6 Easy Steps to Start a Bookkeeping Business

To assist you with this decision, I recommend that you get an introduction to the four common business structures by reading our best small business structure guide. Naming your business can be both a fun and stressful exercise. Your name must convey your brand since that is what a potential customer will see before they sit down with you for that initial consultation.

Study the requirements and track your progress toward meeting them. If you don’t have them already, you’ll need to have a solid grasp of bookkeeping principles. Fortunately, there are several ways you can learn, both online and in person. The cost per credit hour is generally much lower than a traditional four-year college, and you can attend full-time or part-time, depending on your schedule. Now that you understand the fundamental startup costs, let’s look at the steps you’ll need to take to launch your new bookkeeping business.

The Benefits of Starting a Bookkeeping Business

I was able to grow my public accounting firm quickly by hiring certified public accountants and professional bookkeepers thanks to many of the marketing strategies that worked well. Following the above steps will help get your bookkeeping business off to a good start, but don’t rest on your laurels. Keep up with changes in the industry and continue to evolve your skills. Once you’ve established yourself as a bookkeeper, consider getting training and/or certification in accounting, which will allow you to offer more services at a higher price point.

While they can receive certifications through training programs, they can also simply acquire on-the-job experience to establish their bookkeeping business. A bookkeeper is an instrumental part of any business operation. A company hires a bookkeeper to manage and organize its finances, including detailing and categorizing all transactions. They help small-business owners get a handle on their cash flow — one of the most important barometers for a healthy business. They will also often help businesses produce crucial financial statements such as the profit and loss statement and balance sheet.

Steps to Start a Successful Virtual Bookkeeping Business

Help businesses with an overview of their finances to help them understand their habits. In addition, this is where you’ll begin to make decisions about where you’ll operate your business and who you will hire for which positions. Simplifies processes such as applying for a business loan or buying new equipment. Give yourself confidence in your abilities by being your best client. With the right software and apps it’s easy to work with people wherever you are in the world. The finished goods inventorywill reflect the number of each type you have at any time.

Eventually, you may want to rent a standalone office, but while you’re building your client list, a home office can be ideal. Alternatively, take a hybrid approach by combining a home office and a shared office space. A shared space gives you access to amenities such as conference rooms, copy machines, and potentially even a receptionist. It’s really touch and go at the moment with a lot of these new companies. They’re raising a lot of money, but they aren’t exactly proven yet.

Ensures that you’re not personally held liable for any debts or issues related to your business. Access all Xero features for 30 days, then decide which plan best suits your business. You’ll find all the resources you need to get started, free, through the Xero bookkeeping partner programme. Take advantage of courses and training to learn new skills and expand your service offering. While you’ll set yourself up to succeed, you need to be willing to admit when things go wrong.

The LIFO Accounting Method

Their ‘Bookkeeper Launch’ course is one of the best products out there for learning how to launch a virtual bookkeeping business in the twenty-first century. By this point, you have an official bookkeeping business with its own business bank account, registration, plans, and certifications. If you have already purchased the equipment you think you’ll need, that means you are finally ready to begin pursuing clients. Networking, advanced marketing, freelance platforms, and direct communication are just a few of the ways you might be able to get your “foot in the door” and land the first, important client. This step-by-step guide will map out the process to get started on your own bookkeeping business.

Our comprehensive bookkeeping business course, Bookkeeper Launch, is designed to be completed in ten weeks. Some students even get their first client while still in the course! If your clients will be sending you things such as receipts or statements, you might want to consider the tool that you’ll use to share files. A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to. Even as the nature of business changes, one job that is always in demand is bookkeeping.

Firm of the Future

Business owners alike know that the more you put in, the more you’ll get out. As a small business owner, you get to decide how many clients you want to take on, how much money you want to make, and how many hours you want to work during the day. Investing the time to attend a conference will give you those continuing education credits you need to keep your bookkeeper or CPA certification. It’ll also enable you to learn what the hottest trends in the industry are and what’s becoming obsolete. A great conference to attend is QuickBooks Connect, which is hosted by Intuit. The 2023 details for QuickBooks Connect haven’t yet been announced.

