The growing world of the internet and technology have evolved the ways how we did business. With more opportunities, people are now more independent and it’s far more easy to make money from home. There are several people from around the globe who earn a full-time income working as a freelancer from home. Yes, without any work experience or degrees.
You need to know what to do, and there are plenty of opportunities available on the internet. Well, we are not here to talk about how to make money from the internet, but on how to start a bookkeeping business from home.
While people are making comparatively more money than they did a decade back, thanks to the internet, growing opportunities and financing options. But, while an array of people are making money, most of them don’t know how to manage it. Boom! There opens up a massive market of potential customers who need bookkeeping services.
Not all can afford a professional financial facility or planner. They need standard bookkeeping services which will basically help them manage their finances.
What Does A Bookkeeper Do?
Bookkeeper is different than an accountant. Bookkeeping is an entry-level job, and generally, don’t require a degree or certification. You can start to bookkeep without any formal education or even experience.
A bookkeeper is primarily responsible for paying bills and collecting payments on invoices. You have to update financial records, create financial reports, post financial records and debiting and crediting to appropriate accounts.
You may also have to receive receipts, reimburse employees for work-related expenses and maintain accounts receivable. In a whole, you will keep a check on all the money going in and money going out on a daily basis.
How Much Can You Earn as a Bookkeeper?
Entry-level bookkeeper without any prior work experience work at an average of $15.50 an hour. With a few months of work experience, you can make close to $40,000 a year (for bookkeepers working in any accounting department of a company or corporation).
As a freelance bookkeeper, like virtual bookkeepers, you can set own rates, which make thrice as much by working for multiple clients.
Bookkeeper Without A Degree
Entry-level bookkeepers don’t need a degree. Most of the inexperienced bookkeepers primarily rely on a combination of existing skills and on-the-job training. With your work experience, you can turn into a successful bookkeeper.
How To Be A Bookkeeper Without Any Professional Experience?
Understand that is a very basic job. A small organization is not run by a permanent bookkeeper. As a freelance bookkeeper, you will help them maintain their financial records, and this does not require any previous work experience.
If you are someone who has some experience, it’s an added advantage. If not, chill, we have you covered. Let’s start on how you can start a bookkeeping business with no experience from home.
How To Start A Bookkeeping Business With No Experience From Home
We have jotted down all the important points in steps to make it easy for you to understand.
1. Getting Started
Yes, you will need some experience before you start. Not like working at a bookkeeping agency or something, but maybe managing your own finances or someone you know. It’s better to take up an online course and learn the basics. Even if you do not have any idea, start with the basics and in a few days, you will have the idea.
Unlike other professions, bookkeeping positions are entry level. You won’t need any degree in most of the cases.
2. Planning Up Your Home Bookkeeping Business
A well-detailed plan is important. You need to have a business plan elaborating on the various aspects of your home-based bookkeeping business. You can choose to offer services from your home or can look for any virtual bookkeeping job. There are several such jobs available online, often overlooked. Being an entry-level job, you can apply for such jobs online without any prior work experience.
But do your homework properly. Do an online course, or work at some local bookkeeping firm, as the skills are necessary to land a position.
3. Financing Your Business
Starting a bookkeeping business from home will involve some standard start-up costs. You will need no major investment. The primary costs involved in the business are the registration costs, legal filing and some marketing. You can easily start a bookkeeping business from home with your little savings.
4. Registering Your Business
Starting as an independent bookkeeping firm will need a legal business registration. You have to register your business to start operating legally. First, file an official name, and then choose a business structure. If you choose to form a limited partnership company, then you can enjoy added legal advantages and tax benefits in some countries.
This may involve some sort of preliminary costs for registration and filing.
5. Permits & Licenses
As a bookkeeping firm, you will be dealing with sensitive data. While most of the countries have no license or permit in specific for bookkeeping agencies. This may vary from country to country, so it’s better to take legal help to clarify all the working terms and conditions. Do not start to take up any assignment before you complete the legal process.
6. Insurances You Will Need
There’s no specific insurance you will need for a bookkeeping business. But as its a service related business, you may go for professional liability insurance. You will be dealing with someone else’s private and sensitive data being a bookkeeper. You must get insurance to protect yourself and your company.
With the business liability coverage and professional liability, this will cover any errors or omissions or data breach.
7. Fixing A Fee
As a beginner, you should always start to price your service below your competition. Start by researching your local competitors and even the virtual bookkeeping services. Calculate your average price including your operational expenses. Do remember, that you need to build your audience first. You can’t start by charging your initial customers high. First, build your market, and with a steady client base, you can definitely go for higher charges.
With experience and the value of your services, you will get clients who are ready to pay high.
8. Marketing Your Bookkeeping Business
Even if you plan to start a bookkeeping business from home, you will have to market yourself. Start with flyers and business cards. You can even choose to market your services on Facebook and Google so that you can reach out to the potential audience.
Also, you can send your brochures to local businesses, small businesses and stores, who may need bookkeeping services.
9. Keep Learning
In bookkeeping business, you will have to keep learning every day. Either from your mistakes or good work, you need to learn the art of managing a company’s finances. So, do continue your learning and consider taking up more verticals. As a bookkeeper, you will get to encounter several projects. You will deal with new clients every day.
Make sure you are offering the best service possible. The quality counts, not the number of customers.
10. Expanding Your Services
As you grow, you will have to diversify your services. With your bookkeeping services, you have to now expand your portfolio. For example, you can start to offer packages which may include payroll for your clients. With bookkeeping, you can help them file their business taxes. Or as an addition, you can help new businesses with their financial planning and loan packages.
Adding services offer you an opportunity to expand your market and as well grow in the domain which will help you to attract new clients.
With so many flourishing small businesses, you can easily start a successful bookkeeping business in such a market. Follow our complete guide to having a blazing start for your home bookkeeping business!