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How to Start a Successful Bookkeeping Business: 15 Steps

how to start a bookkeeping service

The latter could be a great option if you might bring in some help down the line. 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.

Anyone can be a bookkeeper if they have the skills and training to do the job well. Starting a bookkeeping business with no experience is technically possible. After all, bookkeepers don’t have to have the education or credentials of a CPA. NorthOne is proudly made for small businesses, startups, and freelancers. Our platform makes financial management accessible and affordable.

Bookkeeping vs Accounting

Our software allows you to send an automated request to your clients, asking for essential information. It also makes it extremely easy for your clients to securely upload their information and get it to in minutes. The best part is that it will also send automated reminders to your clients until they complete the request so you don’t have to spend hours every week chasing them down. Let’s walk through the process of marketing your bookkeeping firm. After working with hundreds of bookkeepers we have created a list of the best free and paid bookkeeping courses online that you can start with.

how to start a bookkeeping service

This will ensure that you keep your personal and business finances separate, which is key for liability protection and tax purposes. You might also consider getting a business credit card for any expenses. A bookkeeping company will offer basic bookkeeping services to another company or organization on a contractual basis. Most bookkeeping how to start a bookkeeping service businesses provide ongoing financial support, though some companies will offer “catch-up” services for business owners that get a little behind in their books. When building a bookkeeping business from the ground up, it often makes sense to start small and work with businesses whose bookkeeping needs are relatively straightforward.

Certification for your bookkeeping business

You might want to carry out training or take a certification to demonstrate your capabilities if you don’t have the experience to back them up. You might be able to leverage it into a lucrative bookkeeping business. So keep reading to learn how to start a bookkeeping business that you can count on to succeed. These articles and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”).

Think of your niche as a clear and specific direction for your business. It can be as simple as serving local businesses under 10 people or companies with an entirely remote workforce. However, if you’re already a CPA or professional bookkeeper, then read on—you’re ready to start your bookkeeping business, and we’re ready to show you how. While you don’t need to be an expert in every single area, any bookkeeping company must provide reliable, educated services to their clients.

Steps to Starting a Bookkeeping Business

If you end up using your personal credit card for business expenses, get into the habit of reimbursing yourself. It may seem silly when you’re just a one-person business, but again, it will help if you ever have to prove to the IRS that you take your business seriously. The exact process and costs for this vary from state to state and depend on the type of business structure you choose.

How profitable is a bookkeeping business?

How much you can earn from a bookkeeping business varies between experience, niches, and how you present yourself. While a full-time employed bookkeeper might make $22 per hour, a freelancer can look towards $60 per hour. By starting your bookkeeping practice, you can ultimately make more money while working less.

In pandemic time this is the best way to start a Bookkeeping Business in 2020. Amazing blog, It was very informative and easy to understand. For each process, create a step-by-step account for what needs to take place from the beginning of the process until the very end. I don’t have a ton of suggestions here as there are so many models and it depends on if you’re a Mac or PC person. 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.

Health Insurance

Only you know what accounting style works best for you, choose a system that helps you thrive. You will need a complete office setup, including a good scanner and possibly a printer. You’ll need a reliable internet connection and a computer that can run accounting software quickly.

  • Post on social media, and ask your friends if they know of anyone who’s trying to find a bookkeeper.
  • Having these certifications will help you increase your output as a bookkeeper and also potentially offer a wider range of available services.
  • While you don’t need to be an expert in every single area, any bookkeeping company must provide reliable, educated services to their clients.
  • I budgeted $25 a month on advertising for this bookkeeper, as those costs truly are relatively low and only optional expenses.
  • You can choose your own schedule, decide how much you get paid, and be selective about who you work with.
  • The process of finding and securing insurance at an affordable rate can seem overwhelming, but it doesn’t have to be.

Figuring out what to charge is any small-business owner’s greatest challenge. Too little and you aren’t fairly compensated for your work; too much and you’ll have a tough time competing with other bookkeeping businesses. Many clients will look for your website to find out about you and your experience. If you’re specifically running a totally virtual business, a website is extra important since it can demonstrate to clients your skills. And luckily, there are plenty of website builders to make creating your website a breeze. A major part of registering your business and opening up shop is choosing a business entity.

With SquareSpace templates, you should be able to get your site up and running easily, even if you don’t have design experience. You’ve set up your business, and you will start taking on new clients, but before you do this you need to create a streamlined onboarding process. This is essential as the first impressions and this process will set the stage for your relationship with the client.

You can start to bookkeep without any formal education or even experience. Adding services offers you an opportunity to expand your market and as well grow in the domain which will help you to attract new clients. With experience and the value of your services, you will get clients who are ready to pay high. First, build your market, and with a steady client base, you can definitely go for higher charges. You need to know what to do, and there are plenty of opportunities available on the Internet.

Ready to tackle your small business insurance? We’re here to help.

Make sure you have time to complete the invoicing each month if you decide to bill hourly. If you’d prefer not to bill hourly, you can set a fixed fee or retainer bill for each client. This method rewards you for working efficiently as long as you’re getting the work done. When you finish your work, you can stop for the day or focus on getting more clients.

But bookkeeping gives you the option of starting on a shoestring budget. You can launch an online bookkeeping business using the same process above, though naturally, you’ll need to place greater emphasis on your web presence and your file-sharing tools. But you’ll also be able to reach a wider market than if you only focused on your local area, reaching prospective clients from across the US. Many banks offer additional services that can help you maintain and scale your business operations, such as business credit cards, small business loans, and more. Many businesses rely on customer relationship management (CRM) platforms to track bookkeeping clients or drop potential clients into a lead pipeline. You can use these platforms to nurture relationships with your clients.

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