Make Money From Home: How to Become a Bookkeeper at Home (+ Free Training Course)

Last Updated on November 13, 2024 by Katie

Learning how to become a bookkeeper is a great option for those looking for a high-paying freelance career.

But, you might worry that you don’t have a degree or the right qualifications?

Fortunately, bookkeeping is one of the remote jobs you can do without a degree and I’m going to show you how to get started today.

I will even show you a top-rated bookkeeping course you can take for FREE!

Keep reading to learn more.

Let’s dive in!

In a hurry?

Check out this bookkeeper training from the experts at Bookkeepers.com.

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Why Learn to Be a Bookkeeper?

how to become a bookkeeper

Becoming a bookkeeper offers numerous benefits, especially if you’re looking for a flexible career option.

It’s a profession in high demand across various industries and companies always need skilled bookkeepers to manage their financial records, making it a stable career choice.

Furthermore, one of the most appealing aspects of bookkeeping is the ability to set your own schedule.

Whether you prefer to work full-time or part-time, you can choose hours that suit your lifestyle.

This flexibility is particularly beneficial if you want to balance work with family commitments or other pursuits.

And, a final benefit is that earning potential in bookkeeping is strong.

With the right experience and certifications, such as becoming a certified QuickBooks user, you can command competitive rates.

Bookkeeping Vs Accounting, What’s the Difference?

Understanding the roles and responsibilities of bookkeepers and accountants is crucial for anyone entering the field of finance.

While both positions play vital roles in managing financial data, their functions, expertise, and qualifications vary significantly.

What Does a Bookkeeper Do?

As a bookkeeper, your primary responsibility is to maintain accurate records of a company’s financial transactions.

You ensure that the day-to-day financial operations are documented meticulously.

Bookkeeping does not typically require formal certification, allowing for more flexible entry into the field.

Daily bookkeeping tasks include:

Recording daily transactions: This includes sales, purchases, receipts, and payments.
Managing payroll: Organize and process employee salaries, benefits, and taxes.
Reconciling bank statements: Match transactions in accounting software with bank statements.
Handling invoices and payments: Track invoices from vendors and ensure timely payment.

Bookkeepers typically work with specific software like QuickBooks to complete these tasks.

Their detailed record-keeping provides a foundation for accountants to analyze financial data.

What Does an Accountant Do?

Accountants take the records kept by bookkeepers and use them to provide insights and analysis for better business decision-making.

Unlike bookkeepers, accountants usually require a higher level of education and may possess certifications such as CPA.

Daily accountant tasks include:

Analyzing financial reports: Prepare detailed financial statements, balance sheets, and income statements.
Tax preparation and filing: Work on tax-related issues, including filing and strategizing to minimize tax liabilities.
Budget forecasting and strategy: Develop financial forecasts to support business growth.
Internal audits: Conduct audits to ensure compliance and identify any financial discrepancies.

Accountants play a strategic role, offering advice based on the financial analysis they conduct.

They ensure that your business complies with regulations and optimizes its financial performance.

What Types of Businesses Use Bookkeepers?

how to become a bookkeeper

Various types of businesses rely on bookkeepers to maintain their financial records.

Small Businesses often need bookkeepers to handle their day-to-day financial operations, ensuring that financial transactions are recorded accurately.

Startups benefit from having a bookkeeper to keep track of their cash flow, which is crucial for their growth and sustainability.

Retail Businesses typically use bookkeepers to manage inventory-related financial information, as well as sales and expenses.

Law Firms and Medical Practices often require bookkeepers to manage client billing and payroll, which are essential for their service-based operations.

Nonprofits need bookkeepers to ensure compliance with financial regulations and to manage donations and grants transparently.

Bookkeepers bring several benefits to these businesses:

Providing accurate financial records for informed decision-making
Ensuring compliance with tax laws and regulations
Handling payroll efficiently
Managing invoices and payments
Saving time for business owners, allowing them to focus on growth

By using bookkeepers, these businesses can enhance their financial accuracy, streamline operations, and gain peace of mind regarding their financial management.

How Much Can You Earn as a Bookkeeper?

As a bookkeeper, your income can vary based on experience, location, and work arrangement.

If you’re considering freelance bookkeeping, you can potentially set your own rates.

Freelance Bookkeeping Rates:

Hourly Rate: Typically ranges from $20 to $50.
Monthly Earnings: For 20 hours/week, potential earnings could be about $1,600 to $4,000 monthly.

When working full-time for a business, salaries may provide more stability but could offer different earning potential.

Full-Time Bookkeeping Earnings:

Annual Salary: The median annual salary is $44,720 according to Salary.com.
Hourly Rate: Typically around $21 per hour.
Monthly Earnings: Approximately $3,727 monthly.

Your specific earnings will depend on your experience, skills, certification, and the industry you choose to work in.

Some certifications can enhance your credibility and potentially increase your earnings.

What Qualifications Do You Need to Be a Bookkeeper?

Becoming a bookkeeper from home doesn’t require a formal degree.

However, having a degree in accounting, finance, or business can certainly be valuable.

This education provides a solid foundation for understanding financial principles and practices.

You should also be proficient with bookkeeping software like QuickBooks or Excel.

Familiarity with such tools enhances your ability to manage and report financial data efficiently.

Certifications:

While not mandatory, obtaining a certification can enhance your credibility.

Consider certifications offered by organizations such as Bookkeepers.com and the National Association of Certified Public Bookkeepers to demonstrate your expertise and commitment to the profession.

