How to Become a Bookkeeper with No Experience In 10 Steps

Your step-by-step guide to a rewarding career in accounting

Are you thinking about how to become a bookkeeper with no experience but worried about starting the process from scratch?

Bookkeeping might well be the perfect fit for you, as it's an in-demand field that offers exciting opportunities for beginners new to the industry.

With our experience dealing with accounting at all levels, we outline the steps you need to take to launch your career without needing prior experience.

How to Become a Bookkeeper with No Experience In 10 Steps

If you have a head for figures then bookkeeping is a natural choice, given the number of remote and freelance bookkeeping jobs available countrywide.

We found that gig economy trends are positive for remote and work-from-home bookkeepers, with future job growth estimated at 6% per annum.

But before we dive into the nitty-gritty of how to become a bookkeeper, let's quickly investigate precisely what the job entails.

What Is A Bookkeeper?

Bookkeepers are one of the essential foundations of a successful business, ensuring its financial records are in order and helping control cash flow. 

Successful bookkeepers are meticulous organizers who work behind the scenes, ensuring that all financial transactions are documented, allocated, and recorded. 

Their primary function is recording and categorizing all financial activity, from income and expenses to everything in between. 

They ensure that all details are meticulously documented and clearly presented in financial statements to ensure the business's economic well-being.

Ensuring Tax Compliance

But, their role extends far beyond the financial records as they maintain tax compliance, making sure that the business adheres to all relevant regulations. 

Bookkeepers help to manage the flow of money, ensuring smooth processing of incoming payments to debtors and outgoing bills to creditors.

In essence, bookkeepers fulfill many roles, generating reports to keep everyone informed, maintaining financial records for future reference, and identifying any inconsistencies. 

Creating Budgets

Most senior bookkeepers also become involved in creating budgets, managing employee payroll, and making submissions to federal and state tax departments.

In short, bookkeepers are the financial detectives, strategists, and organizers rolled into one, guaranteeing a business's smooth and profitable operation.

Roles & Responsibilities Of A Bookkeeper

The function and responsibilities of bookkeepers vary depending on the kind of organization they work for, but tracking all financial transactions is their primary responsibility.

This entails keeping track of every dollar coming in and going out, from sales and customer payments to vendor bills and staff wages.

Since the data is arranged into ledgers, operating as a central record of all financial activity, accuracy is essential to lay the groundwork for financial analysis.

They provide reports that offer an overview of the company's financial performance after classifying transactions by category (revenue, expense, etc.) and making sure everything balances.

Another duty is preparing financial statements, which give an overview of the company's assets, obligations, and profitability, including income statements and balance sheets.

Bookkeepers also provide accounting tips, giving business owners ideas to improve their cash flow and reduce expenses.

10 Steps On How To Become A Bookkeeper

The good news is that there are several ways to get bookkeeping training, although companies may require certifications or degrees.

• Learn by Doing - A high school degree is sometimes the sole prerequisite to become a bookkeeper, particularly entry-level employment or internships. This enables you to be paid while gaining valuable, practical experience, which you can do while studying at night school or part-time. 
• Become Self-Taught - Bookkeeping training materials such as books, seminars, certification classes, and online courses are available to learn basic accounting principles and Xero and Quickbooks, well-known accounting software. 
• Formal Education (Optional) - A college degree in accounting or business administration might open doors to higher-level bookkeeping jobs, but becoming a bookkeeper is not usually necessary.
•  Develop your abilities - Regardless of your ultimate career choice, you'll need a few crucial skills to succeed as an independent bookkeeper. These include data analysis, payroll administration, accounts payable and receivable, double-entry bookkeeping, and bookkeeping software expertise on reconciliations.
• Start Your Professional Journey—When you have the skills, you have two options: look for bookkeeping employment or consider launching your own bookkeeping business. If you're neat, detail-oriented, and really enjoy working with numbers, successful bookkeeping careers can be both accessible and rewarding options.

Here are the ten steps you need to take to become a bookkeeper:

Step 1. Explore Your Learning Options

Enrolling in online bookkeeping courses like those available on Coursera is the easiest way to get up and running quickly.

Intuit's Bookkeeping Basics is a great option intended to help you get started, and it comes highly rated, with a 4.6 out of 5-star rating.

Although Bookkeeping Basics is an introductory course, it is insufficient to begin a profession in bookkeeping, and you should aim to complete the Intuit Bookkeeping Professional Certificate.

Once completed, you will have the skills and knowledge needed to complete the coveted Intuit Academy Bookkeeping test and certification.

Step 2. Build On Your Bookkeeping Foundation 

Once you have a basic understanding of bookkeeping and have completed a bookkeeping course, it's time to broaden your knowledge base.

Online courses that cover essential topics like accounting software proficiency (e.g., QuickBooks and Xero), how to file taxes, and personal and business finance basics.

