You will also have to file for an EIN (Employer Identification Number) with the IRS. It is essential for paying taxes, hiring bookkeepers and other employees, and opening a business bank account. Your business plan should outline your strategy for how to start a virtual bookkeeping business. It serves as a blueprint for your business https://www.bookstime.com/ such that you can clearly see how it’ll kick off and when you can start making profits. Whether you are starting a freelance business or an LLC, you will have to pick a name for your virtual bookkeeping business. The business name you choose should be relevant to your industry and nature of work and should be available to register.

• Never assume that all employees will have a functioning computer at home or all of the tools they need to succeed.
• People want to do business with real people, and you’ll be using your headshot a lot throughout your social media.
• This step-by-step guide outlines 13 steps to help you navigate the process from inception to growth.
• First, it’s important to determine what types of bookkeeping services you will offer.

Bookkeeping service software

You want to convey a sense of confidence when you’re talking to prospective clients and assure them that you’re forming a legitimate business. A Flexjob survey showed that 73% of respondents said they had an improved work-life balance when working from home, including more time with their family, partners, and pets. A Thomson Reuters study saw that 36% of people said that working remotely had a strongly positive effect on their wellbeing, while another 35% said it had a slightly positive impact. Working remotely has proven to reduce stress and improve overall work-life balance, making employees more likely to stay with your company long term and be happier in their roles. Remote work also has shown to reduce mental health-related sick days, meaning employees use PTO for positive vacation experiences that facilitate better work-life balance.

Ask about pricing

As you build relationships, you’re also building your brand and accessing clients that you’d ordinarily not reach. Your first few clients would be family and friends, even though this may be a pro bono service. A well-structured business plan should contain the elements shown in the image below. Remember to focus on providing clients convenient and valuable experiences. Look, we don’t want to toot our own horn — but if you need more help on getting started in bookkeeping, you’re in the right place. To discover guest posting possibilities, go to your favorite industry blogs, and see whether they have information about guest-posting.

Implementing effective communication tools

Once you have identified the types of bookkeeping services you want to offer, the next step is to set up the infrastructure of your virtual bookkeeping business. This includes building your virtual bookkeepers and accountants team, implementing effective communication tools, and establishing data security and privacy protocols. The backbone of a virtual bookkeeping business lies in its strategic use of various software solutions. These tools start virtual bookkeeping support and streamline operations, covering tasks ranging from bookkeeping and financial analysis to client communication and data storage. For example, accounting software is used for tracking financial transactions, creating financial reports, and ensuring compliance with tax laws. A virtual bookkeeping business is a professional service that allows accountants to offer accounting and financial management assistance to clients remotely.

Therefore, make sure you ask them which accounting app they use for their business and why. If they are using different software and tools, you should figure out why and use that to determine if you really want to work with them. The benefit of using a virtual bookkeeper as a business owner is that it is often cheaper than hiring someone local to work on-site. The bookkeeper can be paid as a contractor and work as little or as much as the business needs. For a bookkeeper, working virtually provides convenience in the form of schedule flexibility and the ability to work from home.

If your virtual bookkeeping firm has employees in several states, you may want to work with an insurance agent to find coverage that works for all your employees. While the steps outlined below need to be completed at some point as you establish your business, getting your first virtual bookkeeping client should be the first thing you do. This way, you’ll be growing your reputation alongside building your business.

• That means communicating with them about who should have access to information and how you prioritize security.
• Besides hiring tax specialists and junior bookkeepers, you should consider hiring a customer service representative to manage client relationships.
• To start a successful virtual bookkeeping business, you must assemble a team of experienced bookkeepers and a dedicated accountant who can provide high-quality service to your clients.
• Otherwise, companies could file charges, which no business owner wants to deal with at the beginning of their journey.
• With these five apps alone I can manage every aspect of my clients’ needs.

How to Start a Virtual Bookkeeping Business: 13 Steps (2024 Guide)

• In a nutshell, when a company hires a virtual bookkeeper, they give the bookkeeper (you!) remote access to their bookkeeping software, and financial documents.
• Or, you can type in accounting + “guest posts” or “contribute” into Google — and see what opportunities come up.
• Also, you don’t need a degree, plenty of experience in the field, or a bunch of money to become a successful bookkeeper.
• Once you have a solid business plan for your online bookkeeping company, it’s time to give it a unique name.