How to Start a Bookkeeping Business Step-by-Step Guide

how to start a bookkeeping business

A platform like FreshBooks, specifically designed for small business owners, can be transformational. Maintaining bookkeeping tasks is essential for the stability and success of small businesses. With so many moving pieces (including assets and liabilities, and income and expenses), small business owners must stay on top of it all.

how to start a bookkeeping business

A successful business needs a strong marketing strategy from the start. By learning early on what your target audience is, you will gain huge insight on what procedures you need to take to keep your bookkeeping business at the top of potential clients’ radar. Now that we’ve provided you with a roadmap to get your bookkeeping business started, I want to challenge you to pick a date for when you would like to be ready to take that first client. Then, take this guide and create a weekly to-do list based on the steps we have shared with you.

Steps on How To Start a Bookkeeping Business

This influences which products we write about and where and how the product appears on a page. You’ll want to register your business with the appropriate local authorities in order to make things official.

If you’re a traditionalist and are more interested in tracking income and expenses than bank connectivity or cloud access, check out GnuCash. If you’re interested in becoming a QuickBooks Live bookkeeper, Intuit can provide you with the tools necessary to learn bookkeeping and accounting skills and get certified. Get started by signing up for the Intuit Bookkeeping Certification program today. QuickBooks Live connects bookkeepers with small businesses that need help doing their books. A client’s financial activities will include all transactions related to their income and expenses and a bookkeeper is responsible for recording all of these transactions accurately. Some bookkeepers may also have to facilitate financial transactions and ensure  transactions are legally compliant.

Bookkeeping basics: A guide for small businesses

Even if your aspiring bookkeeping business currently has no assets and no employees, it will still be a good idea to create a separate business bank account. Taking the time to separate your personal and business expenses will help give you an additional layer of financial protection and also make it much easier to organize. A cash deposit account, such as those offered by NorthOne, will help improve your current financial performance. Your finances can be managed remotely, with ease, and capital distribution can be adjusted in response to changing circumstances.

Find bookkeepers that are similar in your skill set and experience to help gauge what you should be charging. A major part of registering your business and opening up shop is choosing a business entity. This will govern how you pay taxes as a small-business owner, but also what kind of liability protection you have in case something goes wrong and how you’ll structure your business. Once you’ve picked a business name, the next step is to register your business and make things official. The exact process will vary depending on how you plan on structuring your business and where you’re planning to do business.

Design your service menu

The more prepared you are before launching, the greater your chances of succeeding as an expert bookkeeper. 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.

  • Additionally, determining your target audience will be simple if you have a specialty.
  • You may also pursue certification programs or use online courses to become a self-taught bookkeeper.
  • With the right business banking partner, plan, and knowledge of the bookkeeping industry, you can open your doors and begin operating immediately.
  • Once they’ve found a tax solution that can help them achieve their goals, they’ll be able to begin tackling the other day-to-day tasks and questions of running a business.
  • Consider demographics (age, income), interests (styles, trends), and online behavior.
  • It’s a vital tool for small business owners looking to build a presence and comply with local regulations while efficiently managing their online sales.

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. If you want to start a bookkeeping business, previous experience as a CPA or bookkeeper is essential. Want to start a bookkeeping business but wondering, “Is starting a bookkeeping business profitable?

The majority of your financial transactions will have to do with income and expenses. Knowing how to handle these two items will ensure that your business runs smoothly. If you’re using accounting software, the accounting cycle is automated, reducing the number of steps drastically. If you’re still not sure what the difference is between a debit or a credit, and couldn’t tell an asset from a liability, accounting software can make your life a lot easier.

how to start a bookkeeping business

It also opens up the possibility of becoming a remote QuickBooks Live bookkeeper with Intuit. The Certified Bookkeeper (CB) program from the AIPB requires you to be a working bookkeeper or have at least one year of accounting education. The program includes self-teaching workbooks that prepare you to pass the CB exam. Many of the processes, policies, and procedures include detail-oriented tasks to ensure financial accuracy. Bookkeeping is a great place to start if you’re hoping for a way to break into the finance industry. There are many bookkeeping job opportunities and generally fewer education requirements than in other finance and accounting positions.

Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online. Likewise, you don’t need to have experience running a business, but that could also prove helpful. If you’re specifically interested in working as a bookkeeper remotely, establishing a website and social media profiles may be a starting point for your marketing plan.

  • These reports will help you gain greater insights into the financial health of your small business.
  • QuickBooks Online users have year-round access to Live Bookkeepers who can set up the software, then help manage finances.
  • As you increase your email marketing know-how, you can develop more complex campaigns to reach prospective clients.
  • Even spreadsheets are becoming outdated as bookkeeping software provides a more bespoke experience that fits a bookkeeper’s needs.
  • Set your business up for success with our free small business tax calculator.

Starting your own business may seem overwhelming, but the process is surprisingly manageable. Here’s how to start a bookkeeping business in just nine simple steps. You may also look to become a limited liability company and potentially even office space at the time you hire on employees, so bear those regulations and costs in mind as well. Bookkeeping businesses—especially if you’re the only employee—come with generally low startup costs. You can’t run a bookkeeping business without great accounting software.

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