HOW TO BECOME A BOOKKEEPER FROM HOME (EARN UP TO $80,000+)

Really good with numbers?

There is the potential to earn a good amount of money keeping the business books for small companies.

What Does A Bookkeeper Do?

A bookkeeper is a professional who is responsible for recording and managing the financial transactions of a business. This can include tasks such as recording daily financial transactions, posting debits and credits, creating invoices, reconciling bank statements, and managing payroll.

Bookkeepers are also responsible for maintaining and balancing the books to ensure that accurate financial records are kept. They may use accounting software, spreadsheets, and databases to record and organize financial records.

Additionally, bookkeepers may prepare financial statements and reports for businesses to help them make informed financial decisions. Overall, a bookkeeper plays a critical role in maintaining the financial health and stability of a business.

Bookkeeper Daily tasks include:

1. Recording daily financial transactions: A bookkeeper records all financial transactions that occur daily, such as sales, expenses, and purchases.
2. Posting debits and credits: The bookkeeper then posts the amounts recorded to the correct accounts in the business’s accounting software, separating debits and credits.
3. Creating invoices and issuing receipts: Invoices are created when goods or services are sold, and receipts are issued to customers when payments are made.
4. Managing accounts payable and accounts receivable: Bookkeepers manage the money that the business owes to vendors and the money that is owed to the business by customers.
5. Reconciling bank statements and financial accounts: Reconciling bank statements ensures that the business’s financial records match those of the bank, and that all transactions have been accurately recorded.
6. Managing payroll and associated taxes and deductions: Bookkeepers manage payroll, ensuring that salaries are paid correctly and all necessary taxes and deductions are withheld.
7. Reviewing financial reports and statements for accuracy: Bookkeepers review financial reports and statements to verify that they are accurate and up-to-date.
8. Communicating with clients or vendors regarding financial matters: Bookkeepers might need to communicate with clients or vendors regarding billing, payments, or other financial matters.
9. Maintaining accurate financial records and ensuring they are up to date: One of the primary roles of a bookkeeper is to maintain accurate financial records that are up to date, so that the business owner can make informed financial decisions.

What is the difference between bookkeeper and accountant?

Bookkeepers and accountants both play important roles in managing the financial health of a business, but there are some key differences between their roles and responsibilities.

Bookkeepers typically focus on recording and organizing financial data 1, such as daily transaction logging and the creation of invoices and receipts. They may also manage accounts payable and receivable, reconcile bank statements, manage payroll, and maintain up-to-date financial records. Bookkeepers generally work under the supervision of an accountant or other financial professional.

In contrast, accountants typically have more extensive education and training in financial analysis, forecasting, and management. They are responsible for interpreting and summarizing financial data to provide insights to the business owner, such as preparing financial statements and reports. Accountants may also provide guidance on financial strategy and planning, help with tax planning and preparation, and assist with audits.

How much can a Bookkeeper Make?

The Bureau of Labor Statistics, the median annual wage for bookkeeping, accounting, and auditing clerks was $42,410 in May 2020 in the United States.

According to Entrepreneur Magazine, bookkeeping is the #1 most profitable business you can start from home?

According to QuickBooks, if you as a freelancer, you can earn $70 to $80 per hour once you gain experience.

Bookkeeping offers incredible earning potential, making it an attractive option for those looking to work from home either part-time or full-time. Whether you’re aiming to make extra money or build a virtual bookkeeping business without overexerting yourself, bookkeeping might just be the perfect choice for you.

How Bookkeepers can earn money?

1. Bookkeepers can work for a company as an employee and receive a salary or hourly wage.
2. Bookkeepers can work as freelance contractors and charge clients for their services, typically on an hourly or project basis.
3. Some bookkeepers can earn a percentage of the fees charged for accounting services if they work for an accounting firm.
4. Bookkeepers can also earn commission or bonuses for bringing in new clients or for meeting certain performance targets.
5. Some bookkeepers may be able to negotiate a higher rate of pay based on their level of experience, certifications, and specialized skills.
6. Bookkeepers can offer additional services beyond basic bookkeeping, such as financial analysis or budgeting, and charge higher rates for these specialized services.
7. Bookkeepers can sell educational resources such as ebooks, courses, or webinars on bookkeeping or related topics.
8. Some bookkeepers may earn passive income from affiliate marketing programs or advertising revenue generated from their website or social media channels.
9. Bookkeepers can also earn money through referrals from satisfied clients, which can lead to a steady stream of new business.

What Qualifications Do you need to Become A Bookkeeper?

To become a bookkeeper, there are certain qualifications and skills that are typically required. Many bookkeeping positions require a high school diploma or equivalent, along with some post-secondary education in accounting, bookkeeping, or a related field.

A bachelor’s degree in accounting or finance may be preferred for some positions, especially those in larger organizations.

In addition to education, bookkeepers should have a strong understanding of generally accepted accounting principles (GAAP), as well as proficiency in various accounting software programs, such as QuickBooks, Xero, or Sage.

Strong communication and interpersonal skills are also important, as bookkeepers often interact with clients and other members of the business team. Attention to detail, organization, and accuracy are crucial traits for bookkeepers, as they are responsible for accurately recording and managing financial data. By possessing these qualifications and skills, an individual can pursue a successful career as a bookkeeper.