They also help you understand financial reports, which you can use to secure an internship at a bookkeeping firm or accounting department. 

This provides valuable hands-on experience and allows you to learn from professional accountants who can guide you in your chosen career path.

Look for entry-level bookkeeping jobs that offer on-the-job training, as some employers are willing to train beginners with a strong foundation in bookkeeping principles.

Step 3. Develop Your Foundational Skills

Regardless of the path you choose to become a bookkeeper, you must prioritize developing the following essential bookkeeping skills to enhance your career prospects:

• Accounting Software Proficiency: Mastering at least one bookkeeping software program (ideally more) is crucial.
• Understanding Personal and Business Finance Basics: This equips you to handle different financial situations for clients and your own business.
• Tax Return Fundamentals: Grasping the basics of tax preparation is beneficial for bookkeeping tasks.
• Financial Report Analysis: The ability to interpret financial reports and statements is valuable.

There are numerous bookkeeping software programs in use, both desktop and cloud-based, such as Quickbooks Online, which you need to master to be competitive.

It also helps to run a very successful bookkeeping business, if you have bookkeeping certification from one of the organizations below.

Step 4. Consider Earning A Professional Bookkeeping Certificate

While not required for entry-level positions, earning a bookkeeping certification can enhance your credibility and earning potential in the long run.

Certifications are offered by organizations like the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB). 

Once you become a bookkeeper, prospective employers will have greater confidence in employing you if you hold a professional certificate.

Step 5. Research Starting Your Own Virtual Bookkeeping Business

It's time to start your bookkeeping firm when you've qualified as a bookkeeper and gained a few years of business experience in various industries.

You might also decide to work as a freelance bookkeeper, but whichever route you decide to follow, there are critical actions you must take.

To operate as a bookkeeper, you need to apply for licenses and business permissions and choose a company structure (sole proprietorship, LLC, etc.).

You must advertise your bookkeeping services in addition to formalizing your company. To achieve this, there are many options:·       

• Obtain an identity number for taxes.
• Choose a company structure (sole proprietorship, LLC, etc.). 
• When necessary, apply for licenses and business permissions.

A virtual bookkeeping job is both convenient and lucrative, as you can work from a home office and enjoy substantial tax deductions.

Step 6. Build Your Network and Market Yourself

No matter how good your tax and bookkeeping skills are, it helps to let people know you're open for business.

You must make connections with prospective customers and promote your services by participating in online bookkeeping forums or going to industry events.

To create a marketing plan, focus your attention on your product and services or produce educational content (blogs) highlighting your expertise.

Having a basic website increases your authority and makes it easier for people to locate you and learn about the services you provide. 

Setting up an optimized Google Business Profile will help you appear in local searches for businesses seeking bookkeeping assistance.

You can also establish a profile on LinkedIn, which is a great place to start if you want to use social selling as a marketing strategy for your business. 

It also makes sense to concentrate on specializing in a particular industry, such as providing bookkeeping services for medical professionals or new businesses.

Step 7. Create Your Offer

When approaching small business owners, you need to know what services will give them the most bang for their buck.

Preparing the following three primary financial statements each month is the foundation of small company accounting and an essential part of your bookkeeping job:

1. Balance sheet
2. Income statement
3. Cash Flow Statement 

Apart from offering to provide financial statements, you must also offer additional services that add value to the business, such as:·       

• Payroll services
• Prepare invoices·       
• Accounts receivable management ·       
• Accounts payable management ·       
• Preparing tax returns and self-employment tax forms ·       
• Help with creating budgets and projections·       
• Track long-term assets like vehicles, equipment, and machinery

When providing accounting tips for small businesses, these are the best services to offer as they provide high customer satisfaction.

Also include any accounting packages you are familiar with, such as Quickbooks Online or Xero, as these are popular business programs.

Step 8. Set Your Prices

The typical yearly salary for a bookkeeper is estimated by the US Bureau of Labor Statistics to be around $47,440 ($22.81 per hour). 

By providing excellent value to your clients, you can enjoy a thriving bookkeeping business and earn more than the average salary of a full-time bookkeeper.

Rates may vary significantly from $10 per hour to  $40, depending on the sort of bookkeeping job, your experience, and your state. 

Reviewing reported earnings on Glassdoor and Zip Recruiter revealed that entry-level part-time bookkeepers (W2 employees) make, on average, $10 to $20 per hour.

Step 9. Stay Current with Industry Trends

Stay updated on the latest bookkeeping best practices by utilizing online resources, attending industry webinars, or considering ongoing professional development courses.

