How to start a virtual bookkeeping business in 5 steps

Written by kahwyn, June 10, 2022

It includes integration features, the ability to create and track invoices and the ability to record and categorize expenses, income and other transactions. You can also automate transactions to reduce the time on bookkeeping. Intuit QuickBooks’ Essentials Plan is our top choice for businesses that are service-based — think professionals and businesses that don’t need to track inventory or manage product sales.

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. Some accounting firms like being extremely hands-on, something you should consider as a virtual firm.

Staff Management

Purchase in less than a minute, receive your policy instantly, and save when you buy online. Bookkeepers run their business as a sole proprietorship or partnership. And if at any point you want to upgrade your certification, consider going back to school at a high-quality institution. For example, the University of Texas is among the 50 best accounting schools. Bookkeepers don’t have the same rigid standards as Chartered Professional Accountants (CPAs).

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. 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. When using mobile devices and laptops for work, it is much easier for devices to be stolen or hacked.

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

However, it’s important to note that your bookkeeper won’t be the only person working on your business finances. So you’ll want to understand which tasks your bookkeeper is and isn’t responsible for handling. Your reports will look different depending on which you decide to use.

While accounting encompasses these data-gathering duties, this field also tends to involve analyzing the numbers and making profit and loss projections. However, bookkeeping as a term doesn’t necessarily include such long-term calculations and analyzes. If learning the ropes of small-business bookkeeping sounds intimidating, have no fear. Discover the different options available to you, and why it’s so important to keep detailed financial records.

Best for products-based businesses

From there, the total pay is determined with the applicable taxes and withholdings. In the accounting software, the primary journal entry for total payroll is a debit to the compensation account and credits cash. Bookkeeping is the process of tracking income and expenses in your business. It lets you know how you’re doing with cash flow and how your business is doing overall. Staying on top of your bookkeeping is important so that you don’t have unexpected realizations about account balances and expenses.

• For income, you’re responsible for tracking payments and handling any invoice issues.
• In this age of cloud accounting and virtual bookkeeping services, they should be able to have reports sent to you on a schedule.
• You can use these platforms to nurture relationships with your clients.
• Depending on the bookkeeping/accounting software you choose, there generally will be a payroll processing option you can turn on when you’re ready to hire employees.
• Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online.
• You can get bookkeeping courses from Accounting Coach, Coursera, or LinkedIn.
• If so, you’re in the right place to take your first steps as you go from idea to reality.

It also enables seamless communication between managers and employees, allowing for efficient task delegation and updates. Salon software solutions refer to computer programs that manage various aspects of salon operations. Ideally, you also want to find a bookkeeper or accounting firm that has experience in your industry. Just as reporting standards vary regionally, they also vary by industry.

However, if your business grows to the point of hiring employees, you need to consider becoming an LLC or corporation. In addition to tax consequences, your personal liability in the event of a lawsuit can vary dramatically by business structure, so be sure to consult with an attorney. Many bookkeeping firms prepare financial statements that their clients take to CPAs or other tax pros to prepare a return. You may find yourself working closely with their tax preparer, and together, you can provide outstanding service to your mutual clients. Most virtual bookkeeping firms start with the owner as the sole employee.

• Ensuring you have the right insurance to protect your business is one of these crucial steps.
• The limitations of accounting software include inaccuracies due to incorrect information being input or put into the wrong category, the risk of data loss and the fraud risk.
• Virtual bookkeeping firms also need several non-accounting software subscriptions.
• You should request quotes from several agencies to ensure you get a good deal.
• Tax services would require additional training, but it could diversify your revenue and increase profits.

This way, you’ll be growing your reputation alongside building your business. Manage your business from any device with Ovatu’s intuitive interface. Try the fully loaded instant demo today and experience the next generation of salon software. It helps ensure compliance with labor laws and https://www.bookstime.com/ regulations, facilitates effective communication between managers and employees, and promotes a positive work environment. As you balance Accounts Receivable against Accounts Payable, the result is your net income. Divide this amount by net sales amount to obtain your profit margin.

What is a virtual bookkeeping service?

A bookkeeper’s work is applicable across many different types of industries — after all, every business needs to track and optimize its finances. However, to help market your business and set it apart amongst the competition, you may decide to specialize in a specific industry. You will also need professional accounting software, such as Quickbooks. To set up a budget, you’ll need to gather your financial data, such as income statements, balance sheets, and cash flow statements. This will give you a clear picture of your business’s past financial performance and help you make realistic projections for the future.

Email marketing and SMS marketing are not just for reminders, but they can also help promote services and build a loyal client base. Platforms such as Millenium Salon Software offer automated and other personalized salon marketing campaign options to help grow your business and retain more clients. Credit card processing and online bookkeeping services for small business general payment processing is important for salons catering to different clients. Multiple payment options make it a better experience for clients, and you can also get additional financial insight if the platform offers reporting capabilities. In addition, STX Salon Software and Salon Tracker have great POS features.