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How To Start A Virtual Bookkeeping Business

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Starting a virtual bookkeeping business isn't as hard as it looks. Use this step-by-step guide as a starting point for learning how to set up your virtual bookkeeping services business.

There are few boundaries to who can become a great virtual bookkeeper. You don’t need a college degree, or a bunch of money or business experience to get started. All you need is the drive to want to make extra income from home.

Maybe you’ve been looking around for home business ideas — and that’s why you’re here. Or maybe you want to know that the work you do matters.

Do you know what’s awesome about starting a virtual bookkeeping business?

You get to make your own schedule.

You can work with whatever type of business you want.

And of course, you can make a living working from home.

So, you want to learn how to start a virtual bookkeeping business?

In this guide, we’ll be covering everything you need to know about starting an online bookkeeping services company and more.

Let’s get started.

how to start a virtual bookkeeping business

What is virtual bookkeeping?

Virtual bookkeeping is a way to record, store, and manage all financial transactions for a business from a remote location.

The goal is simple: track income and expenses for a company to improve profitability.

A virtual bookkeeper helps companies stay on financial track, understand their bigger financial picture, and decide where to spend money.

When people talk about virtual bookkeeping, they are usually referring to online bookkeeping services. Or an outsourced contractor that helps with monitoring individual accounts, filing taxes, and preparing financial statements , and more.

Virtual bookkeeping services help business owners focus on running their business.

Some small businesses choose to do their own bookkeeping to save on costs, while others prefer to hire bookkeeping professionals.

A virtual bookkeeper allows firms both large and small to get expert record-keeping with greater flexibility and reduced cost.

Plus, you get to balance their books from home in your underwear — ain’t nothing better than that. It’s a win-win situation.

How virtual bookkeeping works

In a nutshell, when a company hires a virtual bookkeeper, they give the bookkeeper (you!) remote access to their bookkeeping software, and financial documents.

You can log in from home and access records and documents just as if you were sitting in their office with them.

There are three main ways to work remote with clients that use cloud technology:

  • Connect remotely to your client’s computer to balance the books, just like if you worked on-site.
  • Work through an online cloud-based bookkeeping software (such as QuickBooks Online  or Xero ) with your own secure login.
  • Use the same desktop software you’re used to, but accessed through a hosted virtual desktop .

Sounds simple — right? And it is, but you may still be asking yourself, “Well, what’s it like to run a virtual bookkeeping business? ”.

Here’s your answer:

Some clients will want you to handle all or most bookkeeping tasks; like invoicing, billing customers, or preparing payroll. You may even need to email invoice copies to a client for approval and have a signature stamp for paying invoices.

Some clients will do work at their site, like entering bills, writing checks, sending invoices, and more. In this case, you’ll be responsible for ensuring they make proper entries, reconcile accounts and bank statements, get financial documents, and more.

Virtual bookkeepers also make themselves available for discussions around budget planning, late customer payments, cash flow, and any other finance-related questions.

A virtual bookkeeper’s job will include some data entry and receipt tracking. You are responsible for categorizing expenses, indicating who and how much was paid, and keeping track of receipts. For income, you’re responsible for tracking payments and handling any invoice issues.

But your work is so much more than numbers in a spreadsheet. Bookkeepers are also responsible for drawing up to four significant financial statements:

  • Balance sheets, or a summary of the clients’ financial position.
  • Income statement, or a look at the clients’ income and expenses over a period of time.
  • Statement of changes in equity , or a statement of retained earnings, which shows owners share capital, retained earnings, and reserves change over a period of time
  • Cash flow statement, or a record of the cash and cash equivalents that enter and leave the company.

What do you need to become a virtual bookkeeper?

To become a virtual bookkeeper, you should have the same essential qualifications as an on-site bookkeeper. Plus, reliable internet and a laptop. Bookkeepers tend to be pretty good at accounting, have good math and basic computer skills.

Even if you don’t have formal training, don’t sweat it. You can choose from a bunch of certification courses or classes to learn new skills and take your business to the next level.

Bookkeepers.com blog on starting a bookkeeping business online

Benefits of virtual bookkeeping

Now, there are a lot of wonderful things about owning your own virtual bookkeeping business and working from home. The perks are real, you can :

  • Set your own schedule, which means it can be as flexible as you want it to be
  • Start your day whenever you want
  • Wear sweatpants most days
  • Challenge yourself to earn more because no one sets your salary
  • Cook lunch at home
  • Hang with your pets, and take breaks whenever you want

I mean, what sounds better than that? But let’s talk more about the actual benefits of virtual bookkeeping.

How many hours a week do virtual bookkeepers work?

In a typical work week as a virtual bookkeeper, you can expect to work … as much or as little as you want.

If you want to be your own  part-time employee , you can work 20 hours a week.

If you want to be a chicken with its head cut-off, you can work 50 hours a week.

Remember, this isn’t a bookkeeping job — it’s your own business. So you set the number of clients, hours, and the amount of time you want to work each week.

What kinds of clients do a virtual bookkeeper work with?

Here’s the beauty of being a remote bookkeeper; you can also work with almost any type of small business you want.

Accounting principles change country-by-country, but bookkeeping is a universal language spoken the same no matter where a client is based.

Thanks to new cloud-based technology, you have the opportunity to reach a broader audience. Receiving documents by fax, face-to-face client meetings, paper receipts — all of these are now a thing of the past.

Cloud apps also help you position yourself in a competitive market. You can take a load of some administrative tasks, update reports, and let clients see their financial data in real-time.

The benefits of being an outsource bookkeeping service

If you want to sell yourself to potential clients, you should know how valuable you are to their small business.

Bookkeepers are experts at managing the day-to-day finances of a business. They give small business owners vital information to make better financial investments down the road.

It doesn’t matter what type, industry, or size a business is — it needs accounting services and bookkeeping.

Outsourced bookkeepers like yourself can offer flexibility to adapt, see things from an outside perspective, and be more cost-effective for the company. Your client doesn’t have to pay for your time-off, health insurance, 401k, and share of payroll taxes.

But besides the boring technical stuff, you also offer a core set of working benefits that can make an immediate impact on a company’s financial health.

1. You balance books like a champ

Missing deadlines, inefficiencies, and lack of accuracy can plague on-site bookkeepers — but not you.

You put customized procedures in place for each client based on their bookkeeping needs. Your clients can expect consistency and accurate results from your bookkeeping services, and avoid:

  • Hiring and training new staff ($)
  • Mishandling receipts
  • Forgetting to record something
  • Misfiling expenses

Fast-growing businesses may also turn to you, as their bookkeeper, to manage payroll and payroll taxes too. So it’s important you make timeliness and accuracy a critical part of your business.

2. You’re more cost-effective than an in-house bookkeeper

One of the biggest benefits of virtual bookkeeping is helping companies save a ton of time and money versus hiring an in-house bookkeeper.

Think about it: reading resumes, interviewing, hiring and training, potential turnover. Some businesses may not want to take on the cost of a full-time employee who can do less work than you.

3. Fewer distractions, better data and reporting

As a bookkeeping service, you can provide companies with better and more comprehensive data. And because you work from home, you may work with fewer distractions (and stress!), which in turn makes you more efficient.

Outsourced bookkeepers can deliver reports — like profit and loss, trends, expenses, etc. — on a daily, weekly, and monthly basis.

The goal is to make clients feel confident in you, so they continue working with you in the long run.

4. You can offer your clients remote access to data

Virtual bookkeeping involves providing a way to access data for important folks in your client’s organization.

In the early days of accounting, we relied on the abacus then PC’s and floppy disks to show our work to clients.

Today, virtual bookkeepers are more strategic about using cloud-based accounting software to let stakeholders (the small business owners) see data on mobile and from any location.

That’s the key: continue to deliver convenient experiences that further your working relationship. You need a personalized approach to avoid becoming stale and losing your client’s interest.

5. Better security

As any good bookkeeper knows, one of your primary jobs is making sure your clients’ financial data is safe and secure. That means communicating with them about who should have access to information and how you prioritize security.

Are the bookkeeping and accounting records protected from fires, floods, or power outages?

Does your software have data backup? (This is automatic with online bookkeeping software like QuickBooks and Xero.)

How do you stop information from falling into the wrong hands?

It’s these types of questions your clients will have in and around data security. Your goal is to make them feel secure with leaving their most valuable company information in your hands.

Big bookkeeping business challenges

As with starting any business, working in virtual bookkeeping does have its challenges. Some you might face if you start selling online bookkeeping services include:

  • Upfront costs to buy and update software may be expensive
  • You need to be tech-savvy and able to troubleshoot fundamental computer problems
  • There are liability issues around incomplete records, regulatory oversight, legal changes, and more.
  • You must protect clients’ data in a secure and encrypted environment

How to start a virtual bookkeeping business step-by-step

Alright, we know you may be a little tired — but we promise you can get started on your virtual bookkeeping practice in eight steps.

Not as bad as you thought, right? In the steps below, we’ll dive into what each point means and why it’s essential for your bookkeeping business success.

1. Decide on funding.

Of course, you’re good with numbers. You wouldn’t do excellent bookkeeping work without it, right?

However, you still need to decide how you’ll fund your business before you get started. Choose from self-funding or taking out a bank loan.

We urge you to forgo the loan route if at all possible. A virtual bookkeeping business is one of the lowest-cost businesses in existence. And…it’s the #1 most profitable business according to Entrepreneur Magazine.

If you’re still asking, “What kind of capital do I need to start a virtual bookkeeping business?” , we’ve got an answer:

Minimally, you’ll need $1,000 to get started if you already have a laptop. This can cover a DIY website and subscription to a bookkeeping software like QuickBooks. Plans start at $20 a month.

Don’t forget to give yourself a safety net of extra cash during the beginning stretch.

2. Create a business plan.

To figure out how you’ll make money as a virtual bookkeeper, you’ll need to write a business plan.

Preparing a business plan is essential for everyone should do before they start a business.

At a minimum, your business plan should include:

  • Market research about your target clients, competitors, and industry
  • A look at your strengths, weaknesses, opportunities and threats
  • Research about the problem you help customers solve
  • How your service is a cost-effective solution to that problem
  • How much money you have, your projected cash flow, and expenses, and profits (… you are a bookkeeper after all!)
  • How you plan to grow your business
  • Your marketing strategy

3. Business Name and Structure

Whenever you start a business, you need to decide what type of business entity to be. There are four common structures in the U.S. to choose from:

  • Sole proprietorship (Schedule C)
  • Partnership
  • Limited Liability Company (LLC)
  • Corporation

If you’re just starting out and limited on funds, you might consider a sole proprietorship. However, PROCEED WITH CAUTION and consult with an attorney before you begin your business.

Many bookkeepers (and small service-based business owners, for that matter) transition into a LLC as they grow. The business entity structure you choose determines your personal liability if your company ever gets sued, as well as your tax liability.

After you decide your business name and its structure, it’s time to register with your state.

First, you need to know what you need to be in business. Start by checking your state and local regulations. Some states may require a business license in order to file for LLC and get an EIN for your business.

One thing you should not skip is finding a great business banking account. Azlo offers a free, online business checking account that’s great for any online bookkeeping business. You can make payments, deposit checks, and schedule transfers from anywhere, and it takes a few minutes to open an account.

4. Get your hardware in order

Many virtual bookkeepers invest a little extra into their hardware. And for good reasons: A reliable laptop that uses cloud technology gives you more flexibility and a competitive advantage. Remember, you’ll be relying on this technology in your day-to-day.

Most software runs on either PC or Mac — so the type of computer you choose is personal preference.

One thing to consider is whether you want to work on a desktop or laptop. If you’re traveling the globe while offering bookkeeping services, for example, a laptop may be your better choice.

Regardless, it’s a good idea to invest in a bigger screen to reduce eye fatigue. Slamming away on an 11 or 13-inch screen all day can tire your eyes out quickly.

How to Start a Virtual Bookkeeping Business-C

5. Make a website and branded email address.

Before you start to get clients, it’s a good idea to have a professional and slick website, plus a branded email address.

The goal should be an easy-to-follow site that highlights your experience and what bookkeeping services you offer.

As a potential client goes through your site, they should find it easy to contact you by email or phone.

Website builders.

Your website doesn’t have to be expensive.

Use a website builder like Squarespace to make a beautiful site fast, or, create a WordPress site to create a more customized site.

There’s a small learning curve for WordPress, but once you get the hang of it, you can turn your business site into anything you want.

Of course, if you have the budget, you can always hire a service to make one for you.

For example, you can get a customized website for your business with SavvySites . They work exclusively bookkeepers, and can create a site designed with your logo, images, and content.

Business email.

The more professional you look online, the more likely potential clients will want to work with you.

A business email address that uses your company domain (yourbusiness.com), and your name gives your virtual bookkeeping company a polished look. It’s a cost-effective way to show integrity and reliability.

There are many ways to get a branded email account, but here’s the easiest.

  • Get your own domain name (through GoDaddy or DreamHost )
  • Add it your to G-Suite account
  • Pay ~$6 a month for a professional email.

Plus, G Suite gives you 30GB Cloud Storage, shared calendars, and access to G Docs, Sheets, Slides, and other office tools.

This helps you keep clients files organized, protected, and backed up on a cloud you can access from anywhere.

6. Bookkeeping service software

Outside of that, you’ll also need a decent tech stack. Start with these three necessary resources for virtual bookkeepers below:

1. Decide on a reliable bookkeeping business software.

A trustworthy software will help you stay on top of your clients’ bookkeeping and better manage the workflow. Having the right tools and support in place makes a big difference, and your clients will love you for it.

According to  Fundera , the three best software for virtual bookkeepers are:

Meeting clients with reliable, cloud-based software helps make the bookkeeping work easier.

There’s no need for a paper trail — you can log in to make sure they make proper entries, reconcile accounts and bank statements, retrieve statements, and more.

Software like QuickBooks also offer training so your client can learn how to use it and feel comfortable in their part.

2. Get a video conferencing platform.

When you conduct interviews or client meetings, you want to use a video call over text or phone call.

Why? Because face-to-face chats help humanize both parties. It also lets you get to know them better and work in a more personal, intuitive kind of way.

These three apps make online meetings easy (and they all have a free version):

  • GoToMeeting

3. Get your own small business financial monitoring software.

This may seem like a given because, after all, you are a virtual bookkeeper. However, it’s important when starting out to choose the best software for your own accounting.

Payments are handled in two different ways: one, if you’re employed by the company, you’ll be paid according to their payroll cycle. Or two, as an independent contractor.

As a contractor, you’ll be responsible for invoicing for your time and receiving payment according to your policy.

There are two big names competing for your attention right now:  QuickBooks  and  Wave .

Wave is completely free and offers excellent small business features like expense tracking, contact management, invoicing, and even lending.

7. Promote your bookkeeping business

Even when you offer great virtual bookkeeping services, it might never be known if it’s not promoted. Promotion is critical to the success of your business as well as the success of your strategy in general. The more people who see your company, the more like you are to sell.

As a virtual bookkeeper, there are a few tactics you can use to spread the word about your business:

  • Advertise with Facebook ads
  • Join online forums
  • Get published on guest blogging sites
  • Start a client referral program
  • Create business social media accounts

If you’re still asking:

“How do I find clients for my virtual bookkeeping business?” . Don’t worry, we cover all the in-depth tactics in the resources for starting a virtual bookkeeping business below.

8. Broaden your service offering

Some people get too busy to continue learning, or maybe they’re just part-time bookkeepers. To appeal to a broader audience, take classes and courses beyond simple bookkeeping services, then include them in your packages, such as financial planning and loan packages.

You can add value to your business over time, and each time you include a new offer you can also up your prices. It’s not only good for margins, but also for attracting new clients.

If you’re reading this and feel like it’s something you can do, do it. Many virtual bookkeepers start with zero experience and continue to earn up to $80/hr and more.

The market is there; small business owners and large corporations need bookkeepers. Starting your own business today may be the best thing you ever do for yourself.

Resources for starting a virtual bookkeeping business

Resources for starting a virtual bookkeeping business

Curious about where you should advertise your services as a virtual bookkeeper?

If you want to start a virtual bookkeeping business, one of the areas you’ll want to learn is marketing. To make sure your business gets seen and has a shot at generating leads, use these 9 promotion tactics.

1. Make a mobile-optimized website

One simple way to promote your bookkeeping work is to make your site optimized for mobile users.

Mobile users are more likely to  go to a competitor’s site  when your page loads slow.

Moreover, an optimized mobile site helps you get found on Google, plus, triggers 73% of mobile devices trigger additional action, according to research. A clean website is key to attracting the right clients.

2. Speak on podcasts

Small business owners don’t have a way to determine if you’re credible or not. A great way to show your expertise than speaking on a podcast. Active podcast listeners are  surging  in the U.S., so nows a smart time to jump on board.

To find podcasting opportunities, go to some popular industry podcasts on iTunes, see if you’re a good fit, then pitch your ideas to the host. Some great accounting podcasts to try for are:

  • Accounting Play
  • I Love Bookkeeping
  • Accounting Best Practices
  • The Xero Gravity
  • The Beancounter
  • ACCA Podcast
  • THRIVEal Podcasts
  • Cloud Stories
  • College Info Geek

3. Offer free 60-minute consultations

Consultations are a relatively easy way to build rapport with potential customers, and they can often turn into paying customers. You can easily post the offer on your website and social media accounts, something you can handle on your own without hiring marketing help.

4. Get testimonials from past clients

When you promote testimonials, you show potential clients your services can make an impact on their company too. It helps you close the deal faster because they can see the positive results you’ve produced for other businesses.

Send an email or text to any past employer or clients and ask them to leave a genuine review about your freelance bookkeeping work.

5. Market on the right channels

Marketing yourself on social is a great way to gain exposure. You just have to be careful which way you go about it.

Once you know who your audience is, you can start on the channel they spend the most time on. For example, if you offer family or individual accounting, Facebook may be your best channel. If you only work with small business owners, LinkedIn may be a better fit.

If you’re going to market on social, make sure you’re profile is focused only on bookkeeping tips and information. Also, fill out all the sections in your social media bio. It helps potential customers get all the details they need from you.

6. Sign up for freelancer websites as bookkeeper

Before you pay for any advertising, visit freelancer sites that help businesses locate freelance bookkeepers and accountants. Most don’t charge you to set up a profile, but will take a small fee once you book a gig and get paid.

Some top sites to find remote freelance bookkeeping jobs are:

  • Upwork for all types of bookkeeping gigs
  • Flexjobs for bookkeepers who want flexible schedules
  • Freelancer . com for remote accounting and bookkeeping projects
  • Peopleperhour for access to global clients
  • Entertainment careers for entertainment industry bookkeepers

To start finding new bookkeeping jobs, simply:

  • Sign up for each job site above.
  • Fill out your profile including picture, experience, skills, services, rates, etc.
  • Enroll to get job alerts.

7. Get published on industry blog sites

One effective way to get your name out there is guest-posting. Simply put, it means you write original articles for popular websites in your industry.

To discover guest posting possibilities, go to your favorite industry blogs, and see whether they have information about guest-posting. Or, you can type in accounting + “guest posts” or “contribute” into Google — and see what opportunities come up.

8. Start a loyalty program.

When clients enjoy working with you, they are more likely to offer referrals for you. Referrals are the most effective marketing tool for virtual bookkeepers and accounts. People trust them more than paid Facebook ads or social posts.

To get more referrals, start a loyalty program. When a referral becomes a new client, you can thank your client with a discount on your services, gift card, or a charitable donation in their name. Getting referral doesn’t take too much time or effort, and can attract new clients to your business.

9. Advertise with Facebook ads.

One of the easiest ways to reach your exact audience is through Facebook advertising. You can promote videos, images, or offers to people by age, interest, behavior, and location — needless to say, it’s the most targeted type of advertising.

What are some good resources for starting a virtual bookkeeping business?

To help you stay up to date on all things virtual bookkeeping and accounting, we’ve compiled a shortlist of resources to help you stay up to date with what’s going on in the industry. You can find information about international and national associations, publications, blogs and more.

Blogs and newsletters.

Look, we’re not saying you have to sign up for every bookkeeping blog around, but you should subscribe to a few to say in the know. Here’s a list to check out:

  • e-News subscriptions (IRS.gov)
  • Journal of Accountancy
  • The QuickBooks Blog
  • Insightly Accountant

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.

We make it easy for you to create a life of freedom with free training, resources, and more on how to start and grow a profitable bookkeeping business — from anywhere in the world.

Over to you

Bookkeeping is quickly changing with new cloud technology and being able to work remote with clients. Virtual bookkeepers have to embrace it to give your business the edge on your competition.

Remember to focus on providing clients convenient and valuable experiences. People buy from people, not just a company.

If all this seems like a lot — take a deep breathe. Taking the effort to understand what virtual bookkeeping is and how it works will help you start an excellent business.

Here’s your action plan:

  • Decide on funding
  • Create a business plan
  • Get necessary bookkeeping certifications
  • Choose a business name and structure
  • Get your hardware together
  • Make a website and branded email address
  • Choose your bookkeeping software
  • Promote your bookkeeping business
  • Learn, grow, and expand your offering

But if you need more personalized, specific advice on how to start your own virtual bookkeeping business, and make money from home, see our other resources today to get started.

Ben Robinson

Ben Robinson

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Bookkeeping Business Plan Template

Written by Dave Lavinsky

Growthink.com Bookkeeping Business Plan Template

Bookkeeping Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs create business plans to start and grow their bookkeeping companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bookkeeping business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start your own bookkeeping business or grow an established business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bookkeeping business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bookkeeping Startups

With regards to funding, the main sources of funding for a bookkeeping business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a bookkeeping company is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

How to write a business plan for a bookkeeping company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of business you are operating and the status; for example, are you a startup, do you have a bookkeeping business that you would like to grow, or are you operating a chain of bookkeeping companies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the bookkeeping business industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of bookkeeping business you are operating.

For example, you might operate one of the following types:

  • Traditional Bookkeeping and Accounting Business : the traditional bookkeeping and accounting business can provide the entire range of bookkeeping services, including maintaining journals and ledgers, balancing and reconciling accounts, preparing payroll, preparing and filing taxes, and providing billing and collection services.
  • Tax Preparation Services : this type of bookkeeping business primarily prepares, reviews, and/or files tax returns and supplementary documents.
  • Payroll Services : this type of bookkeeping business typically collects payroll information, processes paychecks, processes withholdings, and files reports.
  • Billing Services : this type of bookkeeping business deals with sending bills and collecting payments.

In addition to explaining the type of business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the bookkeeping business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bookkeeping industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, it would be helpful to ensure your plan takes into account the seasonal nature of certain services such as tax preparation.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

bookkeeping industry growth outlook

The following questions should be answered in the industry analysis section:

  • How big is the bookkeeping industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your bookkeeping business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments : families, entrepreneurs, businesses, retirees, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bookkeeping business you operate. Clearly, families would want different pricing and product options and would respond to different marketing promotions than established businesses.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most bookkeeping companies primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your business clients.

Finish Your Bookkeeping Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other bookkeeping services and companies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes accountants, companies’ internal accounting departments, professional employer organizations, and entrepreneurs/individuals doing their own bookkeeping. You need to mention such competition to show you understand that not everyone engages in bookkeeping services.

