How To Start A Bookkeeping Business 2024 Guide

Learning how to become a bookkeeper is also a great career choice if you like the idea of working remotely. Bookkeeping is a super flexible side hustle that can be completed from https://www.bookstime.com/articles/llc-accounting-what-you-need-to-know anywhere worldwide. Bookkeeping is the right career choice for you if you have great attention to detail, are reliable and trustworthy as well as organized and disciplined.

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No formal education is required to be a bookkeeper and only basic math skills are needed. This means recording transactions and saving bills, invoices and receipts so you have all the data you need to run reports. Accounting software makes it easy to store these documents and reference them in case of an accounting error or audit. Now that you understand how to become a bookkeeper, you are ready to get started on your new path. Whether you are already in the bookkeeping field or just starting out, this guide can help you determine your next steps.

How to Become a Bookkeeper: Next Steps

Successful bookkeepers may gain a sense of accomplishment from helping a company maintain accurate records, forecast cash flows, and complete financial reports. Many companies need the services of bookkeepers to maintain their financial records for them so they can free up their time for other things. If you do a good job of marketing your services and do good work, there’s no reason why you can’t grow a virtual bookkeeping business into something you can be proud of.

• A typical bookkeeping certification course takes several weeks to complete.
• A bookkeeper can help keep your financial records organised, up-to-date, and accurate so that you’re better equipped to make informed decisions about your money.
• It is crucial to stay on top of changes in legislation and make sure the business complies.
• The balance sheet is a snapshot of a company’s financial position at a given time.

Coordinate with a tax specialist

Bookkeepers may start working for a small business to gain experience and then go back to school for a degree in accounting or finance. Enrolling in one of the best online bookkeeping classes is a smart way for how hard is bookkeeping those interested in this career to bolster their existing financial knowledge. Your credentials show prospective employers that you’re a qualified bookkeeper and you’re willing and able to grow professionally.

• Taking software-specific certifications can also enhance your credibility.
• You can then learn how to use multiple accounting software programs and work tools on the job.
• Bookkeepers record a business’s financial transactions, manage the accounts, and maintain the established accounting systems.
• You can log on to a company’s accounting system remotely and update information from home, a coffee shop, or from somewhere else.
• If you’re not tracking daily expenses, you’ll have very little information to give to your accountant and they won’t be able to make informed decisions.
• Becoming a certified bookkeeper requires passing an exam to get a bookkeeping certificate.

While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes. If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations. Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. You want your business name to reflect you as a person and the type of services you provide. Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do. Cultivate your desire to learn new things because there’s always something new to discover and learn.

Are bookkeeping and accounting different?

Accounting takes that information and expands on it through analyzing and interpreting the data. As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely. Automatically add tracked time and expenses, calculate taxes, and customize your payment options. As a service provider or a freelancer, you can earn more than the average full-time bookkeeper. The key to commanding a higher rate is to provide the value your clients need. Accounting software know-how can make you an even more valuable asset to clients.

There are various career paths for accountants (and some for bookkeepers), from working as a forensic accountant to becoming a financial auditor or an enrolled agent. With bookkeepers, there are a lot of minutiae involved, and keen attention to detail is paramount. Accountants, on the other hand, tend to use the bookkeeper’s inputs to create financial statements and periodically review and analyze the financial information recorded by bookkeepers. Bookkeepers are commonly responsible for recording journal entries and conducting bank reconciliations. A bookkeeper must be able to shift focus easily and catch tiny, hidden mistakes in a budget or invoice. Bookkeepers often work a few jobs for various clients if they work as consultants.

Salaries and job opportunities

• According to the US Bureau of Labor Statistics (BLS), the median salary for bookkeepers in the US is $45,860 per year as of 2021 [1].
• Quickbooks allows businesses to easily manage their income, expenses, and other things.
• Financial institutions, investors, and the government need accurate bookkeeping accounting to make better lending and investing decisions.
• Professionals with a unique industry understanding may have additional advancement opportunities.

If your bookkeeper bills your customers or pays your vendors and employees, make sure you have proper checks and balances in place to mitigate the possibility of fraud. With this type of service, you can communicate completely by email or phone without having to set aside time to meet in person. The responsibilities handled by a service will depend on the provider, so be sure to discuss the scope of work and compare options to find the right fit. Your reports will look different depending on which you decide to use. If you’re interested in working remotely as a bookkeeper, applying directly or joining the Intuit Tax and Bookkeeping Talent Community may be the right move.

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If you go this route, make sure to brush up on interview questions that’ll help you determine who’s the best fit. What’s it like to work as a Front Office Expert or Back Office Expert for QuickBooks Live? Watch the videos to find out what a day in the life is like for our Intuit bookkeeping experts. To become a Certified Public Bookkeeper (CPB) from the NACPB, you must complete the Accounting Fundamentals course and pass the Uniform Bookkeeping Certification exam. Let us know what type of degree you’re looking into, and we’ll find a list of the best programs to get you there.