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If you’re considering becoming a freelance bookkeeper, you’re not alone. According to recent statistics, there has been a significant increase in the number of people opting for freelance work, and bookkeeping is no exception. Freelance bookkeeping is an attractive option for those who want to work from home, set their own hours, and have control over their workload.
So, what is the average freelance bookkeeper salary in 2023? According to ZipRecruiter, the average salary for a freelance bookkeeper in the United States is $48,691 per year. However, this figure can vary depending on factors such as location, years of experience, and education. Glassdoor and Payscale also provide similar salary ranges.
Overall, the freelance bookkeeper salary can be quite lucrative, especially when you consider the flexibility and autonomy that come with the job. However, it’s important to note that factors such as competition, demand, and additional costs can also impact your earning potential. In the following sections, we’ll dive deeper into the role and job description of a freelance bookkeeper, the factors that can influence your salary, and how to improve your earning potential.
Key Takeaways
- Freelance bookkeeping is a popular option for those seeking flexibility and control over their workload.
- The average salary for a freelance bookkeeper in the United States is $48,691 per year, but this figure can vary depending on various factors.
- Earning potential can be improved by factors such as education, certification, and specialization in certain industries.
What Is Freelance Bookkeeping?
If you’re interested in becoming a freelance bookkeeper, you’re likely wondering what exactly that entails. Freelance bookkeeping involves providing bookkeeping services to clients on a contract basis instead of being an in-house employee. As a freelance bookkeeper, you’ll work with a variety of clients and have the flexibility to work from the comfort of your own home.
To become a freelance bookkeeper, you should have a solid understanding of accounting principles and be able to accurately and efficiently manage financial records for your clients. You should also have excellent communication skills since you’ll be working closely with clients to ensure their financial records are accurate and up-to-date.
There are different ways to get started in freelance bookkeeping. Some bookkeepers start by working part-time while others jump right in and start their own bookkeeping business. You can also work as an independent contractor for an accounting firm or offer bookkeeping services through online bookkeeping service providers.
As a freelance virtual bookkeeper, you’ll be responsible for a variety of tasks, including data entry, managing bank accounts and credit cards, and preparing financial reports and statements. You’ll work closely with your clients to understand their specific needs and ensure their financial records are accurate and up-to-date.
The average hourly rate for a freelance bookkeeper in the United States is around $20.17, according to PayScale. However, rates can vary depending on your location, years of experience, and the type of service you offer. Full-time bookkeepers and those with certification or a bachelor’s degree may be able to earn a higher rate.
Overall, freelance bookkeeping can be a great option for those looking for flexible hours and the ability to work from home. With high demand for bookkeeping services and the potential for earning a good income, it’s definitely worth considering if you have the necessary skills and qualifications.
Role and Job Description of a Freelance Bookkeeper
As a freelance bookkeeper, your main responsibility is to maintain accurate financial records for your clients. This includes recording financial transactions, updating general ledgers, and preparing financial reports. You may also be responsible for managing bank accounts, reconciling credit card statements, and preparing tax returns.
To become a successful freelance bookkeeper, you should have a solid understanding of basic bookkeeping principles and be proficient in data entry. You may also benefit from obtaining a bookkeeping certification from a reputable organization such as the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers.
Communication skills are also important for freelance bookkeepers, as you must work closely with clients to understand their financial needs and provide regular updates on their financial status. You may also be responsible for providing bookkeeping services to small business owners who may not have an in-house bookkeeper.
As a freelance bookkeeper, you can expect to earn an average hourly rate of around $20-$30, depending on your level of experience and the type of service you provide. Some freelance bookkeepers charge a monthly fee for their services, while others charge based on the frequency of services provided.
The earning potential for freelance bookkeepers is high, especially for those who specialize in a particular area of bookkeeping or obtain additional certifications. However, it is important to note that additional costs such as software and training may be required to provide the best service possible to your clients.
Overall, becoming a freelance bookkeeper can be a good option for those with formal education or experience in bookkeeping who are looking for a flexible work arrangement. With the high demand for bookkeeping services and the ability to work from the comfort of your own home, this may be a great place to start your own bookkeeping business.
Freelance Bookkeeper Salary Overview
If you’re considering becoming a freelance bookkeeper, it’s important to understand the salary expectations for this role. The average freelance bookkeeper salary in the United States as of July 2023 is $42,749 per year, according to Salary.com. However, this number can vary depending on factors such as location, level of experience, and type of service provided.