To remain abreast of the latest developments, the following is a list of the best accounting and bookkeeping conferences in 2024: 

• For Sage Intacct users and partners wishing to discover automated solutions, network with industry experts, and learn best practices, Sage Transform 2024 (February 26–29, Las Vegas) is a great opportunity.
• CalCPA Women's Leadership Forum, Newport Beach, May 1-2, 2024: focuses on supporting women in accounting by offering workshops on diversity & inclusion, leadership, and overcoming obstacles. Ideal for California students and female accountants.
• AICPA Engage 2024 (Las Vegas, June 3-6): a thorough conference where accounting professionals and CPAs may network with colleagues, learn about industry trends, and receive CPE credits. It includes a range of accounting specialties, including personal finance, audit, and tax.
• Designed for Xero users and partners, Xerocon 2024 (June 12–13, London & August 14–15, Nashville) offers in-depth courses on Xero accounting software, explores tool integrations, and fosters connections with the Xero ecosystem.

Other things to think about while selecting a conference:

• Location: Select a conference that offers a worthwhile travel experience or one that is conveniently located.
• Your areas of interest: Choose a conference that is relevant to your particular field of bookkeeping or accounting.
• CPE credits: Select a conference that grants CPE credits if obtaining them is crucial to you.

Step 10. Update Your Marketing Knowledge

Freelance employment is typically a desirable alternative for people who wish to learn how to become bookkeepers without any expertise.

To establish a connection with prospective customers, you must develop a marketing plan for your services and how you can present them confidently.

Think about creating a specific website landing page and running local ads for your bookkeeping services, emphasizing your credentials and any references you may have for similar jobs.

Where Can I Find Remote Bookkeeping Jobs?

The gig economy has completely changed the nature of work for many people, including bookkeepers, who can now work from home. 

Platforms for the best gig economy jobs provide bookkeepers looking for varied clients and flexible work schedules with many advantages.

These platforms give bookkeepers the following advantages:

• Flexibility: Bookkeepers are now able to work full-time, part-time, or around prior obligations by selecting projects that align with their schedules. This serves those freelancers who are establishing a virtual bookkeeping and administration business or who are looking for a better work-life balance. 
• Variety: Compared to traditional work, gig economy platforms provide a greater diversity of accounting alternatives, allowing bookkeepers to broaden their experience. They can enhance their portfolio by proving their expertise and skill set by working with a variety of clients in a range of sectors.

FAQ - Virtual Bookkeeping Business Questions

1. How To Become A Virtual Bookkeeper?·       

• Get certified or take online courses to learn the fundamentals of bookkeeping.
• Become an expert in accounting software such as Freshbooks, QuickBooks, and Xero.
• Get experience by taking on remote or in-person entry-level accounting jobs or internships.
• Gain expertise in customer service and communication before opening your own bookkeeping business.
• Get the required tools (a computer and a dependable internet connection) and set up your workspace at home.
• Promote yourself online and cultivate connections with possible customers at business network meetings and Chamber of Commerce get-togethers.

2. What Skills Do I Need To Create A Virtual Bookkeeping Business?   

• Bookkeeping Expertise: You need a solid understanding of accounting principles, bookkeeping procedures, and financial statements as well as Mastering software like QuickBooks or Xero is crucial.
• Technology Savvy: Comfort with various cloud-based accounting software, online collaboration tools, and communication platforms is essential for remote work and client interaction.
• Communication and Organization: Excellent written and verbal communication is vital to building client trust, explaining financial concepts clearly, and managing client expectations. You must also be highly organized to effectively manage multiple clients, deadlines, and financial data.
• Marketing and Sales:  Being able to market your services and attract clients is essential. This might involve building a website, networking online and offline, and developing a solid value proposition for potential clients.
• Time Management and Self-Discipline: Working independently requires strong time management skills to meet client deadlines, prioritize tasks, and maintain a healthy work-life balance. Self-discipline is crucial to staying focused and motivated without the structure of a traditional office environment.

3. How Much Money Can You Make As A Digital Bookkeeper?

Digital bookkeeping offers a rewarding career path with solid earning potential.  However, the exact amount you can make depends on a few key factors.

Freelance digital bookkeepers typically start by setting their own hourly rates, which can range from $20 to $40 per hour. 

As you build your experience and expertise, these rates can climb significantly, allowing you to earn a 6-figure income within a short time.

For full-time virtual bookkeepers, salaries typically fall within a range of $40,000 to $70,000 annually, while senior-level virtual bookkeepers may exceed $80,000.

Beyond your experience, the number of clients you take on and the complexity of their financial situation can also influence your earnings. 

The more clients you have and the more intricate their bookkeeping needs, the higher your earning potential, but also a greater time commitment. 

The key to maximizing your income lies in continuously developing your skills and experience, allowing you to secure higher rates and attract more clients.

Summary

By following the ten simple steps outlined above, a beginner with little or no accounting experience can become a bookkeeper.

Growing demand for bookkeepers and the flexibility of online bookkeeping jobs ensure that freelancing, remote work, or starting a virtual accounting business is quite possible.

Don't let your lack of experience hold you back - explore online courses, build skills, and take charge of your financial future as a successful bookkeeper.