Bookkeeping is a crucial aspect of any business, and good bookkeepers are always in demand. With the rise of remote work and the gig economy, becoming a bookkeeper from home has become a viable career option for many. The best part is that you don’t need any experience to get started.
In this article, we’ll explore the steps you can take to become a bookkeeper at home, from learning the basics of bookkeeping to finding clients and building a successful business. Whether you’re looking for a full-time job or a side hustle, becoming a bookkeeper can be a great way to earn a steady income from the comfort of your own home.
So, let’s dive in and see how you can get started on this exciting and rewarding career path.
Table of Contents
What is a Bookkeeper?
A bookkeeper is someone who handles the financial records of a business. They are responsible for recording all transactions, preparing financial statements, and managing the accounts receivable and payable.
Becoming a bookkeeper at home is a great way to earn extra income or even start your own business. There are many bookkeeping services that you can offer from home such as preparing financial statements, recording transactions, managing accounts receivable and payable, and preparing tax returns.
If you have basic accounting skills and a computer with an internet connection, you can start your own bookkeeping business from home.
7 Steps To Become A Bookkeeper At Home
There are a few steps you’ll need to take in order to become a bookkeeper at home. Here are seven of them:
Step 1: Learn the Basics of Bookkeeping
To become a successful bookkeeper, it’s important to have a solid foundation in the basics of bookkeeping. This includes understanding accounting principles, such as debits and credits, and how to record transactions. You can start by taking an online course or using a bookkeeping guide to learn the basics.
There are many free and paid courses available online that cover the fundamentals of bookkeeping. Some popular options include the American Institute of Professional Bookkeepers (AIPB), QuickBooks, and Udemy. These courses cover topics such as the double-entry system, financial statements, and payroll accounting.
You can also use bookkeeping guides and tutorials to learn the basics. These resources are often available for free online and can provide a good introduction to bookkeeping concepts.
Step 2: Choose a Bookkeeping System
Once you have a good understanding of the basics of bookkeeping, it’s time to choose a bookkeeping system to use. A bookkeeping system is a method or tool used to organize and track financial transactions. There are many options available, both manual and software-based.
Manual bookkeeping involves recording transactions in a ledger or journal using pen and paper. This method can be time-consuming and prone to errors, but it’s a good option for small businesses with few transactions.
Software-based bookkeeping systems are more popular and efficient. They automate many of the tasks involved in bookkeeping, such as generating financial statements and reconciling bank accounts. Some popular software-based bookkeeping systems include QuickBooks, Xero, and Wave.
When choosing a bookkeeping system, consider your needs and skill level. If you’re just starting out, a simple software-based system like Wave might be a good option. If you’re working with larger clients or need more advanced features, a system like QuickBooks or Xero might be a better fit.
Step 3: Get the Right Equipment
To become a bookkeeper at home, you will need some basic equipment to get started. One of the most important pieces of equipment is a computer, as you will be using bookkeeping software and other online resources to manage financial transactions. You will also need a reliable internet connection to communicate with clients and access online resources.
In addition to a computer and internet connection, you may also need a printer and scanner to create and store physical copies of financial documents. Depending on the size of your client base, you may also need to invest in additional equipment, such as a dedicated phone line or a separate work area.
Step 4: Get Certified
While it’s not required to have a certification to become a bookkeeper, getting certified can help you stand out from the competition and demonstrate your expertise. There are several certifications available for bookkeepers, including the Certified Bookkeeper (CB) designation from the American Institute of Professional Bookkeepers (AIPB) and the Certified Public Bookkeeper (CPB) designation from the National Association of Certified Public Bookkeepers (NACPB).
To become certified, you will need to pass an exam that tests your knowledge of bookkeeping principles and practices. Many certification programs also require you to have a certain amount of experience in the field before you can sit for the exam.
Having a certification can not only help you stand out to potential clients or employers, but it can also give you a sense of pride and confidence in your abilities as a bookkeeper. Additionally, some clients may prefer to work with a certified bookkeeper as they may feel more confident in their ability to handle their finances.
