How To Start a Bookkeeping Business: 11 Actionable Steps

how to start a bookkeeping business

Naturally, you want to spend the majority of your time serving clients. However, you need to know how to attract and land bookkeeping clients. It’ll have one of its webmasters reach out to you for a quick 15-minute conversation before it goes on to create your website fitted with your logo, images, and content. It’ll focus on designing a website that increases revenue, improves client loyalty, and drives brand awareness. It even offers a free 30-day trial so that you can see if it works for your business. A document-sharing program will allow you to share information—such as bank statements, copies of receipts, invoices, and accounting files—with your clients no matter where you’re working.

How much should a small business bookkeeper charge?

  • It is simpler, but it provides less information about a business’s financial position.
  • In most cases, a website is static and allows businesses to transmit basic, evergreen information such as phone number, services provided, and credentials.
  • 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.
  • Let’s start with Operating Cash Flow, which reflects the cash generated from a startup’s core operations, excluding financing and investing activities.

At this point, you may be thinking, “That all sounds nice, but how hard is it to actually start a bookkeeping business? ” There are two parts to that answer, and they’re actually both surprisingly simple. Your marketing content should speak to the needs and pain points of the types of customers you’re most interested in attracting to your business. A business plan may be required if you plan to apply for business financing from banks or investors.

Plan Ahead for Taxes

All the regulations that apply to a physical location also apply to virtual or home offices. So not having a physical office does not put an accounting firm at a disadvantage. Starting a bookkeeping business is going to take a lot of effort, but the barriers to entry have never been lower.

Choose a Business Structure

But many owners don’t have the time or desire to do that, and that’s where you can step in and provide a ton of value for them (and be well compensated in return). Bookkeeping, as it turns out, is one of the best online businesses you can start. When planning your marketing strategy, it’s important to think about the message you want to send to prospective clients. That message should be consistent across all of the channels you use to market your business, whether that includes YouTube, Facebook, TikTok, or another platform.

The specific answer to this question can vary somewhat depending on the extent of bookkeeping services your company needs, and how often you require the services of a small business bookkeeper. For full-time bookkeepers, the average annual salary sits around $77,000, according to Glassdoor. A separate bank account is the first step in distinguishing between business and personal finances. Bookkeeping becomes more difficult when business transactions are lumped together with personal activity. Keep all cash, credit card, and other financial activities separate.

  • Writing a business plan is something that everyone should do before starting a business.
  • Starting a bookkeeping business can be very profitable, but you will need to do some work upfront.
  • Because the funds are accounted for in the bookkeeping, you use the data to determine growth.
  • Do you have more questions about the bookkeeping process for small businesses?

Your bookkeeping business will be up, running, and raking in the big bucks. Each of them ensures that you are protected from various issues that may arise during your time in business. Base your services on the intersection of your clients’ needs and your skillset. It’s okay to start with a smaller list of advertised services and add accounting services for startups more as you see the need. Bookkeepers need certification (which we’ll go over later) and a working knowledge of accounting software, best practices, laws, and, in some cases, the tax code. You can deduct repairs and maintenance to the area used for business and a portion of utilities, real estate taxes, and insurance on your home.

How much does a bookkeeper charge per hour?

how to start a bookkeeping business

That said, even if you don’t think you need one – or the website says it isn’t a requirement– most businesses are probably better off acquiring an EIN. Once you’ve selected a location and determined your goals, it’s time to consider the nuts and bolts of owning a business. No doubt you have plenty of questions about how to set up a new firm and get off to a great start. Access Xero features for 30 days, then decide which plan best suits your business. Take advantage of courses and training to learn new skills and expand your service offering.

Prepare for employees

There are many great website builders available to help you design a website as unique as your business. Besides yourself, who else will need to be involved in your business? Lenders, additional bookkeepers, contractors, and key relationships will all need to be considered. Knowing the right forms and documents to claim each credit and deduction is daunting.

how to start a bookkeeping business

Both the single-entry and double-entry methods can work in tandem with cash or accrual bookkeeping. However, it’s important to remember that you have to target businesses where you have the right location and the right skills. If you can fill them, then you have a specialization that is highly valuable to that market. Whichever structure you choose at the beginning, know that it will likely evolve throughout the maturity of your firm.

It shows that you know what you’re doing, why you’re doing it, and how you will continue to grow in a positive direction over time. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. 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.

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