How To Start a Bookkeeping Business in 8 Steps

I then joined a global construction company working directly with executives providing management reports and helping team members translate the numbers so they can better manage their projects. Paul and Sarah Edwards are the bookkeeping authors of Best Home Businesses for the 21st Centuryand 14 other books. In a world where computers are obsolete within a few weeks after you purchase them, it’s tough to stay on top of new trends and changes in the industry.

There’s no better time to check out Bookkeeper Launch and get started on your next successful career. Your website should include a list of your services, some background about your experience and skills, and a way to contact you, at a minimum. The marketing plan should clearly describe your target audience and how to appeal to them. In many cases, each of these strategies might be included in your broader plan.

Profitable Ideas to Make Extra Money on the Side

The world of bookkeeping is pretty diverse, so you’ll need to pick a specialty. 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. As you get to know your niche you will be able to more accurately price your services and you can create systems for yourself that will ultimately lead to a higher hourly wage. The course is designed for beginners with no previous experience. That’s right, even if you have no formal credentials or previous real-world experience, you can become a bookkeeper.

If you have a good eye for detail, organizational skills, and an ability to deal with numbers, bookkeeping might prove a good option for you. If you’re willing to put the work in that’s needed to find clients, and you like the idea of independence, setting up your own business adds to the prospects. Balancing accounts requires that you understand credits and debits, and the transactions required to have the accurate beginning and ending balances for each account. Another important factor for bookkeepers is to understand invoicing and accounts receivables and payables as bookkeepers help create and collect on accounts. You should think about your business name carefully since it would be the first impression on potential clients. In addition, it will say a lot about your specialization, personality, and, most importantly, knowledge. Additionally, it should also outline the services you’ll offer on the market and how you’ll gain a competitive advantage in your industry.

Tax Preparation

Access all Xero features for 30 days, then decide which plan best suits your business. Keep these in mind when you’re faced with decisions like taking on an extra client, increasing your fees, or hiring your first employee. Give yourself confidence in your abilities by being your best client.

• That’s not only important for separating your business and personal finances, but can help you with your own bookkeeping come tax season.
• 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.
• According to PayScale.com, self-employed bookkeepers charge an average hourly rate of $25—experienced bookkeepers and those serving specific niches can command even higher rates.
• “These can then be sent to the accountant to produce the year-end accounts.

It’s tempting to offer everything in an attempt to attract prospective clients. But if you aren’t able to deliver on what you promise, you could get yourself into trouble. Start small and don’t over promise on what you’re able to do. These articles and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”).

Step #1: Pick a Business Name

If you file corporate income taxes, have employees, or file certain franchise taxes, you must have an EIN. An EIN is also a common requirement for opening a business bank account. Most businesses can request an EIN by filling out the IRS’s online form. However, the limitations and risks of these business structures quickly become more apparent as your business grows.

To access the information, you need a user ID and password. All files are stored in the cloud, so there’s no backup required. Certified public bookkeeper, or CPB, which signals to clients that you have professional-level skills and might be an important part of how you differentiate yourself in a competitive market. Sageworks, a provider of financial risk software, ranked bookkeeping and related businesses at the top of its list of most profitable small businesses, with an average profit margin of 18.4%. Bookkeeper Launch issues a certificate of completion, which is both helpful in marketing your new business, as well as giving you the confidence to seek out and book clients.