How to Start an Online Bookkeeping Business in the USA

Blog for Accountants & Bookkeepers | Your Online Bookkeeping Business

Online bookkeeping is fast becoming a lucrative business and many people are gradually finding themselves in the business niche. There’s a lot of advantage that comes associated with this type of business, the major part being the fact that you do not require a physical office space while starting up. All you need is the knowledge, a working device, internet connectivity with a reputable online presence and you’re good to go.

Taking a Bookkeeping management course is essential while starting up. To enjoy the benefits of virtual bookkeeping, you have to first put yourself through learning the basics of the niche. You can also read customer testimonials of people who have gone on successfully into the business.

In the USA, most freelance virtual bookkeepers make about $34,000 annually with a standard hourly rate of about $17 to $20. If you’re looking to start up an online bookkeeping business in the USA, here’s a walk-through process.

1.  Learn about Bookkeeping: This first step is majorly for people who are new to bookkeeping. You do not need to be a certified accountant before you can do amazing virtual bookkeeping jobs for clients. All you need is to have a basic knowledge of bookkeeping. Equip yourself with this knowledge as a beginner. There are virtually so many free courses online you can prepare yourself with. Familiarizing with the business niche is the first and important step.

2.   Decide the Type of Bookkeeping Services to Offer: For bookkeeping, there are practically different categories. There’s the preparation of basic financial statements (balance sheets), invoice preparation, tracking of long-term assets, payroll services, account receivable management and so many more. Decide the type of bookkeeping service you’ll be rendering or you can also decide to offer services on all of the different categories as well.

3. Certification: If you’re looking to grow faster in the virtual bookkeeping business, at some point, you’ll need to ensure that you’re a certified accountant. There are many courses online you can take to ensure this. Nevertheless, there are still other jobs that can be made available even without certification but, certification gives you an edge over others.

4. Get a Business Name and other Legal Matters: If you’re setting up your freelance bookkeeping, have in mind that you’re as well setting up a business to compete with others in the field. Have a business name for your service company (it doesn’t matter if you’re still working alone). A business name gives your business a reputation. Also, devise means for essential legal and tax matters as a US resident.

5.   Obtain the Right Tools: Of course, you can’t do any work without the necessary tools like gadgets, software, internet services.

6.   Open a Business Account: Set up a different business account from your account. This is essential to track money in-flow and out-flow.

Setting up an online virtual bookkeeping business doesn’t require so much from you. It only requires that you put in a certain amount of effort.