How To Become a Virtual Bookkeeper (Without Experience) In 5 Easy Steps

Last Updated April 18, 2024 by Davina Kelly

If you are looking for flexible ways to make money, learning how to become a virtual bookkeeper from home is a lucrative option.

With the rise of online businesses skilled bookkeepers are in high demand.

If you enjoy being challenged and working with numbers, becoming a virtual bookkeeper could be the perfect business or side hustle for you. 

I currently work as a finance analyst but my first job in the field was as a bookkeeper. I had no previous experience and was able to learn on the job. 

Fast forward to many years later, I now provide online bookkeeping services to small businesses on the side.

It has allowed me to make money outside of my full-time job and I am so happy I took the leap and started my business. 

In this post, you are going to learn how to become a virtual bookkeeper with no experience and make money from the comfort of your home. 

After reading this post, you will know how to learn the basics, set up your bookkeeping business and get your first client.

This post is all about how to become a virtual bookkeeper.

What Does a Bookkeeper Do?

Before we get into the steps you need to take to become a virtual bookkeeper, let’s define what a bookkeeper actually does. Contrary to popular belief bookkeepers don’t do maths for a living (sorry I had to get that out of the way lol) In essence, bookkeepers are responsible for maintaining accurate and up to date financial records for businesses. 

Your tasks could include:

• Recording income and expense transactions
• Reconciling bank statements
• Generating monthly reports
• Managing payroll
• Raising invoices
• Paying bills

Your tasks will vary depending on your client’s needs, but these are the typical tasks a bookkeeper will perform each month.

As a bookkeeper, you will play a crucial role in helping businesses manage their finances effectively. By keeping meticulous financial records, you will provide valuable insights into the financial health of a business, enabling business owners to make informed decisions. 

Bookkeeper vs an Accountant: What Is The Difference?

You may be wondering what is the difference between a bookkeeper and an accountant. These titles are often used interchangeably, but they are different roles and require different skills. So let’s break it down.

Bookkeepers are primarily responsible for recording day to day transactions such as sales, purchases and expenses. They then organise this data into categories ensuring accuracy and completeness. So bookkeepers focus on the detailed aspects of financial record keeping, they don’t typically provide strategic financial advice. 

On the other hand, accountants analyse and interpret financial data to provide insights and strategic guidance to businesses. 

They reconcile balance sheets, prepare financial statements, file company accounts, complete VAT returns and offer advice on tax planning, and compliance. This will vary depending on their skills and the business needs. 

Accountants usually have specialised knowledge and may hold professional certifications such as Certified Public Accountant (CPA) and Chartered Accountant (CA). 

Here in the UK accountants are typically ACCA qualified (Association of Certified Chartered Accountants) or CIMA qualified (Chartered Institute Of Management Accountants). Whereas bookkeepers do not need to hold certifications to perform their duties. 

In summary, bookkeepers focus on the operational aspects of financial recording whereas accountants take a broader view. Accountants will use the information provided by the bookkeeper and analyse it to provide strategic recommendations to the business. 

Now that we are clear on the difference between a bookkeeper and an accountant, let’s get into the steps you need to take to become a virtual bookkeeper. 

How To Become a Virtual Bookkeeper:

Step 1. Get Bookkeeping Training

Although you do not need to have a professional certification to become a successful virtual bookkeeper, you will need to learn the foundation of bookkeeping principles and practices. 

Fortunately, there are many different resources to help you acquire the necessary knowledge and skills. I will cover three of the most effective ways. 

Online Courses

Choosing to become a virtual bookkeeper is a great career choice or side hustle. It is one of the most profitable small businesses and an in-demand job and has the potential to scale. 

So if you invest in a course to learn the necessary skills you will get a great return on your investment. Online courses are a great way to learn because you can do it from the comfort of your home and learn at your own pace.  

Many reputable institutions offer courses covering the essential bookkeeping skills you need to be successful. They will give you an overview of the role of a bookkeeper, teach you how to carry out bookkeeping activities and how to use accounting software. 

If you don’t have any previous experience and have the money I would recommend you take a course. I know there are many options available for online bookkeeping courses and some of them are good. But I would recommend choosing a course from a recognised body like AAT (Association of Accounting Technicians). 

The AAT bookkeeping level 1 course covers all of the basics you need to get started and isn’t super expensive. 