With regards to direct competition, you want to detail the other bookkeeping companies with which you compete. Most likely, your direct competitors will be bookkeeping companies located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What services do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior bookkeeping services?
  • Will you provide bookkeeping services that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire your services?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bookkeeping business plan, you should include the following:

bookkeeping marketing plan diagram

Product : in the product section, you should reiterate the type of business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to account reconciliation, will you offer services such as tax preparation?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the services you offer and their prices.

Place : Place refers to the location of your business. Document your location and mention how the location will impact your success. Discuss how your location might provide a steady stream of customers. 

Promotions : the final part is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Email marketing to prospective clients
  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites 
  • Social media advertising
  • Pay per click advertising
  • Local radio advertising
  • Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bookkeeping business such as serving customers, procuring supplies, keeping the office clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your bookkeeping business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in the bookkeeping or accounting business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in bookkeeping businesses and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 customers per week or 20? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

bookkeeping sales forecast

Balance Sheets While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your bookkeeping business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bookkeeping or accounting business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like computers and software
  • Cost of maintaining an adequate amount of office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.

Bookkeeping Business Plan Summary

Putting together a business plan for your bookkeeping business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert bookkeeping business plan; download it to PDF to show banks and investors. You will really understand the bookkeeping business, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bookkeeping business.

Bookkeeping Business Plan FAQs

What is the easiest way to complete my bookkeeping business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Bookkeeping Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of bookkeeping business you are operating and the status; for example, are you a startup, do you have a bookkeeping business that you would like to grow, or are you operating a chain of bookkeeping businesses.

Don’t you wish there was a faster, easier way to finish your Bookkeeping business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide for Small Businesses

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How to start a virtual bookkeeping business (In 5 Steps)

  • 11 min read

What is a virtual bookkeeping business?

Is virtual bookkeeping profitable, what are the benefits of a virtual bookkeeping firm.

  • steps to start a virtual bookkeeping business

Establishing a good remote culture

As an accounting professional or CFO, you may be curious about starting your own accounting or virtual bookkeeping firm. Creating your own small business is more than a full-time job. However, there are many advantages to being a founder and small-business owner. The flexibility to run a company how you want, more intimate collaborations, and the pride of opening your own business are all great reasons to consider opening your own accounting firm.

As you start on your new small business journey and start tossing ideas around with colleagues, the dreaded question of finding a physical location will eventually come up. High rent, logistics, and the shift to remote work have most professionals feeling tentative about in-office working. Luckily, there are accounting offices that are entirely virtual firms allowing for remote work for all employees, whether you plan on offering virtual accounting services or virtual bookkeeping services. Virtual firms have many benefits, but what does starting a virtual CPA firm mean?

A virtual bookkeeping business is a professional service that allows accountants to offer accounting and financial management assistance to clients remotely. This business model deviates from the traditional, physical office setup, opting instead for a fully online or digital structure.

Like a virtual accounting firm, a virtual bookkeeping business operates mainly through internet-based platforms. Instead of a brick-and-mortar location, these firms establish their presence in a virtual setting — be it a satellite office setup or a fully remote hub.

The backbone of a virtual bookkeeping business lies in its strategic use of various software solutions . These tools 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. Communication tools help in maintaining open and clear channels with clients, while secure storage systems, sometimes utilized as an alternative to cloud storage, ensure that sensitive financial information is safely archived.

This flexible and remote setup allows virtual bookkeeping businesses to serve clients from different geographical locations. Furthermore, they offer professionals the advantage of working remotely, contributing to work-life balance while providing cost efficiencies in operation.

The rise of virtual bookkeeping businesses is a testament to the digital age's influence on industries, proving that even sectors as traditional as accounting can successfully adapt and thrive in an online environment.

Running your own bookkeeping business can be a highly profitable venture, given that you equip yourself with the right know-how and tools. Profitability often comes down to a mix of factors such as the utilization of efficient bookkeeping software, a clear pricing strategy , and a solid network of potential clients and referrals.

Copilot for accountants

The use of powerful bookkeeping software allows for effective management of your clients' financial records. This not only enables you to serve more clients effectively but also reduces overhead costs associated with manual bookkeeping.

Choosing the right business structure, such as a sole proprietorship, partnership, or LLC, is also important. It impacts tax obligations, personal liability, and your ability to raise capital, so it's important to consider the advantages and disadvantages of each type. Depending on your chosen business structure, you may need a business license, and it's always advisable to separate your personal and business finances with a dedicated business bank account.

Pricing your services correctly is critical to profitability. Too high, and you risk alienating potential clients; too low, and you may struggle to cover your costs and turn a profit.

Finally, establishing a strong network is crucial for obtaining potential clients and referrals. The more relationships you build, the wider your client base becomes. Good customer service often results in repeat clients and referrals, driving business growth.

Starting your own bookkeeping business requires knowledge, skills, and dedication. But with the right approach and tools, it can certainly be a profitable venture.

Virtual bookkeeping and accounting firms have a lot of benefits over their physical-office counterparts. While some users have a hard time initially adjusting to using Zoom for meetings and may miss the in-person interactions, there are many ways that virtual firms can offer a healthier work environment for your employees while being beneficial to you as a business owner.

Lower overhead expenses

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. While you may spend some initial money as you shift to offering remote hardware, such as laptops, tablets, or monitors, for your employees, the money you will save will easily make up for these upfront costs.

No wasted time commuting

Commuting can take a significant chunk out of every employee's day. The average one-way commute is 27.6 minutes, according to the U.S. Census Bureau . 27.6 minutes equates to about 240 hours a year spent just commuting to work. In higher-population areas with even longer commutes, that time can be doubled or tripled, turning your traveling into a significant portion of your year. Many people consider all of their time stuck in a car much better spent at home with family at the beginning and end of their day, something made possible with remote work.

Better work-life balance

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.

5 steps to start a virtual bookkeeping business

Starting a virtual bookkeeping business requires strategic planning to attract positive cash flow and garner a dedicated client group. Step one is to understand your goals and values.

1. Understanding your goals

The first step in creating any successful business is deciding your goals as a company. By having a clear plan for where you want to be, you can more actively make subgoals and steps to achieve your ideal client base and provide outstanding services.

What services do you want to provide?

Will your accounting firm focus on tax preparation and tax planning? Are you more interested in working with financial reports and general financial data analytics? Deciding what services you want to provide helps you understand what employees you will need to hire, what software you will need to implement, and the overall feasibility of your business plan.

Who do you want to work with?

Picking an ideal client base helps you better market yourself to them. Are you looking to work with large corporations, individuals, or small business clients? Describing in detail who your perfect customer is will help you understand how you need to position yourself in terms of scale and services.

How large do you want to scale to?

Now that you know your ideal services and clients, you may have a better idea of how large you want to scale your company. Knowing ahead of time that you will be planning on expanding can help you set your architecture up for easy scaling in the future.

Do you want to be very hands-on in the next 5 years?

Some accounting firms like being extremely hands-on, something you should consider as a virtual firm. Nailing down exactly how you want your interactions with clients to look can help you decide if entirely virtual is the answer for your company or if a hybrid setup may be more advantageous.

2. Developing your core values

Creating core values in a remote or hybrid virtual bookkeeping business can help develop culture and keep everyone on the same page. Approaching clients and issues with these values in mind can keep your firm providing quality assistance uniformly regardless of where people work.

Your vision

Coming up with a vision statement helps outline your company's goals and what you want to accomplish long-term. Ideally, your vision statement will be one or two sentences that help give an idea to all employees of what goal you are working towards as a company.

What you value

Consider your core values. Is your focus quality work, excellent client relationships, valuable and considerate service, or meticulous analytical services? Once you think about what you value most, it can help you create direction within your vision statement.

What your clients value

What your clients value about your company should be part of your vision as well. Decide what will put you above your competitors, whether personal one-on-one support or exceedingly punctual problem resolution.

3. Create efficient remote workspaces

Making sure your home workspaces are efficient is vital to creating a positive remote experience. Building a tech stack that best fits your company's needs and supports hardware and equipment needs is essential to facilitating happy employees.

Home office

Having a healthy home office is step one in having a positive, effective remote workspace. There are many ways that you can make a home office feel comfortable. We suggest the following when setting up a remote office :

  • Pick a dedicated space to promote privacy when needed
  • Choose appropriate lighting for your home office space
  • Consider noise when picking an area for your desk
  • Surround yourself with inspiration
  • Make the office space your own through customization
  • Add green spaces to your home office to increase productivity and lower stress
  • Set up ergonomic equipment such as a desk, chair, and keyboard
  • Consider other equipment needs such as internet, routers, headsets, webcams, whiteboards, etc.

For your team

When helping your team set up their ideal workspaces, consider the hardware they will need. Fully remote teams also won't always be in their homes and may benefit from co-working spaces or areas where they can host meetings with clients.

Equipment stipends

Providing stipends for employee equipment can help everyone gain access to the tools they need to work remotely. Never assume that all employees will have a functioning computer at home or all of the tools they need to succeed. Identify hardware needs and make them accessible to those who need them.

Co-working spaces

Sometimes your employees may prefer to co-work or might need to meet with clients. In these cases, consider providing access to different co-working spaces, which have become more popular due to the increased popularity of remote work. Some virtual firms take advantage of public co-working spaces, while others rent specific spaces for their employees to use. Still, others provide a remote working stipend to be used as the employee prefers. Remember to be considerate of employee and client communication preferences, as virtual communications can sometimes cause misunderstandings and unhealthy work/life balance. Some clients and employees prefer voice or video to make introductions and communicate, and co-working spaces may be great to help create that connection.

4. Consider data security

Remote work comes with an increase in risk for data security. When using mobile devices and laptops for work, it is much easier for devices to be stolen or hacked. Keep a robust data security policy in place for employees, and plan for disaster ahead of time. By taking precautions and having actionable steps for when something does happen, you will be able to prevent large-scale damage to your company.

5. Choose the right productivity tools

Picking the right tech stack and productivity tools helps your team excel. Working remotely can be equally or even more collaborative and efficient if you use the right tools that can help with automation and project management.

Project management software

Implementing project management software allows your whole team to be on the same page. Assigning tasks is easy and visual, and you can even automate your workflow to send reminders directly to assignees. Tracking productivity is something that many remote companies struggle with, and excellent project management software is the key to ensuring work is getting done by your employees.

Messaging and conferencing software

Virtual meetings and instant messaging software help employees stay just as connected as if they were in the office. While your workers may not be chatting around the water cooler, they will be keeping up with each other by sending quick meeting invites to get in touch or through messaging systems. Some companies have increased significantly in popularity over the pandemic, such as Zoom, Microsoft Teams, and Slack. Messaging and video functions can also come rolled into other products that you may acquire in your tech stack.

eSignature collection software

eSignatures are going to be a large part of your firm if you plan on working entirely remote. Finding software that can help you collect client signatures will save you time by not seeing every customer in person and will streamline your workflow.

eSignature feature in Copilot

Streamline workflows with eSignature collections.

Client Portal and CRM

Having a client portal and CRM can help your employees track projects and clients efficiently. Good CRM technology will help your team stay on top of critical deliverables. A great client portal keeps your employees from having to do as much footwork to collect forms and information for your customers.

Copilot for virtual bookkeeping business

Copilot is a CRM, client portal, and all-in-one commerce solution, including billing and invoicing, file sharing, eSignature collection, messaging, client intake form collection, invoicing, and accounting, while also providing a home for your knowledge base. Copilot packages all of its features into a streamlined, custom-brand-able experience so that clients feel secure using your client portal. Picking client management software like Copilot keeps your tech stack uncomplicated by hosting most of your needed software under one umbrella.

Creating a positive remote culture can be difficult for those who don't have prior experience. Company culture is what helps motivate employees and makes them feel good about their employer. Remote flexibility will help your workers feel trusted and improve morale, but having a quality remote culture is also crucial to happy employees. A Randstad report saw that 58% of employees have left a job or would consider leaving if there was a negative office culture. Additionally, a Gallup poll reported that having a positive culture that brings in high-talent leads to 33% higher revenue. With a good culture being so crucial, how do you foster it in a remote environment?

GitLab is a great case study for positive remote work structures and cultures. As they moved into remote working, they documented a detailed guide on approaching the challenges they faced within a remote working environment. GitLab talks about the importance of displaying your values and reinforcing them in a place where everyone can access them. Gratitude and transparency are two things that GitLab has found vital in its remote working, and they encourage showcasing those who are great cultural ambassadors. You can learn more about their building culture here when they talk about how essential intentionality is to their methods. Following GitLab's positive case study and others can help give you some initial ideas on how to foster company culture and values even when not under the same roof.

As remote work becomes more and more prevalent, now is a great time to consider starting your own virtual bookkeeping company. The allure of flexible work schedules, heightened productivity, and reduced startup costs make this an opportune moment to venture into this thriving field. As you begin, make sure you outline clear business objectives and values to form a robust foundation for your venture.

Don’t get caught up in selecting a catchy and relevant business name from the start. First, make sure you learn to productize your services and identify your ideal type of client. Then, you can make sure your business entity type is carefully chosen, taking into account tax implications, potential liabilities, and compliance with the IRS. Incorporate reliable business insurance to safeguard your enterprise against unforeseen challenges.

To help you network and find more clients, you can also consider investing in professional business cards and fostering a dynamic presence on social media platforms, particularly LinkedIn, to attract your ideal clients online. This will increase the chances of gaining your first client and continue to attract new clients over time.

Also, make sure you are well equipped to handle essential financial statements such as balance sheets and income statements, as this will be a core aspect of your service offering. Prioritize the establishment of a comprehensive client onboarding process to secure bookkeeping clients swiftly and efficiently.

Remember, nurturing a strong remote company culture from the get-go is vital for team cohesion and overall success. As you navigate the course of providing virtual bookkeeping services, remember to stay updated with market trends and leverage these to stay ahead of competitors. With the right planning and execution, your virtual bookkeeping business is well-positioned for success!

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How to start a virtual bookkeeping business

How to start a virtual bookkeeping business

Are you interested in starting a bookkeeping business but need help determining where to begin? With the growing demand for bookkeeping services, now may be the perfect time to dive into the virtual business world. This blog post will show you how to start and optimize a virtual bookkeeping business for longevity.

The demand for bookkeeping services

Starting a virtual bookkeeping business has many benefits, such as low overhead costs, access to a wider talent pool, location flexibility, and the ability to work remotely. With a virtual bookkeeping business, you can take on clients from anywhere worldwide, as long as they have an internet connection.

Small businesses, freelancers, and individuals often seek bookkeeping services to help them manage their finances efficiently and accurately. As such, the bookkeeping service industry has experienced steady growth. The size of the worldwide accounting services market is anticipated to increase by 11.4% from $587.94 billion in 2021 to $1,009.51 billion in 2026.

Getting started

Starting a virtual bookkeeping or tax services for small businesses may seem daunting, but it can be broken down into manageable steps. Here are some key things to consider when getting started.

Types of bookkeeping services

First, it’s important to determine what types of bookkeeping services you will offer. These range from basic data entry to more comprehensive tax advice, payroll services, tax preparation services, financial reports, and analysis. Consider your background and expertise, as well as the needs of your potential clients.

Qualifications and licenses

To operate a bookkeeping business, having the qualifications and licenses is essential. This could include certification as a bookkeeper or accountant and any state or local permits required to operate a business from home.

Website and social media presence

An important aspect of any virtual business is a strong online presence. Create a professional website that showcases your services and expertise. Develop social media profiles to reach potential clients and engage with your community.

Attract. Win. Serve.

Developing a business plan

Before launching your business, it’s important to develop a comprehensive business plan. This should outline your goals, target market, marketing strategy, and financial reports and projections. A well-developed business plan can help you secure funding, attract clients, and focus on your goals.

Setting up the infrastructure of your bookkeeping and accounting services

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.

Building your team of best online bookkeeping and accountants

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. You can find professionals by networking, searching job boards, or partnering with other bookkeeping businesses to outsource some of your workloads. When hiring, vet dedicated bookkeeper candidates thoroughly and assess their qualifications, experience, and soft skills.

Implementing effective communication tools

You must communicate effectively with your team and clients as a virtual bookkeeping business. Consider using video conferencing software, instant messaging apps, and project management tools to facilitate communication and collaboration. Create a clear communication protocol that outlines how you will communicate with your clients and team members.

Establishing protocols for data security and privacy

Data security and privacy are critical concerns for any business, particularly virtual bookkeeping businesses dealing with sensitive financial data. Make sure to have protocols and procedures to safeguard your clients' information. This may include using secure file-sharing tools, encrypting email communications, and regularly backing up your data. Consider obtaining data security and privacy certifications, such as the Certified Information Systems Security Professional (CISSP) certification.

By putting in place a strong infrastructure for your virtual bookkeeping business, you can ensure that your team is organized, efficient, and able to provide high-quality services to your clients. With effective communication tools and robust data security protocols, you can build trust with your clients and establish your business as a reliable partner for their bookkeeping needs.

Marketing your business

Once you have set up your virtual bookkeeping business, the next step is to get the word out there and attract potential clients. This section will discuss how to effectively market your business and make it stand out in the competitive landscape.

Understanding your target audience

Before launching any marketing campaigns, it's essential to identify your target audience. Who are you trying to reach with your services? Are you targeting small businesses or larger companies? With a clear understanding of your target audience, you can tailor your marketing efforts to speak directly to their pain points and offer solutions that meet their needs.

Identifying your unique selling points

What makes your virtual bookkeeping business different from others in the market? Identifying your unique selling points is critical to creating a memorable brand that will resonate with your target audience. It could be your expertise in a particular industry or niche, a streamlined bookkeeping process, or exceptional customer service.

Creating Your brand identity, logo, and tagline

A strong brand identity is vital for any business; online bookkeeping service is no exception. Your brand identity includes your logo, tagline, color scheme, and overall brand voice. These elements should align with your unique selling points and resonate with your target audience. Remember that your brand identity should be consistent across all marketing channels.

Launching your marketing campaigns

With a solid understanding of your target audience, unique selling points, and brand identity, it's time to launch your marketing campaigns. Consider using a mix of marketing channels, such as social media, email marketing , and paid advertising, to reach your potential clients. Track your marketing efforts and adjust your strategies accordingly to maximize your return on investment.

Offering your services

As you launch your virtual bookkeeping business, you must decide on your pricing strategy, draft your service agreements, and provide dependable customer service. Here are a few sub-topics to remember as you offer your services.

Choosing your pricing strategy

Your pricing strategy is one of the essential decisions you will make as a virtual bookkeeper. Will you charge by the hour, project, or a monthly retainer? You need to factor in your experience, the level of expertise required by the client, and the volume of work before deciding on a pricing structure.

Drafting your service agreements and contracts

Your service agreement should outline the terms and scope of your bookkeeping services. It should indicate the deliverables, the type of records you will keep, like financial statements, and the frequency of reconciliation. A service agreement should detail the payment terms, timelines, and penalties for missed deadlines.

Providing dependable customer service

Building a trustworthy relationship with your clients is crucial in online bookkeeping services. You need to ensure that you are easily accessible to your clients during their business hours. You should also prioritize the timely delivery of the reconciled records and keep them informed of any changes in the workflow.

Networking with potential clients and partners

Networking is an essential part of growing your virtual bookkeeping business. You can attend small business forums, join local business associations, and volunteer for charitable causes. You can also participate in virtual networking opportunities like webinars, forums, and social media groups.

By considering these sub-topics as you offer your services as a virtual bookkeeper, you are more likely to build a successful, thriving business that meets your client's needs.

Measuring success and looking ahead

To ensure the success of your virtual bookkeeping business, it's important to track and analyze your business performance regularly. In this section, we discuss the different ways you can measure success and what you can do to continue growing your business.

Tracking and analyzing your business performance

One way to measure success is by tracking your revenue, expenses, and profits. You can use accounting software to monitor your finances and generate reports that provide insights into your business performance. Key metrics include client retention, customer satisfaction, and project completion rates. Analyzing these metrics can help you identify areas to improve and growth opportunities.

Addressing feedback and making improvements

Listening to feedback from clients is essential to improving your bookkeeping services. Solicit feedback at the end of each project or engagement and use it to identify areas where you can improve. Additionally, consider conducting surveys or focus groups periodically to gauge customer satisfaction. Make sure to act on any feedback you receive promptly and professionally.

Identifying growth opportunities

As your business grows, it's important to explore new opportunities that can help you expand your client base and increase revenue. Some options include offering additional services like tax preparation or financial planning, partnering with other businesses to cross-promote services, or expanding your existing services to new industries.

Tips for expanding your virtual bookkeeping business

Expanding your virtual bookkeeping business requires careful planning and a willingness to take risks. Some tips to consider include investing in marketing and advertising, developing strategic partnerships, streamlining your workflows, and staying up to date with the latest trends and technologies in the industry.

Scale your bookkeeping business with B12’s AI website builder

Measuring your success and looking ahead is essential to building a thriving virtual bookkeeping business. By tracking your business performance, addressing feedback, identifying growth opportunities, and following best practices for expansion, you can take your virtual bookkeeping services to the next level and achieve long-term success.

Setting up your independent bookkeeping practice online might be difficult, especially for small business owners, but with B12 , you can simplify the procedure and assist you in creating a credible online identity. Invest in a reputable website with client-facing tools like scheduling, contracts, payments, and intake forms.

B12’s team of professionals can help you at every stage, from developing the initial version of your website to publishing it. Thus, making it possible to have the best online bookkeeping services. Join right away !

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How to Start a Successful Virtual Bookkeeping Business in 2024

how to start a bookkeeping business

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.

But first, there is one action to take before you do anything else.

Naturally, getting paying customers is the most important part of starting any business , and this is also true for your own bookkeeping business. Getting your first client means you’ll have someone who can back your claims of offering high-quality and cost-effective services.

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. 

Let’s get started! (You don’t need to complete the steps below in this order.)

14 Steps to Start a Successful Virtual Bookkeeping Business

1. establish your company.

You should figure out the business structure you want to create. Many bookkeepers start as sole proprietorships, meaning you work alone and provide all the services yourself. But you may also think about forming a limited liability company (LLC) or corporation.

The ideal business entity type for your virtual bookkeeping services will depend on your long-term goals and revenue expectations. Each state also has different rules for business taxes, so you’ll need to consider how state taxes would apply to your business.

If you are starting the company with a partner, make sure a partnership agreement is part of your business plan. This agreement ensures you are both on the same page concerning business operations.

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.

2. Get the Necessary Licenses and Permits

Permit and licensing requirements vary by state and locality. 

If you’ve established a corporation or LLC, the entity needs to get registered with your state. Sole proprietorships do not require formation filings, though they often require business licenses.

Once you’ve formed your entity, you must apply for an employee identification number (EIN) with the Internal Revenue Service (IRS). The EIN identifies your business and is separate from your social security number (SSN). An EIN is optional for sole proprietors, but it allows you to receive 1099s at the end of the year from your clients without giving them your SSN. 

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.

If you plan on operating under a fictitious business name or several different names, you may need to file a “Doing Business As” (DBA) statement. DBAs can usually be filed with your county or parish.

3. Get Insurance

Business insurance will protect you from claims against your business, but you need the correct types of insurance policies. 

