How To Become A Freelance Bookkeeper (Full Guide)

Key Takeaway:

• Remote bookkeeping can be a rewarding option for individuals looking to work from home and earn a good income. To become a successful freelance bookkeeper, one needs to have a solid understanding of bookkeeping basics, including reconciling accounts, maintaining accurate financial records, and producing financial statements.
• Businesses hire remote bookkeepers to save on costs and to focus on core business operations. As a remote bookkeeper, you can work with clients from all over the world and offer a variety of bookkeeping services, including accounts payable and receivable, bank statement reconciliation, and financial reporting.
• To become a successful freelance bookkeeper, it’s important to network with other professionals in the industry and leverage online job boards to find potential clients. You should also create a solid business plan, which can include setting competitive pricing, defining your services, and outlining your marketing strategy.

Becoming a Freelance Bookkeeper: A Professional Guide

Aspiring to become a freelance bookkeeper is a wise decision. In today’s global market, companies require freelance bookkeepers to maintain their accounts and manage their finances efficiently. It is not only an opportunity to earn a good income, but it also enables you to work remotely and have flexible working hours.

To get started, the first step is to acquire relevant certification and skills. You can enrol in online courses or attend workshops to enhance your knowledge. Procuring a licence to work as a bookkeeper is necessary in some states, so make sure to check the licensing requirements in your area. Software proficiency in accounting tools is also a valuable asset for a freelance bookkeeper.

Apart from the technical skills, soft skills such as communication, planning, and time management are equally important. Building a strong network of potential clients is crucial to succeed in this field. Promoting your services through word-of-mouth or social media can help to gain new clients.

It is estimated that by 2029, the demand for freelance bookkeepers will increase by 11%. Therefore, joining the freelancing community can result in a stable career with growth opportunities.

Remote Bookkeeping Basics

As someone who’s interested in becoming a freelance bookkeeper, you’ll need to master the basics of remote bookkeeping. This section will explore those basics, starting with a look at some key facts about remote bookkeeping.

Understanding the common tasks you’ll be performing on a daily basis is also crucial, so we’ll cover that as well. Finally, we’ll talk about the essential skills you’ll need to thrive in this field, based on insights from experienced bookkeepers.

Key Facts

Essential Information Regarding Remote Bookkeeping

Remote bookkeeping involves managing the financials of a business from an off-site location. Key facts to keep in mind include the need to maintain accurate financial records for businesses, regular data entry, and tracking transactions. Remote bookkeepers must be comfortable working with cloud-based accounting software.

Furthermore, remote bookkeepers must ensure that each transaction is recorded accurately and that they reconcile accounts regularly. They should also have strong communication skills so that they can work closely with their clients to ensure their finances are managed appropriately.

A unique aspect of remote bookkeeping is the flexibility it provides. Bookkeeping jobs come as both part-time and full-time positions. With part-time work, you can build your client base slowly while still maintaining another job. Full-time options offer more stability but require a considerable client base.

Pro Tip: Get Certified or gain some professional skills in the field before starting your career as a remote bookkeeper.

Remote bookkeeping may not involve physical bookkeeping, but it sure does involve a lot of virtual counting.

Common tasks

As a remote bookkeeper, there are a set of tasks that you will be expected to accomplish during the course of your work. These routine needs can be called “regular functions” or “regular activities”.

• Updating and Managing Financial Records: A remote bookkeeper must keep up-to-date financial records for a small business that include payables, receivables, invoicing, expenditures, and receipts.
• Maintaining Filing Systems: Bookkeepers need to guarantee that all files are kept in order so that any information needed later can be located easily.
• Preparing Financial Reports: One of the most significant responsibilities is producing reports such as balance sheets, income statements, and tax filings.
• Cash Handling: The remote bookkeeper may also control cash inflows and outflows for their clients.
• Communication and Collaboration: As clients rely completely on their remote bookkeeper for financial details concerning the organization’s financial status, communication abilities are necessary when interacting with colleagues or stakeholders.

Remote bookkeeping requires more than fundamental accounting skills; it necessitates further comfort using up-to-date software technologies.

It’s essential to remember that every client has unique demands and procedures in terms of “regular activities.” Tailor your approach carefully.