Step 5: Gain Experience
One of the best ways to gain experience as a bookkeeper is to offer your services to small businesses or individuals in your network. This will give you the opportunity to practice your skills and build your portfolio. You can also consider taking on freelance work through platforms like Upwork or Fiverr. This will not only help you gain experience, but it can also lead to long-term clients.
Another way to gain experience is to work as an intern or apprentice for an established bookkeeping firm. This can give you hands-on experience working with real clients and help you learn best practices from experienced professionals.
Step 6: Build Your Network
Networking is crucial for any business, and bookkeeping is no exception. Joining professional associations like the National Association of Certified Public Bookkeepers (NACPB) can help you meet other professionals in the field and stay up-to-date on industry news and trends.
Attending conferences, workshops, and seminars is another great way to build your network. This will give you the opportunity to meet other bookkeepers and potential clients, as well as learn new skills and stay up-to-date on industry developments.
You can also reach out to other professionals in related fields, such as accountants, tax preparers, and financial advisors. Building relationships with these professionals can lead to referrals and new business opportunities.
Step 7: Market Yourself
Once you have the skills and experience, it’s time to start marketing yourself as a bookkeeper. You can create a website to showcase your services and portfolio, as well as use social media to promote your business and connect with potential clients.
Attending networking events and conferences is also a great way to market yourself. You can bring business cards, flyers, or other marketing materials to hand out to potential clients.
It’s important to develop a strong brand and message that sets you apart from other bookkeepers. Consider what makes your services unique and how you can communicate that to potential clients.
How Much Can I Get Paid as a Home-Based Bookkeeper?
The amount of money you get paid will depend on how good your services are and whether or not the customer was satisfied with it. You can also choose to charge a flat rate for every month so that you have more stability in your income.
If you’re not sure about how much to charge, you can do some research online or ask other bookkeepers what they get paid for their services.
The average annual salary for an entry-level bookkeeping job is $39,013 or $19 per hour. Those who have more experience than others might earn around $49,165 per annum or $24.50 per hour.
How Can I Get Started in My Bookkeeping Business?
If you are interested in getting started as a bookkeeper then it would be best to find some kind of certification first before applying for jobs. Once you have your certification, there are many options available on how you can apply for the job.
There are companies that will hire you as an employee, meaning that they will give you a set salary. You can also choose to become self-employed or open your own bookkeeping business. Either way, you have the option of being paid per hour, by the job, or by other means such as commission.
How Can I Get My Bookkeeping Certification?
The only way to get your certification is by attending a bookkeeping course. There are, however, many different courses that you can attend. Some of the most common include:
- AIT (Association of International Accountants) – Provides training not just for bookkeepers but also for accountants and financial advisors.
- CPA (Certified Public Accountant) – This course is for those who wish to work in an accounting firm and must have at least 2 years of experience working in the field.
- ACCA (Association of Chartered Certified Accountants) – Much like the previous one, this course is only offered to professional accountants and has a similar requirement.
- CIMA (Chartered Institute of Management Accountants) – If you want to be part of an accounting firm or other financial institution, then this is the course for you.
Where Do I Find My First Bookkeeper Job?
In order to find a bookkeeper job, there are many ways to advertise yourself. You can use social media websites such as LinkedIn, Facebook, and Twitter in order to post your profile and contact information. You can also create a website about the services that you offer since this is a much more effective way of getting business compared with other methods.
In order to create your own website, you can contact a web developer and ask them about the different packages that they offer. You should also consider posting ads on job sites such as Indeed or Craigslist since many people visit these sites on a daily basis.
The need for bookkeepers at home is evident because of the fact that there are more chances of losing jobs with time. And if you do lose your job, then it will be difficult to find another regular one right away.
Bookkeeping is not an easy task but one needs to be passionate about it before trying it on their own. It’s a great way to become self-employed and start earning money from home. It’s a win-win situation for you as well as your employer since you can give bookkeeping services at a cheaper rate than any other professionals in the market.
If you’re ready to take this step, then go ahead and try it out. Don’t be afraid to take this step. Once you begin, you’ll be able to manage it on your own and earn good money as well.