6 Easy Steps to Start a Bookkeeping Business

Fact Checked

how to run a bookkeeping business

After establishing the purpose of your accounting firm, you’ll need to establish early on in your first year exactly what your ideal client profile looks like. Look to certify in each type of accounting software you use to add credibility to your services. Remember that your business plan is likely to evolve as you learn more about your business in relation to the market. It can be 10 pages, or it can be 1 to start, and it doesn’t have to be perfect—it just has to exist. Every business has a regular flow of financial statements, balance sheets, bank statements, and other financial documents to keep in check—and most business owners need help to do so. Investing the time to attend a conference will give you those continuing education credits you need to keep your bookkeeper or CPA certification.

  • You can research how to hire employees and download or bookmark any necessary forms like the W-4 and W-9 through the U.S.
  • In addition to this, you’ll be providing an essential service to your clients, helping them to run their businesses smoothly and efficiently.
  • With online networking you can find like-minded bookkeepers who use the same software, serve the same industries, or work in the same area.
  • Check out the Facebook group and see what others have done.

How to get more clients by following the tactics in our exclusive Sales and Marketing manual, which contains the Pure Bookkeeping 7×5 marketing plan. Too many bookkeepers simply don’t enjoy their businesses, and we’re committed to turning that around. She called this process the “7×5”system, and Debbie used it to get 5 new clients a year from each of the 7 different marketing approaches. Trying to run a bookkeeping business can be a lonely, frustrating business – but there is another way. You’ve don’t have any systems in place for things like client onboarding, introducing new bookkeepers, or getting testimonials from your clients. Everything takes far longer than it should because you don’t have efficient systems in place.

How do I get clients?

It’s good to overestimate a little from what your average time may be on any given task. The last thing to decide is if you are happy working with the hourly rate that the fixed rate will average out to. My Bookkeeper Business Coach class walks you through the starting processes if you’re looking for some accountability and help walking through setting up your systems and your business specifically. It could cover recording cash receipts, making bank deposits, paying supplier invoices, maintaining an annual budget, payroll management, and so on.

  • As you become more established and gain more clients, you may consider bringing in a partner or small staff.
  • The basis for financial reporting comes out of generally accepted accounting practices or GAAP.
  • The more you can standardize, the more streamlined your business model will be when you get clients.
  • But, first, let me tell you a bit more about me and how I came about to start a virtual bookkeeping practice.
  • This can be an accounting problem, a payroll problem, a tax problem, or a financial problem.
  • This is a necessary document if you think you might seek financing from a bank or other investors.

You will get video lessons, worksheets, checklists, templates, quizzes, scenarios, case studies, and much more. Are you ready to get started with your own bookkeeping business? This is where having the right tools and training can propel you to success and teach you the ins and out of running a profitable bookkeeping business. Starting your own bookkeeping business does require a set of skills beyond what you might think. Bookkeepers are there to not only help entrepreneurs organize their finances but also to navigate the real-world problems of their business. If you want to take it to the next level, you can then hire bookkeepers to work for you.

Chapter 3 – Market Your Services

Go Answer is a bilingual answering service that connects your customers to live customer service agents via phone, text, web chat, or email 24/7. While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes. 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. PayScale, a site that tracks salaries and rates, puts the average hourly rate for a bookkeeper around $17 per hour ($10 on the low end and $24 on the high end). You might also want to look into freelance and for-hire contractor sites, such as UpWork or Fiverr, where people list their rates.

For example, when I decided to start my own accounting firm, my purpose was to provide small local business owners with an easy, pain-free accounting & bookkeeping experience. Businesses of all kinds will always need bookkeeping services. If you’re considering becoming a bookkeeper, read our guide to learn how to start a bookkeeping business in 2022. We’ll cover everything from the legal side of registering a new business to pricing, marketing and more.

Bookkeeping Business Blueprint

Just like you won’t want to be friends with just anyone, you shouldn’t want to take on just anyone as a client. A 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. If you make any mistakes, this could have serious consequences, and your client might end up suing you. The name of the insurance policy you’ll need is errors and omissions insurance. Bookkeepers take on the role of serious responsibility since they take care of sensitive information for clients and promise to keep records accurately.

Shop around for your software, and don’t just look for in-product features. If the provider has a partner program, it will help you grow your business. The alternative would be to focus on a specific niche instead, for instance, bookkeeping for the automotive industry. Here are 6 of business bookkeeping my favorite accounting and bookkeeping communities to follow. Since all those starting a cpa firm are different, I won’t be able to provide you with detailed SOP’s here. Small business owners don’t care about which automated software they’re on, so just pick the one you like best.

It costs just around Rs. 11,000 to register and around Rs. 4,000 to comply with MCA regulations. Moreover, you only need to conduct an audit once you have a turnover of over a certain limit. This explains why LLP is a cheaper option than a private limited company and recommended to you. Yes, I know MacBooks cost a lot more than a regular Windows-based computer. But let me tell you that I am saving money on less frustration with IT issues and lost time. And, I feel like a MacBook lasts longer than any other Windows-based laptop out there.

Was this article helpful?
YesNo

Leave a Comment

Your email address will not be published. Required fields are marked *

Please solve captcha * Time limit is exhausted. Please reload CAPTCHA.

  • All firstaidtrainingclass.ca content is reviewed by a medical professional and / sourced to ensure as much factual accuracy as possible.

  • We have strict sourcing guidelines and only link to reputable websites, academic research institutions and medical articles.

  • If you feel that any of our content is inaccurate, out-of-date, or otherwise questionable, please contact us through our contact us page.

The information posted on this page is for educational purposes only.
If you need medical advice or help with a diagnosis contact a medical professional

  • All firstaidtrainingclass.ca content is reviewed by a medical professional and / sourced to ensure as much factual accuracy as possible.

  • We have strict sourcing guidelines and only link to reputable websites, academic research institutions and medical articles.

  • If you feel that any of our content is inaccurate, out-of-date, or otherwise questionable, please contact us through our contact us page.