Want to start a new career in online bookkeeping jobs?
Sure, there are many small businesses to get online jobs. Still, none comes as close to offering a better profit margin (18.4%) as online bookkeeping jobs.
They are a legit hustle that you can start from home even if you don’t have professional experience or a college degree.
But to find one, you’ve got to follow the right steps and be careful so as not to fall for cheap online scams.
In this article, we’ve discussed everything you need to know about this opportunity, including how to get started, so read on!
What are Online Bookkeeping Jobs?
Online bookkeeping is recording day-to-day financial transactions, including sales, purchases, receipts, and payments, using accounting software such as Xero and Quickbooks.
People who do this are called bookkeepers, and they can be hired to work part-time, full-time, or on a freelance basis.
Online Bookkeepers: What Do They Do
As a bookkeeper, the daily tasks vary depending on the organization you work for and the responsibilities assigned to you.
However, some common daily tasks of bookkeepers include:
Recording Transactions
You are expected to record all financial transactions within the organization, including sales, purchases, receipts, and payments.
The financial records must be accurate and can be entered into online bookkeeping software like QuickBooks.
Reconciling Accounts
This involves verifying that the transactions in the organization’s accounts match the bank statements and other financial records.
Managing Accounts Payable and Receivable
Here, you track the money owed to the organization by customers and the money owed by the organization to suppliers.
In other words, you invoice the customers and process payment to the suppliers.
Payroll Management
You’re also responsible for calculating and processing employee salaries, including taxes, benefits, or deductions.
Generating Financial Reports
You prepare financial reports such as balance sheets, income statements, and cash flow statements used by investors and lenders for decision-making.
Filing Taxes
This involves ensuring that the organization complies with tax regulations and preparing and filing tax returns.
Communication with other departments
As a team player, you work closely with other departments, like finance and operations, to ensure that financial data is accurate and up-to-date.
Bookkeepers Vs. Accountants
Bookkeepers are similar to accountants. However, there are a few differences between them.
For instance, while bookkeepers are responsible for generating complete and accurate financial records of an organization on a day-to-day basis, accountants use the financial data recorded by bookkeepers to provide insights and analysis a business needs to make informed decisions.
You can also work as a bookkeeper with zero professional experience if you’re good with numbers.
On the other hand, most accounting roles will require a minimum of a bachelor’s degree before you apply for them.
In all, both help clients to run their businesses while they take care of the financial side of things.
Common Skills Online Bookkeepers Should Have
- Proficiency in accounting software such as Xero, Quickbooks, Zoho, and more.
- Expertise in Microsoft Excel.
- Ability to produce accurate results.
- Extensive knowledge of financial regulations, tax laws, and other industry trends.
- Excellent organizational skills.
- Strong communication skills.
- Attention to detail.
Why Consider Online Bookkeeping Jobs?
Gone are the days when bookkeeping jobs were limited to sitting behind a desk in a traditional office setting.
With the rise of technology and the internet, bookkeepers can now enjoy the flexibility of working remotely from anywhere in the world.
As an online bookkeeper, you can design your own schedule and work with clients in various industries at your own pace, so long as you have a fast and reliable internet connection.
Plus, online bookkeeping jobs offer competitive salaries (an average of $38,721 per year, according to ZipRecruiter) and numerous opportunities for professional growth.
Types of Online Bookkeeping Jobs
You can take on several roles as an online bookkeeper, which largely depend on the organization you work with and your expected services.
Whichever one you choose, you have to make sure it aligns with your preferences and schedule. Here are the list-toppers:
1. Remote bookkeeper
A remote bookkeeper provides professional bookkeeping services to clients from a remote location.
He usually works for accounting firms, small businesses, and individuals.
2. Virtual Bookkeeper
A virtual bookkeeper doesn’t have to be physically present in any location to work.
He provides bookkeeping support and consulting to clients via the internet with the help of various cloud-based accounting software.
3. Freelance Bookkeeper
A freelance bookkeeper works remotely with various clients as an independent contractor.
He is free to choose the type of work he wants and his preferred schedule.
4. Online Bookkeeping Manager
An online bookkeeping manager oversees the bookkeeping process for a business or organization from a remote location.
