Virtual bookkeeping is the remote management of a company’s financial records. Virtual bookkeepers work with businesses of all sizes to reconcile accounts and pull the reports that owners use to make decisions.  

The day-to-day looks familiar if you know traditional bookkeeping. What’s different is the setting. You might contract with several small businesses from a home office or work full time for a company.

Here, we’ll break down exactly what virtual bookkeeping is and what the work involves. We’ll also explore what virtual bookkeepers earn and how to land your first clients.  

Key Points

• A virtual bookkeeper provides online bookkeeping services to businesses. Services range from financial recordkeeping to financial reports generation. 
• Flexibility is among the biggest benefits of virtual bookkeeping. You can typically set your own hours and work from anywhere with a reliable internet connection. 
• Becoming a virtual bookkeeper doesn’t necessarily require a formal degree, but certifications can help you compete. You will need solid math skills and a working knowledge of tax fundamentals, though. 
• Virtual bookkeepers average $24.31 an hour ($50,573 a year) according to ZipRecruiter, with top earners reaching $73,000. Government data on the broader bookkeeping field shows a median annual wage of $49,210, with the top 10% earning above $72,660. 

What Is Virtual Bookkeeping?

Virtual bookkeeping is built on the same core work as traditional bookkeeping. The only real difference is delivery. Software and secure file sharing replace the in-person handoff of receipts and paper ledgers.  

Whatever the form, bookkeeping gives companies a clear picture of their financial performance and profitability. The work involves recording transactions as they happen and reconciling those records against bank statements. It also involves producing financial reports that businesses use to inform decision-making. 

What Is a Virtual Bookkeeper?

The role covers a lot of ground. In a typical week, a virtual bookkeeper might: 

• Record and categorize transactions 
• Reconcile accounts 
• Process payroll 
• Manage invoices and resolve outstanding ones 
• Track cash flow and expenses 
• Prepare financial reports, like profit and loss (P&L) statements or balance sheets 

Some virtual bookkeepers also handle business taxes, which typically requires an IRS Preparer Tax Identification Number (PTIN). 

Virtual bookkeepers might work full or part time. Some opportunities are in-house, while others are external. All are remote. Virtual bookkeepers may also offer their services to individual clients or businesses on a freelance basis. 

Don’t confuse bookkeeping with accounting. Accountants analyze financial data and draw conclusions from it. Bookkeepers record the transactions and generate the reports that make that analysis possible. 

What Is Online Bookkeeping, and How Does It Work?

Online bookkeeping is virtual bookkeeping under a different name. Modern software lets bookkeepers do everything they’d normally do in person, including: 

• Communicating with clients and tracking financials through online portals 
• Uploading and managing important documents, such as contracts or tax returns, via cloud-based systems 
• Automating transactions, financial statement reports, and accounts payable (AP) processes 
• Tracking bills and payments online in real time 
• Recording daily financial transactions the moment they post 
• Automating expense tracking and categorization 
• Processing credit card and other payments through expense management software 

Benefits of Virtual Bookkeeping as a Career

Virtual bookkeeping is an in-demand, flexible role you can perform from nearly anywhere. Like many tax preparer roles, virtual bookkeeping doesn’t require a degree to get started, though certification doesn’t hurt. Here are 4 of the biggest draws. 

1. Flexible Work Environment

You control your schedule and where you work from. Freelancers build their hours around clients in different time zones. Employees for platforms like QuickBooks Live pick from set shifts during business hours.  

Either way, there’s no commute and no geographic tether, though some employers do restrict hiring to specific states for tax and licensing reasons. 

2. Low Startup Costs

Getting started usually requires a secure internet connection and a laptop. From there, the main investments are software subscriptions and training. Free training is available through platforms like Intuit Academy. A paid certification like the American Institute of Professional Bookkeepers (AIPB) Certified Bookkeeper credential is another option. 

3. Strong Demand for Remote Financial Professionals

Overall bookkeeping employment is projected to decline 6% through 2034 as software automates more routine data entry, according to the US Bureau of Labor Statistics (BLS). However the agency projects 170,000 openings a year, mostly from retirements and workers moving into adjacent roles. 

Small businesses and solo operators continue to hire virtual bookkeepers rather than keeping the work in-house. The BLS predicts that bookkeepers will start to lean more into the advisory side of the role, interpreting the numbers for clients rather than just entering them. 

4. Scalable Income Opportunities

Virtual bookkeeping gives you room to grow income over time, whether you work as a W-2 employee or run your own practice. The levers are different. 

For employees, the ladder runs through roles and credentials. A bookkeeper who earns a certification might move into senior bookkeeping positions or step into staff accountant work.  

For freelancers, the levers are more direct. You control how many clients you serve and how you package and price the work.  

Automation significantly expands how many clients you can serve. That’s because bank feeds, recurring transactions, and receipt capture let 1 bookkeeper support a roster that would have required a small team not long ago.  

Skills You Need to Become a Virtual Bookkeeper

A degree isn’t a must to gain footing in the field, but you’ll need certain skills to do the job well:  

• Accounting fundamentals: You should be able to record daily transactions, reconcile bank statements, process payroll (including withholdings), and manage accounts payable and receivable. You’ll also need to create financial reports, like revenue forecasts or P&L statements. 
• Technology and software proficiency: Companies may expect practical knowledge of financial automation software or accounting systems. Think QuickBooks and FreshBooks.  
• Communication and client management: You’ll need interpersonal and analytical skills to do the job well. That means explaining numbers in plain language and asking the right questions when a transaction doesn’t fit a pattern.  