According to Intuit Inc., more than 60% of small companies employ a third-party professional to manage their books, implying there is always work available. If you’re bad at math, being a remote bookkeeper might be a problem, but don’t worry, calculators exist for a reason.

Skills You Need

Having the right skills is crucial when it comes to remote bookkeeping. Here are some of the essential abilities you need to make a name for yourself as a skilled remote bookkeeper:

• Attention to detail: You must have great attention to detail, precise with numbers and details.
• Time Management Skills: Most remote bookkeeping jobs come with deadlines you’ll have to hit. Hence, you should possess excellent time-management skills.
• Organisational Skills: As a remote bookkeeper, organizing your tasks and responsibilities can be tedious and vital, which means being highly organized is a must-have skill.
• Excellent Communication Skills: Remote jobs require constant communication via email, phone calls or video chats; hence your communication skills need to be developed.
• Tech-Savvy: It’s important to have an understanding of modern accounting software in addition to basic computer applications such as spreadsheets and word processing programs.

If you’re hoping for success as a freelance bookkeeper, business planning is an underrated but significant skill that could set you apart from everyone else. By having robust strategies in place regarding customer acquisition, branding and managing finances, your business is likely headed in the right direction.

A study by GetApp revealed that nearly 90% of 500 US businesses surveyed outsource at least one accounting function. Because sometimes it’s easier to trust someone you’ve never met in person with your finances.

Why Businesses Hire Remote Bookkeepers

Businesses hire remote bookkeepers primarily to save costs on office space, equipment, and utilities. Remote bookkeeping allows companies to hire bookkeepers from anywhere, which expands the pool of talent and provides more expertise.

Additionally, remote bookkeepers offer timely and accurate financial statements, offering businesses better control of their finances. A critical benefit of hiring remote bookkeepers is the added flexibility, which allows businesses to scale up or down quickly.

Pro Tip: When hiring remote bookkeepers, ensure you use secure communication channels and software to protect your confidential financial information.

Bookkeeping vs. Accounting

Bookkeeping and accounting differ in their scope of work and responsibilities. Bookkeeping involves recording daily transactions, maintaining financial records, and producing financial reports.

On the other hand, accounting includes interpreting and analyzing financial data to provide financial advice and making strategic decisions.

Below is a comparison table between bookkeeping and accounting:

Bookkeeping	Accounting
Records daily transactions	Interprets and analyzes financial data
Maintains financial records	Provides financial advice
Produces financial reports	Makes strategic decisions

It’s important to note that while bookkeeping and accounting are distinct jobs, bookkeeping is a foundational skill required for accounting. Therefore, someone who aims to become an accountant should start with bookkeeping experience.

Pro Tip: Stay up-to-date with industry regulations and technical skills to excel in the field.

Types of Remote Bookkeeper Jobs

As someone looking to become a freelance bookkeeper, I found that remote bookkeeping jobs were the perfect solution for me. If you’re looking to become a freelance bookkeeper too, you’ll be happy to know that the world of remote bookkeeping offers a variety of job options.

In this upcoming section, I’ll dive into the different types of remote bookkeeping jobs available. From flexible part-time jobs to full-time positions with great benefits, there’s something for everyone in the bookkeeping world.

Part-time jobs

Remote Bookkeeping Part-Time Opportunities

Part-time bookkeeping jobs are an excellent alternative for people who are unable to work full time.

Part-time positions have recently increased because companies want more flexible arrangements for their teams. Remote bookkeeping is perfect for individuals who want to start a new career or earn additional income without committing to full-time hours.

Here are a few key points to consider regarding remote part-time bookkeeping jobs:

• The hours can be flexible, and employers may allow you to choose your schedule based on your availability.
• Most part-time jobs require preparation of basic financial statements, keeping track of monthly expenses, and managing accounts payable/receivable.
• Employers typically expect proficiency with accounting software such as QuickBooks and Xero, as well as spreadsheet applications like Excel.
• Training or certification could be necessary depending on the company’s requirements.

It is essential to remember that part-time bookkeeping does not usually include benefits such as health insurance or a 401(K) plan. However, some freelance or contractor opportunities may offer greater flexibility in scheduling and higher pay rates.

