Starting a bookkeeping business

We can have you covered by insurance in as little as 5 minutes. As you search for the right business name, check that the name is available as a domain for your website. The last thing you want is to come up with the perfect name only to find that it’s already taken. They’re likely to be forgotten as soon as they’re heard or read. If you’re having trouble with your business name, try a business name generator to jumpstart your imagination.

As a bookkeeper, you should have liability protection in case you get sued for a mistake on your client’s books. Insurance can both cover the cost of settling a lawsuit and the lawyer fees to defend against a lawsuit. Before you choose your business name, make sure someone else isn’t already using it, lest clients get confused. Also, run the name by a few people to see the impression they get of it. Once you have your finalists, run the names through your secretary of state’s business name database to make sure it’s available.

A certificate or degree program can teach you how to use the needed tools and understand the process behind the things you’re required to do. A bookkeeper also needs a good understanding of computerized accounting software. This helps keep accounts reconciled and secure for clients and keeps the information easy to access. A cloud-based solution that makes it easy for accounting firms to manage client work, collaborate with staff, and hit their deadlines. If you don’t manage your workflows well, work quality will suffer and things will start to slip through the cracks.

How to Price Bookkeeping Services for Small, Medium, and Large Clients

But when I first started my bookkeeping business, I took on any clients for absolutely anything they needed. I would take on the most complicated projects, difficult clients who didn’t appreciate what I did… and in some cases didn’t even pay me. I am not a contractor, I’m not an employee; I’m a professional and a business owner, and I’m in control. I don’t allow any clients to dictate to me how, when or where I will provide services to them. You may need to access your client’s apps and bank accounts to get work done.

That is why you need an accounting workflow software like Financial Cents. It was specifically built to help bookkeeping firms track the status of client work and important deadlines. If you already have a computer, it costs relatively little to purchase the necessary software, learn how to use it, and begin offering bookkeeping services from your own home. In addition to your accounting software, you might also consider other software to help you manage payables and receivables.

While a business plan can be used to obtain funding for your business, the real value is the thought that goes into the process of writing a plan. Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content.

Research Funding Options

Did you know that bookkeeping is consistently named among the most profitable at-home businesses to start? The start-up costs are minimal, and the earning potential is high, which makes for a great side hustle or full-time career. Being the best bookkeeper in the world won’t help you if no one knows who you are or how to find you.

Starting a bookkeeping business

You can easily integrate the platform into your website to allow clients to pay for your services, or send out invoices or direct Pay Links. You can accept credit and debit cards, ACH transfers, and a wide variety of other payment methods. Liability protection can cover lawyer fees and settling costs. Although insurance isn’t required, it could potentially save your business from taking a huge loss.

Step 3 – Write Your Webpage Content

You can host it on your server, distribute it under your brand and sell it at your price. There are a few different ways you could structure a bookkeeping business. The digital age has brought endless possibilities to start online businesses of all shapes and sizes, so there’s something out there for all types of people.

Starting a bookkeeping business

This way, both of you know the expectations, and everything is clearly communicated and agreed to in case any issues arise. Collecting this information will help you understand the scope of work and if they are a good fit for your services. However, you want to ensure you’re doing everything correctly and above board, here are the steps required to do that. Likely you’d hire the person who charged $100 because you don’t know how long the $20 an hour person would take. The terms ‘bookkeeper’ and ‘accountant’ are occasionally used interchangeable, but they are in fact two different roles.

Join a Professional Bookkeeper Association

And if you do go down this route, unless you have experience running ads, make sure to hire someone competent in this area. Keep yourselves in this position, Will you ever share the whole financials of your company with someone unknown? As per the laws, there is no problem at all having a tax person handling your bookkeeping. If you choose the latter, the average salary of a bookkeeper in India is above Rs/month.

A bookkeeper stole $7.6 million from her employer. How did no one notice? – Maclean’s

A bookkeeper stole $7.6 million from her employer. How did no one notice?.

Posted: Mon, 24 Jul 2023 07:00:00 GMT [source]

You should also consider a reputable webcam and headset for client meetings. The insurance products on (the “Site”) are underwritten by different carriers dependent on the relevant line of business – see huckleberry.com/carriers. Start with one platform and add more as time and budget allow. It takes time to become a great marketer on even a single social media platform, so be patient, and allow yourself to experiment with different types of content. We’ve already talked about your ideal customer; your market and client research should help to inform you where they spend their time.

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Here are a few tips to “stay in the loop” on what’s going on in the bookkeeping/accounting industry. Marketing is so important, no matter the type of business you own. The savviest small-business marketers are the ones who figure out exactly who their customers are and advertise directly to them. Remember that the amount that you charge should be contingent on your years of experience, specialization in industries, certifications you carry and your area. And, of course, your rate isn’t fixed — you can always change it if you feel like you’re not priced correctly.

There opens up a massive market of potential customers who need bookkeeping services. Despite its name, good accounting software isn’t just for accountants. It can be used for your bookkeeping business, allowing you to view your clients’ finances and create financial reports, among other things. Since you are starting a bookkeeping business, I’m sure that you have already given some thought (or made a decision) on which accounting software to use for your business.

Instead, I recommend bundling different levels of support into your productized service. Maybe it’s numbers-oriented like hitting $1,000,000 in revenues or servicing 1,000 small businesses. Bookkeeping can be incredibly lucrative – there’s always a demand since every business needs someone to track its money. Still, there are benefits and drawbacks to consider before launching your business. This is just protecting you in case something goes wrong with one of your clients, and they want to sue you for a mistake. The chances of that happening are probably slim, but it’s best to be protected in the case that it does.

Of course, becoming a competent and proficient bookkeeper still takes time and money. And although certification is optional, it’s a good idea to get certified since it lends credibility to your business. Bookkeeping is one of the most lucrative businesses to start right now! In this article, you will learn everything you need to know to start your own bookkeeping business.

How to start a bookkeeping business in 15 steps

Knowing where you eventually want to end up is helpful when you begin planning. It will guide how you do business, whether you want to hire anyone, what kind of clients you want to take on, and how hard you’ll chase new business. Ready to find out if workflow software is the right fit for your firm? Select the potential number of users at your company below to get started with your 14-day free trial. Think about various ways you can reach out to potential clients or get your business in front of them. Every contact with a business owner is an opportunity to land a new client.

  • In casual conversation, the terms “bookkeeping” and “accounting” are often used interchangeably.
  • 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.
  • This may vary from country to country, so it’s better to take legal help to clarify all the working terms and conditions.
  • Check out how many other bookkeeping businesses there are that specialize in the same industry.

You should not rely on it as the sole basis for making any business, legal, or other decisions. While we make every effort to ensure that facts stated are correct at the time of publication, we do not accept any responsibility for keeping this information up to date. Any views expressed in this article are those of the author and do not necessarily represent those of Pay.com. This is a website you and your clients can log into, and you’ll be able to see each of your clients in your account. The two best-known certifications are the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB).

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. Starting a bookkeeping business Registering your business and/or business name is an important step. The cost can range from free to several hundred dollars, depending on your state and the type of business structure you choose.