How to Start a Successful Virtual Bookkeeping Business in 2023

BOB    Bookkeeping    24 décembre 2021

Plus, there are many ways for clients to keep in touch with their virtual bookkeeper. It’s not compulsory, but you might want to look into insurance for your bookkeeping business. Common business insurance policies for bookkeepers include things such as professional liability and general liability.

By understanding these elements, you can plan a path to success and ensure the longevity of your business. Generally, your work requires that you ensure the process of income and payments remains smooth for your clients. With so many methods of communication, it’s easier than ever to communicate with your virtual bookkeeper when needed. Whether opting to collaborate via email, phone, text, or cloud-based software, it’s easier than ever. They could choose to message via Zoom, have video conferences, or share to-do lists and boards via software such as Teamwork and Hubdoc. Keep your skills up to date, evolve the depth in which you know your preferred platforms and stay apprised as their features change, as well.

Step 1: Create a Business Plan

When it comes to choosing the right virtual bookkeeping service, it’s important to evaluate with the needs of the company in mind. Options include part-time bookkeeping to a fully outsourced accounting takeover and many possibilities in between. All the tasks (and more) that an in-house bookkeeper typically manages can be done by a virtual bookkeeping service provider. Yes, you can use your virtual bookkeeping business to work remotely. You can provide services to clients worldwide without ever leaving your home.

You can get certified in each of these programs, which can not only help you become a power user but can also help you market yourself as an expert. Regardless of the type of business you run, all business owners should write a business plan. This guide is all about how to start a virtual bookkeeping business. Apart from being a top remote job for anyone who loves working in the comfort of their homes, bookkeeping is profitable. For a beginner in the online bookkeeping business, you can set your payment rates on the lower end of the scale.

Step 2 – Define Your Target Market

A major part of registering your business and opening up shop is choosing a business entity. 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 could help you build credibility https://www.bookstime.com/articles/virtual-bookkeeping 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.

A virtual bookkeeping company provides service from a remote location – removing the need for an in-house accounting team. 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.

Ready to Start a Bookkeeping Business?

Don’t forget that your website should also include your social media links to your Facebook business page, Linkedin business page, Instagram business page, Twitter business page, and others. If you’re just starting your own cpa firm, you may not have any, but add some later when you do get them. A clear CTA on your homepage is just one tactic to help turn your website into a tool https://www.bookstime.com/ that converts visitors into potential clients. Meaning, technology cannot be ignored if you want to get bookkeeping clients, or even land your first client. Instead, I recommend bundling different levels of support into your productized service. By developing a clear target client market, you’ll be able to better focus your marketing activities which we’ll later discuss.

How to set up a US LLC and US Bank Account as a non-US resident, remotely from anywhere. See our guide on How Much Bookkeepers Charge for an up-to-date review of bookkeeping rates by state. Hi, I’m Happy Sharer and I love sharing interesting and useful knowledge with others. I have a passion for learning and enjoy explaining complex concepts in a simple way.

Create a Bookkeeping Business Plan

You should also consider health insurance as an added expense, especially if you previously had health insurance through your employer. Replacing employer-sponsored coverage can be one of the most expensive costs of going into business for yourself. Lastly, part of this process is picking a business name, which you should do with care. You’ll be using the name for years, so be sure it’s a professional and accurate description of your work. Also, ask about how you can earn additional income by joining the CorpNet Partner Program.

• Keep yourselves in this position, Will you ever share the whole financials of your company with someone unknown?
• First and foremost, virtual accounting firms are cost-effective because you are spending (in many cases) no money at all on office rent or utilities.
• You should study the topics that help the clients solve a problem related to your services.
• There’s no denying the fact that accurate bookkeeping is an absolute necessity for all businesses.
• Starting a virtual bookkeeping business can be an exciting and rewarding venture.

Box for any paper correspondence, so you can control who has access to your personal address. Businesses of all sizes can benefit from professional financial advice. An outsider’s view can often help business owners with their tunnel vision, enabling them to see things from another perspective. Virtual bookkeeping isn’t just about tracking your income and expenses. These services can also provide an expert review of financial reports and CPA consultations so that you’re ready to tackle the tax season without much stress. All businesses benefit from reduced expenses and since you’re not responsible for the online bookkeeping company’s overheads, your business doesn’t have to bear that cost.

Errors and Omissions Insurance

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. If you’re considering becoming a bookkeeper, read our guide to learn how to start a bookkeeping business in 2023. We’ll cover everything from the legal side of registering a new business to pricing, marketing and more. Now that you have learned how to start an online bookkeeping business, you should take the first steps towards becoming a renowned bookkeeper and getting clients.

This just ties you down geographically and kills your earning potential. Her professional work experience includes roles in media advertising, financial services and human resources. She holds a Bachelor of Arts in human resources management and is PHR-certified.