To become a virtual bookkeeper:
This guy suggested three ways to start a virtual bookkeeping biz. The first way is to create a website. You need to use Google AdWords and Facebook ads for this method. Another way is to create a portfolio of your past works. Finally, you can walk into local businesses and see if you can get a work there.
This CFO suggested finding a niche and focusing on that. Focusing on a single niche will help you find clients faster. Bookkeepers can also try applying on freelancing platforms.
This article explains how to become a virtual bookkeeper, with or without an accounting background. The responsibilities of a virtual bookkeeper are enumerated. This article discusses how to become a virtual CFO and the responsibilities that come with it.
How To Become a Virtual Bookkeeper (with an Accounting Background)
How To Become a Virtual Bookkeeper as a Complete Beginner
Cons of Becoming a Virtual Bookkeeper without Experience
Steep learning curve: Without an accounting background, you'll struggle to study bookkeeping principles, software, and best practices.
Limited initial job offers: Most clients prefer experienced bookkeepers. It’s hard to secure your first clients when you’re just starting.
Higher risk of errors: Inexperienced bookkeepers are prone to making mistakes. This can damage your reputation and career.
Low profits: Beginners may need to charge lower rates to attract new clients. This means you may have a lower income compared to experienced bookkeepers.
Legal consequences: Clients can sue you for committing vital financial mistakes. You’re at higher risk of this if you’re inexperienced in the industry. Unusual transactions or complex financial scenarios require deeper knowledge and experience.
Hard to manage clients: Without experience, you may find it difficult to set appropriate boundaries. It will be challenging to manage client expectations or handle difficult client situations.
Stress and pressure: Managing clients' finances can be stressful. Pressure is more intense when you’re still learning and unsure of your abilities.
How To Become a Virtual CFO?
What are the Responsibilities of a Virtual CFO?
Stories of People Who Became Virtual Bookkeepers
This Reddit commenter said he started virtual bookkeeping in 2014. His first few clients were friends who run small businesses. He went to events and built a killer website. Eight years later, he had 40 recurring clients already. He emphasized the importance of banking on customer pain points. This will help customers appreciate your service more.
Although many smoothly transitioned to virtual bookkeeping, some struggled.
This experienced bookkeeper said he struggled to find an online job. He noticed that many companies don't care about your position. They prefer those who have knowledge of online bookkeeping programs.
Some say it depends on the hiring company. Others are looking for data entry positions, while others are looking for consultants.
Bill Von Fumetti is a CPA who built a successful career in virtual bookkeeping. He explored the freelancing space when he realized there was a surge in demand for accounting services during tax season. Bill launched a course called Booming Bookkeeping Business. He is known for his techniques on establishing an S corporation and the Augusta Rule.
What is a Virtual Bookkeeper?
A virtual bookkeeper manages a company's financial records remotely. He or she is responsible for recording financial transactions, reconciling bank statements, and preparing financial reports. Managing accounts payable and receivable are also part of the job. A virtual bookkeeper handles payroll, creates invoices, and prepares tax reports. They work closely with business owners and management teams to ensure accurate record-keeping. Virtual bookkeepers ensure the company is aligned with the tax regulations. They give insight into the company’s financial health.
The basic skill requirements of virtual bookkeepers are:
Proficiency in using accounting software
Accurate data-keeping, aim for an error rate of 0.1% or less
Basic to moderate understanding of accounting principles
Meticulous in catching discrepancies in transactions
Can handle multiple clients to maximize income
How Many Hours a Week Do Virtual Bookkeepers Work?
Full-time virtual bookkeepers work 40 to 50 hours per week. Part-time virtual bookkeepers typically work for 20 hours weekly. The workload depends on the number of clients and the complexity of their accounts. More clients mean longer working hours. Intricate financial records also require additional time and attention.
What Digital Tools Virtual Bookkeepers Use?
Best Services that Remote Bookkeepers Offer
I Became a Digital Landlord Through Local Lead Generation
I became a digital landlord instead because this biz is much easier for beginners. Without an accounting background, new bookkeepers struggle with complex financial concepts. Tax regulations require deeper accounting knowledge and experience. You constantly need to meet accounting standards. This knowledge gap can lead to serious consequences. Bookkeeping mistakes can cause financial losses for the client. You can get sued by the company for committing crucial business errors.
The local lead generation biz is better because I don’t need to constantly keep up with the client’s demands. I build simple websites for local businesses and generate leads from them. I can sell each lead at 85% margins. As a digital landlord, I work at my own pace. I don’t have to run after clients. It’s the other way around. My leads keep their business going, so they stick with me long-term. Local lead generation is the number 1 online business. Income is stable and consistent, and the business is scalable.