How to Become a Virtual Bookkeeper

The path to virtual bookkeeping is short compared to most finance careers. Four steps cover most of it:  

1. Take foundational accounting courses. 
2. Earn a bookkeeping certification. 
3. Choose your career path: employment or freelance. 
4. Apply for remote bookkeeping roles. 

1. Take Foundational Accounting Courses

The first step is to learn the basics of bookkeeping: the accounting equation, debits and credits, how financial statements connect to each other, and how payroll and sales tax flow through the books. 

Intuit Academy offers a free bookkeeping certification that issues a digital badge. There are plenty of other comparable courses from universities and accounting organizations, some paid and some not. Community college accounting courses are another solid path, especially if you learn better with structured instruction and live feedback.  

2. Earn a Bookkeeping Certification

Getting a bookkeeping certification isn’t a must, but it can further your career prospects. The right credential shows that you’ve met certain standards and can capably provide the services you offer. 

Leading options include certifications offered by the National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB). Formal certifications like these do cost money, so consider your options carefully.  

3. Choose Your Career Path: Employment or Freelance

When it comes to career prospects, virtual bookkeepers have 2 main options: 

• Work for a company (employment): You’ll typically work set hours helping a company (or its clients) with their financials. You might perform this type of work in person, remotely, or in a hybrid format. Some companies offer additional benefits, such as paid time off or health insurance. 
• Work as an independent contractor (freelance): You’ll set up the business, find clients, and handle your own taxes. The benefits of having your own virtual bookkeeping business include greater flexibility and the ability to scale over time. 

4. Apply for Remote Bookkeeping Roles

If you choose an employment track, job boards like Indeed, LinkedIn, and FlexJobs carry a lot of remote bookkeeping listings.  

For freelancers, the first client is the hardest. Upwork and Fiverr can help you build a portfolio, though the marketplace is crowded. You could also pick a niche and build an online presence around that specialty. Local networking through small business associations and chamber of commerce meetings can be effective, too, especially for bookkeepers serving a defined geographic market. 

Ready to start applying? Explore remote bookkeeping roles with Intuit to see what’s currently open. 

Tools and Technology Used in Virtual Bookkeeping

Virtual bookkeeping runs on a stack of connected tools, with the accounting platform at the center. They include*: 

• Cloud accounting platforms: QuickBooks Online, Xero, Wave, FreshBooks 
• Receipt and document capture: Dext, Hubdoc 
• Expense tracking systems: Zoho Expense, Expensify 
• Secure client portals: Liscio, ClustDoc 
• Bill pay and AP automation: BILL, Melio 
• Online project management tools: Trello, Financial Cents 

Prioritize tools that streamline your bookkeeping process and help boost accuracy. And know that the tools you use today might not be as relevant a year from now. So, keep an eye on industry trends and keep learning as you go. 

*Note: These are only examples. Some businesses may use proprietary or other tools.  

How Much Can a Virtual Bookkeeper Earn?

Virtual bookkeeping earnings span a wide range. The median sits around $49,210 a year for W-2 bookkeepers, per the BLS, with the top 10% of earners clearing $72,660.  

Virtual bookkeepers specifically trend slightly higher. ZipRecruiter puts the average at $50,573 annually, with top earners pulling $73,000 or more. 

Freelancers work off a different curve. Payscale puts the typical hourly rate for self-employed bookkeepers at between $26 and $38.  

The Future of Virtual Bookkeeping

AI and automation tools have redefined bookkeeping, handling routine processes with minimal human oversight. This shift will define the role over the next decade. 

The tension shows up in the employment data we covered earlier: The BLS projects overall bookkeeping roles to decline 6% through 2034, even as the agency expects the remaining work to shift toward analysis and advisory. 

The virtual bookkeepers positioned to thrive will be the ones who interpret numbers instead of just entering them and specialize in an industry where context matters.  

Start Your Journey Toward Becoming a Virtual Bookkeeper

You don’t need to know everything right away to build a career in virtual bookkeeping. What matters is developing the financial, technical, and communication skills your clients will rely on. 

Formal education helps but isn’t a necessity. An online badge from a beginner course can carry weight on a resume, especially paired with hands-on practice. 

Whether you’re just starting out or looking to advance, stay open-minded and willing to learn. Intuit Academy’s free courses, for example, can help you build the foundational skills remote bookkeeping roles call for. 

FAQs

What skills or qualifications do you need to become a virtual bookkeeper?

Proficiency in basic accounting principles and finance is a good starting point. From there, be prepared to learn common bookkeeping software and tools. You’ll also need communication, analytical, and organizational skills. Online coursework or certification can also help you get your virtual bookkeeping career off the ground. 

Is there an expectation to work specific hours as a virtual bookkeeper?

Workloads can fluctuate based on a company’s needs. At certain times of the year (like year-end closing and quarterly reporting deadlines), you may need to work more hours. But as a virtual bookkeeper, you have greater flexibility in when and how much you work. 

How much can a virtual bookkeeper expect to earn?

Virtual bookkeepers average around $24.31 an hour ($50,573 a year) according to ZipRecruiter, with top earners clearing $73,000. BLS data on bookkeepers more broadly puts the median annual wage at $49,210, ranging from $34,600 at the 10th percentile to $72,660 at the 90th. 

Experience, certifications, industry specialization, and pricing model (hourly versus fixed monthly retainer) all shape where you land.