop around before deciding where you want to park your hard-earned money. If your clients will be sending you things such as receipts or statements, you might want to consider the tool that you’ll use to share files. A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to.

• Now that you’re aware of what regulations to follow, it’s important that you earn the required licenses to start a virtual bookkeeping business.
• They are the two most mature cloud accounting products around.
• Build a website to attract clients for your bookkeeping services.
• Did you know that bookkeeping is consistently named among the most profitable at-home businesses to start?
• We appreciate the opportunity of providing you with a proposal for Bookkeeping and Consulting Services.

But you may also think about forming a limited liability company or corporation. You’ve decided to open a virtual bookkeeping business, but you might be wondering how to get started. In this article, we’ll outline the steps to build your business so you can get up and running and build a full client roster. The exact process and costs for this vary from state to state and depend on the type of business structure you choose. If you decide to go into business as a sole proprietor, you can simply hang out your shingle and start working. However, registering as a limited liability company gives you more liability protection.

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You have to set up your business tax ID and the filing of your business federal and state taxes. It is only when you have a good business plan that you will be able to apply for funding for your business. You should also go online and look at your competitors and see what they are offering their clients and how much they charge. The two best-known certifications are the American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers . Both these organizations offer classes that can help prepare you to take their exams.

• Remember to connect everything to your accounting software to stay organized.
• The name you choose should be relevant to your industry, nature of work, and should be available to register.
• And coming from a person who has trained over 8400 independent bookkeepers, this is good news for beginners.
• You can find additional information about each of these entities on the IRS website.
• If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
• It is claimed to be the world’s leading referral organization’.

Many businesses will need a business license to operate. Licensing information—as well as any zoning requirements or other permits—can usually be found on the city or county website. LLCs and corporations are formed by filing paperwork with a state agency, typically the Secretary of State. To start a corporation, you file articles of incorporation. In most states, you can file these forms online or download a paper form from the state’s website.

Step 1 – Choose Your Website Platform

If your team is in different locations, you won’t always be able to see what they’re working on, so a to-do list won’t cut it. If you got into virtual bookkeeping for the freedom and flexibility, you might want to work off retainers, but you also have the option to bill hourly. You should consider the following questions when picking a billing method.

Tycoonstory is the largest Online Network for Entrepreneurs & Startups. Tycoonstory gives the opportunity to share the challenges of being an entrepreneur and offers a regularly updated resource on entrepreneurship. Tycoonstory explores the creative process and issues around how people, companies, and industries are making it happen. When people hear about you for the first time, what do they think? Or will they just see another bookkeeping company that doesn’t stand out from the crowd.

Also, consult other How To Start An Online Bookkeeping Business professionals on the pros and cons of each business structure. The best part of this kind of business is you can work remotely. You can start a bookkeeping company with low investment costs.

Don’t forget that investing in your business means investing in yourself. Marketing is so important, no matter the type of business you own. The savviest small-business marketers are the ones who figure out exactly who their customers are and advertise directly to them. There are two pieces of the business plan that deserve a little extra consideration.

What’s your #1 piece of advice for anyone who wants to learn how to run a successful bookkeeping business?

This information is intended to give you a general sense of what’s involved and is not a substitute for professional legal, accounting, and tax advice. You will need a complete office setup, including a good scanner and possibly a printer. You’ll need a reliable internet connection and a computer that can run accounting software quickly. You are required to register for a business permit in most locations. Fees vary from a few dollars to a percentage of revenue, depending on your business location. You should consider the licensing fees when deciding where to locate your virtual bookkeeping business.

• Computer Equipment – After you determine the software you’ll need, you’ll want to make sure that the computer you use is compatible with the desktop versions if you intend to use them.
• With this interaction, you have uncovered a pain point, which then increases the value of what you’re offering making it easier to get clients.
• If this sounds like a business you would like to pursue, read on.
• You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use.
• He brings his expertise to Fit Small Business’s accounting content.
• Bear in mind that you may be able to skip this step as many states don’t require this.