You definitely don’t need to be a Certified Public Accountant (CPA) or have an accounting degree to start a profitable virtual bookkeeping business.

Bookkeeping skills you need

1. Understanding of generally accepted accounting principles (GAAP): Knowledge of GAAP is essential for ensuring accurate financial reporting and compliance with accounting standards.
2. Proficiency in accounting software programs, such as QuickBooks, Xero, or Sage: Knowing how to use accounting software effectively can save time and increase efficiency in managing and organizing financial data.
3. Knowledge of data entry and number crunching: A bookkeeper needs to have excellent data entry skills and be comfortable performing calculations to ensure accuracy in financial records.
4. Attention to detail and accuracy: Bookkeepers must have a keen eye for detail to catch errors and discrepancies in financial data, ensuring that financial records are accurate and precise.
5. Strong communication and interpersonal skills: Bookkeepers often interact with clients and other members of the business team, so the ability to communicate effectively and build relationships is important.
6. Familiarity with financial statements and reporting: Bookkeepers should have experience with financial statements such as balance sheets, income statements, and cash flow statements, as they are an essential component of financial reporting.
7. Ability to manage accounts payable and receivable: Bookkeepers must be able to manage accounts payable and receivable, ensuring that bills are paid on time and that payments from customers are received in a timely manner.
8. Understanding payroll practices and tax regulations: A bookkeeper needs to be knowledgeable about payroll practices and tax regulations, ensuring that employees are paid correctly and taxes are accurately filed.
9. Familiarity with bookkeeping and accounting terminology: Bookkeepers must be familiar with bookkeeping and accounting terminology to effectively communicate with other members of the financial team and understand financial reports.
10. Ability to maintain organization and manage time effectively: A successful bookkeeper needs to be able to manage their time effectively and stay organized, balancing multiple tasks and deadlines.

Bookkeeping Courses

Bookleeper course for starting a bookkeeping business

Getting bookkeeping education and training can be a great way to jump-start a career in bookkeeping.

You can check out a business bookkeeping course below.

Bookkeepers Launch – is an online training course designed to help individuals start and grow their own bookkeeping business. The course covers a wide range of topics, including bookkeeping fundamentals, software training, marketing strategies, and client management.

The course is led by Ben Robinson, a certified public accountant who has over 20 years of experience in bookkeeping and accounting. The course is self-paced, allowing students to learn at their own speed and schedule.

Some of the topics covered in the course include how to set up a bookkeeping business, how to find and attract clients, how to use accounting software such as QuickBooks, and how to perform bookkeeping tasks such as bank reconciliation and financial reporting. The course also includes access to a community of fellow students and weekly group coaching sessions with Ben Robinson himself.

Become a certified bookkeeper

This is by far the longest route to get trained, but you will also be able to use your certification to get more clients.

There are two top professional bookkeeper organizations that you can certify with:

• American Institute of Professional Bookkeepers (AIPB) – To become AIPB-certified, you must pass the four-part national certification exam, plus you must meet the 3,000-hour work experience required.
• National Association of Certified Public Bookkeepers (NACPB) – To earn certification through the NACPB, you must pass an exam and submit proof that you have acquired an Associate’s or Bachelor’s degree in Accounting.

Bookkeeper Tools

Bookkeepers need to be familiar with a range of tools and software to effectively perform their duties.

Here are some tools that bookkeepers may need to be familiar with:

1. Accounting software: Bookkeepers should be proficient in using accounting software such as QuickBooks, Xero, or FreshBooks, which is used to record and categorize financial transactions.
2. Spreadsheet software: Bookkeepers should also be comfortable using spreadsheet software such as Microsoft Excel or Google Sheets. Spreadsheets can be used to create budgets, track expenses, and generate financial reports.
3. Bank reconciliation tools: Bookkeepers need to reconcile bank statements with their client’s financial records. Tools such as Bank Feeds in QuickBooks can make bank reconciliation easier and more accurate.
4. Expense tracking tools: Bookkeepers need to track expenses to ensure that expenses are properly allocated and recorded. Tools such as Receipt Bank, Expensify, and Hubdoc can make expense tracking more efficient.
5. Payroll software: Bookkeepers may also need to process payroll for their clients. They should be familiar with payroll software such as Gusto or ADP, which can help automate payroll processing.

Best Online Bookkeeping Jobs

• Accounting Department
• Click Accounts
• Jackson Hewitt
• Bateman & Co
• BidaWiz
• Bookminders (need to live in S. PA)

Check out the Work At Home Job Directory for over 700+ Work at Home Jobs to help you make some extra money.

FAQ

How long does it take to become a bookkeeper?

The length of time it takes to become a bookkeeper can vary depending on the educational path you choose. A formal undergraduate degree in accounting or finance can take 2-4 years to complete, while shorter courses or certificate programs can range from 7 to 13 weeks if you take one session per week.

Some employers may be able to train an entry-level bookkeeper in six months or less 2, and self-taught bookkeepers may take varying lengths of time to gain proficiency in the necessary skills.

Ultimately, the amount of time it takes to become a bookkeeper will depend on the individual’s level of commitment, prior knowledge, and chosen educational path.