For many bookkeepers, freelancing is a rewarding career option. Freelance bookkeepers frequently deal with small organizations that do not require full-time bookkeepers. They are in charge of monitoring, evaluating, and tracking their clients’ money withdrawals and inflows. You’ll be able to serve consumers all throughout the country thanks to your flexible work hours. In this guide, we have covered all you need to know about freelance bookkeeping, some available jobs and careers, the hourly and annual salary rate, and also some good software you can use.
What Is a Freelance Bookkeeping?
A freelance bookkeeper or accountant is an accounting practitioner who works directly for their client portfolio rather than for an accounting firm or other corporation.
Payroll management, tax returns, and input and financial advice for business strategies are all services provided by freelance bookkeepers. As a freelancer, you will be in charge of finding new clients, charging them, and handling your own accounts.
Though you may have completed all of these chores as a full-time bookkeeper, navigating freelance can be challenging. If you want to work among the most popular freelancing jobs, you must understand how to run a firm.
What Does a Freelance Bookkeeper Do?
Freelance bookkeepers assist businesses with their accounting needs. This type of job is frequently performed remotely and necessitates a high level of precision, attention to detail, and understanding of accounting principles and legislation.
Freelance bookkeepers may work for a huge corporation with many employees or a small business with only a few employees that requires financial assistance.
A bachelor’s degree in accounting, finance, economics, or a similar discipline, as well as relevant experience in the financial services business, are standard requirements for a freelance bookkeeper.
What Does a Freelance Bookkeeper Usually Focus On?
Freelance bookkeepers focus on whatever the firm requires. Financial statements and bookkeeping are often included, but freelance accountants can also assist firms in making key financial decisions.
Tax bookkeepers can assist business owners on specific expenses, such as tax deductions for a home office. They can also manage duties like supplier payments, sales records, and invoices.
Knowledge of bookkeeping software such as Quickbooks or other bookkeeping software, as well as experience resolving accounting issues and accrual accounting, are all valuable abilities for freelance bookkeepers.
Benefits of Freelance Bookkeeping
Freelance bookkeeping provides a number of advantages that make it an appealing alternative for many firms. Here are a few examples:
#1. The potential to earn a good income
Freelance bookkeepers can set their own prices and hours, allowing them to control their weekly earnings. This adaptability also allows them to work around other obligations, such as family or part-time jobs. Furthermore, many freelance bookkeepers discover that their skills may be applied in other areas, such as tax preparation, accounting, or even business coaching.
#2. Allows you to work from anywhere
A freelance bookkeeper can work from anywhere with the necessary tools, such as a laptop, printer, and internet connection. This eliminates the need for commuting, allowing them to save money on travel and use their time more efficiently. Furthermore, with the correct software, freelance bookkeepers may access their clients’ data from anywhere, allowing them to provide a speedier and more efficient service.
#3. Greater sense of autonomy and control
By establishing their own prices and working hours, freelance bookkeepers can ensure that they are compensated fairly for their efforts. Freelance bookkeepers can also deal with a variety of clients, allowing them to locate clients that are a good fit for their requirements and interests.
#4. Gain more bookkeeping experience and knowledge
As freelance bookkeepers gain experience on the job, they gain a deeper understanding of the sector, which will be useful in their future pursuits. They can also learn new skills and knowledge that will help them advance in their careers.
What Do Freelance Bookkeepers Need?
This is probably apparent, but it bears repeating: you can’t be an accountant unless you have the necessary credentials and tools. So, what do you require?
#1. Degree and certification
Your bookkeeping degree will serve as the foundation for your profession. It can also function as your company’s identification. Accounting errors are costly, so clients seek the services of a trained accountant and a bookkeeper to avoid them.
While CPA (Certified Public Accountant) accreditation isn’t required, it can help you discover clients, offer additional services, and charge more competitive rates.
#2. Enough accounting experience
Bookkeeping freelancers must have sufficient experience to attract clients. So, if you want to start a freelance accounting business straight after graduation, you might want to reconsider.
As a freelancer, you work alone with no supervision, therefore it’s ideal for individuals who are confident in their accounting and bookkeeping abilities. A successful freelancing career is built on experience.
#3. Use accounting software for accountants
Working with cloud-based freelance bookkeeping software can save a lot of time and energy for a bookkeeper. Some programs offer time tracking, workflow tools, financial reporting, invoicing services, and other features.
If you have a lot of clients, you’ll need freelance bookkeeping software that can connect platforms, payment processors, software your clients use, and the application you use. Many problems can occur during the integration of this multichannel data, and trying to tease out those flaws is time-consuming and practically impossible to do fast.
Top Freelance Bookkeeping Jobs and Careers
There are several types of freelance bookkeeping jobs you can do as part of your freelancing profession. It may be an excellent choice to investigate if you have specializations in any of these areas.
#1. Tax Bookkeeper
A freelance tax bookkeeper specializes in business tax computation. They will guarantee that businesses accurately accumulate tax liabilities and that point-of-sale tax calculations are right, as these can have significant consequences for a business. They also prepare tax returns and assist corporate owners in complying with tax laws and regulations.
#2. Staff Bookkeeper
A staff bookkeeper oversees a company’s whole bookkeeping cycle. Some staff bookkeeper responsibilities are specialist, focusing on a certain aspect of the bookkeeping cycle, such as accounts receivable or general ledger bookkeeping.
#3. Internal Auditor
Internal auditors examine financial transactions for correctness and ensure that a company is adhering to accounting standards. This Internal auditors are employed by many firms, but you can also work as a freelancer.
Where to Find Bookkeeping Freelance Jobs?
