Remote work has become the norm. Even before the pandemic, outsourcing was on the rise. Business owners and managers around the globe are realizing that employees don’t have to be present physically to be productive, efficient, and beneficial.
Do you think that applies to bookkeepers? Yes.
The number of virtual bookkeepers is on the rise. This article will explain why virtual bookkeepers might be the best option for your company. It also explains what you should look out for when looking for virtual staffing companies.
What is Virtual Bookkeeping?
The virtual bookkeeper doesn’t have to be an employee of the company. Remote accountants can be found anywhere in the world and will still maintain your books.
QuickBooks Online, an accounting app, allows for instantaneous information sharing among bookkeepers and employers. Just a click away, you can access financial statements, account management, financial transactions, and all other aspects of your business’ finances.
Virtual bookkeeping offers many benefits
It’s easier to hire a virtual bookkeeper rather than to find one in the office. It costs money to keep a job posting open. You can find the right person quickly by reaching out to a virtual staffing agency.
Virtual staffing companies analyze your business processes and books to find the right match for your company.
Virtual bookkeepers work according to your schedule. A virtual bookkeeper will follow your schedule. An accountant who deals with online information flow is likely to be more knowledgeable about online data security than any in-house bookkeeper.
Virtual bookkeepers can instantly upload all information to the cloud. This makes it easy for valuable information to be available in just a few clicks. Scheduled reports are industry-standard.
What skills do you need to start a virtual bookkeeping business?
Here are the essential steps to starting a virtual bookkeeping company:
- Basic computer skills are required to work as a bookkeeper
- You can train to become a skilled or certified bookkeeper
- To become a Certified Public Accountant, you must pass the CPA exam
- Bookkeeping practice to ensure efficient record keeping, data entry, cash flow management, etc.
- You will need to be familiar with accounting software to offer bookkeeping services to clients
- Effective communication skills are essential to obtain clients, negotiate with them and work efficiently together
You may seek out a mentor to help you start your bookkeeping business.
Five Steps to Launch a Virtual Bookkeeping Business
This step-by-step guide will help you get started.
Step 1: Choose a Business Name
- You will need to choose a name for your virtual business. You should choose a name that is relevant to your industry and the nature of your work. It should also be easy to register.
- Online business name generators can be used to find unique names for your bookkeeping business.
Step 2: Register your bookkeeping firm as a legal business entity
- Next, you will need to select a type of legal entity for your virtual bookkeeping company.
- You can form a sole proprietorship if you plan to work full-time as a bookkeeper. As a sole proprietor, however, you will be responsible for all business debts or lawsuits.
- It’s very easy to register your sole proprietorship business. Fill out the simplified form, and we will handle all legal formalities at a lower cost than hiring a lawyer.
- What if your company needs additional bookkeepers? What if you want your personal liability as a business owner to be reduced?
- Bookkeepers often prefer to create limited liability companies (LLCs), which can limit their personal liabilities, and offer taxation and management options that are flexible.
- You will need to file Articles of Organization at the Secretary of State and pay the required filing fee. An EIN (Employer Identification Number) will be required to be filed with the IRS. This is necessary for filing taxes, opening a bank account, hiring bookkeepers, and other tasks.
- Although the fees and rules for forming an LLC may differ from one state to another, you can create an LLC in California or Texas. You only need to complete our simplified application. We’ll take care of the rest.
Step 3: Purchase Other Business Essentials
It’s not enough to register your business. To offer virtual bookkeeping services to clients, you will need other business necessities.
These are the business essentials of virtual bookkeepers.
Here you go:
- A business bank account: It will allow you to separate your personal and business expenses.
- Accounting software You need to select the right tool for your clients. QuickBooks Online, LessAccounting Software, FreshBooks, and Xero are some of the most powerful accounting software options on the market.
You can choose which tool best suits your bookkeeping needs.
- Business cards When you start your business, it is important to design a card that promotes your bookkeeping services. You can print a few cards and give them to potential clients or business owners.
It should include your website URL, bookkeeping services that you offer, and your email address.
- Website: When you start a virtual bookkeeping company, it is important to have a website. It all starts with a website for the business and social media profiles.
Your website should contain all the information your potential clients might need.
- You should ensure your business against unexpected liabilities and lawsuits. Professional liability insurance may be required for virtual bookkeepers.
To help small business owners such as you, we have partnered up with the most trusted insurances.
- Permits and licenses: There are no licensing requirements for businesses working in the bookkeeping sector. You may require other permits or licenses to operate a business in your locality, state, or county.
To ensure that your bookkeeping business is legally compliant, you should consult the authorities.
Step 4: Choose the Bookkeeping Services that you’ll offer
You can offer virtual bookkeeping services to your clients:
- Basic financial statements, such as balance sheets or cash flow statements, are created
- Accounts payable management
- Accounts receivable management
- Payroll services
Step 5: Find Clients for Your Virtual Bookkeeping Business
Finding clients is the most important step in making money with your bookkeeping company. You can promote your bookkeeping services with multiple advertising strategies.
As a virtual bookkeeper, you should evaluate your strengths and make them your selling point.
Your network is the best place to begin your search for clients. You can tell your family and friends about your business, and get contacts from business owners who might be interested in becoming clients. You can promote your services via social media, blogging, and guest posting after networking and getting referrals.
It is a good idea to outsource accounting to a cloud-based company. There are many legitimate cloud-based companies.
Virtual bookkeeping can be a lot more efficient than hiring an employee in-house. The information is easier to find and more affordable, you have a greater chance of finding an accountant who is skilled in your industry, and you will get agreed-upon reports. Virtual hiring makes the process faster and more straightforward.