However, you’ll be liable for all business debts and lawsuits as a sole proprietor. I’d also be keen to know how you think accounting firms find the right niche. I’m an entrepreneurial CPA that founded Xen Accounting, a 100% cloud-based accounting firm, in 2013. Following its acquisition in 2018, I started Future Firm to help accountants fast-track the growth of a modern, scalable accounting firm of their own.

That is what we at AccountingDepartment.com provide each and every time. We work closely with businesses to tailor a personalized package that works and sets you up for continued growth in the future. Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more. Before you choose your business name, make sure someone else isn’t already using it, lest clients get confused. Also, run the name by a few people to see the impression they get of it. Once you have your finalists, run the names through your secretary of state’s business name database to make sure it’s available.

Definition of Virtual Bookkeeping

If you’ve created a Facebook business page, which I recommend highly, targeted ads and promoted posts provide a cost-effective way to expand awareness of your bookkeeping services. A virtual bookkeeping business run out of a home has relatively few startup needs. 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.

To get you started, Bookkeeping Launch can teach you the basic bookkeeping skills and you can later enroll in their full course and learn how to grow and scale your business. If you are a novice in online bookkeeping, you only need to have a computer, internet connection, and a payment account. This is because you’ll be working online, either from your home or on the go, anywhere in the world. Basically, when you get hired as an online bookkeeper, you are granted exclusive access to all business documents including bookkeeping software. You can ask your friends, family, and previous clients for referrals. You can also market your services on your own website, as well as through paid ads and email marketing.

What does a bookkeeper do?

I know this was information overload, but I wanted to create an ultimate guide for you as you start your online bookkeeping business. I’ve created an easy checklist for all the things we talked about today for you, so make sure to check it out. Develop marketing strategies that address these needs while highlighting your unique selling points. Utilize social media, email marketing, content creation, and local networking events to connect with potential clients. Analyze the specific requirements of your target market and research the best bookkeeping software available.

• Even if you have multiple people on staff that could help out, it’s ultimately going to hit everybody’s productivity.
• If you plan to have employees, you definitely need one, for example.
• It’s a viable solution as they may not be making enough in the beginning to hire a bookkeeping service.
• All financial products, shopping products and services are presented without warranty.

Without a website—and since you have no physical office—your business may appear to be fly-by-night. There are no specific insurance requirements for a bookkeeping business. However, since you’re entering a service-related industry that deals with sensitive data, good liability coverage is necessary to protect your business. As a bookkeeper, your responsibilities may include paying bills, collecting invoice payments, updating financial records, and creating financial reports. Other tasks include maintaining post-financial records and doing the appropriate account debits and credits.

Ongoing maintenance of bookkeeping

A guide to help you work through the big decisions around starting a bookkeeping business. No matter how intuitive software might be, people simply don’t have time to learn all the tricks. They’ll happily pay their bookkeeper to make sure they’re using it effectively. Becoming an expert in a sector can let you stand out from the crowd.

For a basic idea, the average number of clients once you are up and running, per bookkeeper is 30. 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. To form an LLC, you’ll need to file Articles of Organization with the Secretary of State’s office and pay the state filing fee.

Bonus Tip: Stay Updated with Industry Trends for Bookkeepers

I find writing in the first person is helpful and more personable rather than writing in the third person. When looking to get clients, recognize that your ideal audience may not reside on LinkedIn. To do this, set up a pricing table that breaks down your solutions in terms of what’s included. Next, showcases your core offerings that were created in Chapter 2.

The AIPB and the NACPB are the top two associations for bookkeepers. Professional associations often promote or host seminars and training. Sometimes, members can get discounted rates on these events as membership perks. Being part of these associations can also help you build your network with other bookkeepers, CPAs, and tax experts.

What services do virtual bookkeepers provide?

While we make every effort to ensure that facts stated are correct at the time of publication, we do not accept any responsibility for keeping this information up to date. Any views expressed in this https://www.bookstime.com/articles/virtual-bookkeeping article are those of the author and do not necessarily represent those of Pay.com. Coming up with a vision statement helps outline your company’s goals and what you want to accomplish long-term.

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. If you have been doing it all by yourself, keeping accurate books will become a challenge when your business grows. Not only is it going to eat https://www.bookstime.com/ up a lot of your time and energy, thus preventing you from fully focusing on growth, but it may also cause you to make inaccurate income and expense entries. This will lead to a big headache come tax season because then you’ll need to pay a lot of money to an accountant to go back and clean up your books. This is what you’ll feel most prominently once you hire a virtual bookkeeper.

The virtual phone number can have its own professional voicemail message and will allow you to keep your personal number private. The specific amount you charge your clients for bookkeeping services will depend on your certifications, years of experience and familiarity with the client’s business. Some popular options include QuickBooks, Xero, FreshBooks and Zoho Books, among others. You can read more about our ratings for various business accounting software here. 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. Some bookkeepers choose to obtain certifications for their business.

She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about travel, food, and books for various lifestyle publications. If you can’t make a home office work, look into virtual office spaces or office sharing.