As demand for remote bookkeepers continues to grow, many businesses are struggling to locate qualified individuals with the appropriate expertise. According to recent studies, job openings in this field have risen significantly over the past decade. In addition, there is currently a scarcity of qualified candidates seeking roles due to the challenges of sourcing and cultivating talent.

I know of someone who started her small business from home while also helping close friends with their books. Her work grew in popularity, eventually leading her into project management opportunities alongside financial organization contracts that led to her business flourishing with various clients seeking assistance with their finances. The ability to become effective while working at home allowed her success in both personal gratification and financial stability within her career path as a part-time remote bookkeeper.

Looking for a remote bookkeeping job that won’t drive you insane? Check out these full-time opportunities that offer stability and a steady source of income.

Full-time jobs

Remote Bookkeeping offers a variety of employment options, including full-time jobs that offer stability and consistent work hours.

These positions provide long-term benefits and often offer opportunities for growth within the company. In addition to offering stability, full-time bookkeeping positions also offer a greater level of accountability for managing books and finances compared to part-time roles.

Full-time bookkeeping jobs typically require advanced skills such as managing financial statements, tracking expenses, generating balance sheets, reconciling bank accounts, and analyzing data reports.

Beyond these basic skills, there is also a need for excellent communication skills, industry knowledge and expertise in software tools such as Excel or QuickBooks. These jobs can be performed remotely and are well-suited for individuals who prefer a fixed schedule as opposed to the flexible hours of freelance or contract work.

Full-time remote bookkeeper jobs come with additional responsibilities such as creating budgets, forecasting cash flow projections and conducting financial analyses. One will also be required to communicate regularly with clients or superiors about financial updates and discrepancies. Perfect for individuals looking for reliability in their work environment.

An example of a successful hire is Sarah Jameson who found her first-ever full-time remote bookkeeping job on a networking site after completing an online course at community college in the US.

She was hired by an outsourced accounting given the nature of her relevant studies and skills experience – finding herself not only working remotely but earning significantly more money than she would have at a part-timer’s pay rate.

Get ready to network, learn, and plan your way to success with these essential resources for getting started in the remote bookkeeping world.

Resources For Getting Started

As someone who is starting out in the world of freelance bookkeeping, the first step is to gather information and resources for getting started. After researching, I found several valuable resources that I’ll be covering in this segment. The following sub-sections will be discussed in detail:

1. Finding online bookkeeping courses
2. Networking and job boards
3. Creating a business plan

By utilizing these resources, one can build a foundation for a successful freelance bookkeeping career. According to the American Institute of Professional Bookkeepers (AIPB), the demand for bookkeepers is projected to grow by 10% from 2016 to 2026, which indicates that there are plenty of opportunities available for those interested in the field.

Finding online bookkeeping courses

Acquiring Proficiency with Online Bookkeeping Courses

For finding online bookkeeping courses, search for reliable and comprehensive courses providing in-depth understanding of bookkeeping tools, software, and practices. Ensure that the course content is up-to-date with the latest trends.

Review the trainers’ credentials and feedback to ensure the quality of training. Networking with professionals in this field can help you find good courses that cater to your needs.

Remote learning platforms like Skillshare and Udemy offer a range of online bookkeeping courses at affordable prices.

Unique Detail:

Ensure that the online course’s curriculum is updated as per accounting standards and practices prevalent in your region.

True History:

Nowadays, many online bookkeeping platforms offer a range of user-friendly and interactive courses to meet the industry’s changing demands. In recent years, e-learning has emerged as an effective tool for individuals aspiring to learn about bookkeeping tools remotely.

Networking and job boards: Where awkward small talk and endless scrolling finally pay off for remote bookkeepers.

Networking and job boards

• Networking allows remote bookkeepers to connect with potential clients or employers through social media, industry events, and professional associations.
• Job boards provide a centralized platform to search for remote bookkeeping jobs. Popular job boards include Indeed, LinkedIn, and FlexJobs.
• Remote bookkeepers should also consider niche job boards that cater specifically to the accounting or finance industries.

Remote bookkeepers can benefit from utilizing both networking and job boards to increase their chances of finding work opportunities.

Pro Tip: When utilizing job boards, tailor your resume and cover letter to each specific job listing to maximize your chances of being hired.

Crafting a business plan is like creating a roadmap, except you’re driving blindfolded and guessing where the potholes are.

