In this digital world, the demand for a virtual bookkeeper and accountant has increased exponentially. One of the reasons for this demand is due to the Covid- 19 pandemic and the other is the cheap packages that come with hiring these virtual bookkeeping services.
The profession of Bookkeeper or virtual bookkeeper is for individuals who are organized, A-type personalities. What is a virtual bookkeeper? Could this be the perfect match for your skills? If you have a sound mind for numbers and organizational skills, virtual bookkeeping services may be the right career path for you.
What is a Virtual Bookkeeper?
Virtual Bookkeepers are now a fundamental part of any business that helps keep an accurate record of financial transactions. Organizations after the pandemic rely heavily on virtual bookkeeping to track income, expenses, pending invoices and overdue accounts. Bookkeeping is the first step in any accounting cycle.
What are the Advantages of Becoming a Virtual Bookkeeper in Canada?
Virtual bookkeepers have the advantage of working remotely for their clients using online accounting software to provide services and video calls for meetings. You get to serve more clients than you’d normally find in your town, while clients generally get great value because your costs of doing business are lower. The major advantages of choosing to provide virtual bookkeeping services in Canada include:
- Has fewer overheads (no high-street office space rent to pay)
- Spends less time commuting to meetings
- Develops efficient workflows through frequent repetition of niche services
What does a Virtual Bookkeeper do?
The major duties of a virtual bookkeeper or virtual bookkeeper assistant may vary depending on the size of your client. Larger organizations may have a team of bookkeepers and may require your bookkeeping services focusing on a specific domain. Some of the primary duties of a virtual bookkeeper include:
- Maintain a record of financial transactions and ensuring legal requirements compliance.
- Establishing charts of accounts and maintain subsidiary accounts.
- Maintaining historical records and ensure accurate filing.
- Verifying, allocating and posting transactions accurately
- Balance accounts by reconciling entries
- Maintain and balance the general ledger by preparing the trial balance.
- Prepare financial reports by collecting, analyzing, and summarizing account information.
- Comply with local, provincial and federal legal requirements.
- Monitor any variances in the budget.
What are the Skills Required to Become a Virtual Bookkeeper?
Although virtual bookkeeping is finance and niche-oriented, don’t be alarmed. What you need is in-depth skills in cloud accounting software, basic mathematics, and there is much more to the job. According to Monster, some of the essential qualifications and skills employees seek are:
- Digital Accounting Software knowledge – Xero, QuickBooks and Sage 50
- Data entry skills
- Accounts payable/receivable
- Account reconciliation
- Knowledge of HST, WSIB and Payroll (Preferred)
- Analyzing information
- Creating reports
- Analyzing information
- Attention to detail
- Team player
- Communication skills
How much does a Virtual Bookkeeper Make?
Virtual Bookkeepers, also known as virtual accounting technicians, are employed throughout the public and private sectors. They usually earn between C$16/hr to C$25/hr. The average wage for this profession for the year 2021 in Canada according to Ziprecruiters was C$18/hr.
What are the Educational Requirements?
In Ontario, Canada, the typical education requirements for a virtual bookkeeping job need completion of secondary school and a recognized professional accounting program. You don’t need any specific certifications for this profession. However, hands-on training during a diploma program will help you gain knowledge and experience in the domain to start your business with finesse.
How to Start a Bookkeeper Business in Canada?
To start your own bookkeeping business in Canada requires careful planning and execution. Here’s a comprehensive guide to help you navigate the process:
1. Get Certified
While formal certification isn’t mandatory, it enhances your credibility and expertise. Consider:
- Certified Professional Bookkeeper (CPB): Offered by CPA Canada, it requires experience and an exam.
- Associate Bookkeeper (AB): A lower-level option offered by CPA Canada, ideal for beginners.
- Accounting Software Certifications: Learn popular software like QuickBooks, Xero, or FreshBooks.
2. Create a Business Plan
Develop a roadmap outlining your:
- Business model: Choose sole proprietorship, partnership, or incorporation.
- Target market: Identify your ideal clients (e.g., small businesses, freelancers).
- Services offered: Decide on bookkeeping, payroll, tax preparation, etc.
- Pricing strategy: Set competitive rates based on experience and services.
- Marketing plan: Outline strategies to attract clients (e.g., website, networking).
3. Register your Business
- Choose a business name and register it with your province’s corporate registry.
- Obtain a business number from the Canada Revenue Agency (CRA).
- Consider registering for GST/HST if your annual revenue exceeds $30,000.
4. Set Up your Operations
- Secure a workspace, whether a home office, shared space, or dedicated office.
- Invest in reliable technology like computers, accounting software, and internet access.
- Choose cloud-based solutions for secure data storage and client collaboration.
5. Market your Business
- Build a professional website showcasing your services and expertise.
- Utilize social media platforms like LinkedIn and Twitter to connect with potential clients.
- Network with local businesses and professional organizations.
- Offer free consultations or introductory discounts to attract clients.
Do you Need a License to be a Bookkeeper in Canada?
In Canada, there is no specific license required to work as a bookkeeper. However, many bookkeepers choose to pursue voluntary certifications such as the Canadian Bookkeepers Association (CBA) certification or become members of professional organizations like the Institute of Professional Bookkeepers of Canada (IPBC) to enhance their credibility and skills.
How Profitable is a Bookkeeping Business?
The profitability of a bookkeeping business can vary based on factors such as location, client base, and the range of services offered. Generally, well-established bookkeeping businesses with a steady clientele can be profitable, but success often depends on efficient operations, effective marketing, and maintaining strong client relationships.
If starting your own Bookkeeping business in Canada isn’t your dream and want to work as a virtual Bookkeeper, follow the below guidelines.
How Do I Become A Virtual Bookkeeper In Canada?
If you want to gain knowledge and hands-on training in bookkeeping and start providing virtual bookkeeping services in Canada and around the globe. BizTech Colleges’ Professional Accounting and Payroll Administration not only introduces you to bookkeeping but equips you with know-how into professional accounting and payroll administration.
Software knowledge is essential in every profession; thus, the college offers training and a free subscription to the latest accounting software – QuickBooks.
Interested in becoming a virtual bookkeeper? Contact our admissions desk today.