One of the most critical steps to take in your virtual bookkeeping business is to invest in professional liability insurance, also known as errors and omissions (E&O) insurance. This insurance will cover you against claims you made a mistake in preparing a client’s books. The amount of coverage you need will depend on your client list. 

Professional liability insurance will protect you against errors, negligence, and omissions that may occur during your bookkeeping engagements. Your premiums will vary depending on what type of services you offer and your projected revenue. 

For a bookkeeping business just beginning, an insurance policy costs less than your daily cup of coffee. You should request quotes from several agencies to ensure you get a good deal.

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. 

Many states require residents to have some level of health insurance coverage. Health insurance is a much sought-after benefit if you plan to hire employees. 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.

4. Create a Web Presence

Websites are essential for virtual bookkeeping firms. Without a website—and since you have no physical office—your business may appear to be fly-by-night. 

You do not need an expansive or expensive website to get started. You can create a simple website for less than $50, including the domain name. If you don’t have experience, you can find many predesigned websites online or have one put together for less than $500.

5. Get Equipment

Starting up a virtual business doesn’t require ordering a bunch of office supplies. We no longer need ten keys or ledger paper, especially in a virtual bookkeeping firm. 

That doesn’t mean that there aren’t any startup costs. 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. 

Virtual bookkeepers juggle several files constantly. Having multiple monitors is key to working efficiently. You should also consider a reputable webcam and headset for client meetings. Sign up for meeting software such as Zoom or Teams.

virtual bookkeeping business plan

6. Pick a Focus

Virtual bookkeeping firms have the benefit of being able to work with anyone regardless of their location. But do you have a specialty? Are you knowledgeable about specific types of businesses? 

Picking a focus is optional, but consider choosing a specific niche for your business . It allows you to target your advertising and outreach. You can rank higher in online searches by having a niche. 

You can base your niche on a specific location or specific profession. By becoming an expert in a particular area, you will complete your work more efficiently and potentially earn more for your expertise, all of which frees up time for you to work on getting more clients . 

Sometimes niches are created organically. If your current clients start referring you to other businesses in the same industry, you might end up in an unexpected niche.

7. Set Pricing

One of the first questions potential clients will ask is about your prices. You need to be ready to answer! Start by deciding how you are going to price your services . 

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.

Do You Want to Track Your Time?

Billing hourly has been standard practice in the bookkeeping industry for decades. It can be a very profitable way to bill your clients. But there is a downside: you need to track how all your time is spent . 

There is also no reward for working efficiently since fewer hours means less billing. As a virtual bookkeeping firm, you’ll need to determine a reasonable rate for your clients, even if they’re located in other areas.

How Will You Handle Scope Creep for Fixed Payment Clients?

If you’d prefer not to bill hourly, you can set a fixed fee or retainer bill for each client. This method rewards you for working efficiently as long as you’re getting the work done. When you finish your work, you can stop for the day or focus on getting more clients.

The tricky aspect of this type of pricing is that it’s easy for the scope to expand. You need an engagement letter with your clients that clearly states any request outside the scope of your work comes at an additional cost. This way, your clients don’t monopolize your time.

Do You Have the Time to Bill Your Clients by Hourly Invoices Each Month?

Hourly billing is a lot of work. You need to review the hours billed to each client and invoice based on those hours. Make sure you have time to complete the invoicing each month if you decide to bill hourly.

8. Set Up Your Software

Be ready to do the work. Have all your accounting software subscriptions in place before you get a client. As your business expands and you add team members, you may need to reevaluate your software needs. 

Virtual bookkeeping firms also need several non-accounting software subscriptions. You should have PDF editing, presentation, and time management or workflow software. Microsoft Office Suite used to be a requirement, but many virtual bookkeeping businesses use the free Google Workspace products. 

For firms planning on holding virtual meetings with clients, you will want to invest in a Zoom Pro subscription to schedule longer meeting times with larger groups of attendees.

9. Track Your Expenses

Don’t forget to maintain your own books. It’s easy to get caught up in client work and neglect yours. Think of all you recommend to your clients and implement those same procedures for your business. 

Have an expense log ready, and track expenses paid through personal accounts. Set up separate accounts for your business, just like you’d want your clients to do. 

Keeping your books in good shape means you can spend more time working on your client files, especially at the end of the year when you’ll be extra busy!

10. Build Your Team

Most virtual bookkeeping firms start with the owner as the sole employee. But as your business grows, you’ll need more team members to support your clients. 

When you launch your business, be aware of people you meet who could add value as employees. Don’t limit yourself to only bookkeepers; you should consider adding administrative assistants or marketing specialists to your team. 

To preserve your time for expanding your business, think about how to outsource tasks to other team members. Outsourcing tasks might cost some money upfront but frees up time for running your business, working with your clients, and acquiring new ones. 

Don’t wait until the last minute to add a new team member. If you suspect you’re getting close to expanding, start looking! Give yourself time to find the right person and get them up to speed.

11. Implement a Project Management System

Virtual bookkeeping firms can’t rely on physical files to track their to-do lists. 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.

Spreadsheets are an option. You could use Google Sheets or a shared Excel file to manage your team and allocate tasks. However, this method isn’t helpful if you have a large team. 

Consider a workflow management system like Jetpack Workflow . The right workflow management system can save you hours and allow you to monitor your team without micromanaging it.

Progress Report Tab Jetpack Workflow

12. Advertise Yourself

A virtual bookkeeping firm can’t rely on signs outside an office building to advertise itself. You need to find a way to put yourself out there. 

Think about various ways you can reach out to potential clients or get your business in front of them. Every contact with a business owner is an opportunity to land a new client. 

Business cards are a bit old school, but they still work well when trying to land a new client. Cards are great for in-person meetings if you have a local client. 

For virtual bookkeeping companies, your focus should be on online advertising. You can use Facebook or Google Ads, but consider social media options such as TikTok, Instagram, Twitter, and Pinterest, which have also proven successful for some firms. For more ideas, check out Jetpack Workflow’s suggestions on how to market your virtual bookkeeping business .

13. Network

Virtual businesses sometimes forget about networking, but several online platforms help businesses to meet and grow virtually. 

Credentials can also help you advertise your business. You should consider joining the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB).

14. Enjoy Your Success… But Keep Hustling

Get excited about your first client, then get back out there and find more. Keep your long-term goals in mind, and keep working towards them. Having a five- or ten-year plan allows you to track your progress and make adjustments along the way.

Keep looking at what’s working and what’s not. Check in with your team, and evaluate your software. Watch out for trends and new opportunities.

Be proud of your success, but keep moving forward!

Get a Head Start on Your Accounting Workflows with This Free Resource

Before you start spending endless hours manually creating and building workflow and process templates for your firm, check out our collection of 32 customizable accounting workflow templates and checklists . This free resource includes a ton of the most popular accounting templates including monthly bookkeeping, weekly accounting analysis, client onboarding procedures, and common tax return forms.

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Quick Guide to Start Your Virtual Bookkeeping Business From Home

By craig cannings.

Are you looking for a second career or side hustle that allows you to work from home? Virtual bookkeeping may be the perfect solution, especially if you love working with numbers!

Working as a virtual bookkeeper is an increasingly popular way to earn money, and it can offer financial stability while giving you the freedom of remote work. But before getting started in this field, there are some important things to know—like what tools to use, how to find clients, and how to stay organized with your time management.

In this blog post we’ll explore these topics so that by the end of it, you’ll have all the knowledge necessary for starting your own successful virtual bookkeeping business from home. Let’s get started!

Table of Contents:

W hat is Virtual Bookkeeping?

Services Provided by Virtual Bookkeepers

Difference between bookkeeping and accounting, benefits of virtual bookkeeping, how to become a virtual bookkeeper, qualifications and skills needed for virtual bookkeepers:.

Three Steps to Becoming a Virtual Bookkeeper

1. Learn Bookkeeping Skills.

2. create a business plan..

3. Define Your Bookkeeping Services

What Tools Do You Need to be a Successful Virtual Bookkeeper?

Essential software for remote bookkeepers, recommended hardware for working remotely as a bookkeeper.

Online Resources for Professional Development

How to Find Clients as a Virtual Bookkeeper?

Online promotion, how to price your services as a virtual bookkeeper, how to stay organized and manage your time effectively as a virtual bookkeeper, what is virtual bookkeeping.

Virtual bookkeeping is the practice of managing financial records and transactions for businesses remotely. It involves recording, classifying, analyzing, summarizing, and reporting on a company’s financial activities. This type of work can be done from anywhere in the world with a secure internet connection (especially if you are dealing with your client’s financial information).

As a virtual bookkeeper, your responsibilities will include recording expenses, transactions, and revenue. You’ll also manage accounts receivable and accounts payable, reconcile general ledger accounts, prepare financial statements like balance sheets and profit and loss statements, process payroll, and prepare tax documents for employees or contractors.

Ultimately, you’ll provide these records to your client’s accountant.

Now you might be wondering what the difference is between bookkeeping and accounting. In our Virtual Bookkeeping course, we compare the two roles, so there is no confusion.

First of all, your role as a bookkeeper is transactional. Although you record data and create reports, you aren’t required to interpret the information or act as a financial advisor. Similarly, you may create tax documents, but you don’t prepare tax returns.

In contrast, an accountant acts as a client’s financial advisor, interpreting all data and reports. They also prepare financial statements, payroll taxes, and tax returns. In addition to these responsibilities, they can also perform all bookkeeping tasks.

These differences are important to keep in mind as you outline the scope of your online bookkeeping work with clients.

The benefits of virtual bookkeeping are numerous. It allows business owners to save time and money by outsourcing their accounting needs to professionals who specialize in this field.

And here are some additional benefits:

– You have more flexibility as remote bookkeepers can work from home or any location.

– You have the freedom to work at any time that suits you best.

– You can serve clients located anywhere.

– You don’t need expensive office space or equipment since all data is stored securely online.

– You have access to great software, making it easier than ever to provide services.

– You can easily learn today’s bookkeeping software if you have a high school diploma (or higher education).

– It’s a fulfilling career if you enjoy working with numbers and helping business owners.

– Since the COVID pandemic, more business owners have begun trusting virtual professionals.

Virtual bookkeeping is an invaluable service for businesses, and a great opportunity for freelancers to start their own business. With the right qualifications and skills, anyone can become a certified virtual bookkeeper and begin providing services to clients.

Becoming a virtual bookkeeper is an attractive option for those looking to start their own business or side hustle. In fact, we list virtual bookkeeping as one of the top side hustles for 2023 in a previous blog post, “ The Top Freelance Side Hustle Jobs for 2023 .” The reason why is clear:

“ Clients desperately need help managing the back end of their businesses. And if you currently work a nine-to-five job as an administrator, your transferable skills could be invaluable.”

To become a virtual bookkeeper, you must have the qualifications and skills needed to provide quality services. An administrative background is helpful, in addition to learning specific bookkeeping skills.

In order to be successful as a virtual bookkeeper, you need to possess strong organizational and communication skills.

You should also have knowledge of bookkeeping practices, financial analysis, budgeting, payroll processing, and tax preparation software programs such as QuickBooks , FreshBooks ,  Wave , Zoho Books , or Xero .

Additionally, having experience with Microsoft Excel will be beneficial in helping you organize your clients’ data more efficiently.

Three Steps to Becoming a Virtual Bookkeeper:

One way to become a virtual bookkeeper is by completing an accredited program that offers courses related to bookkeeping and accounting practices. After completing the coursework required by the program, applicants must pass an exam administered by the American Institute of Professional Bookkeepers (AIPB). Once they are officially certified by AIPB, they can begin offering their services as professional remote bookkeepers.

But a formal certification is not always necessary. As we explain in our Virtual Bookkeeping course,

“With today’s technology, bookkeepers do not need formal training or degrees. Most usually have a high school diploma. It does, however, help to have some training and a basic understanding of numbers and math.”

At FreeU, we provide specific training so you can start your bookkeeping business with the required skills.

Before starting your own business, it’s important to create a plan outlining how you intend on running the business, including pricing structure and marketing strategies.

Additionally, building up some savings before taking on any clients will ensure that unexpected expenses or slow periods during which income may not come in right away can be covered without going into debt.

In our blog post titled, “ The Ultimate 2023 Freelance Business Plan ,” we also recommend starting with your “Big Why Statement.” You could say,

“I would like to build a Virtual Bookkeeping Business so that I can _____________________.”

Then, envision what you’d like to accomplish and turn your visions into goals you’ll reach at specific times of the year.

3. Define Your Bookkeeping Services.

Finally, make sure all contracts are written out clearly so both parties understand what services are being provided at what cost before beginning work together. As mentioned above, an understanding of the difference between accountants and bookkeepers will help clarify your scope of services.

Creating a freelance contract also helps maintain boundaries around your work so you can avoid scope creep and maintain a healthy relationship with clients.

By understanding the qualifications and skills needed, taking the necessary steps, and using helpful resources, you can start your journey towards becoming a successful virtual bookkeeper. Now let’s explore what tools are essential for success in this field.

Being a successful virtual bookkeeper requires the right tools. From essential software to hardware, online resources and apps, having the right setup is key to success.

The most important tool for any remote bookkeeper is accounting software. This will be used to manage client accounts and financial records, so it’s important that you choose one that meets your needs and budget.

As we discussed above, popular options include QuickBooks Online , Xero Accounting Software , FreshBooks Accounting , Wave Accounting , and Zoho Books . Additionally, many of these programs offer free trials or discounted rates for new users.

In addition to accounting software, you’ll need reliable hardware such as a laptop or desktop computer with an internet connection in order to work remotely as a bookkeeper. Make sure you have updated security and antivirus software on your computer to reassure clients that their information is safe.

It’s also recommended that you have backup storage solutions such as external hard drives or cloud-based storage services like Dropbox or Google Drive in case of data loss due to technical issues or natural disasters.

Finally, if you plan on working from home regularly, investing in ergonomic office furniture can help reduce strain on your body while increasing productivity levels over time.

Online Resources for Professional Development as a Virtual Bookkeeper

Having the right tools and resources is essential to being a successful virtual bookkeeper. In FreeU’s Virtual Bookkeeping course, you can access online course videos and handouts to learn new skills and upgrade existing ones. We also provide training and resources to help you market your business, onboard new clients, and interact with existing ones.

In our FreeU online community, you can post questions and seek support from mentors and fellow students. Many have worked as virtual bookkeepers and can share their insights.

Additionally, tools like QuickBooks Online provide video tutorials and webinars to help you master your skills. QuickBooks also offers an online community where you can post questions.

Above all, continue to seek professional development resources as your business grows so your services will remain current.

In the next section, we’ll discuss strategies for finding clients and promoting your services as a virtual bookkeeper.

Finding clients as a virtual bookkeeper can be a daunting task, but with the right strategies and tactics in place, it doesn’t have to be.

Networking is one of the most effective ways to find new clients. Start by reaching out to your existing contacts such as friends, family members, colleagues, or past employers who may need help with their finances.

You can also join online communities and groups related to accounting and finance where you can share your virtual bookkeeping services and connect with potential customers.

Additionally, consider attending local events that are relevant to your field so you can meet people face-to-face and build relationships. Your local Chamber of Commerce or sites like Meetup are helpful for finding events related to specific freelance niches.

Promoting your virtual bookkeeping business is another key factor for success when looking for clients. Create a website or blog where you showcase your skill set and experience in order to attract potential customers.

Leverage social media platforms like LinkedIn or Twitter where you can post about topics related to bookkeeping while engaging with other professionals in the industry.

Additionally, create content such as articles or videos on YouTube that demonstrate your expertise in this area to help establish credibility among prospective customers.

Finally, pricing is an important aspect of finding clients as a virtual bookkeeper since it will determine how competitively priced you are compared to other professionals offering similar services. Consider researching what others charge for similar services before setting prices for yourself; however, make sure not to undercut yourself too much.

In our Pricing Your Freelance Services course, we recommend first deciding what realistic income you’d like to generate each month before taxes, based on how many hours you expect to work. Then add up all your business expenses. Finally, research industry associations, blogs, online groups, and freelance or virtual assistant websites to see what others are charging.

A Forbes article titled “ How to Start a Bookkeeping Business (2023 Guide) ” also provides this advice:

“Talk to businesses in your area to see what they are currently paying for bookkeeping services. Talk to people in your network who are also bookkeepers and ask what they are charging. In doing so, you can get a good idea as to the range bookkeepers charge for services.”

Offer discounts or packages depending on the scope of work needed from each client so they get more value from working with you rather than going elsewhere—this could be anything from free consultations to discounted rates if they commit to long-term contracts, etc. But make sure you don’t undervalue your expertise by charging too little.

By using the strategies outlined in this article, you can be well on your way to becoming a successful virtual bookkeeper. Now let’s look at how to stay organized and manage your time effectively.

When providing online bookkeeping services, it’s essential to stay organized and manage your time effectively.

Here are some strategies for staying focused and productive while working from home:

– Set up a designated workspace that is free of distractions.

– Break down large tasks into smaller chunks.

– Establish clear goals with deadlines.

– Take regular breaks throughout the day.

– Limit social media usage.

And here are some tips on setting up an efficient workflow system so you manage your time effectively:

– Create daily to-do lists, using project management software such as Asana or Trello .

– Automate repetitive tasks whenever possible.

– Delegate work when needed.

– Set aside specific times for emails.

If you’re looking for a way to make a reliable income from home and the freedom to set your own hours, virtual bookkeeping is an excellent option. With the right skills and tools, you can become a successful remote bookkeeper and find clients in great need of your services.

To get started, learn more about what it takes to be a virtual bookkeeper, understand the necessary tools, create an effective marketing plan to attract clients, and stay organized with time management strategies. Virtual bookkeeping can be challenging but also rewarding if done correctly—so don’t hesitate to give it a try.

Are you a freelancer looking to start your own business, find new clients, and take advantage of remote work? Freelance University offers the perfect solution. Our full-service freelance community provides courses, resources, and support to help equip you with the skills necessary for success in virtual bookkeeping.

Join us today and unlock your potential!

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How to Start a Virtual Bookkeeping Business in 5 Simple Steps

Wondering what makes virtual bookkeeping a lucrative business idea?

Firstly, bookkeeping services are in high demand as everyone needs to keep records and manage finances – be it freelancers, solopreneurs, small business owners, or corporations.

Secondly, you can start a virtual bookkeeping business with little investment. You just need a laptop, an internet connection, the right bookkeeping software, and a marketing budget to get started.

Learn how to start a virtual bookkeeping business and start earning early. On average, a virtual bookkeeper earns over $42K per year and you can do that as well.

And the best part?

As a virtual bookkeeper, you can work from home, a cafe, or beautiful travel destinations. Setting up an online business can help you enjoy the benefits of a flexible work schedule and the comfort of working from home.

However, there are things that you need to take care of to get started.

Read on this comprehensive step-by-step guide to set up your virtual bookkeeping business and start making money.

What Skills Do You Need to Start a Virtual Bookkeeping Business?

Here’s what you need to start a virtual bookkeeping business:

  • Basic computer skills to work as a bookkeeper
  • Training to become a certified or skilled bookkeeper
  • Passing the CPA exam to become a Certified Public Accountant that people and businesses can trust
  • Bookkeeping practice to ensure efficient record keeping, data entry, cash flow management, etc.
  • Know-how of accounting software that you’ll use to provide bookkeeping services to your clients
  • Good communication skills to get clients, negotiate with them, and collaborate efficiently

As a new business owner, you may also look for a mentor or consultant to guide you through the process of starting a bookkeeping business.

5 Steps to Start a Virtual Bookkeeping Business

Here’s a step-by-step plan to help you get started:

Step #1: Pick a Business Name

To start a business, you will have to pick a name for your virtual bookkeeping business. The name you choose should be relevant to your industry, nature of work, and should be available to register.

You can use business name generators online to look for unique and brandable names for your bookkeeping company.

Step #2: Register Your Bookkeeping Firm As a Legal Business Entity

The next step is to choose a legal business entity type for your virtual bookkeeping business.

If you’re going to start working as a full-time bookkeeper single-handedly, you can choose to form a sole proprietorship. However, you’ll be liable for all business debts and lawsuits as a sole proprietor.

But the good part is that it’s easy to register your business as a sole proprietor. You just need to fill out a simplified application and we’ll take care of the legal formalities at a much more reasonable rate than hiring a lawyer.

But what if you want to hire other bookkeepers as your team grows? Or, what if you want to reduce your personal liabilities as a business owner?

Many bookkeepers prefer to form limited liability companies (LLCs) to limit personal liabilities and enjoy the benefits of flexible management structures and taxation options.

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. 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.

While the rules and fees of forming an LLC differ from state to state, you can easily form an LLC with us in states like California and Texas . All you need to do is to fill out our one simplified application and we’ll do the rest for you.

Step #3: Acquire Other Business Essentials

Registering your business isn’t enough. You need a number of other business essentials to start offering virtual bookkeeping services to clients and make money.

What are these business essentials for virtual bookkeepers?

Here you go:

  • Business bank account: It will help you separate business finances from personal expenses.
  • Accounting software: You need to choose the right tool to serve your clients. Some powerful accounting software solutions in the market include QuickBooks Online, LessAccounting, FreshBooks, and Xero.

You can choose the tool that best fits your bookkeeping services needs.

  • Business cards: When starting out, you should design a business card that helps promote your bookkeeping services. Print a few cards to hand to business owners and other potential clients whom you may come across.

Make sure that it includes your business website URL, the bookkeeping services you offer, your email address, and other contact information.

  • Website: When starting a virtual bookkeeping business, building a web presence is essential. It often starts with a business website and social media profiles.

Make sure that your website offers all of the information that your potential clients may need.

  • Business insurance: You should protect your business from unexpected liabilities and lawsuits. Virtual bookkeepers may need professional liability insurance and general liability insurance.

We have partnered with the most trusted insurers to help small business owners like you get the right coverage for your business.

  • Licenses and permits: There isn’t any specific license requirement for businesses in the bookkeeping industry. However, you may need other licenses or permits to run a business within your county, city, or state.

You should check with the local authorities to see if you need any licenses to make your bookkeeping business stay legally compliant.

Step #4: Decide on the Bookkeeping Services You’ll Offer

Virtual bookkeeping services that you can offer your clients include:

  • Creation of basic financial statements such as balance sheet and cash flow statement
  • Accounts payable management
  • Accounts receivable management
  • Payroll services

Step #5: Find Clients for Your Virtual Bookkeeping Business

The most important step to make money with your bookkeeping business is to find clients. For this, you need to promote your bookkeeping services using multiple advertising strategies.

You should assess your strengths as a virtual bookkeeper and use them as your unique selling point.

The best place to start to find clients is in your network. Tell your friends and family about your business and gather contacts of business owners who could be potential clients. After networking and getting referrals, you can market your services using social media, blogging, guest posting, paid ads, and more.

Frequently Asked Questions

1. How do I start my own bookkeeping business from home?

To start your own bookkeeping business from home, you should follow the steps below:

  • Learn bookkeeping.
  • Create a business plan.
  • Register your business with the state.
  • Promote your bookkeeping services.
  • Find clients.
  • Get the right accounting software.
  • Set up a home office.
  • Deliver great bookkeeping service.
  • Grow your business.

2. Is virtual bookkeeping profitable?

Yes, virtual bookkeeping is a profitable business idea.

Bookkeepers are in demand as most businesses and freelancers need to keep records to calculate taxes and manage finances.

