How To Become a Bookkeeper in 3 Easy Steps

how to do your own bookkeeping online

Professional associations also offer certifications so that you can hone your skills and market yourself as a professional bookkeeper. For instance, both the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) offer certification programs. Remember to focus on providing clients convenient and valuable experiences. Look, we don’t want to toot our own horn — but if you need more help on getting started in bookkeeping, you’re in the right place. If you’re going to market on social, make sure you’re profile is focused only on bookkeeping tips and information.

  • If you’re expanding your business and you require more complex statements, or you’re looking to delegate so you can free up time for more projects, hire a bookkeeper and accountant.
  • Accurate, up-to-date bookkeeping is the backbone of any successful small business.
  • Virtual bookkeepers also make themselves available for discussions around budget planning, late customer payments, cash flow, and any other finance-related questions.
  • The key to time management is creating an effortless bookkeeping accounting system.
  • You can create a simple website for less than $50, including the domain name.

If your bookkeeping software doesn’t offer this feature, then use spreadsheets or another type of program for tracking numbers. You can also use a simple spreadsheet tool like Excel or Google Sheets and track your income and expenditures over time by setting up separate columns for each item. Every business needs a bookkeeper as they need to manage their books of accounts effectively. Further, they need to meet the requirements of filing tax returns and financial statements with their local revenue authorities. A bookkeeper records financial transactions of your business in a systematic manner. Such transactions need to be identified, accepted, classified, and recorded in a way that allows them to be presented in the form of financial statements.

Benefits of Being Your Own Accountant

Freelance marketplace websites also exist where you can find short- and long-term projects you can apply for. They may not always be actively looking for one, but at some point, they’ll need someone to manage their financial statements. Accounting software know-how can make you an even more valuable asset to clients. https://www.bookstime.com/ Software tools help streamline the bookkeeping process, which means you can do your job efficiently. There’s no denying you can achieve a lot with this career path, and you can learn how to become a bookkeeper through training courses. You don’t even need related work experience to qualify for bookkeeping training.

For example, if you’re making a loss in Facebook ads, it may be time to stop spending it and explore other marketing channels. A bookkeeper may also receive receipts, reimburse company employees for work-related expenses, https://www.bookstime.com/online-bookkeeping and take charge of accounts receivable. Small businesses often work with tax advisors to help prepare their tax returns, file them and make sure they’re taking advantage of small-business tax deductions.

Sign up for freelancer websites as bookkeeper

The specific amount you charge your clients for bookkeeping services will depend on your certifications, years of experience and familiarity with the client’s business. Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs.

This step-by-step guide will map out the process to get started on your own bookkeeping business. We’ll cover building a bookkeeping plan, creating a strong accounting system, marketing and gaining clients and other helpful tips to get your business set up. By recording cash transactions when the money actually changes hands, you can simply cross-reference your bank statements with your bookkeeping records to ensure accuracy. Online bookkeeping uses software that takes care of most of the calculations and data entry for you.

Self-Paced Courses

That’s not only important for separating your business and personal finances, but can help you with your own bookkeeping come tax season. Most accounting software offers a range of features that are suited for almost any type of small business. When you keep detailed, organized records of your business transactions, tax season suddenly won’t feel like such a daunting chore. By being proactive with your bookkeeping, you’ll save your small business time when it comes to taxes. Simply turn your financial statements over to your CPA or other tax filings expert, and let them handle the rest.

  • Angie’s goal is sharing her passion for home business, personal finance, telecommuting, and entrepreneurship, and her work has been featured on Recruiter, FlexJobs and Business News Daily.
  • The accounting equation means that everything the business owns (assets) is balanced against claims against the business (liabilities and equity).
  • Bookkeepers are experts at managing the day-to-day finances of a business.
  • You can also use a simple spreadsheet tool like Excel or Google Sheets and track your income and expenditures over time by setting up separate columns for each item.
  • The Net Present Value (NPV) of your business is a calculation that helps you analyze potential projects or investments that might be worth your while.

But besides the boring technical stuff, you also offer a core set of working benefits that can make an immediate impact on a company’s financial health. If you want to sell yourself to potential clients, you should know how valuable you are to their small business. Some clients will want you to handle all or most bookkeeping tasks; like invoicing, billing customers, or preparing payroll. You may even need to email invoice copies to a client for approval and have a signature stamp for paying invoices. If you make a purchase by clicking one of the links, we may earn an affiliate fee. USA TODAY Network newsrooms operate independently, and this doesn’t influence our coverage.

National Bookkeepers Association

Sure, it certainly helps to have previously worked in financial transactions, but it isn’t mandatory. If you have previous experience in small-scale accounting, that experience can make a huge difference when landing clients for your own business. Most virtual bookkeeping firms start with the owner as the sole employee.

Your business’s books are balanced when all of the debits equal (or cancel out) all of the credits. Although it’s more complicated, it can prevent bookkeeping errors. And since it takes equity, assets and liabilities — on top of expenses and income — into account, it typically gives you a more accurate financial snapshot of your business. The first step in getting started is getting yourself set up with the tools and know-how. I know plenty of people with big home office setups, but you can easily start your bookkeeping business with a humble laptop.