I prefer this option because it is taught by skilled professionals who have a lot of experience. You have to be qualified to teach with these organisations which guarantees quality. 

This isn’t to say that other online courses aren’t good, this is just my preference. So if you have read great reviews from another course and want to try it you should do that. Do what works best for you. 

Self Taught

Another option is to teach yourself. You can read articles and watch online tutorials on bookkeeping topics. There is a lot of free readily accessible information available to help you deepen your understanding of bookkeeping concepts. 

You can watch YouTube videos from bookkeeping business owners who will show you the basics, share their experience and give advice on how to get started. Fine Points is a good channel you can watch, they share a lot of valuable information. 

On The Job Training

This may not be an option for some people, but I wanted to share it because it could be helpful to some and it is how I got started in my accounting career. 

I worked for a construction company as an administration assistant and 2 days a week I worked with the company accountant. I had no prior experience so I learned everything from scratch on the job. This was great because I was able to learn from a professional in a work environment.

You can achieve the same through paid internships or you can reach out to local accountant firms and ask them if they need help. They will happily train you for free in exchange for your time if they need help. 

Step 2. Learn How To Use Accounting Software

Once you have your basic bookkeeping knowledge you need to learn how to use accounting software. 

Being proficient in accounting software is essential for any bookkeeper. It will streamline the bookkeeping process, automate repetitive tasks and help you do your job efficiently. 

The most popular accounting software are Quickbooks and Xero. Both are good options and have unique features and functionalities, so it is a matter of preference. 

When making your decision take into consideration your client’s needs as well as your own because you will also be using the software to do your own bookkeeping for your business. 

I use Xero for my bookkeeping business because I prefer its features and it is easy to use. The package I have allows me to do my own bookkeeping for free and each client has to pay $8.40. I pay the fee myself and include the cost when I invoice my clients.  

Both of these accounting software providers offer training resources and tutorials and they even offer free certification programs. This will help you master the platform and stand out to potential clients. 

Do your research on both and choose the one that suits your needs and preferences. It is a good idea to specialise in one software because it will make it easier to streamline your business. 

Step 3. Set Up Your Business

With your skills and knowledge in place, it is time to set up your virtual bookkeeping business. There are a few essential things you need to think about for this step so let’s go through each one. 

Choose Your Business Structure

Having the right business structure is super important for tax and liability purposes so you need to consider your circumstances when making this decision.

The most common structures are

• Sole proprietorship
• Limited liability company (LLC) 
• Partnership

Watch this video to learn the difference between these options along with the pros and cons. If you want to work as an employee you can skip this part and start applying for jobs. 

Choose a Business Name & Register It

Next, you need to choose a business name and register it. Don’t overthink this part just choose a name and get it registered with your local government. Also, check if you need to obtain any licences and business permits. 

Apply for a Business Bank Account

Once your business is set up you need to apply for a business bank account. It is important to keep your business and personal expenses separate so I recommend you do this as soon as your business is set up. 

Decide Your Rates

The final step in setting up your virtual bookkeeping business is deciding your rates. To give you some perspective the average bookkeeper salary is $44,000 which is $21 per hour. This is how much you can earn as a full-time bookkeeper. 

But if you are providing bookkeeping services through your own business you can earn a lot more than the average bookkeeper salary. But you need to provide a valuable service to your clients to justify the higher rate.

Let’s say you are a virtual bookkeeper as a side hustle and want to earn $600 a month. You can have 3 clients and charge them $200 each. This is a good place to start and once you have developed your skills further and built your confidence you can charge more. 

I prefer to charge a flat monthly fee instead of an hourly rate because every client is different. For example, if you have a client who has a small business that doesn’t have a lot of activity the work won’t take you long to complete and this means you will earn less. This is what works for me but do your own research and set your rates in a way that works best for you. 

Step 4. Find Your First Client

With your business established it’s time to start attracting clients and making money. Getting your first client may take work. But once you do it will make your bookkeeping business real and all your hard work will start to pay off. 

Effective marketing is the key to landing clients and building a successful virtual bookkeeping business. Here are a few ways you can market your business. 

Word Of Mouth

Word of mouth is very effective, this is how I landed my first bookkeeping client. I met a friend for brunch and I mentioned that I wanted to start a bookkeeping business. 

She was starting her business at the same time and asked me to be her bookkeeper. To this day she is still my client. See how powerful word of mouth can be?