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.

You can start earning early as a virtual bookkeeper and create multiple sources of income by partnering with various companies, individuals, and freelancers.

3. How do I become a virtual bookkeeper with no experience?

You don’t need to have years of experience as a practicing bookkeeper to start your small business.

To start working from home as a virtual bookkeeper, you should:

  • Invest in yourself.
  • Get basic bookkeeping training.
  • Get yourself the right accounting software and learn how to use it efficiently.
  • Consider certification to add to your credibility.
  • Launch your own online bookkeeping business.
  • Register it with the Secretary of State.
  • Build a website to attract clients for your bookkeeping services.

4. Is it hard to start a bookkeeping business?

It isn’t hard to start a bookkeeping business if you’re good at handling finances and maintaining records. You need to maintain record books, manage company finances, and create a proper cash flow statement for your client.

Setting up your online bookkeeping business is easy if you follow all of the steps we’ve discussed above in this article.

5. Are bookkeepers in demand?

Bookkeepers are in great demand in the United States, especially if you’re a certified bookkeeper.

Ready to Start a Bookkeeping Business?

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.

Start with registering your business and building a website to get your first clients. You should focus on delivering great service to retain existing clients and attracting referrals. Quality of service will help grow your business in the long run.

Do you need help starting a virtual bookkeeping business? Let us know in the comments below.

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How To Start a Virtual Bookkeeping Business

There’s a real demand for bookkeeping services. So, if you’re trying to figure out how to start a virtual bookkeeping service, you’re on a lucrative path.

This isn’t much of a surprise since numerous studies have proven that practicing bookkeeping basics can increase profits and reduce expenses for a small business.

But before you start your own virtual bookkeeping business , it’s important that you understand a few things:

First, you’ll want to set the foundation for a strong business. This includes making sure your bookkeeping skills are top-notch.

Like all businesses, there are certain rules and regulations that apply to bookkeeping. If you fail to understand these, you’ll be unable to make progress in your career. It’s also important to have reasonable expectations of the salary you can expect and what licenses you need to start your business. 

So, if you want to learn everything you need to know in order to start a business offering virtual bookkeeping services, keep reading!

Step-by-Step Guide to Setting Up Your Online Bookkeeping Business

Before you delve into the world of virtual bookkeeping, it’s imperative to have a sturdy foundation.

1. Choose Your Business Structure

Selecting the appropriate business structure is a pivotal decision for your virtual bookkeeping venture. Each option carries its own set of legal and tax implications, as well as varying degrees of personal liability. Here’s a breakdown of common structures and the reasons why one might choose them for a virtual bookkeeping business:

Sole Proprietorship

  • Simplicity in Setup: Ideal for those starting solo, the ease of setting up a sole proprietorship is unmatched. There’s no need for complex paperwork or fees that come with forming a corporation.
  • Direct Control: You have full authority over all business decisions, which can lead to quicker, more streamlined operations.
  • Tax Advantages: Profits are taxed once, directly through your personal income, avoiding the double taxation that can occur with corporations.
  • Reason to Choose: Opt for a sole proprietorship if you’re testing the waters of virtual bookkeeping, keeping initial costs low, and maintaining simplicity in business operations.

Limited Liability Company (LLC)

  • Personal Asset Protection: An LLC provides a legal separation between your personal assets and business liabilities, safeguarding your savings and property.
  • Flexible Taxation: You can choose to be taxed as a sole proprietor, partnership, or corporation, giving you flexibility to optimize for tax savings.
  • Professional Credibility: Having ‘LLC’ in your business name can enhance your professional image and may help attract more clients.
  • Reason to Choose: An LLC is a smart move if you’re looking to minimize personal risk, plan to grow your business, or prefer tax flexibility.

S Corporation

  • Tax Benefits: S Corps allow profits (and some losses) to be passed directly to owners’ personal income without being subject to corporate tax rates.
  • Investment Opportunities: It’s easier to attract investors with an S Corp, as you can issue stock and have up to 100 shareholders.
  • Employee Benefits: Owners can be treated as employees and receive salaries, along with standard employee benefits.
  • Reason to Choose: If you’re planning to expand your business significantly, want to prepare for investors, or aim to optimize your salary and benefits as an owner-employee, an S Corp may be beneficial.

C Corporation

  • Limited Liability: Like an LLC, a C Corp offers strong protection of personal assets.
  • Growth Potential: C Corps can issue various classes of stock, which can be attractive to venture capitalists and investors.
  • Perpetual Existence: A C Corp can outlive its owners, providing a clear path for business continuity.
  • Reason to Choose: Choose a C Corp if you envision your bookkeeping business growing into a large entity with significant capital needs and a desire to go public.

Each structure serves different business strategies and personal preferences. For a virtual bookkeeping business, the key is to balance your current needs with your future goals, considering how much risk you’re willing to take, the level of complexity you can manage, and how you plan to evolve your business over time.

2. Create a Business Plan

A business plan is not just a document; it’s a comprehensive roadmap that guides your virtual bookkeeping business to success. It’s an essential tool that serves multiple purposes and provides numerous benefits.

Benefits of a Business Plan

  • Clarity of Vision: It forces you to articulate your vision for the business and define what success looks like.
  • Strategic Focus: A business plan helps you to prioritize tasks, focus on key objectives, and manage your resources effectively.
  • Financial Planning: It’s crucial for understanding financial requirements, managing cash flow, and predicting profitability.
  • Risk Management: By identifying potential risks and challenges, you can develop strategies to mitigate them.
  • Attracting Investors: A well-crafted business plan is vital for attracting investors or securing loans from banks.

Why You Should Draft a Business Plan

  • Setting Goals: It helps you set realistic and timely goals, and provides milestones to track progress.
  • Understanding the Market: A business plan requires you to research the market, understand your competition, and identify your target clients.
  • Operational Planning: It outlines the operational structure of your business, from client onboarding processes to service delivery.
  • Marketing Strategy: Your business plan should detail how you intend to market your services and acquire clients.

What Should Be Included

  • Executive Summary: An overview of your business, including your mission statement, services offered, and fundamental goals.
  • Company Description: Details about your business structure, ownership, and the specific niche you plan to serve.
  • Market Analysis: An in-depth look at your industry, market trends, target demographics, and competitive landscape.
  • Organization and Management: How your business is structured, the roles of team members, and the legal structure of your company.
  • Services Offered: A detailed description of your bookkeeping services, including any specialized services that set you apart from competitors.
  • Marketing Plan: Strategies for reaching your target market, including pricing, sales, and advertising.
  • Operational Plan: Day-to-day operations, the technology you’ll use, and how you’ll deliver your services.
  • Financial Plan: Projections for startup costs, pricing strategy, revenue, expenses, and cash flow analysis.
  • Appendices: Supporting documents, such as resumes, letters of reference, legal documents, and detailed financial forecasts.

Additional Considerations

  • Adaptability: Your business plan should be a living document, adaptable as your business grows and market conditions change.
  • Detail-Oriented: Be as detailed as possible in every section to ensure you’ve thought through all aspects of your business.
  • Evidence-Based: Support your assumptions with data and evidence, especially in the market analysis and financial plan sections.

Creating a business plan for your virtual bookkeeping business is an investment in your future success. It’s a step that shouldn’t be rushed or taken lightly, as it lays the foundation upon which your business will be built and grow. Remember, the more thorough and detailed your business plan, the more it will benefit you in the long run.

3. Invest in Improving Your Bookkeeping Skills

To establish a thriving virtual bookkeeping business, you must cultivate a skill set that goes beyond the basics. Mastery in bookkeeping requires a blend of technical know-how, analytical thinking, and continuous learning. Here’s a detailed look at the essential skills you should aim to develop, which can be honed through top-tier bookkeeping courses like the Bookkeepers.com Launch program:

  • Understand the principles of accounting, including the double-entry system, accrual and cash basis, and how to prepare financial statements.
  • Grasp the nuances of debits and credits, general ledgers, and the chart of accounts.
  • Gain hands-on experience with industry-standard software such as QuickBooks, Xero, and FreshBooks.
  • Learn how to set up accounts, categorize transactions, reconcile bank statements, and generate reports.
  • Develop an eye for detail to ensure accuracy in recording financial transactions.
  • Learn to spot discrepancies and errors that could lead to financial misstatements.
  • Stay informed about the latest tax laws and regulations that affect bookkeeping practices.
  • Understand the requirements for different business structures and industries.
  • Become adept at efficiently entering data without errors.
  • Learn to organize financial data in a way that’s both accessible and secure.
  • Hone the ability to communicate complex financial information in a clear and understandable manner to clients.
  • Build skills in writing professional reports and correspondence.
  • Cultivate the ability to analyze financial data and provide insights to clients.
  • Develop critical thinking to advise on financial decisions and strategies.

Using one of the best bookkeeping courses to improve your abilities can help with getting your business off the ground. Bookkeepers is currently one of the best, and the Bookkeepers.com Launch program will walk you through setting up your business and teach you the tools to run it. Plus, you’ll gain access to a support community whenever you need some extra help.

Investing in a course like this is not just about learning the ropes; it’s about setting yourself up for long-term success. With the right skills and knowledge, you’ll be well on your way to building a bookkeeping business that’s both profitable and rewarding.

How to get started as a virtual bookkeeper in 7 steps

4. Choose Your Software and Tools

In the digital era, the caliber of your tools can set you apart. Investing in top-tier bookkeeping software is not just keeping pace with technology; it’s about optimizing your workflow for peak efficiency. Consider how QuickBooks Online has transformed bookkeeping, with Fundera reporting that 64% of small businesses are now powered by such accounting software.

Here’s a curated list of popular accounting software and tools that can elevate your virtual bookkeeping business:

  • QuickBooks Online : A market leader, QuickBooks offers a comprehensive suite of accounting features, cloud-based access, and a user-friendly interface. It’s ideal for managing invoices, tracking expenses, and preparing for tax season.
  • Xero : Known for its robust functionality and ease of use, Xero is a favorite among small to medium-sized businesses. It provides real-time financial insights, integrates with over 800 tools, and offers a mobile app for on-the-go management.
  • FreshBooks : If you’re looking for software that excels in invoicing and time tracking, FreshBooks is a top contender. It’s designed for freelancers and small agencies, offering straightforward usability and excellent customer service.
  • Wave : A great option for those just starting out or operating on a tight budget, Wave’s accounting software is free and includes features like income and expense tracking, invoicing, and receipt scanning.
  • Sage 50cloud : For those who need advanced accounting capabilities, Sage 50cloud combines the reliability of desktop software with the flexibility of the cloud, offering features like inventory management and industry-specific solutions.
  • Zoho Books : Part of the Zoho suite of services, Zoho Books is an excellent choice for those who value automation. It offers features like automatic bank feeds, collaborative client portals, and custom workflows.
  • Kashoo : Simple yet powerful, Kashoo prides itself on its straightforward approach to accounting. It’s a solid choice for small businesses looking for an uncomplicated, no-frills solution.

Each of these tools comes with its own set of strengths, and the best choice for you will depend on the specific needs of your virtual bookkeeping business. Consider factors like the size of the businesses you’ll be servicing, the complexity of the bookkeeping tasks, and your own familiarity with accounting principles when making your selection.

5. Get a Business Bank Account

Establishing a business bank account is a pivotal step in laying the financial groundwork for your virtual bookkeeping business. It’s not merely a separate container for your business transactions; it’s a tool that reinforces the integrity and efficiency of your financial operations. Here’s a comprehensive guide to understanding the importance of a business bank account, setting one up, and utilizing it to its full potential:

The Importance of a Business Bank Account

  • Clear Financial Demarcation: A dedicated business account ensures that your personal and business finances do not intermingle, which is crucial for accurate bookkeeping and financial analysis.
  • Enhanced Credibility: Clients and vendors perceive your business as more credible and established when payments are made from a business account.
  • Audit-Ready Finances: Should your business be audited, a separate bank account with well-organized records will facilitate a smoother process.
  • Creditworthiness: A business bank account is often required when applying for business credit or loans, as it demonstrates financial responsibility and stability.

Setting Up Your Business Bank Account

To set up a business bank account, you’ll typically need the following:

  • Identification: Personal identification, such as a driver’s license or passport, is required to verify your identity.
  • Business Documentation: This includes your business license, articles of incorporation, or a DBA (Doing Business As) certificate, depending on your business structure.
  • Tax Identification Number: An EIN (Employer Identification Number) for corporations and LLCs, or your SSN (Social Security Number) if you’re a sole proprietor.
  • Initial Deposit: Many banks require an initial deposit to open your account, so be prepared with the necessary funds.

Choosing the Right Bank and Account Type

  • Bank Selection: Consider banks that offer services beneficial to small businesses, such as low fees, high transaction limits, and robust online banking platforms.
  • Account Type: Decide whether a business checking account, savings account, or both are necessary based on your operational needs and financial goals.
  • Fee Structure: Understand the fee structure, including monthly maintenance fees, transaction fees, and any potential charges for additional services.

Utilizing Your Business Bank Account

  • Transaction Management: Use your business account for all business-related transactions, including client payments, vendor invoices, and business expenses.
  • Online Banking: Take advantage of online banking features to monitor your account activity, transfer funds, and manage payments efficiently.
  • Reconciliation: Regularly reconcile your bank account with your bookkeeping records to ensure accuracy and to catch any discrepancies early.
  • Financial Reporting: Use the data from your business bank account to generate financial reports that can inform business decisions and strategies.

Maintaining Your Business Bank Account

  • Review Statements: Regularly review your bank statements to keep track of spending and to monitor for fraudulent activity.
  • Maintain Minimum Balances: Be aware of minimum balance requirements to avoid fees and maintain a healthy account status.
  • Update Information: Keep your bank informed of any changes to your business, such as address changes or changes in ownership.

In essence, your business bank account is more than just a repository for funds; it’s a reflection of your business’s financial health and operational maturity. By meticulously managing this account, you’ll set a professional tone for your bookkeeping business, streamline your financial processes, and prepare your enterprise for growth and success.

6. Get Professional Liability Insurance Business Insurance

In the meticulous world of bookkeeping, even the most diligent professionals are not immune to the risk of errors or misunderstandings. Professional liability insurance, often referred to as Errors and Omissions (E&O) insurance, is a critical safeguard for any bookkeeper. Here’s an in-depth exploration of why this insurance is essential, what it covers, and how to obtain it:

Why Professional Liability Insurance is Essential

  • Risk Mitigation: Bookkeeping involves handling sensitive financial data where mistakes can lead to significant financial loss for clients. Professional liability insurance helps mitigate the risks associated with potential errors or omissions in your work.
  • Client Trust: Having insurance can enhance your credibility and trustworthiness in the eyes of clients, knowing that there’s a safety net in place.
  • Legal Defense: In the event of a lawsuit, professional liability insurance can cover legal defense costs, which can be financially crippling without coverage.
  • Peace of Mind: Knowing you’re insured allows you to focus on your work without the constant worry of potential financial repercussions from inadvertent mistakes.

What Professional Liability Insurance Covers

  • Negligence: Covers legal defense costs and settlements if you’re accused of making a mistake in your professional services.
  • Defense Costs: Pays for lawyer fees, court costs, and settlements or judgments.
  • Services Rendered: Covers claims related to services provided in the past and for the duration of the policy.
  • Claims and Damages: Includes claims made by clients for perceived financial loss due to your services.

How to Obtain Professional Liability Insurance

  • Assess Your Needs: Evaluate the level of risk associated with your bookkeeping services to determine the amount of coverage you need.
  • Shop Around: Obtain quotes from multiple insurance providers to compare coverage options and premiums. Websites like Insureon or The Hartford can provide quick online quotes.
  • Read the Fine Print: Understand what is and isn’t covered by the policy. Pay special attention to policy limits, deductibles, and any exclusions.
  • Consult with a Professional: Consider speaking with an insurance agent or broker who specializes in business insurance for professional services. They can provide personalized advice based on your specific business needs.
  • Regular Reviews: Your insurance needs may change as your business grows. Regularly review and update your coverage to ensure it remains adequate.

Implementing Professional Liability Insurance

  • Communicate with Clients: Let clients know that you have professional liability insurance. It can be a selling point for your services and provides reassurance of your professionalism.
  • Keep Records: Maintain thorough records of all your work and communications with clients. Good record-keeping can be invaluable if you ever need to file a claim.
  • Stay Informed: Keep abreast of changes in bookkeeping standards and regulations to minimize the risk of errors and ensure your insurance coverage remains relevant.

Professional liability insurance is not just an optional extra—it’s an integral component of a robust risk management strategy for your virtual bookkeeping business. It protects not just your financial stability, but also your reputation, which is paramount in the finance industry. By securing the right coverage, you’re not only safeguarding your business—you’re also reinforcing your commitment to providing reliable, trustworthy service to your clients.

7. Finding Paying Customers for Your Online Bookkeeping Business

Launching your virtual bookkeeping business is just the beginning; the next crucial step is drawing in clients. Here’s how to effectively market your services and build a robust client base.

Networking with Purpose

  • Identify Target Groups – Engage with organizations like the Small Business Administration and local chambers of commerce, which can connect you to small businesses in need of bookkeeping services.
  • Engage Online – Join and actively participate in forums such as the Accounting & Bookkeeping group on LinkedIn or Reddit’s r/Bookkeeping , where you can share insights and attract clients.
  • Leverage Relationships – Inform your circle about your venture. Tools like Meetup can help you find and organize local networking events to spread the word.

Strategic Discounting

  • Introductory Offers – Design attractive introductory offers and promote them on platforms like Groupon to reach potential clients.
  • Referral Incentives – Create a referral program with clear benefits, and use services like ReferralCandy to manage and promote it.
  • Bundle Services – Package your services and highlight the savings on your business website, making sure to explain the added value of each bundle.

Demonstrating Your Expertise

  • Content Creation – Publish articles on platforms like Medium or your personal blog, addressing key bookkeeping topics and how you resolve them.
  • Webinars and Workshops – Use tools like Zoom or Eventbrite to organize and advertise educational sessions that can demonstrate your expertise.
  • Social Proof – Gather client testimonials and case studies, and feature them prominently on your website or on review sites like Trustpilot .

Cultivating Client Relationships

  • Solicit Feedback – After service delivery, use survey tools like SurveyMonkey to collect client feedback efficiently.
  • Act on Insights – Analyze feedback to improve your services, documenting changes and updates in a transparent way on your business blog or newsletter.
  • Follow-Up – Maintain client engagement with regular updates using email marketing services like Mailchimp , sharing useful bookkeeping tips and updates about your services.

By implementing these strategies, you can create a steady stream of clients for your virtual bookkeeping business. Remember, the key to attracting and retaining clients is not just about the services you offer, but also about the relationships you build and the value you provide.

Managing Growth and Scaling Your Business

Client feedback is the cornerstone of continuous improvement for your virtual bookkeeping business. Here’s how to solicit and utilize feedback effectively.

Solicit Feedback

  • Implement Feedback Mechanisms – After delivering your services, invite clients to share their experiences using intuitive tools like Google Forms or Typeform , which offer user-friendly interfaces for survey creation.
  • Make It Easy – Ensure that the process of giving feedback is as straightforward as possible. Provide direct links to surveys in your email signatures or on your invoice receipts.
  • Encourage Honesty – Let clients know that their honest feedback is valued and crucial for your business growth. Assure them that all responses will be used constructively.

Act on Insights

  • Data Analysis – Utilize feedback analysis tools such as Qualtrics to delve into the data and extract actionable insights.
  • Transparent Communication – Share how you’re addressing feedback through regular posts on your business blog or updates in your newsletter. This transparency can build trust and show clients that their opinions lead to real change.
  • Continuous Improvement – Set up a dedicated section on your website where clients can see the changes implemented based on their suggestions, reinforcing the value you place on their input.
  • Engage with Content – Use platforms like Mailchimp to send out personalized follow-up emails that include bookkeeping tips, industry news, and updates about your services, keeping your brand at the forefront of clients’ minds.
  • Offer Exclusive Insights – Provide subscribers with exclusive content, such as in-depth guides or early access to new services, to maintain interest and engagement.
  • Seek Ongoing Feedback – Regularly reach out to your client base for feedback on specific aspects of your service or new offerings. Tools like HubSpot can help automate and manage these communications effectively.

Expanding Your Team

  • Hiring Assistance – As your client base grows, the need for additional help may arise. Platforms like Upwork or FlexJobs can connect you with skilled freelance bookkeepers. For permanent roles, consider job boards such as Indeed for in-house positions.

Commit to Continuous Learning

  • Stay Updated – The financial landscape is constantly changing. Engage in ongoing education through platforms like Coursera or Udemy to keep abreast of the latest in GAAP, IFRS, and other accounting standards.

Building Client Relationships

  • Virtual Client Meetings – Even in a digital-first business, the human touch is irreplaceable. Regularly connect with clients using video conferencing tools like Zoom or Skype to maintain a strong, trust-based relationship.

By integrating these practices into your virtual bookkeeping business, you ensure that your service remains client-focused, up-to-date, and scalable. This holistic approach to client feedback and service improvement will set the foundation for a resilient and client-centric business.

virtual bookkeeping business plan

Essential Regulations for Virtual Bookkeepers

Bookkeepers are accountable for the finances of the people and companies they represent. This means you have a responsibility as a bookkeeper to ensure that your financial statements are accurate and you protect your clients from fraud, risk, and more. In that vein, there are 4 specific regulatory areas that you need to account for outside of these general principles.

Generally Accepted Accounting Principles (GAAP)

Anyone operating a virtual bookkeeping business in the US needs to make sure that they’re aligned with GAAP when working on financial reporting. GAAP forms the basis for all bookkeeping businesses and outlines the assumptions, principles and standards used to analyze transactions. GAAP standards were created and are regularly updated by the Financial Accounting Standards Board ( FASB ). 

You most likely won’t need to worry about the more complex transactions and concepts, since those apply more to accountants. However, you will need to follow the basic guidelines laid out by GAAP if you plan on running your own bookkeeping business.

International Financial Reporting Standards (IFRS)

Additionally, you need to understand the IFRS if you plan on serving any international clients through your bookkeeping business. Journal entries have very specific reporting requirements when you’re working with someone from another country. Currently, these standards are managed by the IFRS Foundation . These are frequently updated, so you may need to adjust your business as time goes on.

Don’t worry too much if this is already sounding complicated. There’s a lot of overlap between the GAAP and IFRS regulations. You likely will only need to make small adjustments in your reporting. Plus, both sets of regulations have started to converge in recent years.

Document Retention Standards

Another key aspect of operating a bookkeeping business is making sure you retain accounting records. These are essential for auditors, IRS agents, and government regulators during financial inspections of any client or business owner you work for. 

Luckily, these guidelines tend to be fairly straightforward. 

Most of the documents you work with (journal entries, tax returns, or more) will come with an allotted retention period. Just make sure you keep everything until at least that time period, and you’ll easily meet all document retention standards for virtual bookkeepers.

Personally Identifiable Information 

One of the most important aspects you’ll need to consider before you start a virtual bookkeeping is how you treat your customers’ personal information. You must protect their birth dates, Social Security numbers, addresses, and more when you’re doing their bookkeeping. Failure to do so won’t just lead to your business failing— you’ll have to pay hefty fines or even face jail time.

virtual bookkeeping business plan

Remember that your business is legally liable for failure to follow regulations based on personal information. Make sure you’re an expert in this area before you start your virtual bookkeeping business. I can’t reiterate enough how important these standards are!