Here is a breakdown of the average hourly rates for freelance bookkeepers based on years of experience:
| Years of Experience | Hourly Rate |
| 0-1 Years | $20.17 |
| 1-3 Years | $22.50 |
| 4-6 Years | $25.67 |
| 7-9 Years | $28.83 |
| 10-14 Years | $31.67 |
| 15+ Years | $34.50 |
As you can see, the more experience you have as a freelance bookkeeper, the higher your hourly rate can be. For new bookkeepers with little to no experience, the hourly rate is typically around $20.17 per hour.
For those with more experience, such as those with 10 or more years of experience, the hourly rate can be as high as $34.50 per hour. Professional bookkeepers who have obtained certification, such as through the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers, can also command higher rates.
It’s important to note that these rates are just averages and can vary depending on location and the type of services provided. For example, bookkeeping services in New York and New Jersey tend to pay higher rates compared to West Virginia.
When determining your freelance bookkeeper salary, it’s important to consider factors such as the frequency of services provided, the type of service provided, and the size of the business you are working with. Additionally, having a formal education or certification can help increase your earning potential.
Overall, freelance bookkeeping can be a good option for those with strong communication skills and a knack for numbers. With the high demand for bookkeeping services, there is ample opportunity to build a successful career as a freelance bookkeeper.
Factors Influencing Freelance Bookkeeper Salary
As a freelance bookkeeper, your salary can be influenced by various factors. Here are some of the most important considerations:
- Years of experience: As with most professions, the more experience you have, the higher your earning potential. Entry-level bookkeepers can expect to earn less than full-charge bookkeepers or certified bookkeepers who have been in the industry for several years.
- Type of service: The type of bookkeeping service you offer can also impact your salary. For example, if you specialize in financial reports or monthly statements, you may be able to charge a higher rate than a bookkeeper who only does data entry.
- Size of the business: The size of your clients’ businesses can also affect your earning potential. Bookkeepers who work with larger businesses or high net worth clients may be able to charge more than those who work with small businesses or sole proprietors.
- Frequency of services: How often you provide bookkeeping services can also play a role in your salary. Bookkeepers who work with clients on a regular basis may be able to charge a higher hourly rate or monthly fee than those who only work on an as-needed basis.
- Additional costs: As a freelance bookkeeper, you may also need to consider additional costs such as employee benefits, certification programs, and software subscriptions. These costs can impact your overall earning potential.
- Location: The average bookkeeper salary can vary widely depending on your location. For example, bookkeepers in New York or New Jersey may be able to charge a higher rate than those in West Virginia.
- Certification: Becoming certified as a bookkeeper can also impact your earning potential. Certification programs, such as those offered by the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers, can provide you with the skills and knowledge you need to earn a higher salary.
- Education: While a bachelor’s degree is not always required to become a bookkeeper, having formal education or completing online courses can give you a better idea of how to run your own bookkeeping business and potentially earn a higher rate.
- Communication skills: Good communication skills are important for any bookkeeper, but they are especially important for those who work remotely or as independent contractors. Being able to communicate effectively with clients can help you build trust and secure more work.
Overall, the earning potential of a freelance bookkeeper can vary widely depending on a variety of factors. By considering these factors and staying up-to-date with industry trends and best practices, you can position yourself as a great bookkeeper and earn a competitive salary in the field.
Education and Certification
If you’re looking to become a freelance bookkeeper, education, and certification are essential. While a high school diploma is typically the minimum requirement, having an associate’s or bachelor’s degree in accounting or a related field can increase your earning potential.
Certification from organizations like the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers can also demonstrate your expertise and credibility to potential clients. Certification programs can range from online courses to formal education, and the cost can vary depending on the type of service you’re seeking.
Keep in mind that certification is not required to become a freelance bookkeeper, but it can set you apart from other candidates and potentially lead to higher rates. Here are some courses you can consider taking that are both affordable and comprehensive.
In addition to education and certification, having strong communication skills and experience with financial transactions, data entry, and bookkeeping software like QuickBooks Online is important for success as a freelance bookkeeper.
When determining your rates, consider factors like your years of experience, frequency of services, and the type of bookkeeping service you’re providing (basic bookkeeping, full charge bookkeeper, etc.). The average hourly rate for a freelance bookkeeper in the United States is $40-60, but rates can vary depending on location, the size of the business, and the type of clients you’re working with.
Overall, becoming a freelance bookkeeper can be a good option for those looking for flexible hours and the ability to work from the comfort of their own home. However, it’s important to do your research and determine if it’s the best option for you based on your income goals, type of freelance service, and the demand for bookkeeping services in your area.
