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Starting a virtual bookkeeping business might just be the answer if you are in search of a business that you can do from home or from almost anywhere! Bookkeeping can be a great way to earn a full-time income. It can even be a great side hustle. What’s even better, you can do bookkeeping work from anywhere, with an internet connection that is.

With today’s technology, you can safely and effectively provide an excellent service to business owners by keeping all of their business transactions in order. Since you can provide this service online, you can gain clients from distant places, and gone are the days of collecting piles of receipts in shoeboxes!

1. There’s a demand for bookkeepers.

Some may say there’s a saturation of bookkeepers today. However, I disagree. According to the 2019 United States Small Business Profile prepared by the U.S Small Business Administration Office of Advocacy, there are 30.7 million small businesses that makeup 99.9% of US businesses. These small businesses employ 59.9 million US employees which makes up 47.3% of employees in the US.

So what does all of this mean? It means there are a ton of businesses out there that need bookkeeping services! A bookkeeper keeps the books in order for a business so they have accurate business financials in order to help them make better business decisions.

2. You can make a great living as a bookkeeper.

The earning potential as a bookkeeper is nothing to turn your nose at. According to the website, Salary.com, the average bookkeeper in the US makes around $21/hour (2020 numbers). However, ZipRecruiter’s website shows work from home bookkeepers averaging $28/hour as a National average (2020 numbers). Working for a company, you have a set wage as opposed to working for yourself. I know some experienced bookkeepers with their own businesses even charge more. We’re talking around $70/hour or greater for their services.

As a business owner, your income potential can be much higher than working for someone else. You have control over what you charge, what services you offer, and how many clients you take on. This is the beauty of being a business owner. No income limits with one set salary.

3. There’s an excellent profit margin.

With a business where you are providing a service that can be operated online, you are already set up for success. Your expenses for a virtual bookkeeping business are small. The business is web-based so you don’t have any high overhead expenses like building rent and since your providing a service, there’s no inventory of physical products to sell, etc. After accounting for some operating expenses, the rest is profit!

4. There’s low start-up costs for a virtual bookkeeping business.

Let’s talk about what start-up costs you need to consider when starting a virtual bookkeeping business. To operate a business legally, every business has some start-up costs. Here are some items you’ll need and start-up costs specific to a virtual bookkeeping business:

• Internet

• Computer

• Computer security software

• Business registration

• Cloud accounting software

• Business insurance

• Website

5. You can operate a virtual bookkeeping business from anywhere (almost).

One of the exciting parts about a virtual bookkeeping business is that it can be operated at home and you can travel while still running your business. As long as you have an internet connection, you can still communicate with your clients and run crucial software that a virtual bookkeeping business relies on. Now picture this, you’re on a family vacation somewhere with warm tropical beaches, making money while you play. I could get used to that!

6. You don’t need a degree or certification to be a bookkeeper.

It’s true. You don’t need a degree or any certification to perform bookkeeping services. It’s my opinion that you need to have some knowledge about being a bookkeeper before you throw out your web-based sign, but it doesn’t take much to get some training in order to get started.

Think of training as being an investment toward your future. Having a certification doesn’t hurt to help attract clients but it isn’t required. If you are considering bookkeeping as the new business venture you’re ready to start, I’d check out the self-paced program called Bookkeeper Launch. This program teaches you the bookkeeping skills you need in order to help other business owners and you can also receive a bookkeeping certificate at the end of the course (after passing a test). Not only do you get training specifically on bookkeeping, you also receive training on how to get your virtual business started. Check out this free training today!

7. You have the freedom to work with who you want.

This is a great one. Not only do you get to pick who you work with, but you also get to decide when you want to work. That’s an added bonus. Some bookkeepers pick a certain industry and just service those clients. This can help you to get specialized in a certain area and become an expert in that field. Maybe there’s a job you’ve had in the past that you can take knowledge from so you already have an understanding of a potential client’s pain points.

You also get to decide if you want to work with a potential client or not. After learning more about a potential client’s business, you get to decide if they are a good fit for your business or not. You interview them, just as they are interviewing you. Even if you end up with a client that’s not a good fit, you can end your services with them. That’s one of the beauties of having your own business, you aren’t stuck.

Commonly Asked Questions About Bookkeeping

Let’s dive into some common questions about bookkeeping to help decide if this type of virtual business is right for you.

What does a bookkeeper do?

Before we dive into the reasons you should start a virtual bookkeeping business, first let’s talk about what a bookkeeper does.

