The Pros And Cons Of Starting A Bookkeeping Business

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Content Training ​q:  How Does The Program Work And What Is The Time Commitment? Stop Runningyour Businesslike This! You Can Personalize Your Business And Grow At Your Own Pace Can I Start A Bookkeeping Business With No Experience? How Do I Start A Bookkeeping Job With No Experience? They let you process bills in the […]

how to run a bookkeeping business

They let you process bills in the cloud for clients and approve them without anyone needing to print or mail checks. The former is primarily for sending invoices, along with the ability to track what clients owe you, whilst the latter also allows you to generate reports, estimates, and cash flow statements. The plan must contain an explanation of the required total first-year cash flow. If it falls on the negative side, balancing back to positive flow is important and it must be attained going forward in the business. Marketing analysis looks at the target audience of a business, which influences the approach of advertisements. Market analysis will include the target goal of the business, prices of good services, and how service fees will be charged; hourly or otherwise.

Errors and omissions insurance is a common type of insurance held by bookkeepers but general liability is another option. E&O insurance is cheap; some policies are around $25 per month. Based on the service you provide, you might consider purchasing liability. Even though it is a discipline with a high penchant for accurateness and thoroughness, it is still one you can go into with not so much degree and education. To be successful, independent bookkeepers need to be thorough, dependable and accurate as well as skilled in using accounting and sometime spreadsheet software. You must enjoy paying attention to details, and honesty and integrity are crucial. What this portrays is that every business in Canada needs the services of an outsourced book keeper since they are majorly small businesses.

If you ever want to get a bank loan for your business, you’ll probably need a more formal business plan. For now, the important thing is to walk yourself through the steps you’ll need to take to be successful. Quickbooks online is a fantastic software for small businesses, as it is one of the most widely-used accounting tools available. It is scalable, has tons of integrations, and includes a responsive mobile app for working on the go. The best thing about bookkeeping is that there’s always a demand. As long as there are businesses, there will be a market for people who can help them track their money.


This software can help you organize and track the progress of client work and, in some cases, provide a portal to access your client’s books. QuickBooks and Xero both offer practice management software that is integrated with their accountant software. As a one-person operation, you may find it hard to get back to clients right away, especially during tax season. Sending prospective customers to voicemail when they need your services can cost you business. Go Answer is a bilingual answering service that connects your customers to live customer service agents via phone, text, web chat, or email 24/7. Karbon ain’t cheap, but it’s certainly slick and very popular with certified public accounting firms & bookkeeping teams. In fact, using online, automated accounting technology was one of the keys to my success.

Your network will grow and some of these local businesses and small business owner contacts will turn into new clients eventually. Be prepared to hit the streets to mingle with new business owners to acquire your first few new clients.

Again, with remote meetings, it’s important that your clients and team can see you very clearly. Based on whether you go with Xero, QuickBooks Online, or both, the next thing you’ll want to do is get certified so that you actually know how to use the software. If you expect to find new clients in different geographical regions, consider getting a local number in addition to a toll-free number. Most of these phone services allow you to install an app on your smartphone so that calls are routed there.

​q:  How Does The Program Work And What Is The Time Commitment?

Once you have decided what services to offer and set your rates, you are ready to start looking for clients for your bookkeeping business. If you want to start your own bookkeeping business, you will have to set up a service website to sell your bookkeeping services. Don’t worry if you aren’t tech-savvy, there are several website platforms that make it easy to set up a website. You can choose to offer bookkeeping services to clients in a particular niche. For instance, you may choose to offer bookkeeping services to fitness coaches or instructors or local service businesses like locksmiths, florists, etc. Once you have a niche in mind, all you need to do is sell your bookkeeping services. If you want to offer freelance bookkeeping services, you will need to apply to jobs for bookkeepers, advertised on freelance sites, career sites, etc. places online.

Clients will prefer to work with an accredited professional bookkeeper– stating your certification and training could be useful. Small business owners know that time management, organization, and detail-orientation all need to go into keeping a strong system of accounting afloat. If these are skills you’ve mastered, you may consider starting your own bookkeeping business.

how to run a bookkeeping business

There are several different ways to network and gain contacts. You could join the Small Business Development Center as a business advisor, offer your services as a adjunct instructor, sign up with bookkeeper freelancer websites, or join local meetup groups.

Actionable steps as well as ongoing support in our private member community. Licensing information—as well as any zoning requirements or other permits—can usually be found on the city or county website. You’ll also need the signature of someone authorized to sign on behalf of the business, along with the state’s filing fee.

If you don’t file any paperwork to legally form a different kind of business—you have a sole proprietorship or general partnership. A sole proprietorship has one owner, and a partnership has multiple owners. Assuming you own a reliable laptop, start up costs will be minimal. However, if you need to purchase a new computer, it will cost a minimum of $1000. Every day, go door to door to businesses, handing out your brochure and business card.