Required Licenses for Virtual Bookkeepers

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. 

Business Licenses: In the US, you need a general business license or permit to start your bookkeeping business or perform online bookkeeping services. I recommend checking with your state board to see exactly what licenses are required for your virtual business.

You’ll also need to register a name for your business . Once again, this process is state-specific, so you’ll need to see what the requirements are for where you live. Fortunately, this step is a lot easier than getting a general business license.

Next up, some states require you to get a sales tax permit . This creates an account number with your state’s Department of Revenue. Bear in mind that you may be able to skip this step, as many states don’t require this.

Lastly, you’ll need a certificate of occupancy for the location where you plan on operating your business. This mainly applies to commercial buildings, but you’ll still need one of these if you plan on working out of your home.

Virtual Bookkeepers Salary and Earning Potential

How much can you make as a virtual bookkeeper?

Honestly, it’s up to you!

The financial prospects of a virtual bookkeeper are both promising and flexible, hinging on various factors such as experience, client base, and the services offered. Here’s a closer look at what you can expect to earn in this field.

Understanding the Salary Range

  • Industry Benchmarks – While traditional bookkeepers have an average salary that Payscale reports to be around $45,000 annually, virtual bookkeepers often have the potential to earn more due to lower overhead costs and the ability to serve clients globally.
  • Virtual Variability – Salaries for virtual bookkeepers can vary widely. According to ZipRecruiter , as of recent data, virtual bookkeepers can earn anywhere from $35,000 to over $70,000 annually, with variations depending on factors like client load, specialization, and efficiency of service delivery.
  • Experience and Growth – With experience and a growing client list, your earning potential increases. Seasoned virtual bookkeepers who have built a reputation for reliability and expertise can command higher rates.

Maximizing Your Income

  • Setting Rates – As a self-employed professional, you have the autonomy to set your own rates. Consider the value you provide, your experience, and the going market rates when determining your fees.
  • Cost of Living Considerations – The beauty of virtual work is the freedom to live where you choose. This means you can reside in an area with a lower cost of living while serving clients in higher-paying regions or countries.
  • Expanding Services – Offering specialized services, such as financial analysis or compliance auditing, can allow you to increase your rates. Continuously expanding your skill set and services can lead to higher earnings.

The Entrepreneurial Edge

  • You’re in Control – Your income as a virtual bookkeeper is not capped. By effectively managing your business, scaling your client base, and optimizing your services, you can significantly exceed the average salary figures.
  • Flexibility – The flexibility of being self-employed means you can adjust your workload to meet your financial goals. Whether you’re looking for part-time income or aiming to build a full-scale bookkeeping firm, the control is in your hands.

At the end of the day, as an entrepreneur, you can make your salary what you want it to be depending on how you can grow and scale out your business!

Final Thoughts

Starting a virtual bookkeeping business is a comprehensive endeavor that necessitates a deep understanding of various elements. From laying the initial foundation with a proper business structure and plan to acquire essential bookkeeping skills, the journey is exhaustive but rewarding.

Investing in high-quality software tools, ensuring you have professional liability insurance, and mastering the art of client acquisition through networking, offering discounts, and showcasing expertise are pivotal steps. As you navigate the complexities of GAAP and IFRS standards, the responsibility of adhering to document retention standards and safeguarding personally identifiable information becomes paramount.

Moreover, obtaining the necessary business licenses to operate legally in your state ensures that you’re on the right side of the law. The world of virtual bookkeeping offers a unique blend of challenges and opportunities. For those willing to invest the time and effort, it can be a fulfilling venture, enabling you to serve clients across the globe while maintaining the flexibility and autonomy of a virtual workspace.

Virtual Bookkeeper FAQs

On average, a virtual bookkeeper charges between $30 to $60 per hour. Rates can vary based on experience, expertise, and the complexity of the bookkeeping services offered.

To start a virtual bookkeeping business, you should have a good understanding of accounting principles and be proficient with bookkeeping software. While formal qualifications like a degree in accounting or finance can be beneficial, they are not always necessary. Certifications from recognized bodies can also enhance credibility.

Starting with no experience is challenging but possible. You may want to consider taking online courses, obtaining certifications, or working under an experienced bookkeeper to gain knowledge and confidence.

Initial costs can include business registration fees, software subscriptions, marketing expenses, and any educational courses you may need. It’s also wise to factor in the cost of a good computer and a reliable internet connection.

Essential software for virtual bookkeeping includes accounting software like QuickBooks Online or Xero, document management tools, and secure communication platforms for client interactions.

Utilize social media, create a professional website, network with other professionals, and consider offering free webinars or workshops to showcase your expertise.

You’ll need to understand the tax obligations for your business, any licensing requirements, and ensure you have contracts in place for your services. It’s also important to have a privacy policy to protect your clients’ data.

Invest in secure software, use strong passwords, enable two-factor authentication, and educate yourself on cybersecurity best practices to protect your clients’ data.

Provide exceptional service, maintain regular communication, and seek feedback to improve your services. Consider offering additional value through financial insights and reports.

Research the market to understand the going rates, factor in your experience and the complexity of the services you offer, and consider the value you bring to your clients when setting your rates.

Specializing in a niche can set you apart from competitors, allow you to charge higher rates, and enable you to become an expert in a specific industry, which can be a strong selling point for potential clients.

Most of the process is extremely similar to starting a business in the United States. You still need to register your business and get all required licenses. However, you’ll need to check with your province to see what specifications you need to meet. You should also plan to open a business bank account to separate your finances.

virtual bookkeeping business plan

Kenneth W. Boyd

Kenneth W. Boyd is a former Certified Public Accountant (CPA) and the author of several of the popular "For Dummies" books published by John Wiley & Sons including 'CPA Exam for Dummies' and 'Cost Accounting for Dummies'.

Ken has gained a wealth of business experience through his previous employment as a CPA, Auditor, Tax Preparer and College Professor. Today, Ken continues to use those finely tuned skills to educate students as a professional writer and teacher.

Related Posts

  • How to Start a Virtual (Online) Bookkeeping Business

Ogi Djuraskovic

Virtual bookkeeping is the process of recording, storing, and managing financial transactions for other companies from a remote location. Throughout these processes, bookkeeping businesses track income and expenses to help companies improve profitability, decide where to spend money, understand the bigger financial picture, and stay on track with finances.

Starting an online bookkeeping business comes with plenty of advantages – you get to make your own schedule, work with any companies you’d like, and make a living working from home. Also, you don’t need a degree, plenty of experience in the field, or a bunch of money to become a successful bookkeeper.

If you’re already considering a business idea , you’ll be glad to hear that launching a virtual bookkeeping business is easier than it may seem. This detailed guide will outline what to do to start your brand-new online bookkeeping services business.

Write a business plan

Writing a business plan is the first step to launching any business, including a virtual bookkeeping one. Coming up with a detailed business plan is essential for figuring out how you’ll make money as a virtual bookkeeper because it helps you prepare for all the following steps of this process.

Business plans can be more or less detailed, depending on what future virtual bookkeepers decide to disclose in them. 

In its most basic form, a business plan should include the following information:

  • Details about the market, such as competitors, target clients, and industry;
  • Research information about common client issues and how your business solves them;
  • Overview of your strengths, weaknesses, opportunities, and threats;
  • Financial details such as available capital, projected cash flow, profits, and expenses;
  • Marketing strategy plans; and
  • Plans for growing the business.

Of course, you can create a business plan with plenty of other information. The more detailed it is, the better you’ll be prepared for various situations that can occur as a business owner.

Name your business

Once you have a solid business plan for your online bookkeeping company, it’s time to give it a unique name. Naming a business is a different experience for everyone.

Some people do a small amount of brainstorming before they have a eureka moment and come up with the perfect business name. Others struggle for months and even then aren’t sure if they made the right choice.

Whatever the case may be for you, naming a business is something essential. Your business name will appear on all documents, contracts, and paperwork and help clients connect it with the brand you represent.

However, coming up with a name idea isn’t enough, because you must ensure that no other businesses are using the same name . Otherwise, companies could file charges, which no business owner wants to deal with at the beginning of their journey.

If you’re having trouble coming up with the perfect name for your virtual bookkeeping business, many tools can make this process much simpler. For instance, a business name generator can create a potential business name in just a few clicks and save you a lot of time and effort.

How will you fund your business?

The next step is to decide on funding. When launching a virtual bookkeeping business, you can either self-fund or take out a bank loan. Both options have unique advantages and disadvantages, but online bookkeepers should take the self-funding route if possible.

Since starting an online bookkeeping business doesn’t typically include numerous expensive costs and is one of the most profitable options, prospective bookkeepers can launch their business with as little as $1,000.

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. If not, your costs will be higher because you need a reliable device to offer virtual bookkeeping services.

Whether you decide to self-fund or take out a loan from a bank, don’t forget to create a financial safety net to cover any unplanned costs that are common in the beginning stage of starting a business.

Get permits and licenses

Even though the company you’re starting operates only online, you still need to obtain the necessary permits and licenses to ensure that you follow all legal procedures.

Getting permits and licenses is different for every country, so it’s best to inform yourself about the laws in the country or state where you plan to operate. 

For example, starting an online bookkeeping business in the US requires the following permits and licenses:

  • A general business permit or license – most countries require all business owners to obtain a general business permit that allows them to run a business, both online and offline.
  • Business name registration – bookkeepers must register a name for their business. This will also prevent other business owners from using the same name for their companies.
  • A sales tax permit – many countries and states don’t require a sales tax permit, but if you operate where it’s obligatory, the process equips you with an account number with the Department of Revenue.
  • A certificate of occupancy – this permit is about where you plan to do business. You need a certificate of occupancy even when working from home.

Register the company

After receiving all of the necessary permits and licenses, it’s time to formally register your company. In most countries, online bookkeepers can choose from four common business structures:

  • Sole proprietorship;
  • Partnership;
  • Limited Liability Company (LLC); or
  • Corporation.

If you’re unsure which structure suits your business needs best, getting professional advice from an attorney can help you to make the right decision. A sole proprietorship is a popular choice for online bookkeepers because it’s perfect for people who are just starting out and have limited funds.

Another option is to go with an LLC. While an LLC company comes with more responsibility, you can also use LLC services to help you form an LLC company more efficiently. Starting with a sole proprietorship and transitioning into an LLC as your business grows is also a possibility.

Open a business account

Even if your business is a one-man show, you can’t use a personal bank account for business transactions. Dividing personal from professional costs is essential to maintain a healthy balance between life and work.

The market is filled with companies and banks that offer outstanding business banking account deals. You should take some time to review the available offers and select the bank that you think will provide you with all of the necessary services.

We recommend choosing a bank that offers free, online business accounts because they’ll work perfectly for your virtual bookkeeping business. With these accounts, you can open an account in minutes and easily make payments, deposit checks, and schedule money transfers.

However, going with a traditional bank and building a relationship with a local banker have advantages. Having a financial expert by your side is helpful in many ways if you’re starting a new business.

Find the tools you need to do your work

Finally, virtual bookkeepers need to invest in high-quality tools to offer bookkeeping services to other companies. As a virtual bookkeeper, you should spend more money on work tools because they’ll equip you with more flexibility and offer a competitive advantage.

Considering that bookkeepers rely on the power of technology daily, they should invest in quality hardware and software.

Regarding hardware tools, you should decide whether you want to work on a desktop computer or a laptop. A bigger screen will help reduce eye fatigue, but a laptop is a better choice if you plan to travel the world while offering bookkeeping services.

As for software, most programs will run on a PC or a Mac, so it’s a matter of personal preference.

You need to purchase a reliable bookkeeping business software solution to stay on top of your client’s bookkeeping and manage workflow. Also, a quality video conferencing platform is a perfect way to conduct meetings and interviews.

Finally, a business financial monitoring software tool can help you offer the best bookkeeping services by taking care of your own finances.

Starting a virtual bookkeeping business doesn’t have to be challenging, and it certainly isn’t an impossible task.

If you’d like to become an online bookkeeper, this handy step-by-step guide is all you need to learn about the entire process. It provides an excellent starting point, helping you determine what you need to do to become an owner of a successful online bookkeeping business.

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start a virtual bookkeeping business

How to start a virtual bookkeeping business

Starting a virtual bookkeeping business is a great side hustle or small business if you know what you’re doing. Setup costs are low, there’s a low barrier to entry, and training is readily available. A virtual business easily crosses state lines and time zones, so you can work when you want to.

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I started my virtual bookkeeping business when my health made me take a step back from a full-time career in accounting. It has been a blessing since then, as my personal life became more complicated.

Having a child with multiple disabilities means I’ll never be able to work a traditional 9-5 job, no matter how good my own health is.

Instead, I can make my own hours and choose to do work I enjoy. I chose not to prepare taxes because I just don’t like to.

My clients all enter into a contract with me knowing about my daughter’s needs. They know I may be unavailable temporarily if she is hospitalized out of state again. They know that email is my preferred method of communication and that I usually work in the evenings. Everyone has been understanding and accommodating.

Are you looking for a new business idea?

Virtual bookkeeping is the perfect opportunity for someone who wants to work from home and has an accounting background.

You’ll be able to take on clients, set your own hours, and have a flexible schedule. It doesn’t require any start-up costs or inventory so it can be started with just a computer and internet connection!

With virtual bookkeeping, there are no limits to what you can do, as long as you stay within legal bounds. You could even open up your own virtual firm that provides services all over the world.

This is the perfect opportunity for anyone who wants more freedom in their life without sacrificing financial security. The extra income will help with debt payoff if that’s the Financial Security Step you’re working on.

Starting your own virtual bookkeeping business is relatively simple and affordable too.

start a virtual bookkeeping business

Decide on a business name

Brainstorm business names & write them all down on a piece of paper. Then start eliminating the names based on these criteria:

  • Is this name available as a domain? If not, will you be able to buy it or create a variation of it? Use Name.com to see if the domain name you’re interested in is available.
  • Will people remember this name?
  • Is it specific enough to describe what you do?
  • Are you okay with saying the name aloud when promoting your business?

Your business name will be the first thing people see when they start their search for accountants, so it’s important to pick something that shows what you do.

Here are some starter names:

  • The Virtual Bookkeeper
  • Your Name, CPA (if you’re actually a Certified Public Accountant)
  • Your Last Name Bookkeeping
  • Accountant Virtual Assistant

If you want to start your virtual bookkeeping business under the same name as your business, you’ll need a URL (a website). If the name is available in .com format, start there and register it right away! 

Make sure to Google the names you are considering. This will help avoid confusion with any other existing businesses and may help avoid embarrassing or confusing coincidences.

Also, search your state government’s business register. You can’t register a new business using the same name as an existing business. Even if a few characters or words are different, you’ll want to avoid confusing future customers.

Decide on a business type: LLC or corporation

Create a business entity that separates your business from your personal finances and liability.

You could absolutely use your own Social Security Number and proceed as a sole proprietor, where you do not create a business entity. However, there are identity theft concerns with using your SSN and liability considerations, especially when you’re working with other people’s money. 

You will be asked to share W-9 s with other businesses, so they can properly report funds paid to you, and that form requires a tax ID number…. which means you lose control over who has access to your SSN.

A Limited Liability Corporation (LLC) is a simple type of business entity that can be composed of one or more people. The net income (revenue minus expenses) of the business “flows through” to be reported on the personal taxes of the owner(s).

Since the business income is reported on a personal form 1040, it’s taxed at your personal rate rather than a corporate rate. That means that this type of business has very little impact on your taxes when compared to starting a business using your own social security number. However, that also means you are personally responsible for paying taxes on business income even if you don’t “pay” yourself at all.

An LLC also protects the owner(s) from lawsuits. Basically, if you’re sued and lose, the plaintiff can only take your business assets and not your personal assets. Your home is safe.

S-Corp or C-Corp

Establishing a corporation creates a separate legal entity from the owner(s). The corporation is responsible for paying business taxes, and the owners are responsible for paying personal income taxes as employees of the corporation.

That means there are more tax factors involved, so I absolutely recommend discussing with a CPA. I even consulted a CPA on when to incorporate vs staying as an LLC. In my case, she recommended incorporating when my business reached a higher income-generating point… so you definitely don’t need to start as a corporation. An LLC is perfectly fine for most beginner entrepreneurs.

start a virtual bookkeeping business

Register with your state and the IRS

Once you have a name and business structure, you need to register with your state’s government and the IRS.

This is the step that recognizes the business with the government. State governments are in charge of businesses creation and state tax collection, while the IRS is concerned with collecting income taxes and FICA withholdings (Social Security & Medicaid taxes)

Register your business with the state

In most states, the Secretary of State’s office administers business licenses. Use this list to find your state’s website. The office may also be called a Business Bureau or a Business Agency.

According to the Small Business Administration , you need to register with any states where:

  • your business has a physical presence (an office)
  • you meet with clients in-person frequently
  • a significant portion of revenue comes from that state (you can register with new states later)
  • you have an employee working

When you’re first starting out, you’ll probably only need to register with the state you live in. 

Seven years into entrepreneurship, I have only registered with my home state and that’s the only state that I have clients in. It’s important to remember that you may need to register with additional states later.

Register with the IRS to get an EIN

An Employer Identification Number (EIN) is the business equivalent of a Social Security Number, so it’s important to obtain an EIN when starting a virtual bookkeeping business.

Applying for an EIN is a very easy process on the IRS website, although it may take a while for it to fully process. The IRS has been crazy backed-up since COVID.

Apply for an EIN here. 

Get a state ID number

Depending on your state, you may need a state ID number too. Check your state’s website for requirements.

If you set up a corporation in a state that collects state income taxes, you might need to obtain an identification number for state income tax withholdings. Again, check with your state government for clarification. I’ve found that calling & talking to a human gets clearer results than searching the state’s website.

Open a business bank account

It’s very important to set up a separate business checking account. Once you’re working as a bookkeeper, you’ll understand the pain of clients who mingle personal and business expenses. It makes bookkeeping messy, wastes time, and can make your business look less legitimate.

I recommend using the same bank you’re already banking at for personal purposes. It makes it easier and quicker to pay yourself by transferring money to your personal checking account within the same bank.

Of course, it’s not necessary to use the same bank. You can easily use separate banks, just remember to account for delays in processing between banks.

As soon as your business bank account is set up, use it EXCLUSIVELY for business expenses. You can, and should, pay yourself from your business, but do that by transferring money to your personal account or writing a check. Don’t use the business account for personal expenses.

start a virtual bookkeeping business

Get a liability insurance policy

As someone involved in other people’s money, it’s important to behave in a trustworthy matter, but also protect yourself. There’s a chance you could make a mistake that costs your client money. You could be sued. Having a liability insurance policy in place will protect you and your business if that happens.

This assumes your error was an accident, so don’t plan on a liability insurance policy protecting you from intentional errors. To be safe, don’t be a criminal. Don’t even think about it, no matter how tempting or easy it may seem.

Not every state requires businesses to carry liability insurance, but I recommend doing it anyway.

I use an online insurance broker for my business insurance needs. I pay $300 per year for my $1 million coverage. With no employees and a relatively small business, that’s a tiny price to pay for peace of mind.

Train on bookkeeping practices and software, if necessary

Bookkeeping may seem like an easy job (especially compared to a CPA’s job), but I firmly believe you either get it or you don’t.

Accounting & related professions, including bookkeeping, seem to come naturally to some people. My observations of my college classmates back up my theory, and I think you’ll just know if you’re cut out for bookkeeping or accounting.

Learn on the job

If you want to start a virtual bookkeeping business, but don’t have the necessary skill, you can start by learning on the job as an assistant. I know that’s not always an option, but it IS the best way to learn practical ways to run a business.

Attending in-person or virtual workshops and seminars related to accounting may be helpful too. Some of them are free with your local Chamber of Commerce membership or Small Business Administration events.

Quickbooks is one of the most popular small business accounting software options. Intuit, the parent company, provides numerous training options. I am a wholesaler for Quickbooks, so my clients get a discount on their monthly subscription, but I also have access to training.

I have completed Quickbooks-specific courses, but when I run into a specific problem, I turn to Google. Intuit, the maker of Quickbooks, has a robust community online to answer user questions.

Get certified

When I started my virtual bookkeeping business, I completed the testing to become a Certified Public Bookkeeper . My Master’s of Professional Accountancy degree provided me with more than enough knowledge to pass the exams, but the certification lends credibility to a new entrepreneur.

It was also helpful for me to learn the routines of bookkeeping.

Don’t fake it

The most important qualification for a bookkeeper is knowledge. Please, please don’t start a virtual bookkeeping business with no knowledge, training, or qualifications.

Don’t “fake it till you make it.” Start your virtual bookkeeping business with a strong foundation in knowledge and training.

Decide what services to offer in your virtual bookkeeping business

The scope of work for a bookkeeper can encompass many duties, so you need to decide what you’re going to offer. Don’t stretch beyond your abilities though. You can learn to do these things, but don’t actually do them before you know how to.

The most common bookkeeping tasks are:

  • financial statements
  • reconciliation
  • accounts payable
  • accounts receivable
  • invoice preparation

virtual bookkeeping business plan

Set up your tech

The computer you use to start your virtual bookkeeping business is less important than its comfort. Working on a laptop is possible, but not ergonomic.

I have an external monitor , keyboard , and mouse to make my work hours more comfortable. I have definitely noticed pain in my shoulders and neck from working too long on my laptop vs my external monitor setup. Sitting at a real desk, in an adjustable office chair, also helps me work efficiently and comfortably.

Use a laptop that you prefer and can afford, whether Mac or Windows. My Dell cost me maybe $500 and it’s still going strong after 5 years. Remember to keep receipts for business purchases and pay for those things from the business account.

Printer/scanner

Even a digital business needs to print things. I print checks to pay my clients’ bills, documents that I want to write on while working, and invoices to send to my clients.

Initially, a cheap printer will work just fine. One day, you’ll probably want to upgrade and buy a printer/scanner unit . If you have the start-up funds, get the nicer option in the beginning.

A fairly cheap webcam works for Zoom meetings with clients. If you’re working with local business owners, it’s always nice to meet in person initially and once a year or so.

For quick check-ins, Zoom meetings are a great option that saves a lot of time.

Accounting software

Most of my clients use Quickbooks Online , so I have the free Accountant version. Other popular software options are Microsoft Dynamics (I also use it and it’s a lot more intense), Quickbooks Desktop, Xero , and FreshBooks .

You can either encourage your clients to move to your preferred software or become acquainted with the software they’re already using. Alternatively, you could only take on new clients who use your preferred software.

Document storage

A virtual business obviously generates digital files, and you’ll need a way to store them. Don’t save important documents to your computer’s hard drive, because it will crash or die one day. Instead, upload the documents to a cloud-based document storage system like Google Drive or Dropbox .

Make sure to set up a filing system right away and stick to it. I have folders for each client; within those folders are subfolders for reports, tax filings, notes & communications, bank statements, and HR or payroll documents. Within those subfolders are folders for each year. I also make sure to title documents with the date and enough description that I know what I’m looking for at a glance.