A bookkeeper tracks all of the financial transactions of a business for the owner. The transactions can be recorded in a physical ledger or recorded in a software program. The transactions that get recorded consist of all of the business purchases, bills paid, payroll, and income received. A bookkeeper takes these transactions that are typically shown on receipts and in bank feeds and matches them to the appropriate category. Once all of the transactions are entered and balanced for a certain time period, reports can be generated that will show the business owner the financial status of their business.

What is the difference between a bookkeeper and an accountant?

As explained above, the bookkeeper records all of the day-to-day business transactions into appropriate categories and can prepare financial reports. An accountant doesn’t typically do the day-to-day recording of business transactions. These transaction entries are reviewed by an accountant for accuracy. An accountant may make end-of-year adjusting entries prior to finalizing year-end business financials and preparing business taxes. An accountant can also offer financial advice due to their knowledge of financial laws, especially when it comes to tax planning. This may include what type of business entity would be most beneficial to the business owner for taxing purposes.

Is bookkeeping hard to learn?

This question is subjective since everyone learns differently and has different strengths and weaknesses. I think this question isn’t exactly about whether or not you have the smarts to learn bookkeeping but if you’ll enjoy it. I think a successful bookkeeper has some personality traits that make this type of business a good fit. For instance, having good attention to detail, and liking things neat, tidy, and organized helps. Also, enjoying helping people is a plus.

Being a bookkeeper is about balancing the numbers at the end of the day, understanding the numbers, and explaining them to your client. It’s looking for that small mistake that’s throwing everything off. It’s that feeling of satisfaction when it all balances in the end. The concept of debits and credits is tricky to learn if you haven’t been exposed to it. Though, it’s not impossible to learn.

The software that bookkeepers use today, makes bookkeeping even faster and easier. However, learning the basics is essential so you know how it works and when something’s off, you know how to find it.

A great place to learn the basics and how to take to your new skills and make a business out of them is investing in the Bookkeeper Launch program. What’s so invaluable about this program is you have a group of other bookkeepers there to support you as well as you begin your bookkeeping journey. This program has a tremendous amount of resources and the founder, Ben Robinson, is great to learn from. I know, because I’ve taken the program myself and I highly recommend it!

How do I start a virtual bookkeeping business with no experience?

There are a lot of people out there starting new business ventures with no experience. Getting that first client under your belt will get things rolling for you. This also helps you gain confidence. Invest in yourself and get the training you need, get your business set up legally, get the word out, and hit the ground running. Finding clients can be as easy as word of mouth to get you started. By doing a business like this virtually, you can attract clients from all over the place. You can also join online groups, attend networking events, drive traffic to your website, etc. Make a plan of action and then following through with it.

Do you need to be good at math to be a bookkeeper?

I would say, no, not really. Bookkeeping is basic math-type stuff. However, I think a love for numbers helps but you don’t need any high-level math skills. Being a good bookkeeper is about keeping numbers balanced by making correct entries and understanding the concept of debit and credit entries. In addition, it’s also about understanding what the numbers mean on reports so you can explain them to your client. This is really what makes a bookkeeper valuable. Having great attention to detail really helps too.

Do you need to be certified with Quickbooks?

No, but it’s not that difficult to become certified. I think having the certification is a plus and something you can advertise. Quickbooks walks you through some training and you take a test at the end. You can even work up from there and become a pro-advisor. Being a pro-advisor might even help you gain some clients. Going through the certification process is actually really helpful. It helps you learn the software and gain confidence in using it.

Another cloud-based accounting software out there is Xero. This software is a strong contender in comparison to Quickbooks. Xero has training materials and a certification process as well.

In addition to Quickbooks and Xero, there is other bookkeeping and accounting software that could be used as well.

The Last Thing You Need to Know About Starting a Virtual Bookkeeping Business

As with any business venture, it takes dedication and drive to get things done. I think bookkeeping is an excellent business that provides plenty of flexibility with generous income potential. If you’re busy with a day job, this type of business can be a great side hustle, especially if you have a general understanding of what bookkeeping is and could get started quickly.

Bookkeepers can really make a difference in a client’s life. After all, taking the burden of keeping all a client’s business financials in order can help them grow their business so they can focus on what they enjoy and are good at. Wouldn’t it be a good feeling to help out businesses by providing them monthly reports to help them understand their cash flow?

Email us at [email protected] if you think a virtual bookkeeping business might be right for you but you still have some questions about it!

Other Resources:

• Ultimate Beginner's Guide to Starting an Online Business

• 37 Amazing Online Business Ideas You Can Do While Traveling

• 7 Ways to Downsize Your Life and Save Money