He typically manages a team of virtual bookkeepers or remote employees who handle various aspects of the company’s bookkeeping.
5. Online Accounting Specialist
An online accounting specialist provides specialized bookkeeping services, such as tax preparation, payroll management, or financial statement analysis, to clients online.
He may work as an independent contractor or for accounting firms.
How to be Successful at Online Bookkeeping Jobs
Becoming a successful online bookkeeper requires technical skills, business savvy, and a passion for numbers.
With the increased demand for virtual financial services, online bookkeeping has become attractive for those seeking a flexible and rewarding career.
This step-by-step guide will explore the necessary skills, tools, and resources to become a successful online bookkeeper.
1. Assess your skills and qualifications
To become a successful online bookkeeper, you must have a solid understanding of accounting principles and practices.
This includes knowledge of financial statements, journal entries, bank reconciliations, and general ledger maintenance.
You should also be proficient in bookkeeping software like QuickBooks, Xero, or FreshBooks.
Suppose you do not have an accounting degree. In that case, you can take online courses or earn certifications to enhance your skills and qualifications.
Organizations like the National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB) offer certifications and training programs to help you gain the necessary knowledge and expertise.
2. Set up your business
Once you have the necessary skills and qualifications, you must set up your online bookkeeping business.
This includes registering your business, obtaining necessary licenses or permits, and setting up a professional website and email address.
You should also decide on your business structure, such as whether you will operate as a sole proprietor, LLC, or corporation.
Consult a lawyer or accountant to help you make the best decision based on your goals and circumstances.
3. Build your client base
To advance further into your online career, you must build a solid client base.
Start by networking with other professionals in your industry, such as accountants, lawyers, and business coaches.
Attend networking events, join online groups, and offer free consultations to potential clients.
You can also advertise your services on social media platforms like Linkedin and Facebook and create targeted ads to reach your ideal clients.
4. Utilize technology and tools
As an online bookkeeper, you need to leverage technology and tools to streamline your workflow and provide excellent service to your clients.
Invest in cloud-based bookkeeping software like QuickBooks Online to manage your clients’ finances and automate tasks like invoicing and bank reconciliations.
You should also use communication tools like Zoom or Skype to hold virtual meetings with your clients and project management tools like Asana or Trello to keep track of deadlines and tasks.
5. Establish strong client relationships
Make sure to establish strong relationships with your clients.
This includes providing excellent customer service, being responsive to their needs, and communicating effectively.
Set clear expectations from the beginning, such as your fees, communication channels, and turnaround time.
Follow up regularly with your clients, provide reports and financial statements, and be proactive in identifying and solving any issues.
6. Continuously educate yourself
The world of accounting and bookkeeping is constantly evolving, and staying up-to-date with the latest trends and best practices is essential.
Attend webinars, read industry publications, and join professional organizations to stay informed and enhance your skills.
To position yourself as an expert, you should also invest in continuing education, such as taking advanced accounting courses or earning additional certifications.
FAQs about Online Bookkeeping Jobs
How much can I make with online bookkeeping?
Your potential pay as an online bookkeeper varies from client to client. However, stats collected from platforms like ZipRecruiter, Glass Door, and the likes estimated it to be between $10-$20 per hour.
Where can I find online bookkeeping jobs?
Scam-free job boards like Indeed and FlexJob offer several online bookkeeping jobs you can apply for.
You can also pitch your services on top-class freelancing websites like Upwork, Fiverr, and People Per Hour to increase your chances of getting hired.
Can I work online as a bookkeeper with no experience?
Yes, of course. But that doesn’t rule away the need to pick up one or two bookkeeping courses to upskill.
Online Bookkeeping Jobs: Summary
Online bookkeeping jobs offer a flexible and convenient way to earn a living while helping people care for their businesses’ financial health.
It’s a perfect career path for those who value work-life balance, offering plenty of opportunities as more and more companies seek remote bookkeeping services.
However, it’s not all rainbows and sunshine when you start as an online bookkeeper.
Sure, you will hit some lows, but with dedication and a little hard work, there’s no limit to what you can achieve.
Hope you enjoyed reading this.
Let’s know if you have any questions, and keep checking this space for more content like this!