Project management

When you start out, you likely won’t need project management software because your business is so small. I recommend setting up your project management system in the beginning, to grow into it and let it grow with you.

Trello , Asana , and Monday can all be used as project management software. I have used Monday and Trello, and prefer Trello because the free option is more robust and the setup makes sense to me. Try them all out and see what you like.

I have lists for each client so I can keep important notes and communications with them easily accessible. I have a couple of contractors who help out with simple tasks, so I use my project management software to keep track of who is doing what and what has been completed.

There’s a good chance you’ll need to create PDF documents to share with clients. There are free options, but I like the ease of use Adobe Acrobat provides. The subscription is $12.99 a month for the basic plan, which meets my needs. An upgrade will get you redaction capabilities, which would be nice but may not be necessary.

Create a simple website to establish your presence online. Include your contact information, a short bio, your qualifications, and any specialties you want to highlight.

SquareSpace is a very easy way for beginners to create basic websites. WordPress is the most common recommendation for new bloggers, but that platform is more complicated to learn.

I have websites through both providers and SquareSpace is definitely the easier option. It meets my needs for my bookkeeping business and it was very easy to set up a Gmail email address using my website address.

Virtual bookkeeping is the process of keeping up with a business’s financial records from a remote location. Virtual bookkeeping can be accomplished through software and telecommunications technology to connect to various accounting machines. In this article, we covered basic business start-up steps and more details about the technology needed for working virtually. If you’re ready, start your own virtual bookkeeping business.

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RaLea @ Balanced FI

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This is such a good step by step on how to set up with good advice throughout. Thank you for sharing

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virtual bookkeeping business plan

How to start a bookkeeping business

illustrated invoice with glasses

In an effort to streamline operations and cut costs, many small business owners are outsourcing their administrative tasks to third-party firms. This trend creates ample opportunities to start a bookkeeping business. If you love numbers and helping people, this guide will show you how to start a bookkeeping business from the ground up.

What does a bookkeeper do?

Both large and small businesses rely on bookkeepers to keep tabs on the company's financial health. A certified bookkeeper can perform many basic bookkeeping tasks, including:

  • Using business accounting software to manage company finances
  • Managing accounts payable (AP) and accounts receivable (AP)
  • Generating financial statements (e.g., profit and loss statement, balance sheet)

Additionally, an experienced bookkeeper can help business owners gain a better understanding of their company's financial processes. Business owners can use this data to optimize financial performance and keep a close eye on their cash flow.

What is a bookkeeping business?

A bookkeeping company will offer basic bookkeeping services to another company or organization on a contractual basis. Most bookkeeping businesses provide ongoing financial support, though some companies will offer "catch-up" services for business owners that get a little behind in their books.

Small business owners don't usually have the resources to hire their own accounting or bookkeeping team. In fact, only 62% of small businesses have in-house accountants , which means that more than a third of small business owners turn to external companies to assist with bookkeeping and other financial services.

How a bookkeeper is different from an accountant 

Keep in mind that bookkeeping responsibilities are a bit different from those of a certified public accountant (CPA). Certified public accountants can file taxes, perform audits, and even provide professional guidance on the best way to manage company finances.

Is a bookkeeping business profitable?

Bookkeeping can be a surprisingly profitable business. That's partly because bookkeeping businesses don't have a lot of barriers to entry or even a lot of startup costs to worry about. All you really need is some bookkeeping experience, access to accounting software, and a way to market yourself to prospects.

More importantly, the demand is great . Without access to a certified bookkeeper, many small business owners could lose track of their cash flow . Starting a bookkeeping business will allow you to offer a valuable, in-demand service that the small business community rely on.

How to start a bookkeeping business in 9 steps:

Starting your own business may seem overwhelming, but the process is surprisingly manageable. Here's how to start a bookkeeping business in just nine simple steps.

1. Pick your market

Do you plan to target a particular business niche? If so, that can help your business distinguish itself from its competitors. For example, you may specialize in a particular industry or specialize in catch-up services for businesses that have fallen behind.

2. Write a business plan

Every new business will need a business plan. The US Small Business Administration offers tips on its website , but every business plan will include some basic pieces of information:

  • An executive summary highlighting the key points
  • A description of the services you plan to offer
  • An explanation of your competitive advantages
  • A summary of market research and your marketing strategy
  • A description of your leadership structure
  • Financial projections

While writing your business plan, you'll also want to come up with a business name. Select a business name that customers can easily associate with bookkeeping help and is different from your competitors.

Also, make sure that your business name hasn't already been taken. You can start by checking the United States Patent and Trademark Office (USPTO) to make sure that your desired business name is unique.

3. Certification for your bookkeeping business

Starting a bookkeeping business with no experience is technically possible. After all, bookkeepers don't have to have the education or credentials of a CPA.

But obtaining professional certification, such as becoming a certified public bookkeeper, can demonstrate that you have the professional skills to help other companies with their business finances. You can also become certified in using accounting software, such as QuickBooks Online.

4. Register your business and get insured

When starting your own bookkeeping business, you'll need to choose a business structure. What type of business entity will your company operate as? If you plan on working as a solo bookkeeper (freelance), you'll automatically be classified as a sole proprietorship. Otherwise, your business structure options are as follows:

  • A partnership
  • A limited liability company (LLC)
  • A corporation

While sole proprietorships are typically the easiest to manage, other business structure options can be helpful if you add employees as your business grows. Keep in mind that your choice of business entity will influence how you pay your taxes, as well as what type of liability protection you'll receive—if any.

Next, you'll need to invest in professional liability insurance, which protects you in the event you make an error in managing a client's books. You might also consider general liability insurance coverage to protect against a broad range of risks. And if you hire employees, you'll also need to invest in worker's compensation insurance.

5. Choose bookkeeping software

Choosing the right bookkeeping software is one of the most important steps in setting up a bookkeeping business. 

In addition to your accounting software , you might also consider other software to help you manage payables and receivables. For example, BILL offers tools that enable you to automate bookkeeping tasks and enable bill pay for all of your clients. BILL also integrates with many of the most popular accounting software providers.

6. Set up business infrastructure

Selecting your ERP software can be important first steps in establishing your business infrastructure. Bookkeeping firms should also consider establishing things such as:

A professional website

The front page of your website is the front door of your business. Having a clean, modern website will empower you to showcase your services. If you don't have a background in web development, don't worry. There are many great website builders available to help you design a website as unique as your business.

Client database management

Many businesses rely on customer relationship management (CRM) platforms to track bookkeeping clients or drop potential clients into a lead pipeline. You can use these platforms to nurture relationships with your clients. 

Some CRM systems even offer a customer portal to make it easier for you and your clients to communicate. The best systems even integrate with popular accounting and bookkeeping software so data is always within easy reach.

File sharing tools

Your CRM may already have this functionality built into the program. If not, you might consider using a file-sharing service such as Dropbox so you and your clients can exchange important data such as receipts or financial statements.

Business bank account

When starting a new bookkeeping business, it's vital that you keep your personal and business finances separate. Otherwise, this can create confusion during tax season and leave you on the hook for certain business expenses if your business fails. 

Open a business bank account as soon as possible. Many banks offer additional services that can help you maintain and scale your business operations, such as business credit cards, small business loans, and more.

7. Price your services

The cost of accounting and bookkeeping services can vary widely depending on your location. A little bit of competitive analysis can go a long way. Search for other bookkeeping businesses in your area, and investigate the rates they charge for their services. Make sure to compare rates of other bookkeepers who share your credentials and experience .

Bookkeeping services also tend to be ongoing, so consider offering discounts for clients who pay by the year. For example, you can charge a monthly rate for ongoing bookkeeping help and then offer a 10% discount for bookkeeping clients who pay a year in advance. This may help you attract prospective clients, as well as provide some much-needed cash flow as you're starting.

8. Find your customers

Now comes the fun part: landing your first client. To do this, you'll first have to determine your target market. If your bookkeeping business is targeting a particular industry, this can help you narrow down your list of potential clients.

Next, you'll have to create a marketing strategy to reach your target market. It costs nothing to create professional social media accounts on top channels, though bookkeepers may have better results on sites like LinkedIn to connect with business owners.

Content marketing is another great way to spread the word about your business. By using search engine optimization (SEO) best practices, you can generate blog posts and web content that use keyword phrases to boost your visibility in top search engines.

Is it hard to get bookkeeping clients? Not generally, especially with so many small businesses looking for low-cost solutions for their administrative needs. And if you occupy a niche specialty or focus on a particular industry, you'll stand out from the competition.

9. Research your funding options

To get your business off the ground, you'll need a plan for handling your estimated startup costs. If you have already opened a business bank account (see above), your provider may be able to connect you to funding options or a business credit card that can cover your basic business expenses.

Remember: avoid using personal finances for your business expenses. Keeping your business finances separate from your personal finances can protect you from liabilities and make life much easier during tax season.

Establishing your bookkeeping business 

Have you considered what type of business model you plan to pursue? The bookkeeping profession takes many forms, including virtual services and home-based businesses.

How to start a virtual bookkeeping business

You can launch an online bookkeeping business using the same process above, though naturally, you'll need to place greater emphasis on your web presence and your file-sharing tools. But you'll also be able to reach a wider market than if you only focused on your local area, reaching prospective clients from across the US.

How to start a bookkeeping business from home

Can you start a bookkeeping business from home? Yes. In fact, you can even deduct your home office space from your annual tax returns. This can be a great option for freelancers and online bookkeepers looking to keep their startup costs to a minimum.

Exactly how much does it cost to start a bookkeeping business? Depending on your business model, you may be able to start your own business for only a few hundred or a few thousand dollars. That's especially true if you rely on your home office and don't have to worry about hiring additional employees. Your only real costs will be your business/bookkeeping software and the initial costs of registering your business.

Checklist for starting a bookkeeping business

Ready to start your own bookkeeping business? Here's a helpful checklist to make sure you remember the essentials:

  • Pick your market
  • Write a business plan
  • Register your business name
  • Obtain certification and/or business license
  • Register your business
  • Get insured
  • Choose your bookkeeping software
  • Build a website
  • Invest in client management software
  • Select a file-sharing tool
  • Open a business bank account
  • Create a pricing structure
  • Develop a marketing plan
  • Research funding options

Following these steps makes it easier to get your new business off the ground.

Start a bookkeeping business using BILL

As a business owner, you'll find that life is only as easy as the tools you use. So why not start a bookkeeping business by using BILL? Join the thousands of accounting firms that are already using BILL to run their operations. Our innovative platform makes it easy to manage your own finances, and our centralized platform lets you manage every aspect of your operations from anywhere in the world.

Continue learning with BILL

  • What SMBs want from firms: 4 insights from the Accounting Firm Hireability Index
  • 7 key learnings from the BILL 2024 controller outlook report
  • How to accelerate year-end closing
  • 7 construction accounting methods: How to choose which one to use
  • AI in accounting: How artificial intelligence is transforming the industry
  • Construction accounting: A foundational guide for construction companies
  • 5 benefits of accounting automation for firms

Dashboard mockup

Niche and virtual bookkeeping businesses

Designing your bookkeeping business around a specific type of client or your strengths can be a successful way to go.

What does a niche bookkeeper do?

A niche bookkeeper usually focuses on a certain industry. Becoming an expert in a sector can let you stand out from the crowd. You can develop services that address their specific needs. Each industry has its own financial challenges to focus on.

Construction and trades

  • Job costing and back costing
  • Cash flow between buying supplies and getting paid

Online stores

  • Processing online payments
  • Cross-border sales taxes, multi-currency, and exchange rates
  • Staying on top of cost of goods sold
  • Managing inventory

Professional services

  • Tracking project profitability
  • Managing contractor and staff expenses

Capturing a niche isn’t all about offering the right bookkeeping services. It might be about relating to where they are in their business journey and striking the right tone.

There were 700 local cannabis farmers in our county and most of them were new to business. They’re used to being talked down to by business professionals. We wanted to change that.

Brett Gonsalves, Rolling Hills Bookkeeping

Five reasons to find a niche

A niche provider can focus their energy on perfecting a few key services. As a result, they simultaneously get better and faster at doing what they do. Put another way, their value goes up while their costs come down.

Here are five ways that a narrower focus can make you stronger.

1. Business comes to you: Becoming the known expert in a field will generate more word-of-mouth referrals.

2. Deals close faster: Prospects will understand you’re a fit for their business before you even start talking.

3. You can work smarter: You can come up with efficient processes that lower your cost of sales. In essence, you crowdsource your experience and dispense that knowledge out across your client base.

4. You have a license to charge more: You may be able to deliver highly specialized and valued services at a premium price.

5. It’s more fun: You get to do the things you love. All day. Every day. For people you want to work with.

Specializing by industry, service, or technology

Your bookkeeping practice could specialize by:

  • industry – becoming the go-to bookkeeper for farmers, lawyers, or restaurateurs
  • service – making the most of your particular strengths
  • technology – developing expertise on certain types of software

These things are often intertwined. If you like a certain industry, you’ll probably develop the skills they value most, and you’ll learn the technologies that work best for them.

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.

Meryl Johnston, Bean Ninjas

Go national (or global) as a virtual bookkeeper

As momentum builds, you can push outside your local market as a virtual bookkeeper.

Virtual bookkeepers work remotely for their clients using online accounting software to provide services and video calls for meetings.

You get to serve more clients than you’d normally find in your town, while clients generally get great value because your costs of doing business are lower. For example, a virtual bookkeeper:

  • has fewer overheads (no high-street office space rent to pay)
  • spends less time commuting to meetings
  • develops efficient workflows through frequent repetition of niche services
We made the decision to go online at the same time as we developed our niche. Our market is happy to be served digitally – it was one of the reasons we chose the niche!

Jason Blumer, Blumer CPAs

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Starting a bookkeeping business

Work through the big decisions around accreditation, services to offer, fees to charge, and how to find clients.

You’ll need some training and certification to become a professional bookkeeper. Find out where this is available.

With a foundation of knowledge, skills and experience, take the next steps in setting up as a bookkeeper.

You need to nail down what services you’ll offer, who to, and how. Don’t promise more than you’re able to deliver.

It’s time to get things down on paper. Your business plan is vital to reality checking all those ideas you have.

How do you walk the line between profitable for you and affordable for your clients? And help clients budget?

You might deliver an awesome service at a great price, but what if no one knows? Let’s look at marketing your services.

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A guide to help you work through the big decisions around starting a bookkeeping business. Fill out the form to receive the guide as a PDF.

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How to Start a Virtual Bookkeeping Business

virtual bookkeeping business plan

Many business owners look for help when it comes to their accounting and bookkeeping and often times they look to outsource their bookkeeping services.

Businesses that outsource their bookkeeping usually do so because they only require weekly, monthly, quarterly , or seasonal bookkeeping help.

For these businesses, outsourcing their bookkeeping duties makes more financial sense, rather than hiring a full or part time bookkeeper in-house.

Virtual bookkeeping businesses provide the much needed support to businesses looking to outsource this key part of their operations.

According to ZipRecruiter, most freelance bookkeepers make an annual income starting at $34,000 and going up from there – the sky is the limit, really.

Full-time virtual bookkeepers can make $56,000 annually, and that is on the low end.

Bottom line is, the more clients and work you take, the more you make – and all out of the comfort of your own home!

If you have experience in this industry and are looking to branch out on your own, opening a virtual bookkeeping business is a smart option to look into.

Today we are going to discuss how to setup your virtual bookkeeping service and start being your own boss while doing something you are already good at!

virtual bookkeeping

Decide what Bookkeeping Services to Offer

Before forming your business, you are going to want to decided what bookkeeping services you want to offer.

Here are a few examples of the types of services bookkeepers do for clients:

  • Record financial transactions
  • Preparation of Financial Statements such as balance sheet, profit and loss, cash flow statement, etc.
  • Accounts receivable and collections
  • Accounts payable
  • Bank reconciliations
  • Tracking short and long-term assets
  • Work with tax preparer and assist with tax compliance

You will want to highlight the areas that you are already knowledgeable in and perhaps take some training courses on the areas that you are not as familiar with so that you can offer a full one-stop bookkeeping service to your clients.

Write a Business Plan

Many small business owners skip this step when starting out but writing a business plan is actually a key component to success.

For a virtual Bookkeeping business, it doesn’t have to be super elaborate but it should at least include the following:

  • Goals – set short and long term goals for your business
  • Business strategy – how do you plan on making money
  • Target clients – who are you going to reach out to and who are your potential clients
  • Competition – analyze your competition so that you know what you are up against
  • Services – what services will you offer
  • Rates – establish your rates.

Writing out your business plan will help you see what your business will look like and will help identify your strength, challenges, and any areas that need more improvement or development.

A business plan maps out the specifics of your business and can shed light on unknown factors that could negatively impact your business down the road.

Consider Getting Certified

Bookkeepers handle confidential client information and financial data for their clients and getting certified helps increase your credibility, knowledge and trustworthiness.

There are not specific licenses or certifications that are required in the United States but there are some that are highly recommended.

Here are some certifications that will give you a competitive advantage:

  • CPB – Certified Public Bookkeeper via the National Association of Certified Bookkeepers (NACPB)
  • CB – Certified Bookkeeper via the American Institute of Professional Bookeepers
  • Accounting Software certifications such as Quickbooks ProAdvisor, Zoho Books, and/or Xero Advisor

These certifications will help you stand out and give you credibility.

virtual bookkeeping business plan

Choose a Business Name

Now that you know what services you are going to offer and what certifications you need to gain a competitive advantage, you are ready to choose a name and actually form your bookkeeping business!

If you already have a name in mind, you can reserve your business name so that it doesn’t get taken by someone else while you make a final decision.

You can reserve a business name by completing a Name Reservation Request online in the state where you live.

There is a usually a filing fee ranging anywhere from $10-$25 and you can get name exclusivity for up to 90 days.

This gives you time to choose a name without losing the one that you love but are undecided on for now.

If you already have a name in mind you will want to do an internet search to make sure you name is not already taken.

You may also want to consider trademarking your business name once you decide on one.

This will prevent anyone from trying to create a business with the same name as yours.

When choosing a business name, be sure to choose one that is easy to remember!

You also want to choose one that also has an available domain so that your business name matches your website domain name.

You can do a domain name availability search here:

Find a domain starting at $0.88

powered by Namecheap

Your clients will want to refer you, so make it easy for them to remember your name and spread the word.

Form Your Business

Once you have a name, you’ll need to decide on a business structure, also know as a business entity .

There are several business structures to choose from including sole proprietorship, limited liability company (LLC), Corporation, etc.

You will want to consult an attorney if you are not sure which business structure to choose.

You can also use a formation service that will handle the entire process for you.

Many small business owners choose an LLC because it provides limited liability protection to you as the owner and it benefits from pass-through taxation.

Learn all about LLCs here.

Checklist to Complete to Form Your Business:

  • Select a business entity type: we recommend an LLC for a virtual bookkeeping service.
  • Obtain an EIN (Employer Identification Number) from the IRS – once your online application is complete, you will receive an EIN instantly.
  • Register your business locally in the State in which you will be conducting business. This is done with the Secretary of State in the State in which you will be doing business.
  • Obtain any business licenses or permits required in your State to operate a virtual bookkeeping business. These can also be found at your local Secretary of State website or by simply doing a Google search.
  • Open a business bank account using your EIN

Create Customer Contracts and Agreements

As a small business owner, these customer contracts and agreements are what are going to protect you!

Customer contracts and agreements define the relationship that you have with your client and the type of work you are engaging in.

An example could be a Service Agreement that outlines the duration of the agreement, rates, scope of work, and billing terms as well as dispute resolutions.

Non-disclosure agreements are also important.

If you are not sure what contracts and agreements you need, you can hire an attorney to help you create these.

Business Insurance

Another way to protect yourself is by getting the right business insurance coverage.

The most common type of business insurance for bookkeepers is professional liability also known as errors and omissions insurance, and general liability insurance.

These insurance policies will cover you should there be any legal issues that arise between you and your clients.

Software Tools and Technology

Because a virtual bookkeeping business is going to be run, well, virtually – you will need the right software tools and technology to work remotely.

Here are some core tools that you will need to be successful:

  • Core accounting software – Quickbooks online is a very popular accounting software for virtual bookeepers because it is cloud-based and can be easily accessed anytime. Others include FreshBooks, Zoho, Sage, and Xero.
  • Document management – Clients will be sending you confidential information, so you will what some sort of secure document management system like Sharefile, Google Drive, OneDrive, DropBox, etc.
  • Remote desktop software – There may be times when a client will need you to remotely login to their desktop to help them with bookeeping training or tasks. A remote desktop software will help you accomplish this.
  • Computer and/or laptop – Once you know what software you will use, you can purchase a laptop or computer that is capable of handling all of your needs.

quickbooks-support-number

Advertising and Marketing

Now that you have all of your ducks in a row, you are ready to take on clients!

Even though your bookkeeping service is virtual, you will want to consider both traditional and online marketing tactics.

Business cards and brochures can be dropped of at local businesses while e-mails and other online networks can help you market online.

Creating a website is always smart so that potential clients have a place where they can learn more about you and what services you offer as well as your prices.

You can also add a section with client reviews, your certifications, and experience.

Bookeeping Resources

  • Bookkeepers Corner Group (Facebook)
  • Bookkeepers Resource Group (Facebook)
  • Successful QuickBooks Consultants Q.B.O. Q.B. Power Hour Cloud Connect Accountant C.P.A . (LinkedIn)
  • Bookkeeping Online (LinkedIn)
  • A Bookkeeper’s Corner (LinkedIn)
  • Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • View all small business
  • View all taxes

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How to Find the Best Virtual Bookkeeping Service for Your Business

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

In the world of small-business accounting , virtual bookkeeping services are becoming more and more common — so much so that the practice of bookkeepers traveling to meet with clients is becoming more of the exception than the rule. In fact, I will likely never meet most of my clients in person.

It can be difficult to trust a virtual service with your books, and even harder to know which service to choose. To help ease the process, I’ll show you how I run my virtual bookkeeping service and explain what to look for in these services, so you can make the best decision possible.

» MORE: Best online bookkeeping services for small businesses

QuickBooks

QuickBooks Online

What is a virtual bookkeeping service?

Virtual bookkeeping, also known as cloud accounting, is when a bookkeeper or accountant works with their client remotely. This is made possible through accounting software that allows you and your bookkeeper to share an account. With a shared account, your bookkeeper can post your financial transactions, review and update your statements, reconcile your accounts and perform other vital accounting functions without having to meet with you in person. In this arrangement, the accountant and business must utilize the same accounting software to ensure the proper transfer and communication of files.

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.

» MORE: NerdWallet's best small-business apps

How does virtual bookkeeping work?

Working with remote clients comes with its challenges, but modern technology has made it possible. Here’s an example of how I am able to work virtually with clients. It really is all about the apps. The ones I use are:

QuickBooks Online.

Smartsheet.

G Suite (Google Docs).

This is the “ecosystem” that I use to run my virtual bookkeeping service. With these five apps alone I can manage every aspect of my clients’ needs.

QuickBooks allows me to do the actual dirty work of bookkeeping, Zoom lets me virtually meet with clients over video, Smartsheet makes remote project management possible, Slack is for messaging about issues that don’t need to be resolved over video and finally, G Suite and Google Docs facilitate easy file management.

Video preview image

How to find a virtual bookkeeper

Find out what software they use.

