How to Start a Successful Bookkeeping Business: 15 Steps
First, you can rent a post office box from your local post office. On average, you will pay $60 for six months or $120 for the year. Look at our How to Become a Certified Bookkeeper guide for the details of these, plus other, bookkeeping certification programs. It will protect your financial interests, help minimize disruption to your business, pay your fees if an unhappy client refuses to pay you, and cover the costs of rectifying a mistake. Perhaps small businesses , micro businesses , or sole proprietors. That means you can work with your clients in real time to go over their bookkeeping and highlight any queries with ease. Characteristics of becoming a bookkeeper include being accurate in your work and having a good understanding of financial topics.
The basis for financial reporting comes out of generally accepted accounting practices or GAAP. Bookkeepers should familiarize themselves with the Financial Accounting Standards Board’s Accounting Standards Codification, which includes guidelines for recording specific transactions. Ready to take the first steps to start your own bookkeeping business? Digital software can help you monitor the workings of a business in real time. You can then report analysis from those numbers and enable your clients to make better informed decisions based on their finances.
Set Up a Home Office for Your Bookkeeping Business
The membership fee starts at $39 for one year and includes a subscription to a monthly newsletter, free accounting, payroll, and QuickBooks help on a member answer line and other benefits. Another important part of setting up your home office is establishing a professional business number that has a professional voicemail message. I recommend getting a virtual phone number that can be routed to your existing cellphone. The virtual phone number bookkeeping for small business can have its own professional voicemail message and will allow you to keep your personal number private. If you plan to lease office space, then your mailing address will be wherever your office is located. However, if you plan to set up a home office, you will need to obtain a business mailing address so that you don’t have to use your home address. This will make your business appear more professional as well as maintain your privacy.
How many hours does a bookkeeper work?
Bookkeeper / Office Administrator
Competitive salary, Full time, typical 40 hours per week with regular workday hours being 9:00 am until 5:00 pm. Prepares payrolls, expense accounts and other accounting tasks.
He most recently spent two years as the accountant at a commercial roofing company utilizing QuickBooks Desktop to compile financials, job cost, and run payroll. It’s important to separate your business finances from your personal finances. While most people think they should wait until the business starts to generate cash flow, it’s important to track expenses immediately so that they can be deducted as startup costs.
Maybe you’ve worked as an in-house bookkeeper for a business and you’re ready to take the plunge for yourself. Not only did I run my last accounting firm on it, but I also run my current business on it.
- Your market research, along with your knowledge of your skills, should help you determine your niche.
- If you’re organized, like numbers, and enjoy helping people, a career in bookkeeping might be an excellent fit for you.
- Remember that the amount that you charge should be contingent on your years of experience, specialization in industries, certifications you carry and your area.
- The course will teach you all the steps to getting started and building a strong client base.
- Top individual full-time bookkeepers can make well over 6-figures.
- With your own CPA, we will provide you the year end financial package and you will send it to them directly.
On your first day, we get you all set up, gain access to your technology, and start performing the agreed upon service. Access to our tax partner network is only available to Unloop bookkeeping clients. You will get a far better understanding of the financials so you can be a real asset to your clients. I use a ton of others now and have used even a ton more in the past. If you are ever looking for an app to help with your life, you can start by look at Apps.com. This is Intuit’s own website listing apps that integrate with QuickBooks Online and have gone through Intuit’s security testing and approval process.
We prepare your financial statements
The term “Technology Stack” will be something you will hear a lot once you start a virtual bookkeeping business. This simply means what software are you utilizing in your bookkeeping business to run and operate your business. After a few years, I got pregnant and wanted the impossible .
Your financial data must be current and accurate so you have the tools you need to make sound business decisions and implement healthy cash flow strategies. Not only will you be helping them, you’ll also be heading closer to your 6-figure bookkeeping business dream. In this powerful consultation, you’ll get one-on-one time with one of our Pure Bookkeeping master business coaches. You’ll review the current status of your bookkeeping operation, get clear on your goals, and develop a 90-day strategy and action plan to achieve your desired results. A proven system for hiring great bookkeepers to help with your clients as your business grows. 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.
The four biggest hurdles for business owners in 2022 (and how to overcome them)
A lot of people dive into the deep end of launching their own bookkeeping business without having a clear idea of what it takes to own a successful practice. One that is free of stress, and has all the benefits they’re seeking. Patricia got the systems, resources, and templates she needed to build her own 6-figure bookkeeping business. She found the shortcut she needed to start living the life she’d always dreamed of.
All businesses need to keep bookkeeping records by law, and someone has to do that work for them. 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. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Professional associations also offer certifications so that you can hone your skills and market yourself as a professional bookkeeper.
Establish a Business Mailing Address
It is scalable, has tons of integrations, and includes a responsive mobile app for working on the go. Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more.
- If you’re just starting your own cpa firm, you may not have any, but add some later when you do get them.
- For professionals and aspiring bookkeepers alike, certifications are a powerful way to boost your skills and add additional authority to your brand.
- A business bank account also makes it easier to keep your financial records organized, makes it easier to file your tax returns, and helps protect your assets.
- Her monthly income is $4,050, and her monthly expenses are $767, which leaves her with a net profit of $3,284.
Bookkeepers handle sensitive data for their clients, and an error on your part could be costly. Worst-case scenario, it could result in you getting sued. Errors and Omissions insurance protects you and your assets if that happens. If your clients will be sending you things such as receipts or statements, you might want to consider the tool that you’ll use to share files. A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to.
Interview Template and Guide for Evaluating Responses
Look to certify in each type of accounting software you use to add credibility to your services. We’re hyper-focused on inventory and eCommerce businesses and already handle full cycle accounting for businesses like yours. We prepare custom financial statements and analytics, onboarding is seamless. We won’t take on bookkeeping clients that wish to continue with Sage or something else.
After completing this step, you’ll have a clear path for your business in its first year. If you’re serving a niche industry, consider joining its industry association and connecting both online and in person.
You should be a member of at least one professional bookkeeper association. The American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers are the top two associations for bookkeepers. If your business is brand new and you haven’t generated any revenue yet, check out our guide to startup business financing for more details. To assist you with this decision, I recommend that you get an introduction to the four common business structures by reading our Best Small Business Structure guide. Naming your business can be both a fun and stressful exercise.