As a responsible small business owner or bookkeeper, you should be aware of your company’s revenue streams. With accurate bookkeeping, you can tell how much your business is making in terms of income and track your spending to ensure that you have enough cash on hand to cover your business expenses. Proper financial records make it easier for you to analyze the financial state of your firm and determine areas that need improvement. For professionals and aspiring bookkeepers alike, certifications are a powerful way to boost your skills and add additional authority to your brand. You can gain certifications in bookkeeping itself as well as in the accounting software you plan to use to serve your clients. Running your own bookkeeping firm offers more flexibility and control than you can get working for an employer.

Accounting software eliminates a lot of the busy work bookkeepers were required to complete…even just 5 years ago… and free you up to deliver premium service at premium rates. Okay, if I did my math right – that means your estimated startup costs are about $1,404. However, there are a few questions that should be swirling around your head. And, you need to know the answers BEFORE you dive into the bookkeeping business pool. Marketing is so important, no matter the type of business you own. The savviest small-business marketers are the ones who figure out exactly who their customers are and advertise directly to them.

As a result, it’s probably not going to be your program of choice as a professional bookkeeper – but it’s smart to know what it is and how it works in case you encounter clients who use it. For example, QuickBooks costs between $15 and $150 depending on the package you choose – and since you’re a professional, it makes sense to choose the Advanced option. All businesses need to keep bookkeeping records by law, and someone has to do that work for them.

Step 2 – Get training and/or a certification

Danielle is a writer for the Finance division of Fit Small public accounting. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years. Tim is a Certified QuickBooks Time Pro, QuickBooks ProAdvisor, and CPA with 25 years of experience. He brings his expertise to Fit Small Business’s accounting content. Christine is a non-practicing attorney, freelance writer, and author.

• These days you can search for a Facebook group about everything from baking cakes to watching Game of Thrones.
• Meaning, technology cannot be ignored if you want to get bookkeeping clients, or even land your first client.
• To find reliable options, look through your accounting software’s directory of certified bookkeeping professionals.
• A trustworthy software will help you stay on top of your clients’ bookkeeping and better manage the workflow.
• Taking the time to separate your personal and business expenses will help give you an additional layer of financial protection and also make it much easier to organize.

A ProAdvisor can assist you with small-business bookkeeping and installing or learning how to use cloud accounting software. Virtual bookkeeping firms also need several non-accounting software subscriptions. You should have PDF editing, presentation, and time management or workflow software. Microsoft Office Suite used to be a requirement, but many virtual bookkeeping businesses use the free Google Workspace products.

Without a website—and since you have no physical office—your business may appear to be fly-by-night. You are required to register for a business permit in most locations. Fees vary from a few dollars to a percentage of revenue, depending on your business location. You should consider the licensing fees when deciding where to locate your virtual bookkeeping business.

• Read our guide on how to become a certified bookkeeper for the details of these, plus other, bookkeeping certification programs.
• However, you don’t actually pay the fee until you’ve received the parts, in February.
• While it’s tempting to offer your services online to a worldwide audience, it adds a lot of complexity to your operations.

You’ll set up a long-term vision of what you want your own business to achieve and work backward to arrive at immediate priorities to focus on. Incentivize referrals by rewarding current clients for referring new ones. Best Payroll Software for Small Business 2023 To rate each payroll software program, we assessed payroll and HR features, ease of use,… Best Billing and Invoicing Software for Small Businesses 2023 We weighed pricing, plans, features, reputation, and usability to find the best billing software for…

Think of all you recommend to your clients and implement those same procedures for your business. You should also consider health insurance as an added expense, especially if you previously had health insurance through your employer. Replacing employer-sponsored coverage can be one of the most expensive costs of going into business for yourself. Once you’ve formed your entity, you must apply for an employee identification number with the Internal Revenue Service .

Once you’ve been accepted into these social media groups, you’ll have access to the exact kind of new business clients you’re looking for. If you are targeting restaurant owners as bookkeeping clients, perhaps they’re on Instagram instead. Always consider where your target market hangs out before engaging in any social media marketing activities. This will be a complete solution to provide to an accounting firm and small businesses. This “why” is the purpose of your firm and it’s important that the purpose of your accounting services is incredibly clear to you, your team, and your clients. Great news, because this step-by-step guide will cover the critical 7 steps you’ll need to follow to set up a modern bookkeeping practice and to land your first clients.

You might also want to consider obtaining other relevant certifications, such as tax certification, an accounting software certification, and financial planning certification. Having these certifications will help you increase your output as a bookkeeper and also potentially offer a wider range of available services. Small business owners know that time management, organization, and detail-orientation all need to go into keeping a strong system of accounting afloat.