What Is Virtual Bookkeeping and How It Works + Tools

In the next section, we’ll discuss strategies for finding clients and promoting your services as a virtual bookkeeper. You should also have knowledge of bookkeeping practices, financial analysis, budgeting, payroll processing, and tax preparation software programs such as QuickBooks, FreshBooks, Wave, Zoho Books, or Xero. Although you record data and create reports, you aren’t required to interpret the information or act as a financial advisor. Similarly, you may create tax documents, but you don’t prepare tax returns.

How Long Does the Bookkeeper Business Launch Take?

Virtual bookkeeping is also referred to as online bookkeeping or remote bookkeeping. Online bookkeeping services vary greatly in price, depending on the features they offer. Consider your business’s financial services needs before you begin your search so you’re not overpaying or selecting a service that offers more than you actually require. You’ll want to look for an online bookkeeping service that will allow you to scale without repercussions.

Start a Virtual Bookkeeping Business as a Certified Professional Bookkeeper

Once you’ve chosen your niche, conduct market research to understand the specific challenges and needs of your target audience. This knowledge will help you offer customized solutions and build strong client relationships. This is especially true because small businesses may not have a full-time CFO or an in-house accounting department, but they still need to generate financial reports. They may hire a part-time bookkeeper to manage the day-to-day books, and they often use an external accounting firm for tax preparation.

Difference Between Bookkeeping and Accounting

But let me tell you that I am saving money on less frustration with IT issues and lost time. And, I feel like a MacBook lasts longer than any other Windows-based laptop out there. Check with your bank as to what you need to get that business account. Note – this is a great time to build a relationship with a local banker that could be a referral source for new Opening Entry business in the future. It pays to spend some time face-to-face with an actual banker because they can help you along the way.

• Typically, the lower your expenses (and the fewer your accounting needs), the less you’ll be charged.
• However, Ignite Spot doesn’t list its virtual accounting prices upfront.
• A high-interest savings account is a good place to set aside money for taxes, emergency funds, or future funds to reinvest back in your business.
• From there, you can add comprehensive accounting, payroll, and tax services as needed.
• In the digital age, having a robust online presence is crucial for attracting clients.

Get matched with a dedicated bookkeeper who handles monthly tasks and offers personalized support. Provide accurate, timely reports and maintain open communication with your clients. Welcome new clients with a transparent, efficient onboarding process that outlines expectations, services, and communication channels.

Compare the Best Online Bookkeeping Services of 2025

• Companies that have a solid understanding of their financials are well-positioned to compete, grow, and respond quickly to a changing market.
• A virtual bookkeeping firm can’t rely on signs outside an office building to advertise itself.
• Online bookkeeping services typically give you a dedicated bookkeeper or team of financial experts to help you with basic bookkeeping tasks.
• If you’re reading this and feel like it’s something you can do, do it.
• Bookkeeping is an unavoidable part of having a business because the IRS has certain rules around financial recordkeeping.
• Starting up a virtual business doesn’t require ordering a bunch of office supplies.

Virtual bookkeeping services, whether internal or external, can help both for-profit and non-profit organizations get the financial information they need quickly and efficiently. Jason Ding is a seasoned accountant with over 15 years of progressive experience in senior finance and accounting across multiple industries. Jason holds a BBA from Simon Fraser University and is a designated CPA. Jason’s firm, Notion CPA, is an accounting firm with a business-first focus. The firm specializes in preparing personal and corporate taxation while providing fractional CFO work and leading the accounting and finance function for several small-to-medium-sized businesses. In his free time, you’ll find Jason on the basketball court, travelling, and spending quality time with family.

Step 6: Decide on your office

• Most don’t charge you to set up a profile, but will take a small fee once you book a gig and get paid.
• Don’t limit yourself to only bookkeepers; you should consider adding administrative assistants or marketing specialists to your team.
• Now let’s look at how to stay organized and manage your time effectively.
• Attend webinars, workshops, and conferences to stay updated on industry trends and expand your network.
• Taken together, these tools create a financial management stack that adapts to your business’s changing needs while maintaining the security and reliability that your business requires.

However, there’s one major drawback—you have no liability protection. If a client sues you for bookkeeping errors or financial mismanagement, your personal assets (home, savings, etc.) could be at risk. In this section, you should outline how you plan to attract and retain clients.

Browse Listings By Region – Virtual Practice

One of the easiest ways to reach your exact audience is through Facebook advertising. You can promote videos, images, or offers to people by age, interest, behavior, and location — needless to say, it’s the most targeted type of advertising. Send an email or text to any past employer or clients and ask them to leave a genuine review about your freelance bookkeeping work. Plus, G Suite gives you 30GB Cloud Storage, shared calendars, and access to G Docs, Sheets, Slides, and other office tools. After you decide your business name and its structure, it’s time to register with your state. In the early days of accounting, we relied on the abacus then PC’s and floppy disks to show our work to clients.

Why Start a Virtual Bookkeeping Business?

Since they’re designed to work remotely, teams can use them anywhere, even if they’re working in a traditional office. Virtual bookkeeping adds digital, cloud-based tools like BILL to the bookkeeping process, making it easy for a bookkeeper to keep financial records up to date day by day. These tasks can be completed internally, or they can be farmed out as an external service. As the process slows down, companies can fall behind, responding to business needs that surfaced weeks ago instead of income statement seeing where things stand today.