What Skills Do You Need to Succeed at Bookkeeping?

how to become a bookkeeper

To thrive as a bookkeeper, you need a mix of essential and practical skills.

Below is a list of the core abilities you should aim to develop:

Organizational Skills: Staying organized is crucial for managing financial records efficiently. Being detail-oriented helps in maintaining accurate books.
Ability to Multi-task: Juggling multiple accounts and tasks at once is often required. This skill ensures you can handle various responsibilities without feeling overwhelmed.
Good Communication: Clear communication is vital when working with clients or team members. It helps in explaining financial information effectively.
Proficiency in Bookkeeping Software: Familiarity with software tools like QuickBooks is important. These tools streamline the bookkeeping process and improve accuracy.
Attention to Detail: Ensures that all financial transactions are recorded accurately and discrepancies are minimized. Mistakes can lead to significant issues, so precision matters.
Critical Thinking and Problem-Solving Skills: Everyday tasks require analyzing data and spotting errors. Apply logical reasoning to resolve issues swiftly.

What is the Best Bookkeeper Training for Beginners?

If you’re starting your bookkeeping journey from home, Bookkeepers.com offers a free training course that’s ideal for beginners.

Trainer: The course is led by Ben Robinson, a CPA who specializes in training individuals to start and grow successful bookkeeping businesses.

Course Content: Through this training, you’ll learn the essential skills needed to manage financial records, understand financial terminology, and utilize bookkeeping software effectively. It sets a foundation that can be built upon with further study.

Who It’s Right For: This course is perfect if you’re new to bookkeeping, seeking a career change, or wanting to brush up on foundational skills without financial investment.

How to Sign Up: You can sign up easily by visiting the Bookkeepers.com website, where you’ll find instructions to enrol in the free course and start on your path to becoming a skilled bookkeeper.

The training offers flexibility in learning, allowing you to progress at your own pace from the comfort of your home.

Starting your bookkeeping career has never been more accessible with free resources.

7 Steps to Start Your Own Freelance Bookkeeping Business from Home

Starting a freelance bookkeeping business from home involves several important steps.

By following the correct path, you can start your bookkeeping career on the right foot and find success quickly.

1. Register Your Bookkeeping Business

Registering your bookkeeping business is essential to operate legally.

Decide on a business structure, such as a sole proprietorship or limited liability company (LLC).

Each structure has different legal and tax implications. Consult a legal or tax professional if necessary.

Choose a unique business name and check for availability. After deciding, register your business with the relevant government agency, which may differ depending on your location.

Once registered, obtain any necessary licenses or permits. These can vary by state or city. It’s crucial to comply with local regulations.

2. Get the Right Tools and Software

Invest in bookkeeping software to manage your clients’ accounts efficiently.

QuickBooks and Xero are popular choices as they offer user-friendly interfaces and comprehensive reporting tools.

Research various options to find the software that best suits your business needs and budget.

Beyond software, make sure you have a reliable computer and a stable internet connection.

3. Create Your Own Professional Website

A professional website serves as a digital storefront for your bookkeeping services.

It’s important to choose a memorable domain name related to your business and include detailed information about your services, experience, and contact details.

Ensure your site is mobile-friendly, as a significant portion of users browse from mobile devices.

Use search engine optimization (SEO) strategies to increase visibility and regularly updating the blog section is a good way to show off your expertise.

4. Determine Your Target Market

Identifying your target market helps tailor your services and marketing strategies.

Consider specializing in a particular industry, such as retail, healthcare, or creatives.

Specialization enhances your expertise and attractiveness to niche clients seeking industry-specific bookkeeping services.

Conduct market research to identify the needs and challenges of your potential clients which will help you develop unique selling propositions.

Being specific about your target market allows you to focus marketing efforts efficiently, increasing your chances of success.

freelancer working at laptop

5. Set Your Bookkeeping Rates

Establishing competitive and fair bookkeeping rates is crucial and may be the deciding factor whether a client decides to work with you.

Research what competitors in your area and industry charge for similar services. Consider factors like experience, specialization, and the complexity of the work when determining your rates.

But remember, when you are starting out you may need to price a little lower to secure your first clients and build up testimonials.

Decide whether to charge hourly, monthly, or per project. Some clients may prefer predictable monthly rates, while others might opt for hourly arrangements.

Flexibility with pricing structures can appeal to different clients and transparency in pricing and clearly outlining services included can help build trust with clients.

6. Promote Your Services on LinkedIn

LinkedIn is a valuable platform for promoting your bookkeeping services.

Create a professional profile highlighting your education, experience, and specific skills in bookkeeping. Connect with professionals and businesses that might require bookkeeping services.

Join relevant groups and participate in discussions to increase visibility and share articles, tips, and insights related to bookkeeping to establish yourself as an industry expert.

Regularly update your status with achievements and client testimonials. Networking on LinkedIn can lead to referrals and potentially long-term business partnerships.

7. Apply for Bookkeeping Jobs Online

Online platforms offer numerous opportunities to find bookkeeping jobs.

Make profiles on websites like:

Upwork
Freelancer
Fiverr

These sites connect freelancers with potential clients so it’ll pay to sign up and showcase your skills and previous work experiences.

Set up job alerts for bookkeeping opportunities matching your criteria and tailor your bids or proposals to meet the specific needs of each job posting, emphasizing your expertise and ability to deliver results.

Consistently applying increases your chances of securing freelance work, building a robust client base over time.

Other sites to check for bookkeeping jobs include: