Are you detail-oriented and love math and spreadsheets? Then being a virtual bookkeeper might be your calling. Here’s how you can work from home as a bookkeeper.
Are you detail-oriented and love math and spreadsheets? Then being a virtual bookkeeper might be your calling. Here’s how you can work from home as a bookkeeper.
Working as a virtual bookkeeper is a great way to earn a good income and at the same time get the flexibility and freedom you crave. What’s more, it’s easy to get started. Other than a computer, a fast internet connection, and bookkeeping software, you don’t need much setup or equipment. It takes time to get the hang of bookkeeping, but almost anyone with a strong sense of numbers and a penchant for data entry can pick up the skill with practice.
If you want to work from home as a bookkeeper, here’s what you need to know.
The difference between a bookkeeper and an accountant
When you hear the term bookkeeping, you might wonder what kind of responsibilities and experience are required. Unlike accountants and CPAs (certified public accountants), who require a bachelor’s degree and certification, bookkeepers fall under the umbrella of financial accounting.
However, bookkeepers focus more on the day-to-day tasks of tracking income and expenses and reconciling books. While experience is an advantage, a bookkeeper does not require a college degree or CPA qualification. Therefore, while the role of a bookkeeper requires meticulous attention to detail and a high level of accuracy, it does not carry as much responsibility as an accountant’s role.
Accountants, on the other hand, are typically responsible for setting a company’s overall budget and financial policies, overseeing tax information and setting up accounts according to standard accounting practices. Accountants analyze and audit financial information, prepare reports, and make strategic recommendations based on data and tax law.
What does a bookkeeper do?
Bookkeeping is a back-office job that is needed in almost every industry, so you have the advantage of being able to work in any field. Once you have bookkeeping training, you can work in a variety of industries and find a job that interests you. Small business owners, bloggers, non-profit organizations, and more all need bookkeepers.
Common bookkeeping tasks include:
- Managing financial transactions
- Keeping financial records of income and expenses
- Submit receipt
- Account Adjustments
- Providing weekly or monthly financial statements and reports
- Updating financial records
- Inventory management
- Collecting payments
- Invoicing and vendor payments
- Processing payroll
- Petty cash monitoring
- Budget Management
- Consumption tax return
What qualifications do I need?
If you have a formal education in business, accounting, finance or mathematics, or if you have experience keeping the books for a family-run business or store, you probably have a good foundation for working from home as a bookkeeper.
As a bookkeeping service provider, you’ll need a high level of accuracy when entering financial data into a database, so being organized, paying attention to detail and having good time management skills are essential for this role.
However, if you don’t have any bookkeeping experience, there are ways to learn quickly – for example, try the free online bookkeeping training with Ben Robinson from Bookkeepers.
Most online bookkeeping training and certification courses, including the one I recommend, Bookkeepers, take about 3-6 months to complete. However, Bookkeepers is self-paced, so you can complete it on your own schedule. In fact, many students complete the course and get their first client within the first 3 months.
Callie Sitek (Owner of Radical Profits Club) took the Bookkeepers course and has become a very successful remote bookkeeper.
If you’re new to the field, a training course like Bookkeepers can help you learn the basics of popular bookkeeping software like QuickBooks.
How much do bookkeepers make?
According to the Bureau of Labor Statistics (BLS), the average hourly rate for bookkeepers and audit clerks is $22.81 per hour, although more experienced bookkeepers and those who are self-employed can earn much more, anywhere from $30 to $60 per hour.
If you work for a company, a bookkeeper’s salary will typically be around $47,440 full-time. Of course, you don’t have to worry about stability in your hours, and you might even get benefits. But working for a company means you have to work a set schedule, even if the pay is lower.
Where can I find virtual bookkeeping jobs?
If you want to work from home as a bookkeeper, you have a few options. If you have experience, you could contact people you know from your previous job and ask if they or their clients are looking for someone to help with bookkeeping. You could also check the listings of local bookkeeping services, many of which are looking for remote bookkeepers on a consulting basis.
Remote Bookkeeping Jobs:
Some of these companies hire bookkeepers as W2 employees, while others hire them as independent contractors or freelancers. If you work as the latter, you’ll be responsible for paying quarterly self-employment taxes and tracking your own income and expenses, so make sure you fully understand your status before taking the job. Learn how to manage your finances as an independent contractor here.
When searching for remote bookkeeping positions, you should search for a variety of keywords, such as office manager, accounting clerk, junior accountant, financial operations associate, client accounting specialist, etc. You may also want to include similar remote work functions in your search, such as payroll support specialist, accounting coordinator, billing assistant, accounts receivable specialist, etc.
Freelance marketplaces, remote job boards, and recruitment agencies:
One of my favorite places to find bookkeeping jobs online is through staffing agencies. The advantage of searching for remote jobs on staffing agencies’ sites is that you can easily find one-off job listings posted by companies that might be harder to find on larger job board sites.
If you’re interested in finding freelance clients, freelance marketplaces are a great way to find new work and clients.
Of course, you can also search for remote jobs from leading companies in the financial services industry, healthcare and insurance, and even recruitment service providers.
Want to start your own bookkeeping business?
If you’ve decided that becoming a bookkeeping entrepreneur is the right path for you, the first thing you need to do is create a business plan. A business plan will help you set out the different aspects of your business.
Don’t worry, a business plan doesn’t have to be complicated, in fact there are free business plan templates available here.
1. Gather your tools
First, you’ll need a laptop with an internet connection. You’ll also need accounting software to manage your client’s finances. The most popular options include Excel, Bill.com, Xero, QuickBooks, or Sage. Intuit QuickBooks tends to be the industry standard. You’ll also need a way to accept payments from your home clients. PayPal and Stripe are popular options.
2. Build a website
To promote your bookkeeping business and get the word out to your clients, you need to create a website, especially if you plan to work with multiple clients on a consulting basis. On your website, be sure to include your experience, your services and areas of expertise, and client testimonials. If you don’t know how to set up a website, check out this post for an easy and inexpensive solution.
3. Market your business
If you’re not sure how to market your business, there are lots of ways to do so. Start by making some business cards and reaching out to people you know on LinkedIn and Facebook.
Other ways to market your business:
- advertisement
- Cold calling or email prospecting
- Direct mail
- networking
- Blog
- PR Opportunities
- speech
- Guest blog
- Participating in a forum or group
- Social Media
Once you have launched your website, you should set a goal of reaching a certain number of potential customers each day. A general guideline is 5-10 people, but set your own pace as you build your customer base.
4. Stay on top of training and trends
If you want to work from home as a bookkeeper, you’ll need to invest in professional development. Luckily, such opportunities are widespread. Attending conferences, events, and professional groups will not only help you meet others in the industry, but they’ll also help you connect with customers, stay on top of changes you need to know about, and stay competitive. Look out for webinars, online courses, books, and training sessions related to the bookkeeping, finance, business, and accounting industries.
Do you want to work from home as a bookkeeper?
Whether you want to work full-time or part-time, bookkeeping is a flexible, work-from-home job with plenty of opportunity. Bookkeepers are needed in virtually every industry and business, and it’s a job you can do from home with no upfront investment. When working from home as a bookkeeper, you can choose your own path: W2 employment, freelance, or be your own boss.
If you are thinking about working from home as a bookkeeper, start by enrolling in this free bookkeeping course and giving it a try.
Are you working from home as a bookkeeper? Get in touch and tell us your story!
Originally published on March 1, 2017. Content updated August 2024.