Pros and Cons of Freelance Bookkeeping
If you’re considering becoming a freelance bookkeeper, it’s important to weigh the pros and cons before making a decision. Here are some of the advantages and disadvantages to keep in mind:
| Pros | Cons |
| You can work from the comfort of your own home, which can save you time and money on commuting. | You’ll need to find your own clients, which can be challenging if you’re just starting out. |
| You can set your own hours and work as much or as little as you want, which can provide flexibility for those with other commitments. | You’ll need to be disciplined and motivated to ensure you’re meeting your clients’ needs and deadlines. |
| You can charge your own rates, which can potentially earn you more money than working as an in-house bookkeeper. | You’ll need to handle all aspects of your business, including marketing, invoicing, and taxes. |
| You can work with a variety of clients and industries, which can keep your work interesting and diverse. | You may miss out on some benefits that come with being an in-house employee, such as health insurance and retirement plans. |
| There is high demand for bookkeeping services, so you may have a steady stream of work. | You may need to invest in your own software and equipment, which can be expensive upfront. |
One of the biggest advantages of freelance bookkeeping is the flexibility it offers. You can work part-time or full-time, and you can set your own hours. This can be especially appealing to those with other commitments, such as caring for children or pursuing other interests. Additionally, you can work from the comfort of your own home, which can be a big time and money saver.
Another advantage is the potential to earn more money than you would as an in-house bookkeeper. You can set your own rates and work with a variety of clients, which can increase your earning potential. Additionally, there is high demand for bookkeeping services, so you may have a steady stream of work.
However, there are also some disadvantages to consider. As a freelance bookkeeper, you’ll need to find your own clients, which can be challenging if you’re just starting out. You’ll also need to handle all aspects of your business, including marketing, invoicing, and taxes. Additionally, you may miss out on some benefits that come with being an in-house employee, such as health insurance and retirement plans.
Overall, freelance bookkeeping can be a great option for those who value flexibility and autonomy. However, it’s essential to carefully weigh the pros and cons before making a decision.
How to Improve Earning Potential
As a freelance bookkeeper, there are several ways to boost your earning potential. Here are some tips to help you increase your income:
- Specialize in a niche: By specializing in a particular industry or type of bookkeeping service, you can become an expert in that area and charge higher rates. For example, if you specialize in bookkeeping for small businesses or credit card reconciliation, you can charge a premium for your services.
- Obtain certifications: Becoming a certified bookkeeper or certified public accountant (CPA) can increase your earning potential. Certification programs such as those offered by the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers can help you stand out from the competition.
- Offer additional services: By expanding your services to include financial statement preparation, tax return preparation, or data entry, you can increase your income and provide more value to your clients.
- Increase your rates: As your experience and expertise grow, you can gradually increase your rates. Research the average hourly rate for freelance bookkeepers in your area and adjust your rates accordingly.
- Market yourself: Promote your services on social media, online directories, and through word-of-mouth referrals. Networking with other professionals in your industry can also lead to new clients and opportunities.
By implementing these strategies, you can improve your earning potential and grow your freelance bookkeeping business.
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Frequently Asked Questions
What are the average hourly rates for freelance bookkeepers?
The average hourly rate for freelance bookkeepers varies depending on factors such as location, experience, and type of service provided. According to ZipRecruiter, the national average hourly rate for freelance bookkeepers in the United States is $34.67 per hour. However, rates can range from $26.91 to $43.57 per hour depending on the location.
How much can I earn as a self-employed bookkeeper?
As a self-employed bookkeeper, your earning potential will depend on various factors such as your experience, the type of bookkeeping service you offer, and the size of your client base. According to Salary.com, the salary range for a freelance bookkeeper job is from $37,109 to $50,052 per year in the United States.
What qualifications do I need to become a freelance bookkeeper?
You do not need formal education to become a freelance bookkeeper. However, having a certification from a recognized organization such as the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers can increase your credibility and earning potential. Additionally, having experience in bookkeeping, completion of online courses, good communication skills, and knowledge of popular accounting software such as QuickBooks Online can be beneficial.
What are the benefits of working as a freelance bookkeeper?
Working as a freelance bookkeeper gives you the flexibility to choose your clients, set your own rates, and work from the comfort of your own home. Additionally, you can enjoy the benefits of being your own boss, such as setting your own schedule and having control over the type of work you do.
How do I find freelance bookkeeping jobs?
There are different ways to find freelance bookkeeping jobs. You can reach out to small businesses in your area, advertise your services on social media or job boards, or join freelance marketplaces such as Workhoppers. Networking with other professionals in the industry, such as certified public accountants or financial advisors, can also lead to potential clients.
What are some tips for setting my freelance bookkeeping rates?
When setting your freelance bookkeeping rates, consider factors such as your experience, the frequency of services, and the type of service provided. Research the average hourly rate in your area and adjust your rates accordingly. Additionally, consider offering different pricing options such as a monthly fee or a project-based fee. It is also important to communicate your rates clearly to potential clients and be open to negotiation.
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