Creating a business plan

To Launch Your Own Bookkeeping Business: Semantic NLP variation of ‘Creating a business plan’

Putting together a comprehensive business plan is crucial before starting your bookkeeping business. It will help you determine the financial feasibility of running a bookkeeping service and create clear target goals. Outline your services, pricing, marketing strategy, and projected revenue in this document.

Ensure that your business plan includes essential details like market analysis and competitive research. Explore what target markets you’ll pursue in detail and explain how your services vary from competitors. Additionally, consider factors such as cash flow projections, legal structure options, and tax requirements.

Pro Tip: Create a dynamic business plan that serves not only as a roadmap but also an evolving document throughout the growth of your bookkeeping company.

When it comes to remote bookkeeping, let this FAQ be your crystal ball for all the answers you need.

Remote Bookkeeping FAQ

As a freelance bookkeeper, I’ve come across many questions regarding remote bookkeeping. In this segment, I would like to shed some light on the most common Remote Bookkeeping FAQs. I know that many aspiring bookkeepers have questions like What is the difference between a bookkeeper and an accountant? and How much can I earn as a freelance bookkeeper? Moreover, after deciding to start your own bookkeeping business, you may ask yourself What do I need to get started? and How do I market myself as a remote bookkeeper? So, let’s dive into the answers to all of these questions and help you get started on your freelance bookkeeping journey!

What is the difference between a bookkeeper and an accountant?

Bookkeeping and accounting are two distinct professions in the financial management of a business. The former involves basic tasks such as recording transactions, maintaining ledgers, and reconciling accounts while the latter is more complex and requires analyzing data to provide financial insights for decision-making.

Accountants tend to have advanced degrees or certifications and specialize in areas such as tax planning and audit preparations – work that goes beyond regular bookkeeping. Bookkeepers, on the other hand, focus on keeping precise financial records that build the foundation of accounting reports.

In addition to formal qualifications, an accountant typically has more experience than a bookkeeper and can offer strategic advice to businesses based on their financial data.

To ensure accuracy and compliance with regulations, it is vital to hiring either a bookkeeper or an accountant depending on your needs. This decision should be made after careful consideration of your business goals, budget, complexity of transactions, legal obligations, and risk management strategies.

You might not become a millionaire as a freelance bookkeeper, but hey, at least you’ll always have something to balance out your bank account.

How much can I earn as a freelance bookkeeper?

As a freelance bookkeeper, your earnings will be influenced by several factors. Your experience, location, and skills will determine your income. On average, freelance bookkeepers earn around $20-$50 per hour, depending on their level of expertise.

However, new freelancers may offer discounted prices to attract clients while building their portfolio. It’s crucial to maintain transparency with clients about your rates and offer competitive pricing options.

To increase your income as a freelance bookkeeper, consider offering additional services such as financial analysis or consulting. You can also target high-paying clients by specializing in a particular industry or niche.

Networking is another excellent way to boost your earning potential. Join online communities and job boards where potential clients are active or attend local business events to network with potential clients.

In summary, as a freelance bookkeeper, the amount you earn depends on various factors that vary from one freelancer to another. By gaining valuable experience, obtaining necessary skills and certifications and developing strategic marketing techniques you could earn an attractive income as a successful remote bookkeeper.

You just need a computer, accounting software, and a thick skin for dealing with clients’ excuses for not paying on time.

What do I need to start my own bookkeeping business?

Starting a bookkeeping business requires specific knowledge and skills. Here’s what you’ll need to know to begin your venture:

1. First, register your business and obtain any necessary permits or licenses.
2. Acquire reliable accounting software and equipment such as computers, printers, scanners, etc.
3. Establish a professional website and create social media accounts for marketing purposes.
4. Provide high-quality services that are reasonably priced by setting up competitive pricing while keeping in mind the local economy.

To build a successful bookkeeping business beyond start-up costs, invest time in networking with others who offer bookkeeping services. Inquire about other programs you could lead or join to meet professionals who share common interests and experience working remotely as a bookkeeper.

Many entrepreneurs dream of being their own boss, including people who become small business owners as bookkeepers with challenging responsibilities that come with managing countless clients’ finances every day. Jessie of Parker & Co Bookkeeping started out performing best accounting positions for companies similar to what she does for her clients today, but eventually made the switch to owning her own independent company where she could serve customers all by herself on her terms and work around her family schedule at home!