Your EIN is for federal taxes—but you’ll likely have state and local tax obligations as well. You will most likely need to set up an account with the state’s Department of Revenue, and you may need to apply for a state tax ID or a sales tax license as well.

Stop Runningyour Businesslike This!

If you become a professional bookkeeper, you can charge a higher fee for your bookkeeping services. There is not much difference between the regular bookkeeping and a virtual bookkeeping arrangement, only that it allows bookkeepers to telecommute instead of working physically at a business office. And that you can learn at SeekaHOst University SEO training course. It is important to separate your personal finances from your business finances to support your limited liability status and protect your personal finances.

It’s okay to start with a smaller list of advertised services and add more as you see the need. Remember that how to run a bookkeeping business your business plan is likely to evolve as you learn more about your business in relation to the market.

One of the areas that’s really important here is market saturation. Will you be in the same neighborhood as some of the bigger companies like H&R Block? Find out if there’s a demand for your service by calculating the number of small businesses in the area. Working with similar companies will allow you to become an expert in that niche. Doing the books for a lawyer will be very different than doing them for a mechanic, which will be different than working with a retail store.

how to run 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. Once you can get your head around that, marketing and explaining your accounting and bookkeeping services to prospective clients will become far easier. 4) If you provide tax preparation services, they’re a great way to avoid a crazy tax season.

You Can Personalize Your Business And Grow At Your Own Pace

The first client is the hardest to get, but before you know it, you’ll have too many clients to manage in a spreadsheet. This is where the right software can really make a difference. I’ve seen the powerful transformations my framework has had on my clients and their businesses.

Bookkeepers are in great demand in the United States, especially if you’re a certified bookkeeper. Bookkeepers are in demand as most businesses and freelancers need to keep records to calculate taxes and manage finances. We have partnered with the most trusted insurers to help small business owners like you get the right coverage for your business. If you think you meet all the above criteria, then congratulations – you have a skill set which is in short supply and high demand. If not, you might want to think about what your biggest strengths are and consider starting a different business instead. If you’re still unsure of whether bookkeeping is the right choice for you, let’s break down some of the advantages and disadvantages.

You also can target specific businesses through your website or marketing materials. However, a profitable bookkeeping business will likely be good if it generates a healthy revenue. Additionally, you’ll need to research different industries and find out how much VAT (Value-added tax) and other taxes they charge, as well as what profits margin it requires to achieve profitability. The information from these books or ledgers serves as the foundation for annual tax and corporate accounting accounts. In the business of bookkeeping, connecting with new clients to your business is a lot like making friends or even dating.

  • All you will really need to get started is a good computer and high-speed internet.
  • Find a clean, manageable layout that will not distract visitors from your services.
  • Like a business bank account, a business credit card allows you to differentiate between personal and professional spending.
  • In today’s competitive environment, where everyone is shooting for the same level of success, standing out from the pack is critical.
  • While the bookkeeper uses computer software to post the financial transactions, and update statements and reconcile accounts without the need of been present in the office.
  • Even if you don’t have formal education in accounting or bookkeeping, you can become a certified bookkeeper before starting your own bookkeeping business.
  • Here we are just understanding the small business itself which is a critical step to get clients.

Eventually you’ll want to charge a fixed rate each month for your clients. You will need to decide on an accounting software, and I highly recommend Quickbooks Online Accountant. You will want to make sure you register with the accountant version. You will want to get some kind of insurance to protect you even further since you are in the service industry and working directly with clients. You can just call around to various insurance companies, let them know you’re opening a business, and share with them that you want to be protected with business insurance. In order to be considered a legal bookkeeping business, you need to decide what form of business entity to establish, and then file your company with your state. The most common forms of business are a Sole Proprietorship, Partnership, Corporation, and S Corporation.

Can I Start A Bookkeeping Business With No Experience?

A bookkeeping business consists of tracking income and expenses, processing payroll, and possibly preparing tax returns for business clients. Bookkeeping is a great home-based business that’s easy to start with very little cash.

However, the most successful bookkeeping businesses can make their owners 100,000 USD per year or even more. To be on the higher-earning end of the bookkeeping spectrum, you will need to minimize costs, attract a more sophisticated client base, and also position your business to quickly scale up.

Whether you’re looking to make a little extra money or wanting to grow a business to support you and your family, our eight steps will help get you there. Such as, using Facebook to run ad services that allow you to target specific demographics and effectively use your advertising budget. This step-by-step guide will map out the process to get started on your own bookkeeping business. We’ll cover building a bookkeeping plan, creating a strong accounting system, marketing and gaining clients and other helpful tips to get your business set up. To start a successful bookkeeping business, you’ll need to understand the basics of bookkeeping. This article will teach you everything you need to know on how to start a bookkeeping business. From setting up your business structure to understanding the tax laws in your area, this guide will help make starting a bookkeeping business an easy and successful experience.

Check with your bank to see what you will need to start a business checking account. When signed by both you and your client, this agreement will protect you against any liabilities. Most bookkeepers charge by the hour, others use a flat fee, and some use value pricing.


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