Running an online bookkeeping business from home

If you’re looking for a viable way to either replace your full-time job or supplement your income with a side hustle – running an online bookkeeping business from home may just be the answer.

If you’re good with numbers and finances, data entry, or already have bookkeeping or accounting experience, you’re already primed to set up a basic bookkeeping business from wherever you are.

With people now much more relaxed about online services, and the country-wide net you can cast without a brick-and-mortar presence, it’s easier than ever to work online and from home.

How to start a bookkeeping business from home

Starting a bookkeeping business from home is an entirely accomplishable goal – all you need is the right training & accreditation; tools; a website; moxie; and a space to work from. So where do you start?

Accreditation and training

Straight off the bat, you need to become a bookkeeper. To become a bookkeeper, you need to be officially certified through TAFE or University. The current certification in Australia is the ‘Certificate IV in Accounting and Bookkeeping’. Combining education and certification, this qualification is recognised nationwide as the bookkeeping base requirement.

From there you can go further to become qualified as a BAS agent or pursue further education such as a Diploma of Accounting or Payroll Services. If you go for BAS accreditation, you’ll need decent work experience, legal registration, as well as insurance.

It’s also incredibly wise to gain certification in a wide range of the most used accounting software suites, so you can work with a broader array of clients, who will be using various software solutions. This will allow you to grow beyond data entry and basic bookkeeping.

Create a basic business plan

To start any business venture – even bookkeeping from home – you should lay out a basic business plan. This will document your operations and layout competitor analysis, marketing strategies, sales plans, funding, and revenue.

Luckily, we’ve created a business plan template you can fill out – making life easy.

Set up your website and figure out your branding

To make yourself searchable and bookable, you’ll need a website. You can start easily with a basic website builder like WIX or WordPress and grow from there. Since you’ll likely be working online, you should also make sure your website has an appointment booking function and eCommerce for online payments.

At this stage, you also need to cement your basic branding and trading name – making sure to create a logo and secure a domain name to suit your brand name and complete your website.

Solidify your online presence

Now you have a website, you also need to build an online presence. Start with a ‘Google My Business’ profile so you show up in searches. You’ll also need some basic social media presence, such as Facebook and LinkedIn.

It’s prudent to also consider boosting your social media posts or investing in Google or social media ads. To net organic searches, you also need to pay attention to some basic SEO techniques to be noticed online.

Get some initial clients onboard

This is no easy feat. Getting yourself off the ground is one of the hardest aspects of working for yourself.

Along with investing in online advertising and SEO to get noticed in Google searches, you’ll also likely need to hit the bricks to drum up an initial client base. This means being present at trade shows and networking events and even approaching small businesses directly.

Family members or friends with their own businesses could also become your clients, just be sure you don’t burn any personal bridges!

Word of mouth is a powerful tool, so once you’ve landed a few clients, make sure you provide excellent service and ask directly for referrals.

Working from home as a bookkeeper

Now to the nuts and bolts of working from home. While you can always ask clients to attend your home address for meetings, that may not be on the cards and can seem unprofessional to some clients. Virtual bookkeepers are certainly growing in popularity.

Ideally, you can work online and provide online or virtual bookkeeping services. This is what you need to start working from home as a bookkeeper.

• A quiet, dedicated, and secure workspace away from distractions and prying eyes – you’ll be dealing with sensitive data after all.
• A decent laptop or PC, and monitors. Make sure you’ve enabled secure cloud backups in case of data loss.
• A mobile phone.
• Requisite software, including accounting software for various brands and suites.
• A webcam and microphone/headset for virtual meetings.

Tax implications as a sole trader working from home

As a sole trader or partnership business, there are tax implications in working from home. Bookkeepers are likely all over this, but things change all the time, so be sure you keep meticulous records of your expenses and work-from-home hours, and always check with the ATO to determine your responsibilities as a sole trader.

Pro Tip: Keeping funds for your expected tax bill aside in a separate bank account will help reduce tax bill shock when you need to pay your own taxes.

Advantages and disadvantages of home-based bookkeeping

So, what are the pros and cons of starting a home-based bookkeeping business? With the alternate option being a dedicated brick-and-mortar premise, let’s unpack the pros and cons of becoming a home-based online bookkeeper.

Advantages

• Lower overheads and total cost.
• Ability to work with businesses around the country.
• Tax breaks for home office.
• Flexibility around when and where you work.
• Lower barrier to entry.
• Easier to work part-time or as a side hustle.

Disadvantages

• Will need a dedicated and secure room in the house.
• Home life in the background can be distracting.
• May be hard to switch off and unplug.
• With online or virtual meetings and communication you may lose that personal touch.

Using an online bookkeeping software

The best way to work from home as a bookkeeper is to share logins with your clients’ bookkeeping software or accounting software.

This way you can simply gain access to their books online and reduce a significant amount of unnecessary communication and error.

As a bookkeeper, you’ll also be expected to be somewhat of an expert in using cloud accounting software and can include such tutelage in your services. It’s up to you to recommend software and teach your client how to use it themselves and show them what you’ll be doing in there too.