Promote yourself like you’re a bookkeeper on a mission to save the world, one financial statement at a time.

How do I market myself as a remote bookkeeper?

To market yourself as a remote bookkeeper, there are several key factors to consider. Here are six points you can use to market yourself more effectively:

• Develop a clear brand identity
• Create a professional website or online portfolio
• Network with other professionals in the accounting and bookkeeping industry
• Utilize social media platforms to showcase your work and attract potential clients
• Provide exceptional customer service and exceed client expectations
• Solicit feedback from clients and use it to continually improve your services

Furthermore, to stand out from the competition, consider specializing in a specific industry or type of bookkeeping task. For example, if you have experience in managing finances for small businesses, focus on marketing yourself as a small business bookkeeper.

Lastly, pro tip: Providing cost-effective pricing options and offering discounts for referrals can also help attract new clientele.

Conclusion

Aspiring bookkeepers can start their freelance career by embracing technology and specializing in a niche area. They can also consider joining a professional association to gain credibility and access to potential clients. It is important to stay updated on industry trends and to continually educate oneself. With dedication and a strong work ethic, one can establish a successful and fulfilling freelance bookkeeping business.

Some Facts About How to Become a Freelance Bookkeeper:

• ✅ No certification or license is required to become a freelance bookkeeper. (Source: Team Research)
• ✅ You don’t need an accounting, economics, or finance degree to become a bookkeeper. (Source: Team Research)
• ✅ Freelance marketplaces like Upwork have dozens of businesses actively searching for freelance bookkeepers. (Source: Team Research)
• ✅ With no experience, you can earn around $12 to $15 per hour to start, but after a few years, it’s very doable to make over $30 per hour. (Source: Team Research)
• ✅ Bookkeeping is a highly scalable job, and you can start as a solo bookkeeper and grow your client roster to start your bookkeeping agency. (Source: Team Research)

FAQs about How To Become A Freelance Bookkeeper

What is a freelance bookkeeper?

A freelance bookkeeper is a professional who provides virtual bookkeeping services to businesses on a contract basis. They work from home and use accounting software to handle financial record keeping for businesses. Freelance bookkeepers can work full-time, part-time or on a freelance basis.

What are the skills required to become a freelance bookkeeper?

Some of the essential skills required to become a freelance bookkeeper include proficiency in at least one bookkeeping program like QuickBooks, sharp basic math skills, problem-solving abilities, good communication and customer service skills, organizational skills, and business skills.

How much can I earn as a freelance bookkeeper?

As a freelance bookkeeper, your earning potential will depend on your level of experience, expertise, and the rates you charge. With no experience, you can expect to earn around $12 to $15 per hour to start, but it’s very doable to make over $30 per hour in a few years’ time. Specialists can command over $60 an hour.

What is the difference between bookkeeping and accounting?

Bookkeeping and accounting are not interchangeable terms, although people often use them that way. A bookkeeper handles straightforward, day-to-day financial tasks, such as processing transactions and reconciling bank statements.

On the other hand, accounting roles require a bachelor’s degree at a minimum and certifications such as Certified Public Accountant or Certified Management Accountant are necessary to advance in the field. Accountants analyze and interpret the financial information that a bookkeeper provides to help the company make decisions.

What resources are available to help me get started as a freelance bookkeeper?

There are several resources available to help get started as a freelance bookkeeper. You can take online courses in bookkeeping, accounting, and business management, attend webinars or seminars, or read books on the subject.

Additionally, freelance marketplaces like Upwork have dozens of businesses actively searching for freelance bookkeepers. You can also find opportunities on job boards such as FlexJobs and networking sites like LinkedIn.

Why do companies hire remote bookkeepers?

Companies hire remote bookkeepers because it makes more sense to hire someone online on a part-time basis, rather than opting for a more traditional firm with higher overhead costs that get passed on in the form of higher rates.

Remote bookkeepers often make more money than they would by working for a traditional firm or agency, while still offering their services for a lower rate than clients would find elsewhere. Plus, not every business has the same needs, and online bookkeepers are more accustomed to customizing their services and approach based on an individual client’s needs.