Depending on your business model, you might have very little interaction with your clients. Bookkeeping can be done strictly via email and over the phone. Bookkeeper Business Launch will teach you everything you need to know about bookkeeping, running a business and connecting with clients who need your services. It can shorten your learning curve and help you fast-track your profitability.
We’ve laid out how to start a bookkeeping business in 15 steps. You’d better bookmark this page—you’re going to want easy access to this info as you build your bookkeeping business.
Know Your Major Competitors in the Industry
If you’re looking to keep it local, good old-fashioned pamphlets and flyers can also do the trick. After all, the more of your target market you attract, the more customers you’re likely to have. So you’ve created your plan, chosen your certification and raised your funds. Even if you think you’ve found the perfect one, remember to make sure it hasn’t already been taken. It is always worth doing your research on this, and having a few backup ideas just in case. From there, you’ll need to plan your business, choose a name and consider all the legal requirements you need to meet.
- Bill.com just takes care of all of that and I make sure everything is accounted for properly.
- Talk to businesses in your area to see what they are currently paying for bookkeeping services.
- Or perhaps you’ve always had a burning desire to start your own business, are good with numbers, organized, looking for flexibility, and want to do something that will help clients achieve their goals.
- Anyone operating in the US needs to make sure that they’re aligned with GAAP when working on financial reporting.
- Unlike CPAs, these certifications are not regulated by the state, so be sure to choose a large, reputable organization so that the certification is meaningful and respected.
These are straightforward businesses that, as their name suggests, can help reduce your personal exposure to liability. In other cases, depending on ownership structure and long-term goals, a partnership or even a corporation might be the appropriate structure. Regardless, making an effort to register and organize your business will make it easier to begin officially operating as a business, attract capital and clients, and also effectively manage your finances. In addition to your business plan, you will also need a well-organized marketing plan before you can get started. Businesses of all kinds will always need bookkeeping services.
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This question will clear out and squeeze down the client’s list. While marketing was the final solution to everyone ten or fifteen years ago, it doesn’t work today. Just like you won’t want to be friends with just anyone, you shouldn’t want to take on just anyone as a client.
Is the Certified Bookkeeper exam difficult?
The bookkeeping certification exam should be considered very difficult. While it's certainly not as difficult as the certified public accountant (CPA) exam, candidates should be sure to prepare as much as possible.
Philip Taylor, aka “PT”, is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon. Learn more and get started with Bookkeeper Business Launch here.
Do I need to rent office space for my bookkeeping business?
If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations. Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. Certification isn’t technically required, but it’s useful because it reassures your clients that you have the knowledge and experience needed to manage their money. Most certifications require at least one year of experience as a bookkeeper in addition to successfully passing one or more tests, so you may need to work for a while before they’re an option.
Yet most small businesses can’t afford to hire or keep full-time bookkeepers. But these stats reference somebody who works directly for a single company. Most bookkeepers earned between $22,000 and $56,000, and the industries with the highest levels of employment were accounting and tax preparation services, management companies and local government. To form an LLC, you’ll need to file Articles of Organization with the Secretary bookkeeping of State’s office and pay the state filing fee. It is essential for paying taxes, hiring bookkeepers and other employees, and opening a business bank account. Firstly, bookkeeping services are in high demand as everyone needs to keep records and manage finances – be it freelancers, solopreneurs, small business owners, or corporations. A lot of starters will begin by looking at job sites and social media platforms.
Benefits of Providing Bookkeeping Services
In order to know what your home office “expense” is, you would take the total square footage of your home and deduct the square footage of your designated office. Depending on what state you live in, the cost for a business license can vary. In Oregon, for example, it is $150 annually to file a business license, which budgets to $12.50 per month. Bookkeepers need quality internet connection, and once again, you’ll most likely be using it for both personal and business, so I estimated about $30 a month for business purposes.
How do I start a bookkeeping business with no experience?
Do an online course, or work at some local bookkeeping firm, as the skills are necessary to land a position. There are several such jobs available online, often overlooked. Being an entry-level job, you can apply for such jobs online without any prior work experience.
If you don’t have the space for this, aim to have a desk with locking drawers where physical paperwork can be kept. Also, make sure your computer is password-protected, and that no one but you signs into it. When you set up your business, you should also take steps to protect yourself. Box for any paper correspondence, so you can control who has access to your personal address. A bookkeeping business does not necessarily need to have many initial costs, especially if the owner will also be responsible for all of the bookkeeping. The simplest firms—especially in the digital age—can begin from a single computer. Over time, you can then scale your business into something much bigger.