How to Be Online Bookkeeper - Job Description, Skills, and Interview Questions

Aug 15, 2020 / 5 Minutes Read / By Albert

How to Become

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Using an online bookkeeper can have many positive effects for a business. By allowing for more accurate and up-to-date financial tracking, businesses can save time and money in their accounting and bookkeeping processes. With access to real-time financial data, businesses can make more informed decisions and increase their efficiency.

outsourcing bookkeeping services to a third-party provider can reduce labor costs and provide access to trained professionals. The use of cloud-based software also ensures that financial data is secure and can be accessed from anywhere. using an online bookkeeper can help a business streamline its financial operations and maximize its profits.

Steps How to Become

Obtain a degree in accounting, bookkeeping, business administration or a related field. Many employers require an associates or bachelors degree in a related field for online bookkeeping jobs.
Obtain certification as a bookkeeper. Certification will increase your marketability and may be required by some employers.
Learn bookkeeping software programs, such as QuickBooks and Peachtree. Employers are more likely to hire someone with bookkeeping software experience.
Acquire a working knowledge of spreadsheets, word processing and other computer applications.
Develop strong communication skills, since online bookkeepers must communicate with clients via email and other electronic means.
Join professional organizations, such as the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers. This will provide you with access to job postings, as well as continuing education opportunities.
Apply for online bookkeeper positions. Many employers post job openings on job boards and on their websites, but you can also contact companies directly and inquire about any open positions or internships.
Set up a professional website to showcase your services and qualifications, if desired. Many online bookkeepers use websites to reach out to potential clients.
Consider becoming self-employed as an online bookkeeper. This requires additional steps, such as registering with state and federal governments as a business and obtaining a business license, setting up an office and marketing your services to potential clients.

As a bookkeeper, it is important to stay updated and competent in order to ensure accuracy and efficiency. One way to do this is to take continuing education courses and seminars on topics related to bookkeeping. Doing so will help you stay up-to-date with the latest industry practices and regulations.

networking with other bookkeepers in the profession can be beneficial, as this will allow you to learn from their experiences and gain insight into new technologies and software. Another option is to read books and articles related to bookkeeping, as this can also provide valuable information and knowledge. Finally, it is important to use the best available software and technology for bookkeeping, as this can make the job easier and more efficient.

By taking the necessary steps to stay informed and competent, bookkeepers can ensure that they are providing their clients with the most accurate and timely services.

You may want to check Payroll Bookkeeper, Senior Bookkeeper, and Automated Bookkeeper for alternative.

Job Description

Prepare and enter financial transactions into accounting software.
Reconcile bank and credit card accounts.
Prepare monthly, quarterly, and annual financial statements and reports.
Maintain general ledger and chart of accounts.
Calculate payroll taxes and other payroll related tasks.
Prepare invoices, sales receipts and other documents.
Manage accounts receivable and accounts payable.
File sales and other local, state, and federal taxes.
Perform audits of financial records and internal controls.
Assist with budgeting, forecasting and strategic planning.

Skills and Competencies to Have

Strong knowledge of accounting principles and applicable laws
Extensive experience with bookkeeping software, such as QuickBooks or Xero
Excellent organizational, communication and problem-solving skills
Ability to work independently and as part of a team
Ability to meet deadlines and complete projects in a timely manner
Attention to detail and accuracy
Knowledge of payroll processing and payroll taxes
Knowledge of financial statement preparation and analysis
Knowledge of budgeting and forecasting techniques
Knowledge of business tax compliance requirements
Knowledge of cash flow management techniques
Proficiency with Microsoft Office suite, including Excel, Word, and Outlook

Good bookkeeping is essential for any business to be successful. It is the foundation of an accurate financial record keeping system, and accurate bookkeeping leads to better decision making and improved profitability. One of the most important skills to have when it comes to bookkeeping is an understanding of accounting principles and practices.

This knowledge enables bookkeepers to accurately record business transactions and analyze financial data to identify trends and make sound financial decisions. a bookkeeper should possess strong organizational skills, the ability to work with large amounts of data, and the ability to think critically and solve problems. With these skills, a bookkeeper can help ensure that financial records are accurate, up-to-date, and complete.