Look for freelance bookkeeping jobs on reputable websites for freelancers or virtual assistants, as well as on accountant-specific websites. As a freelancer, you want to ensure that the individual or firm with which you deal is trustworthy, and respected websites can assist you in doing in finding those freelance bookkeeping jobs. You can also read testimonials or reviews from other accountants who have previously dealt with those companies.
A excellent place to start looking for freelance bookkeeping jobs would be Upwork, Fiverr, Toptal, PeoplePerHour, FlexJobs, or Freelancer. Working together is always a mutual choice in any job hunt, so identify what you’re searching for in your next accounting assignment. As you continue to work, you will learn what type of employment offer best meets your present needs.
Freelance Bookkeeping Salary
The median yearly salary for Freelance Bookkeeping in the United States is $48,691 as of May 20, 2023. If you require a quick pay calculation, that freelance bookkeeping salary comes to about $23.41 per hour. This equates to $936 each week or $4,057 per month.
The majority of the Freelance Bookkeeping salary in the United States presently varies from $37,000 (25th percentile) to $56,000 (75th percentile), with top earners (90th percentile) earning $62,500 per year. The median salary range for Freelance Bookkeeping varies little (about $19,000), implying that there are few prospects for improved pay or growth, even with several years of experience, regardless of location.
Because few organizations are now recruiting, the Freelance Bookkeeper employment market in Atlanta, GA, and throughout the state of Georgia, is not very active. Freelance Bookkeeping earns an average yearly salary or pay of $49,811 in your region, which is $1 (0%) higher than the national average annual salary of $48,691.
Freelance Bookkeeping Software
Because many freelancers and self-employed individuals do not have significant understanding of accounting and have more valuable things to accomplish than bookkeeping, the finest freelance bookkeeping or accounting software for them must be simple to use. We’ve compiled a list of the best among them:
#1. Zoho Books
Zoho Books is accounting software for freelancers that is both versatile and scalable. It contains features that are appropriate for all business sizes, from solopreneurs to big corporations. Furthermore, its mobile app is great for freelancers who wish to complete accounting activities on their phone or tablet.
Because it contains billing, recurring invoices, multicurrency transactions, and inventory features, Zoho Books Professional is our top recommended Zoho Books package for freelancers.
#2. FreshBooks
FreshBooks is a simple accounting program for freelancers with no accounting background. Furthermore, its built-in time tracker and superior project accounting capabilities make it an ideal tool for tracking project income and expenses.
FreshBooks is exclusively recommended for service-based freelancers because it does not handle inventory or cost of goods sold (COGS). We recommend QuickBooks Online or Zoho Books if your freelance business deals with inventories.
#3. QuickBooks Online
QuickBooks Online is a solid bet for freelancers as our overall top small company freelance bookkeeping software. The elements featured in Simple Start and Essentials will benefit the majority of people. However, if you have inventory or want project accounting, Plus is still our top selection.
We chose QuickBooks Online because of the QuickBooks ProAdvisor program’s extensive network of accountants. It can assist freelancers in organizing and preparing their QuickBooks records for tax season.
#4. Wave
Wave is an excellent choice for individuals who only require basic income and expense monitoring functions and prefer free software. It lacks advanced functionality such as inventory management and project accounting, but it does have periodic invoicing and billing, which are typically only available in premium versions of commercial software. Furthermore, Wave charges low transaction costs for bank transfers and card payments.
#5. QuickBooks Self-Employed
QuickBooks Self-Employed emphasizes tax compliance and projected payments for self-employed people who want to get through tax season quickly. This QuickBooks Self-Employed can estimate tax liabilities, which can assist individuals in planning for the amounts they must pay to the IRS.
If tax compliance is your primary concern when purchasing accounting software, QuickBooks Self-Employed is a good place to start.
Can I Freelance as a Bookkeeper?
Freelance bookkeepers do precisely what their name implies: they take on work from firms on a freelance basis, which means they work with numerous businesses at different times rather than being engaged by one. This also means that freelance bookkeepers are not paid.
How Much Do Freelance Bookkeepers Make?
Freelance bookkeepers determine their own prices and typically charge between $40 and $60 per hour. If a freelance bookkeeper works full-time and has numerous clients, they frequently earn more than a salaried bookkeeper’s $35-40,000 per year.
How Can I Start Bookkeeping as a Freelancer?
The following are some tips on how to become a freelance bookkeeper:
- Understand bookkeeping duties.
- Acquire certification.
- Learn about legal and insurance requirements
- Set professional goals.
- Start offering bookkeeping services
- Create a portfolio
- Calculate start-up costs
- Choose a marketing strategy.
Can You Make Money as a Freelance Bookkeeper?
The good news is that even with recurring monthly expenses, bookkeepers can earn a substantial income. Today, we’ll go through a normal bookkeeper budget and all of the expenses you might anticipate, from office supplies to a virtual assistant to your QuickBooks Online subscription for your clients.
Can I Make 100K as a Bookkeeper?
The average bookkeeper earns around 40,000 USD per year, according to the Bureau of Labor Statistics (BLS). The most successful bookkeeping businesses, on the other hand, can earn their owners $100,000 USD or more each year.
How Much Does a Quickbooks Bookkeeper Make Per Hour?
In the United States, the average annual salary for a Quickbooks Bookkeeper is $59,132.
Can Bookkeepers Make 6 Figures?
Individual full-time bookkeepers can earn well into the six figures. Even part-time bookkeepers have a good chance in today’s economy.
Conclusion
Freelance bookkeepers are essential to the economy. These positions assist firms in obtaining professional bookkeeping assistance on their terms. Similarly, those who operate as freelance bookkeepers have control over their schedules and revenue potential. Freelancing is ideal for stay-at-home parents, people pursuing more education, and those who require flexibility in their career.
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