So let your family and friends know about your business. If they don’t need your services they can recommend you to other people they know. This is a great way to utilise the relationships you already have to find clients.

Network

Networking is a powerful tool for finding clients and you can do this easily online through social media. For example, you can join Facebook groups and network through your LinkedIn connections. 

Another option is to join membership groups. Membership groups are great because you are surrounded by like-minded people and you can organically offer your services to other members. 

I joined a membership group called the Financial Joy Academy before I started my business and it was super helpful. It motivated me and gave me the confidence to start because I was surrounded by people who were in a similar position and we supported each other. 

If you prefer to network in person you can attend industry events or local meetups for small business owners. 

Online Job Boards

You can apply for online jobs through platforms like Fiverr and Upwork if you want to work as a freelancer. Do keep in mind that this option is less lucrative because the rates are lower and these platforms are highly competitive. A better option would be to create a LinkedIn profile, market your services and connect with other business owners. 

Pitching

All businesses need a bookkeeper at some point. They may not need one right now, but at some point, they will. Every year business owners need to file annual accounts and pay corporation tax and bookkeepers can help them to prepare for this. 

You can reach out to small local businesses and let them know about your bookkeeping services. If they don’t need your help now they will remember you when it is time to get their finances in order. 

Set Up a Website

Having a website won’t necessarily market your business, but it will add credibility. It is also helpful for people who want to learn about the different services you offer.

Specialise In a Niche

Another thing you can do to help you find clients is focus on a particular niche. For example, you can be a bookkeeper for content creators or real estate businesses. 

If you focus on providing services to a specific type of business you will learn how to serve your clients well. You will also be able to spot trends within these businesses and offer specialised advice. This will also set you apart from other bookkeepers.

Step 5. Service Your Clients Well

Once you have secured your clients for your bookkeeping business, your focus should be on providing the best service possible. Happy clients are more likely to refer others to your business which in turn will fuel its growth and success. 

Communication is key to serving your clients well. Maintain regular contact to keep them informed about their financial status and address any questions or concerns they have promptly. 

Set clear expectations and communicate any deadlines in advance. Ask questions, understand their pain points and try to find ways to solve them.

As a bookkeeper, it is important to be proactive in identifying any opportunities to add value. This can be done by offering insights and recommendations based on your analysis of their financial data. Reputation goes a long way, especially in serviced-based businesses so ensure that you consistently deliver exceptional value and service. 

Step 6. Continue To Invest In Your Knowledge

Now that your business is up and running the last step in becoming a virtual bookkeeper is to continuously invest in your knowledge. 

This means keeping yourself updated on the latest industry standards to ensure you provide the best service for your clients and actively improving your skills. 

You can do this by pursuing advanced certifications and taking online courses. For example, you could take a course to learn how to do payroll. This can be an additional service you can offer to your clients. 

Dedicating your time and resources to ongoing education not only expands your skillset but also enhances your credibility and professionalism in the eyes of clients. It will also help you position yourself for long-term success as a virtual bookkeeper and have clients lining up to work with you.

Frequently Asked Questions about How To Become a Virtual Bookkeeper

Below are answers to the most commonly asked questions about how to become a virtual bookkeeper.

Is Virtual Bookkeeping Profitable?

Yes, it definitely is. Bookkeeping is one of the lowest-cost businesses you can start. All you need to get started is a laptop, good internet connection and your chosen accounting software.

Your monthly costs are low and you can scale by managing multiple clients and expanding your client base which will boost your earnings.

What Qualifications Do I Need To Be a Bookkeeper?

You don’t need any qualifications to be a bookkeeper. Understanding the basics of bookkeeping is essential to providing a good service to your clients and there are many ways you can learn as I have mentioned in this post. But, you do not need to have bookkeeping certification to become a bookkeeper. 

Final Thoughts

Becoming a virtual bookkeeper is a rewarding and lucrative career path for people who enjoy business and working with numbers. By following the steps in this post, you can start a bookkeeping business and enjoy success for years to come.

From learning bookkeeping fundamentals and mastering accounting software to setting up your business, finding clients and serving them well. Each step is essential to building a thriving virtual bookkeeping business. Remember, success requires dedication, continuous learning and commitment to providing exceptional value and service to your clients. 

I hope you have found these steps to become a virtual bookkeeper helpful and can now start your own business. Which step are you on right now? Let me know in the comments and also feel free to ask me any questions. 

This post was all about how to become a virtual bookkeeper.

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