Full Charge Bookkeeper, Corporate Bookkeeper, and Accounts Receivable Bookkeeper are related jobs you may like.

Frequent Interview Questions

What accounting software are you most familiar with?
How do you handle reconciling accounts for customers?
How do you ensure accuracy when entering data into the database?
What procedures do you have in place to ensure that records are kept up-to-date?
How do you handle discrepancies between customer accounts?
Do you have experience with creating financial reports for customers?
How comfortable are you working with different currencies?
Are you familiar with the principles of Generally Accepted Accounting Principles (GAAP)?
What do you do to ensure that all customer payments are properly accounted for?
Are you comfortable working with different online payment systems?

Common Tools in Industry

QuickBooks. Online accounting software that allows users to manage finances, track expenses, and create invoices. (eg: Xero, FreshBooks)
Wave Accounting. Cloud-based software that provides bookkeeping, invoicing and payroll services. (eg: Zoho Books, Kashoo)
Receipt Bank. Automates the receipt collection process, extracting data from receipts and turning it into organized financial records. (eg: Shoeboxed, Expensify)
Xero. Online accounting software that allows users to create invoices, track expenses, and manage inventory. (eg: Sage 50cloud, QuickBooks)
TaxJar. Online tool that automates the sales tax filing process for businesses. (eg: Avalara, Taxify)
Invoicely. Invoicing software that allows users to create and send invoices, estimate future cash flow, and accept payments online. (eg: Zoho Invoice, FreshBooks)

Professional Organizations to Know

American Institute of Professional Bookkeepers (AIPB)
National Association of Certified Public Bookkeepers (NACPB)
Association of Certified Bookkeepers (ACB)
Institute of Certified Bookkeepers (ICB)
International Association of Bookkeepers (IAB)
The Federation of Tax Administrators (FTA)
Institute of Financial Accountants (IFA)
International Accounting Standards Board (IASB)
Chartered Institute of Management Accountants (CIMA)
American Institute of CPAs (AICPA)

We also have Financial Bookkeeper, Inventory Bookkeeper, and Financial Administrator/Bookkeeper jobs reports.

Common Important Terms

Accounting. The systematic recording, reporting, and analysis of financial transactions of a business.
Bookkeeping. The process of recording financial transactions in a businesss ledger.
Financial Statements. Reports that provide information about a businesss financial position, such as its income, expenses, assets, liabilities, and equity.
Accounts Receivable. An account listing the amounts owed to a business by its customers.
Accounts Payable. An account listing the amounts owed by a business to its suppliers.
Bank Reconciliation. The process of ensuring that a businesss records of its bank balance are correct by comparing them to the banks records.
General Ledger. A record of all transactions relating to a businesss assets, liabilities, equity, income, and expenses.
Cash Flow Statement. A report that outlines the sources and uses of a businesss cash during a given period of time.
Budgeting. The process of creating plans to manage and allocate resources to meet financial objectives.

Frequently Asked Questions

What is Online Bookkeeper?

Online Bookkeeper is a cloud-based accounting software that helps small businesses keep track of their finances and manage their financial operations. It offers features such as invoicing, reporting, budgeting, and more.

What features does Online Bookkeeper offer?

Online Bookkeeper offers features such as invoicing, expense tracking, bank reconciliation, reporting, budgeting, and more. It also integrates with third-party applications like QuickBooks and Xero for extended functionality.

How much does Online Bookkeeper cost?

Online Bookkeeper offers a variety of pricing plans based on the features and number of users needed. Prices start from $9/month for the basic plan and go up to $49/month for the premium plan.

Does Online Bookkeeper offer customer support?

Yes, Online Bookkeeper offers customer support via email, phone, and live chat. Additionally, they offer online resources such as tutorials and FAQs to help users get started with the software.

Is Online Bookkeeper secure?

Yes, Online Bookkeeper is a secure platform that uses industry-standard encryption technology to protect user data. They also follow best practices for data security and privacy.