Virtual Bookkeeper Salary| How Much They Make and the Top 10 Highest Paying Cities
August 20, 2024
by Ippei Kanehara
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How I make $52K per month
Virtual bookkeepers make $53,269 to $61,700 on average. This translates to an average hourly rate of $24.31. The rates vary depending on experience and skill. Virtual bookkeepers may also choose to work part-time or full-time.
Cloud-based accounting software and secure file-sharing platforms have made it easier for bookkeepers to work remotely. Hiring virtual bookkeepers is more cost-effective for small and medium-sized businesses. Studies show that businesses save up to 50% on bookkeeping costs by hiring virtual bookkeepers instead of in-house staff.
This Reddit commenter in a high cost-of-living area claims to make $120K per year. He bills an accounting job by the hour for $75 to $150. The actual cost of his services depends on the scope of work.
According to this commenter, $60/hour is a usual rate in his area. Those who work in virtual bookkeeping agencies make around $25 to $30 hourly.
This article tells you everything you need to know about the typical virtual bookkeeper salary. It discusses how much virtual bookkeepers make per hour and monthly. I'll also share the highest paying cities for virtual bookkeepers and salary comparison by location.
Virtual Bookkeeping Salary Per Hour
Virtual bookkeepers earn between $12.98 and $35.58 per hour. Rates depend on experience, skill level, and the complexity of tasks. The average hourly rate for virtual bookkeepers in the United States is around $21.50. Entry-level virtual bookkeepers with less than 1 year of experience earn on the lower end of the scale, often between $13-$18 per hour. Those with 5+ years of experience can command rates of $30 or more per hour. Bookkeepers with QuickBooks ProAdvisor or Certified Public Bookkeeper (CPB) credentials earn 10-20% more than their non-certified counterparts.
Virtual Bookkeeping Salary Per Month
A virtual bookkeeper’s median salary is $3,424 per month. Full-time bookkeepers who work at least 40 hours per week make at least $2,000 monthly. Beginners make $2,079, while experienced bookkeepers make upward of $5K.
How Much Do Virtual Bookkeeping Businesses Make?
Virtual bookkeeping businesses in the U.S. make around $53,269 annually. New bookkeeping firms make $30K in their first year. Those with an established client base earn more. Virtual full-charge bookkeepers earn slightly more than the average. They make around $59,429 per year because they handle comprehensive bookkeeping tasks.
Highest Paying Cities for Virtual Bookkeepers in the United States
- Washington, D.C.: High cost-of-living increases wages. There’s also a high concentration of government agencies and NGOs. And a powerful presence of lobbying firms and political organizations.
- San Francisco, CA: The Silicon Valley creates demand for bookkeepers. Tech businesses constantly need specialized accounting services.
- New York, NY: New York is abundant with banks, investment firms, and corporations. The high cost of living in the area increases pay for virtual bookkeepers.
- Anchorage, AK: The oil and gas industries in Anchorage may require more complex bookkeeping methods.
- Los Angeles, CA: Large entertainment industry with complex financial needs. Tech, aerospace, and international trade businesses also increase wages in the area.
- Boston, MA: It’s a hub for education and healthcare industries. This demand increases the average pay for virtual bookkeepers here.
- Seattle, WA: The home of Amazon and Microsoft. The growing startup ecosystem increases the demand for virtual bookkeepers. The high cost-of-living influences standard wage rates.
- Chicago, IL: It’s a major financial center in the Midwest. Chicago’s economy includes manufacturing, food processing, and healthcare.
- Miami, FL: An international business hub, known for its tourism and hospitality industries. There’s also an abundance of start-up businesses in this area.
- Austin, TX: It has a lower cost of living compared to the areas, but wages are still competitive. There are many established companies here that might need virtual accounting services.
Work-From-Home Bookkeeper Salary Comparison By Location
Location | average salary |
|---|---|
Washington, D.C. | $60,000 |
San Francisco, CA | $70,000 |
New York, NY | $68,000 |
Anchorage, AK | $65,000 |
Los Angeles, CA | $63,000 |
Boston, MA | $62,000 |
Seattle, WA | $61,000 |
Chicago, IL | $60,000 |
Miami, FL | $58,000 |
Austin, TX | $57,000 |
How Much Should I Charge For Bookkeeping Services on Upwork?