You should start by asking them what their application ecosystem is. What apps do they use to help provide their services? They need the following generic structure in place, which is covered by the apps above, in order:

Core accounting/general ledger app (QuickBooks Online).

Remote web conferencing app (Zoom).

Project management (Smartsheet).

Communications (Slack.)

File and document management (G Suite).

Some of the apps might be different, but if your prospective virtual bookkeeping service can cover these five bases, then there is a good chance you’re covered.

Make sure you use the same accounting software

It will be a lot harder to work with a virtual bookkeeper if you use QuickBooks and they use FreshBooks or Xero. Therefore, make sure you ask them which accounting app they use for their business and why. It’s a fair question. 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.

» MORE: NerdWallet's best accounting software for small businesses

Evaluate your virtual bookkeeper's online presence

A true cloud-based business, including a virtual bookkeeping service, should be actively using social media. They should be participating in forums on LinkedIn and Facebook. In addition to this, they should be producing content that establishes themselves as a thought leader.

This way you don’t have to rely on the claims they make about what they can do for you. If they are offering advice that others find useful, then you will be able to see that rather than simply taking their word for it. If your prospective virtual bookkeeping service understands the value of adding to the conversation, then it is a good sign that they will be genuinely helpful to your business.

So, check up on them. Are they putting out videos? Podcasts? Blog posts? How are they demonstrating their knowledge and expertise?

Does your virtual bookkeeper have experience in your industry?

At my company, one of the specific things we teach accountants and bookkeepers who want to run a virtual bookkeeping service is that they should specialize in a few industries. This is true of any bookkeeper — in person or virtual — that you would hire. It’s especially true of virtual bookkeepers, however, because this will determine if the apps they use to do business are relevant to and compatible with your business.

Ask your prospective virtual bookkeeping service if they have experience in your industry, and if so, how many clients they have in your industry. You may even ask for a few customer testimonials to be sure that the service is a good fit.

Learn their process for dealing with clients

A virtual bookkeeping service is all about efficiency. Are you going back and forth with a prospective bookkeeper trying to nail down a time to talk, or do they use a scheduling app? Do they respond quickly? If they’re not efficient about this stage of doing business, this may be a sign that they won’t be efficient once you are a client.

Ask about their onboarding process. Do they have one? They should be able to provide you with the steps. If they can’t, this may be a bad sign.

Ask your virtual bookkeeper about deliverables

In more traditional bookkeeping services, it was more of a process to get reports out. Someone had to be there to run the report, save it in the right format and send it out. In this age of cloud accounting and virtual bookkeeping services, they should be able to have reports sent to you on a schedule. Don’t lead them by asking if they send out reports on a schedule. Simply ask them what the deliverables will be each week or month.

Ask about reviewing reports with you. Every virtual bookkeeping service should have an option that includes this. It might (and it should) cost more than their basic level, but the option should be there.

Ask about pricing

If they are pricing by the hour, this is not a good sign. It means that your virtual bookkeeping service has missed the biggest boat of all when it comes to being a “cloud-based” bookkeeping service. The hourly pricing model doesn’t work here. They must offer flat rate pricing — a monthly fee in exchange for a well-defined set of deliverables.

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The bottom line

As an insider in the cloud accounting world, I can tell you that many virtual bookkeeping services don’t follow the best practices that have been listed above. If you don’t walk away from your initial interactions with your prospective virtual bookkeeping service feeling 100% confident that this company has your back, then just say no. Keep looking.

In the end, your virtual bookkeeper should be a partner that can help grow your business affordably. Keep that in mind as you search for the right virtual bookkeeper for your small business.

A version of this article was first published on Fundera, a subsidiary of NerdWallet

On a similar note...

BUSINESS STRATEGIES

How to create a bookkeeping business plan

  • Jeremy Greenbaum
  • Sep 7, 2023

How to create a bookkeeping business plan

Starting a business in the field of bookkeeping requires more than just number-crunching skills. It demands a well-crafted business plan that keeps you on track towards your goals.

More specifically, a bookkeeping business plan is a strategic document that outlines the objectives, strategies and financial projections for your business. It serves as a roadmap, helping you stay organized both now and in the future. Keep reading for tips on creating a strong business plan when starting your bookkeeping business .

Looking to get your business online? Try Wix’s website builder today.

As you’re building out your bookkeeping business plan, here are the six primary sections to keep in mind:

Executive summary

Business and domain names

Market analysis and research

Operations plan, marketing and advertising plan, financial plan.

Not sure how to begin planning your business? Check out how to start a service business .

01. Executive summary

The executive summary is a concise overview of your bookkeeping business plan, providing a snapshot of its key elements. For a clear executive summary, focus on highlighting the unique value that your services bring to clients and how your business aims to meet their needs efficiently and accurately.

Example of an executive summary for a bookkeeping business plan: “Our bookkeeping business, PreciseLedger Solutions, aims to provide meticulous financial record-keeping services to small and medium-sized businesses. With a commitment to accuracy, reliability and technology-driven solutions, we intend to streamline our clients' financial processes, enabling them to focus on core business activities. With a team of experienced and certified professionals, PreciseLedger Solutions seeks to establish long-term partnerships with clients, ensuring their financial success through organized and compliant bookkeeping practices.”

02. Business and domain names

Selecting the right business name for your bookkeeping business is pivotal for brand identity and recognition. It should reflect professionalism, trustworthiness and the services you offer. Once you have a business name, ensure the corresponding domain name is available for your business website. You can use a business name generator to brainstorm consulting business names that align with your services and values.

Be inspired: Bookkeeping business name ideas

When choosing a domain name , keep it short, memorable and relevant to your bookkeeping services. Avoid using hyphens or complex spellings. Check its availability, and secure it promptly. For instance, if your business name is "AccuBooks Consultants," consider a domain like "AccuBooksConsultants.com" for consistency and easy online discovery.

Remember to also register your business once you’ve landed on a name and legal structure for your business.

03. Market analysis and research

Your business plan should include a comprehensive market analysis. Research your target market, competitors and industry trends. Understand the pain points that your potential clients face and how your services can address those needs effectively. Utilize this information to craft a robust marketing strategy that positions your bookkeeping business uniquely in the market.

04. Operations plan

Detail the operational aspects of your bookkeeping business. Specify the location—whether physical or virtual—and explain the rationale behind it. Outline the premises layout, necessary equipment and technology infrastructure. And, define your staffing requirements, highlighting the skills and certifications that your team will bring to the table.

05. Marketing and advertising plan

In this section, outline the marketing and advertising strategies you intend to employ to promote your bookkeeping services. This could involve a combination of a business website , digital marketing, content creation and networking with local businesses. Highlight the benefits of your services, and start thinking about how you will brand your business.

Note: You can use a logo maker to think of logo ideas for your business. Keep in mind that your visual identity is just one half of the branding formula—the other half involves knowing your company mission, vision, values and messaging.

06. Financial plan

The financial plan is the heart of your bookkeeping business plan. It should include startup costs, revenue projections and expense estimates. Specify how you plan to fund your business initially and provide a realistic timeline for reaching profitability. Detail your pricing structure, considering factors like industry standards, services offered and value provided.

Incorporating these six main parts into your bookkeeping business plan ensures a comprehensive and well-structured document that guides your entrepreneurial journey. From setting a strong foundation to strategically marketing your services and achieving financial success, each section plays a crucial role in your business's growth and sustainability.

steps to developing a business plan

Sample bookkeeping business plan: AccuLedger Bookkeeping Services

AccuLedger Bookkeeping Services aims to revolutionize financial record-keeping for small and medium-sized businesses. We specialize in providing accurate, streamlined and technologically advanced bookkeeping solutions. Our team of experienced professionals is committed to enabling our clients to focus on their core operations while we manage their financial records with precision and compliance.

Company and domain names

Company name: AccuLedger Bookkeeping Services

Domain name: www.acculedgerbookkeeping.com

We have conducted extensive research on the bookkeeping industry and identified a growing demand for reliable and efficient financial management among businesses. Our target market comprises local businesses, startups and entrepreneurs who seek trustworthy and cost-effective bookkeeping services.

Location: We will operate from a centralized office in the heart of the business district, ensuring accessibility for clients.

Premises: Our office layout will include private meeting spaces for consultations, a dedicated area for bookkeeping operations and advanced technology infrastructure for data security.

Equipment: We will invest in state-of-the-art bookkeeping software, high-speed computers and security measures to safeguard client data.

Staffing: Our team will consist of certified bookkeepers and financial experts with a strong commitment to accuracy and client satisfaction.

Digital presence: Establish a professional website (AccuLedgerBookkeeping.com) showcasing our services, team and success stories. Optimize for search engines to increase online visibility.

Social media: Leverage platforms like LinkedIn, Facebook and Instagram to engage with potential clients, share educational content and build a community around financial management.

Content strategy: Develop informative blog posts, ebooks and video tutorials on bookkeeping best practices, demonstrating our expertise and value to clients.

Networking: Attend local business events, workshops and seminars to connect with potential clients and establish our brand as a trustworthy bookkeeping partner.

Startup costs

Office setup: $15,000

Software licenses: $5,000

Marketing initiatives: $7,000

Staff training: $3,000

Miscellaneous: $2,000

Total startup costs: $32,000

Revenue projections (Year 1)

Monthly clients: 10

Average monthly revenue per client: $800

Total monthly revenue: $8,000

Total annual revenue: $96,000

Expenses (monthly)

Salaries and wages: $4,000

Marketing expenses: $500

Office utilities: $300

Software maintenance: $200

Miscellaneous: $100

Total monthly expenses: $5,100

We will initially fund the business through personal savings and a small business loan of $20,000.

Profitability timeline

We project to achieve profitability within the first year of operation, driven by a steadily growing client base and effective cost management.

Benefits of creating a bookkeeping business plan

A well-structured business plan will help you define your scope of services, target market, competitive landscape and pricing strategies. By outlining these aspects, the business plan acts as a blueprint that guides decision-making and resource allocation.

Secondly, a business plan aids in raising money for your business . Whether you’re seeking a loan, investment or other contributions, potential stakeholders will want to see a well-thought-out plan. It demonstrates your commitment and understanding of your business's potential for success. Financial projections within the plan illustrate the expected profitability and return on investment, offering a clear picture of the business's viability.

Moreover, a business plan assists in setting achievable goals and measuring progress. By establishing milestones and performance indicators, you can assess whether your bookkeeping business is on track and make necessary adjustments if not. This aspect is crucial when starting a business, as it ensures that the initial steps are strategic and effective.

Got another business idea in mind?

Not exactly sure what type of business to pursue? Check out the guides below and explore your options with service business ideas and service business examples .

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Bookkeeping Business Plan

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Numerous skilled tasks are required for bookkeeping are management of costs, earnings, tax returns, and payroll. Careful planning is required for each of these services as well as others for a bookkeeping business to operate successfully.

How to Write a Bookkeeping Business Plan?

Writing a bookkeeping business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

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  • Fill in the blanks – Outline
  • Financial Tables

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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virtual bookkeeping business plan

2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview, Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

  • The name of your bookkeeping firm and what type of firm it is: a simple bookkeeping firm, audit firm, virtual bookkeeping firm, tax firm, forensic accounting firm, or some other.
  • Company structure of your accounting firm whether it is LLC, partnership firm, or some other.
  • Location of your business and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your accounting business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your bookkeeping business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

  • Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
  • Be specific and provide detailed information wherever possible.
  • Include charts and graphs to help illustrate your key points.
  • Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a virtual bookkeeping business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

  • Create a list of the services: the primary services you provide, such as accounting, payroll, tax preparation, and financial statement production, should be briefly described here.
  • Describe each service: For each service, provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide the service. For example, the firm needs to hire a chartered accountant.

Additional services:

Overall, the product and services section of a business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Describe rules and regulations:

Operational process:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your bookkeeping business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the virtual accounting firm. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

  • Include a table of contents for the appendix section to make it easy for readers to find specific information.
  • Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
  • Provide market research data, such as statistics on the size of the bookkeeping industry, consumer demographics, and trends in the industry.
  • Include any legal documents such as permits, licenses, and contracts.
  • Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
  • Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your accounting business should only include relevant and important information that supports the main content of your plan.

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This bookkeeping business plan sample will provide an idea for writing a successful virtual bookkeeping business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our bookkeeping business plan pdf .

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Frequently asked questions, why do you need a bookkeeping business plan.

A business plan is an essential tool for anyone looking to start or run a successful accounting firm. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your bookkeeping success.

How to get funding for your bookkeeping business?

There are several ways to get funding for your business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your bookkeeping firm, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought options for startups.
  • Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your bookkeeping business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your virtual accounting business plan and outline your vision as you have in your mind.

What is the easiest way to write your bookkeeping business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any bookkeeping business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

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Home > Finance > Accounting

The 8 Best Virtual and Outsourced Accounting Services for Small Businesses in 2023

Merritt Bookkeeping

Data as of 2/14/23. Offers and availability may vary by location and are subject to change. *When billed annually.

Kylie McQuarrie

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

The bottom line: Merritt Bookkeeping's incredibly affordable bookkeeping and thorough reporting services set it apart as one of the best virtual bookkeeping solutions for small businesses.

But there’s more than one virtual accounting company in the world, and solutions range from on-demand CFO services to simple pay-by-the-hour book balancing. Below, we review the best virtual and outsourced accounting services for small-business owners like you.

  • Merritt Bookkeeping : Best overall
  • Bookkeeper.com : Most versatile
  • inDinero : Best for established startups
  • Bench : Best bookkeeping + payroll
  • Bookkeeper360 : Best for bookkeeping only

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Compare the top outsourced accounting service features

Data as of 2/14/23. Offers and availability may vary by location and are subject to change. *When billed annually

Merritt Bookkeeping: Best overall

4.3 out of 5 stars

Data as of 2/14/23. Offers and availability may vary by location and are subject to change.

Merritt Bookkeeping automates some of the most time-consuming bookkeeping tasks — for instance, reconciling accounts, balancing books, and updating financial reports — so you can focus on running your business. It also starts at $190 a month, which is less than nearly every other provider on our list. 

But Merritt Bookkeeping's most stand-out feature might be its in-depth financial reports . Most other virtual bookkeeping services give you basic financial reports only, like income statements and balance sheets. In contrast, Merritt gives you more detailed reports like forecasting and quarterly comparisons.

Typically, you'd only get detailed financial statements like this through a CFO — which means Merritt gives you some of the best aspects of having a CFO without the high cost.

Unlike most other outsourced bookkeepers on our list, Merritt Bookkeeping doesn't offer any in-house add-ons for payroll and tax services. If you were hoping for a one-stop shop that can tackle all of your financial needs, Merritt might not be the right choice for you.

However, Merritt can still recommend a solid payroll provider or tax consultant who meets your needs. Plus, as Merritt's financial reporting package shows, focusing solely on bookkeeping instead of juggling bookkeeping, payroll, and taxes means the Merritt team can focus on giving you the most comprehensive bookkeeping service possible.   

Bookkeeper.com: Most versatile outsourced bookkeeping solution

For ease of use, versatility, and scalability, Bookkeeper.com is hard to beat.

Bookkeeper.com’s cheapest virtual bookkeeping service starts with bookkeeping basics, like preparing key financial statements. From there, you can add comprehensive accounting, payroll, and tax services as needed. Bookkeeper.com manages your accounts using QuickBooks Online (or QuickBooks Desktop , if you prefer). Plus, not every online bookkeeping service works with both accrual-basis and cash-basis accounting —but Bookkeeper.com does.

Bookkeeper.com’s cheapest plan, Small Business, starts at $399 per month. It includes key financial documents, bank reconciliation, and limited online support. Bookkeeper.com’s most popular plan, Small Business Plus, costs $599 a month. While it’s a big step up cost-wise, it’s also a big step up feature-wise: you get longer onboarding, unlimited online support, bill pay, and CFO and advisory services.

inDinero: Best for established startups

Looking for a scalable outsourced bookkeeping service with flexible payment options? Every inDinero plan includes a dedicated account manager, direct employee reimbursements, some inventory management, and payroll assistance. It also syncs with either QuickBooks Online or Netsuite (as opposed to syncing just with QuickBooks, like most virtual bookkeepers). And you can choose to pay monthly, quarterly, or annually.

Prices start at $500 a month for the Essential plan, which is geared towards startups that use cash-basis accounting. If you use accrual-basis accounting, you’ll need the Growth plan, which starts at $990 a month. And the Executive plan, which is built for larger companies that need CFO services, has custom pricing. You’ll need to get in touch with an inDinero rep for a price estimate.

Bench: Best for bookkeeping + payroll

When you sign up for Bench’s virtual accounting services, a dedicated bookkeeper talks you through Bench’s in-house software, analyzes your books, and starts sending you monthly financial reports. Your dedicated virtual Bench bookkeeper can connect directly with your current professional accountant. Bench will also prepare your tax paperwork for you. Unlike most of the other providers on our list, Bench doesn’t sync with QuickBooks: your bookkeeper will use Bench’s proprietary in-house software instead.

Bench offers two main plans. The Essential plan ($249 a month if billed annually or $299 billed monthly) focuses on bookkeeping only, giving you access to a dedicated team that performs monthly bookkeeping services. The Premium plan ($399 a month if billed annually or $499 billed monthly) adds tax advising services, end-of-year tax filing, and financial strategy planning.

Need help getting past accounts in order? With Bench's Catch Up Bookkeeping services, a Bench bookkeeper will work through past months of disorganized bookkeeping to bring your accounts up to date.

Bookkeeper360: Best for hourly bookkeeping

Only need an hour of bookkeeping assistance every now and then? You might benefit from Bookkeeper360's hourly bookkeeping service.

With Bookkeeper360, you’ll get a dedicated virtual accountant who sends detailed reports on a monthly basis. You can also add on a variety of HR and payroll services.

For instance, Bookkeeper360 syncs with ADP and Gusto—two of our favorite payroll service providers —to make direct deposits, help with time tracking and PTO, file payroll taxes for you, and find medical benefits and workers compensation insurance for your small business. And on the accounting software front, Bookkeeper360 syncs with both Xero and QuickBooks Online.

Bookkeeper360 offers a pay-as-you-go plan that costs $125 per hour of on-demand bookkeeping support. It's an ideal plan for businesses that need minimal monthly support, though if you want more than two hours of help a month, you'll save more money simply going with a service like inDinero or Bench.co.

Otherwise, Bookkeeper360 offers two cash accounting plans that differ based on how often you need its services: a monthly plan, which starts at $349 per month if you pay annually, and a weekly plan, which starts at $499 per month (not per week). 

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Virtual bookkeeping software: Honorable mentions

The virtual bookkeeping providers above might be our favorite—but if they don’t quite fit your needs, we understand completely. Here are three other online accounting service providers worth looking at.

  • Ignite Spot Accounting
  • AccountingDepartment.com

Compare runner-up bookkeeping service features

Data as of 12/9/22. Offers and availability may vary by location and are subject to change. *When billed annually

Pilot: Best for startups

Pilot

Pilot’s plans are based on how much you pay in expenses each month. If you’ve just gotten off the ground and aren’t spending (or making) too much money yet, Pilot’s dedicated accountants can help you figure out how to get—and stay—on track. Unfortunately, you’ll pay a lot for the help: plans start at $499 per month for businesses with $15,000 worth of monthly expenses. And Pilot doesn’t have a month-to-month payment option. Instead, you’ll have to prepay for each plan annually.

Ignite Spot Accounting: Best reporting

IgniteSpot

Ignite Spot Accounting delivers heftier reports than many other cloud accounting providers we checked out for this piece. Along with typical financial reporting (like profit and loss reports and balance sheets), you’ll get a KPI (key performance indicator) report and profitability analysis, among others. However, Ignite Spot doesn't list its virtual accounting prices upfront. You have to enter more information about your needs to get a quote—which is useful if you want truly customized services but unhelpful if you'd rather choose a basic plan out of a lineup. 

AccountingDepartment.com: Best in-house support

Logo for AccountingDepartment.com

Along with offering the typical outsourced bookkeeping services, AccountingDepartment.com provides outsourced controller services . With this service, their CPAs manage bookkeeping while also budgeting, forecasting, doing job costing, managing cash flow, tracking inventory, and performing other financial management tasks on your behalf. Contact the company directly for a quote.

What should you look for in an outsourced accounting service?

The right virtual or outsourced bookkeeping solution can save you hours of bookkeeping time a month. And since they’re generally cheaper than hiring an in-house accounting team, virtual bookkeepers can save you money, too—but only if you find the right one for your unique needs. Before you sign up for a bookkeeping service, you’ll want to ask yourself questions like these:

  • Does the virtual bookkeeping service sync with my preferred accounting software, like QuickBooks or Xero? Or am I okay adjusting to new accounting software?
  • How much money can I afford to spend on bookkeeping each month?
  • Does my business use cash or accrual accounting ?
  • Am I looking just for bookkeeping services like financial reporting? Or do I want additional services, like tax filing services, payroll runs, and HR advice?

Want to learn more about bookkeeping before you sign up for a virtual provider? Our article on business bookkeeping basics gives you more information on how to do bookkeeping and why.

The takeaway

Virtual and outsourced bookkeeping and accounting services are a happy medium between do-it-yourself software and pricey in-house bookkeeping. If that description fits what you’re looking for, one of the nine best virtual bookkeeping providers can save you time, money, and stress.

Bookkeeper.com is an all-around solid pick for small to midsize businesses that might want additional payroll and tax help down the road. But Merritt Bookkeeping is a cheaper option, inDinero has even more add-ons, Bench’s bookkeepers work seamlessly with your own CPA, and Bookkeeper360 integrates with some of our favorite HR and payroll providers.

In other words, no matter what type of virtual bookkeeping solution you’re looking for, there’s a perfect match out there for you. And one final tip for the road: before you sign up for a virtual outsourced accountant, don’t forget to ask your customer service representative about free trials and money-back guarantees. You deserve the best of the best.

Would you rather tackle accounting yourself instead of outsourcing it to a third party? Check out our list of the year’s best accounting software for small businesses to get started.

Related reading

  • The Best Bookkeeping Software for Small Business 2023
  • The Difference between Bookkeeping and Accounting
  • What Is Accrual Accounting?
  • 7 Pieces of Advice for Picking the Right Outsourcing Firm

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Virtual accounting FAQ

Virtual accounting firms provide the same services as in-house accountants: they can balance your books, file your taxes, and advise you on your business’s financial health. But instead of working out of your office, virtual accountants work from afar. Usually, virtual accounting and bookkeeping companies use cloud-based accounting software to ensure you have constant access to your own financial records.

Virtual , outsourced , and online are often used interchangeably when referring to bookkeeping and accounting. However, a virtual bookkeeper or virtual accountant  can sometimes refer to accountants or CPAs who work out of their homes and contract out their services individually. In contrast, outsourced bookkeeping and accounting nearly always refers to accountants with an accounting firm who handle your books from their own office.

How much does outsourced accounting cost?

Outsourced, virtual bookkeeping can cost as little as $150 per month and as much as $900 (or more) per month. Some companies charge by the number of accounts you need them to manage, while other companies charge based on your company’s monthly expenses. Typically, the lower your expenses (and the fewer your accounting needs), the less you’ll be charged.

Is virtual bookkeeping legit?

Yes, virtual and outsourced bookkeeping is just as legitimate as in-house bookkeeping and accounting. However, as with any in-person accounting professionals you’d trust with your financial data, you should always verify a bookkeeping firm’s credentials before committing to a monthly plan.

Methodology

To rate the best virtual and outsourced accounting services, we assessed the top providers in the following key categories: 

  • Number and type of bookkeeping features and add-ons, such as tax assistance
  • Pricing and plan information, including number of features included at each price point
  • Integration with and use of third-party software like QuickBooks Online, Xero, or FreshBooks
  • Customer service, including options for dedicated bookkeeping teams, modes of customer service access, and general customer service reputation

We weighted each category equally to calculate our star ratings, and we also considered our accounting expert's opinion and advice when ranking our top brands. Star ratings are subject to frequent review and may change. 

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How To Sell Virtual Bookkeeping Service Business: Checklist

By henry sheykin, resources on virtual bookkeeping service.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan
  • SWOT Analysis

Welcome to our blog post on selling a virtual bookkeeping service business! As the finance industry in the US continues to grow, the demand for efficient and comprehensive bookkeeping services is on the rise. In fact, according to recent statistics, the virtual bookkeeping service market is projected to reach a value of $2.76 billion by 2026, with a compound annual growth rate of 5.7%. With such promising growth and potential, it's important to have a solid plan in place when it comes to selling your virtual bookkeeping service business. So, let's dive into the essential steps you need to take to successfully sell your business and maximize its value.

Conduct A Thorough Business Valuation To Determine The Market Value Of The Virtual Bookkeeping Service Business.

When preparing to sell your virtual bookkeeping service business, one crucial step is to conduct a thorough business valuation. This process will provide you with an accurate assessment of the market value of your business, ensuring that you set an appropriate asking price and attract potential buyers.

There are several key factors to consider during the business valuation process. Firstly, you need to assess the financial performance of your virtual bookkeeping service business. This includes analyzing your revenue, profitability, cash flow, and any outstanding debts or liabilities. A comprehensive understanding of your financial position will help determine the overall value of your business.

In addition to financial factors, it is essential to evaluate the market conditions and the demand for virtual bookkeeping services. Analyzing the competition and understanding the growth potential of the industry will provide valuable insights into the market value of your business.

By conducting a thorough and comprehensive business valuation, you will have a solid foundation for setting the right asking price and effectively marketing your virtual bookkeeping service business to potential buyers.

Prepare A Detailed And Comprehensive Business Plan Highlighting The Unique Selling Propositions And Growth Potential Of The Business.

When preparing a business plan for selling your virtual bookkeeping service business, it is crucial to highlight the unique selling propositions (USPs) and growth potential that set your business apart from competitors. This will attract potential buyers and showcase the value they can gain from acquiring your business.

1. Clearly define your USPs: Outline the specific features and benefits that distinguish your virtual bookkeeping service from others in the market. It could be your highly skilled and experienced team, use of cloud-based accounting software, or your commitment to delivering accurate and real-time financial reporting.

  • Focus on the aspects that make your bookkeeping service unique, such as industry specialization or outstanding customer service.
  • Showcase the advantages your business offers, such as time-saving efficiencies, cost reduction, or increased financial insights.
  • Quantify the benefits whenever possible to provide potential buyers with tangible evidence of your USPs.

2. Demonstrate growth potential: Provide a detailed analysis of the potential for growth and expansion within the virtual bookkeeping service industry. Highlight trends that indicate increasing demand for such services, such as the growing number of small businesses in need of financial management support. Additionally, address potential opportunities for diversification and expansion of service offerings.

  • Include market research, industry statistics, and forecasts to support your growth projections.
  • Outline strategies for attracting new clients, such as targeted marketing campaigns or partnering with complementary service providers.
  • Showcase your ability to adapt to technological advancements and stay ahead of industry changes.

3. Present a comprehensive financial outlook: Offer a detailed financial analysis of your virtual bookkeeping service business, including historical performance and future projections. This should include revenue streams, profit margins, cash flow, and key financial ratios. Clearly demonstrate the financial viability and potential return on investment for potential buyers.

  • Include charts, graphs, and tables to present financial data in a visually appealing and easy-to-understand format.
  • Highlight any cost-saving measures or efficiency improvements that can contribute to increased profitability.
  • Provide a realistic assessment of potential risks and challenges, along with strategies for mitigating them.

By preparing a detailed and comprehensive business plan that highlights your unique selling propositions and growth potential, you will effectively communicate the value of your virtual bookkeeping service business to potential buyers and increase the likelihood of a successful sale.

Develop A Solid Financial Model That Demonstrates The Profitability And Sustainability Of The Virtual Bookkeeping Service Business.

Developing a solid financial model is crucial for showcasing the profitability and sustainability of your virtual bookkeeping service business. This model will provide potential buyers with a clear understanding of the company's financial performance and potential for growth. Here are some important aspects to consider:

  • Start by outlining your revenue streams, including the various services you offer and the pricing structure for each.
  • Identify your target market and estimate the potential client base for your services. This will help project your revenue growth over time.
  • Consider expenses associated with running the business, such as software licenses, payroll costs, marketing expenses, and overhead costs.
  • Forecast your financial projections for at least three to five years, taking into account factors like market trends, competition, and potential client acquisition. This will help demonstrate the long-term sustainability of the business.
  • Include key performance indicators (KPIs) that reflect the financial health and efficiency of your virtual bookkeeping service business. These may include metrics such as client retention rate, average client value, and profit margin.

Tips for developing a solid financial model:

  • Be conservative in your revenue projections to provide a realistic outlook for potential buyers.
  • Consider conducting sensitivity analysis to assess the impact of different market scenarios on your financial projections.
  • Engage the services of a professional financial advisor or accountant to help you validate and fine-tune your financial model.

By developing a solid financial model, you can effectively demonstrate the potential profitability and sustainability of your virtual bookkeeping service business to potential buyers, increasing their confidence in the investment opportunity.

Identify And Target Potential Buyers Who Are Interested In Acquiring A Virtual Bookkeeping Service Business.

When it comes to selling your virtual bookkeeping service business, identifying and targeting potential buyers who are genuinely interested in acquiring such a business is crucial for a successful sale. Here are some key steps to help you in this process:

  • 1. Define your ideal buyer: Begin by clearly defining the characteristics and qualifications you seek in a potential buyer. Are you targeting individuals with previous experience in the finance industry or those looking to expand their existing bookkeeping services? Determining your ideal buyer will help you focus your efforts on finding the right fit.
  • 2. Leverage industry networks and associations: Reach out to industry networks and professional associations that cater to the finance industry. These platforms often have members who may be interested in acquiring a virtual bookkeeping service business and can provide you with valuable leads.
  • 3. Utilize online platforms: Online platforms dedicated to buying and selling businesses, such as business-for-sale websites and marketplaces, are a great way to connect with potential buyers. Ensure your listing is detailed, informative, and highlights the unique aspects of your virtual bookkeeping service business.
  • 4. Engage with your existing network: Reach out to your professional network, including colleagues, clients, and industry contacts, to let them know about the sale. They may be aware of individuals or businesses who would be interested in acquiring your virtual bookkeeping service business.
  • 5. Attend industry events: Participate in industry events, conferences, or trade shows related to the finance industry. These events provide an excellent opportunity to network and make valuable connections with potential buyers.
  • Emphasize the benefits of acquiring your virtual bookkeeping service business, such as the opportunity for increased market share, existing client base, and established brand reputation.
  • Consider hiring a business broker who specializes in selling businesses within the finance industry. They have the expertise and connections to find potential buyers and manage the sales process.
  • Confidentiality is crucial during the selling process. Ensure that potential buyers sign non-disclosure agreements before sharing sensitive financial information about your business.

By effectively identifying and targeting potential buyers interested in acquiring a virtual bookkeeping service business, you increase the likelihood of finding the right buyer who aligns with your business goals and values.

Create A Compelling Sales Memorandum That Presents Key Information About The Business, Including Its Financial Performance And Growth Opportunities.

When creating a sales memorandum for your virtual bookkeeping service business, it is crucial to capture the attention of potential buyers and showcase the unique value proposition of your business. This document serves as a comprehensive overview of your business, highlighting its financial performance and growth opportunities. Here are some key elements to include:

  • Executive Summary: Start the memorandum with a brief overview of your business, including its mission, key services offered, and target market. Highlight any unique selling propositions that differentiate your virtual bookkeeping service from competitors.
  • Financial Performance: Provide an in-depth analysis of your business's financial performance, including revenue trends, profitability metrics, and cash flow projections. Share financial statements, such as income statements and balance sheets, to provide concrete evidence of your business's financial stability.
  • Growth Opportunities: Outline potential areas of growth and expansion for your virtual bookkeeping service business. Consider factors such as expanding your client base, offering additional services, or targeting new industries. Support your claims with market research and industry trends to demonstrate future growth potential.
  • Client Portfolio: Highlight the diversity and loyalty of your client base. Showcase the range of industries you serve and the long-term relationships you have established. Include testimonials or case studies that underscore the value your virtual bookkeeping service provides to clients.
  • Operational Procedures: Provide an overview of your business's operational processes and workflows. Highlight the use of cloud-based accounting software and other tools that streamline efficiency and accuracy. Detail your team's expertise and qualifications to reinforce your ability to deliver exceptional virtual bookkeeping services.
  • Use clear and concise language to maintain the reader's attention throughout the sales memorandum.
  • Include visually appealing charts and graphs to illustrate key financial performance metrics.
  • Ensure the sales memorandum is well-structured, organized, and easy to navigate.
  • Emphasize the scalability and potential for recurring revenue in your virtual bookkeeping service business.
  • Consider incorporating case studies or success stories that demonstrate the positive impact your services have had on clients' financial performance.

Remember, creating a compelling sales memorandum is essential to attracting potential buyers and conveying the value and potential of your virtual bookkeeping service business. Take the time to craft a professional and persuasive document that accurately represents your business's financial performance and growth opportunities.

Market The Virtual Bookkeeping Service Business For Sale Through Various Channels Such As Online Platforms, Industry Networks, And Professional Associations.

To maximize the chances of finding the right buyer for your virtual bookkeeping service business, it is crucial to implement a targeted and diverse marketing strategy across multiple channels. By leveraging online platforms, industry networks, and professional associations, you can increase the visibility of your business and attract potential buyers who are actively seeking opportunities in the finance industry.

Online Platforms: Utilize popular business-for-sale websites and online marketplaces to reach a wide audience of prospective buyers. Create a compelling listing that highlights the unique features and benefits of your virtual bookkeeping service business. Include relevant financial information, growth potential, and any other key selling points that may attract potential buyers.

Industry Networks: Tap into industry-specific networks and forums to connect with individuals or businesses in the finance industry who may be interested in acquiring a virtual bookkeeping service business. Attend relevant conferences, seminars, and trade shows to network with potential buyers face-to-face. Engage in discussions and share valuable insights to establish yourself as an expert in the field and generate interest in your business.

Professional Associations: Join professional associations and organizations that cater to finance industry professionals. These associations often have member directories or online platforms where you can promote your virtual bookkeeping service business to a targeted audience of potential buyers. Utilize the association's networking events, newsletters, or mailing lists to showcase your business and attract interested parties.

  • Optimize your online presence by ensuring your website is user-friendly, informative, and visually appealing.
  • Use search engine optimization (SEO) techniques to improve your website's visibility in search engine results.
  • Consider leveraging social media platforms such as LinkedIn, Twitter, and Facebook to promote your business and connect with potential buyers.
  • Develop a strong and consistent brand image to differentiate your virtual bookkeeping service business from competitors.
  • Engage in targeted digital advertising campaigns to reach a specific audience of potential buyers.

By adopting a multi-channel approach and utilizing various online platforms, industry networks, and professional associations, you can effectively market your virtual bookkeeping service business for sale and attract the right buyers who recognize the value and potential of your business.

Screen And Qualify Potential Buyers, Ensuring They Have The Necessary Financial Resources And Expertise To Successfully Operate The Business.

Screening and qualifying potential buyers is a critical step in selling your virtual bookkeeping service business. It ensures that only qualified individuals or entities with the necessary financial resources and expertise are considered as serious contenders for the acquisition. Here are some key considerations to keep in mind during this process:

  • Verify Financial Capability: It is important to thoroughly assess the financial capability of potential buyers. Request and review their financial statements, including their current liquidity, creditworthiness, and access to capital. This will help determine if they have sufficient funds to not only acquire the business but also sustain its operations.
  • Assess Experience and Expertise: Evaluate the buyer's experience and expertise in the finance industry, specifically in virtual bookkeeping services. Look for individuals or companies who have a proven track record in managing similar businesses or possess relevant qualifications, certifications, and industry knowledge.
  • Consider Cultural Fit: Assess the buyer's compatibility with your business's culture and values. This can be determined through interviews and discussions that focus on their management style, business philosophy, and approach to client relationships. A good cultural fit will increase the chances of a successful transition and continued success of the business.

Tips for Screening and Qualifying Potential Buyers:

  • Request detailed references from previous acquisitions or ventures they have been involved in to verify their ability to successfully operate and grow a business.
  • Seek recommendations or insights from industry professionals or colleagues who may have had prior interactions with the potential buyers.
  • Consider conducting background checks to ensure the buyer's reputation aligns with your business's values and ethics.
  • Clearly define your criteria for a qualified buyer and use it as a guide throughout the screening process.

By diligently screening and qualifying potential buyers, you can mitigate the risk of entering into negotiations with individuals or entities who may not have the necessary financial resources or expertise to operate your virtual bookkeeping service business successfully. This step will help ensure a smoother transition and set the foundation for the continued growth and success of your business.

Negotiate Favorable Terms And Conditions With Prospective Buyers, Considering Aspects Such As Price, Transitional Support, And Confidentiality Agreements.

Once you have identified potential buyers who express interest in acquiring your virtual bookkeeping service business, it is crucial to negotiate favorable terms and conditions that align with your goals and expectations. This phase of the sales process involves careful consideration of several key aspects:

  • Price: Determine a fair and competitive price for your business based on its market value, financial performance, and growth potential. Be prepared to justify the asking price by showcasing the unique selling propositions and value-added services your business offers.
  • Transitional Support: Discuss the level of support you are willing to provide during the transition period. This may include training the buyer on your business processes, introducing them to key clients or suppliers, and offering ongoing consultation for a specified period.
  • Confidentiality Agreements: Protect the sensitive information of your business by insisting on confidentiality agreements. These agreements restrict potential buyers from disclosing or using any confidential information obtained during the negotiation process.

Tips for negotiating favorable terms and conditions:

  • Be prepared and informed about the current market conditions and industry trends to strengthen your negotiating position.
  • Clearly communicate your expectations and priorities to potential buyers, ensuring that both parties have a common understanding of the terms being discussed.
  • Consider seeking the assistance of a professional negotiator or business broker who can provide guidance and help you navigate the negotiation process.
  • Flexibility can be advantageous, but always remember to prioritize your business's best interests and not compromise too much.
  • Document all negotiations and agreements in writing to avoid any misunderstandings or disputes later on.

By negotiating favorable terms and conditions, you can ensure a smooth and mutually beneficial transaction that maximizes the value of your virtual bookkeeping service business.

Engage The Services Of Legal And Financial Professionals To Facilitate The Sale, Including Drafting Legal Contracts And Assisting With Due Diligence Processes.

When selling your virtual bookkeeping service business, it is crucial to engage the services of experienced legal and financial professionals. These professionals will play a vital role in ensuring a smooth and successful sale, providing guidance and expertise throughout the process.

One of the key tasks that the legal professionals will undertake is drafting the necessary legal contracts, including the sale agreement and any confidentiality agreements. These contracts will outline the terms and conditions of the sale, protecting both parties involved. It is essential to have a legal expert review and draft these contracts to ensure they accurately reflect the intentions of both the seller and the buyer.

  • Choose legal professionals with experience in mergers and acquisitions or business transactions to handle the sale of your virtual bookkeeping service business.
  • Ensure the legal professionals are familiar with the specific regulations and laws governing the sale of businesses in your industry and jurisdiction.

The financial professionals will assist with the due diligence process, which involves a thorough examination of your business's financial records, contracts, assets, and liabilities. They will review the financial statements, tax returns, and other relevant documentation to assess the true value and potential risks associated with your virtual bookkeeping service business. This process helps to instill confidence in potential buyers and streamlines the overall sale process.

  • Engage a financial advisor or accountant experienced in business valuations and due diligence to ensure accurate and comprehensive financial information is provided to potential buyers.
  • Collaborate closely with the financial professionals to gather and organize all necessary financial documentation, making the due diligence process more efficient.

Having legal and financial professionals on your side throughout the sale of your virtual bookkeeping service business will provide you with peace of mind and expert guidance. They will ensure that all legal requirements are met, contracts are properly drafted, and due diligence processes are thoroughly conducted, facilitating a successful and seamless sale.

Selling a virtual bookkeeping service business requires careful planning and execution. By following the outlined nine steps, you can increase the chances of successfully selling your business. Conducting a thorough valuation, preparing a detailed business plan, and developing a solid financial model are essential in showcasing the value and potential of your business. Identifying and targeting potential buyers, creating a compelling sales memorandum, and effectively marketing your business will help generate interest and attract qualified buyers. Screening and qualifying potential buyers, negotiating favorable terms, and engaging legal and financial professionals will ensure a smooth and secure sale process.

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IMAGES

  1. A Complete Virtual Bookkeeping Guide For Your Business

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  2. Bookkeeping Business Plan

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  3. 6 Core Benefits of Virtual Bookkeeping Services for your Successful

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COMMENTS

  1. How To Start A Virtual Bookkeeping Business

    Learn how to start a virtual bookkeeping business with this step-by-step guide. Find out what virtual bookkeeping is, how it works, what you need to become a virtual bookkeeper, and the benefits of working remotely. Discover how to set up your own online bookkeeping services company and attract clients from any industry.

  2. Bookkeeping Business Plan Template & Guide [Updated 2024]

    Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a bookkeeping business plan, you should include the following: Product: in the product section, you should reiterate the type of business that you documented in your Company Analysis.

  3. How to start a virtual bookkeeping business (In 5 Steps)

    Starting a virtual bookkeeping business requires strategic planning to attract positive cash flow and garner a dedicated client group. Step one is to understand your goals and values. 1. Understanding your goals. The first step in creating any successful business is deciding your goals as a company.

  4. How To Create a Winning Virtual Bookkeeping Business Plan

    In conclusion, creating a successful business plan for a virtual bookkeeping service requires careful consideration and strategic planning. By following the nine steps outlined above, you can ensure that your business is well-positioned to meet the needs of your target market, differentiate yourself from competitors, and adhere to legal and ...

  5. How to start a virtual bookkeeping business

    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. You can find professionals by networking, searching job boards, or partnering with other bookkeeping businesses to outsource some of your workloads.

  6. How to Start a Successful Virtual Bookkeeping Business in 2024

    3. Get Insurance. Business insurance will protect you from claims against your business, but you need the correct types of insurance policies. One of the most critical steps to take in your virtual bookkeeping business is to invest in professional liability insurance, also known as errors and omissions (E&O) insurance.

  7. Quick Guide to Start Your Virtual Bookkeeping Business From Home

    At FreeU, we provide specific training so you can start your bookkeeping business with the required skills. 2. Create a Business Plan. Before starting your own business, it's important to create a plan outlining how you intend on running the business, including pricing structure and marketing strategies.

  8. How to Start a Virtual Bookkeeping Business in 5 Simple Steps

    Learn how to start a virtual bookkeeping business with little investment and earn over $42K per year. Follow a step-by-step guide to pick a name, register your business, choose a legal entity, offer bookkeeping services, and find clients. Find out the skills, tools, and tips to start a successful online bookkeeping business.

  9. How To Start a Virtual Bookkeeping Business

    Creating a business plan for your virtual bookkeeping business is an investment in your future success. It's a step that shouldn't be rushed or taken lightly, as it lays the foundation upon which your business will be built and grow. Remember, the more thorough and detailed your business plan, the more it will benefit you in the long run. 3.

  10. How to Start a Virtual (Online) Bookkeeping Business

    Write a business plan. Writing a business plan is the first step to launching any business, including a virtual bookkeeping one. Coming up with a detailed business plan is essential for figuring out how you'll make money as a virtual bookkeeper because it helps you prepare for all the following steps of this process.

  11. How to start a virtual bookkeeping business

    Here are some starter names: The Virtual Bookkeeper. Your Name, CPA (if you're actually a Certified Public Accountant) Your Last Name Bookkeeping. Accountant Virtual Assistant. If you want to start your virtual bookkeeping business under the same name as your business, you'll need a URL (a website).

  12. Your Business Plan

    Learn how to write a one-page or multi-page business plan for your bookkeeping business, with sections on value proposition, problem, market, sales, budget, milestones, team, funding and contingency plan. Find out how to stay alive, have a succession plan and get feedback from others. Download a free template and access more resources.

  13. How to start a bookkeeping business in 9 steps

    5. Choose bookkeeping software. Choosing the right bookkeeping software is one of the most important steps in setting up a bookkeeping business. In addition to your accounting software, you might also consider other software to help you manage payables and receivables.

  14. Go Niche or Virtual

    2. Deals close faster: Prospects will understand you're a fit for their business before you even start talking. 3. You can work smarter: You can come up with efficient processes that lower your cost of sales. In essence, you crowdsource your experience and dispense that knowledge out across your client base. 4.

  15. How to Start a Virtual Bookkeeping Business

    Write a Business Plan. Many small business owners skip this step when starting out but writing a business plan is actually a key component to success. For a virtual Bookkeeping business, it doesn't have to be super elaborate but it should at least include the following: Goals - set short and long term goals for your business

  16. How To Start A Bookkeeping Business (2024 Guide)

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  17. How to Find the Best Virtual Bookkeeping Service for Your Business

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  18. How to create a bookkeeping business plan

    06. Financial plan. The financial plan is the heart of your bookkeeping business plan. It should include startup costs, revenue projections and expense estimates. Specify how you plan to fund your business initially and provide a realistic timeline for reaching profitability.

  19. Bookkeeping Business Plan Template (2024)

    The product and services section of a virtual bookkeeping business plan should describe the specific services and products that will be offered to customers. To write this section should include the following: List the services: Create a list of the services: the primary services you provide, such as accounting, payroll, tax preparation, and ...

  20. What is virtual bookkeeping?

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    Compare the top virtual bookkeeping services for small businesses based on features, prices, and plans. Find out the best features, prices, and plans for each service, such as Merritt Bookkeeping, Bookkeeper.com, inDinero, and more. Learn how to choose the best virtual bookkeeping service for your business needs.

  23. How To Sell Your Virtual Bookkeeping Service Business Now!

    3. Utilize online platforms: Online platforms dedicated to buying and selling businesses, such as business-for-sale websites and marketplaces, are a great way to connect with potential buyers. Ensure your listing is detailed, informative, and highlights the unique aspects of your virtual bookkeeping service business.

  24. Tracey

    9 likes, 0 comments - centuryaccounting1 on February 12, 2024: "Don't let poor planning sneak into your business strategy! Keep an eye out for these red flags:..." Tracey | Accounting | Bookkeeping | Taxes on Instagram: "Don't let poor planning sneak into your business strategy!