You may charge $10 to $25 per hour on Upwork. The actual rate varies depending on experience, geographical location, and specific skills. Bookkeepers that do basic tasks typically charge $10 hourly. Senior bookkeepers who do advanced accounting tasks charge $25+ per hour. Those who offer comprehensive bookkeeping and accounting services can set their rates at $40+ per hour. Bookkeepers who specialize in certain niches may increase their rates.
What Factors Affect the Cost of Bookkeeping Services
Experience and Qualifications: New bookkeepers might earn between $12 and $24 per hour. Those who are more experienced make from $25 to $30. Top-tier bookkeepers with an established name in the industry make even more.
Geographic Location: Bookkeeping rates vary in different locations. The cost of living in a specific area affects it. California and New Jersey have hourly rates that are 28% above the national average. This means virtual bookkeepers who work for businesses in these states might also make more.
Type of Bookkeeping Services: The complexity of the service affects the cost. Simple data entry tasks have lower rates than financial reporting or tax preparation. Standard services are often priced lower than specialized tasks.
Billing Method: Bookkeeping rates also depend on your chosen billing method. Hourly billing is the most common. The total fee is based on the time spent on tasks. Clients may pay retainer fees for a pre-determined set of services. Some bookkeepers charge extra for services beyond the agreed scope.
Certifications and Specializations: Certified Public Accountants and certified bookkeepers may demand higher rates. They have specialized knowledge in specific industries that are valuable to businesses.
Technology and Tools: Bookkeepers who use advanced accounting software may charge more. These tools and software make the job more efficient for the client.
What is a Virtual Bookkeeper?
A virtual bookkeeper is a professional who remotely manages an organization's accounting and financial records. They enter and categorize financial transactions and generate invoices. Bookkeepers process payments and manage payroll. They reconcile discrepancies in financial records and prepare month-end and year-end closing documents. Bookkeepers also prepare tax reports.
How To Become a Virtual Bookkeeper?
- Study fundamental accounting principles to become a virtual bookkeeper.
- Master popular accounting software like QuickBooks or Xero.
- Create a dedicated home office space and invest in a good computer and stable internet.
- Identify your niche, research, and define your target market.
- Determine which bookkeeping services you'll provide.
- Design a professional website showcasing your expertise on Upwork and Fiverr.
- Network with local businesses and attend industry events.
- Use digital marketing techniques to reach potential clients.
Courses on Virtual Bookkeeping
Booming Bookkeeping Business is a 90-day online course by Bill Von Fumetti that teaches virtual bookkeeping from home. It covers the basics of accounting, setting up the business, and acquiring clients. The course promises high earning potential. Some claim to make $75,000 to $100,000. Some students report finding high-paying clients, while others say the course doesn't live up to its promises. Potential students should carefully consider the course content and their own goals before enrolling, as results can vary based on individual effort and market conditions.
Why I Became a Digital Landlord Instead of a Virtual Bookkeeper
I became a digital landlord because this biz is more flexible. Virtual bookkeeping is not much different from a 9-to-5 job. You'll be tied to your responsibilities to the company. Without an accounting background, you'll need to learn bookkeeping from scratch. You're also prone to committing crucial mistakes that can have legal consequences. New bookkeepers have a lower rate compared to experienced professionals. It may not be worth exploring how to become a virtual bookkeeper despite the income potential.
The number 1 online business is local lead generation. This biz builds simple websites for local service providers. The goal is to build and rank many sites and generate passive income from them through organic leads. You don't need to constantly manage clients like virtual bookkeeping. Local lead gen clients stick with you long-term. The leads you supply them keep their business going. In return, you get stable and predictable passive income.
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Ippei Kanehara
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$52K per month providing lead generation services to small businesses
Ippei.com is for digital hustlers, industry leaders and online business owners.
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