
How To Start a Bookkeeping Business: 11 Actionable Steps
Building an online presence offers several benefits as your bookkeeping business grows. It lets you showcase your expertise and can be a great source of client acquisition. A bookkeeping workflow and project management tool like Jetpack Workflow can help standardize client work and automate critical deadlines. Before you start on client work, be sure you have the proper bookkeeping and business software to help you manage your client-facing and back-office tasks effectively. However, before you begin tracking client transactions, you need to build the foundation of your own bookkeeping business.
Step 3: Get Applicable Business Licenses, Permits, and Banking
This doesn’t necessarily have to be the same platform that you use to manage your bookkeeping business. 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’ll 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 and maintain your privacy. Freelancers have to pay their own taxes for their bookkeeping business.
- Did you know that bookkeeping is consistently named among the most profitable at-home businesses to start?
- In our guide on how to price bookkeeping services, we looked at how you could price your services to maximize revenue.
- If you are not a CPA and want to prepare tax returns, I recommend becoming an Enrolled Agent (EA) through the IRS.
This cloud-based program allows you to store information and forget about piles of paperwork on your desk. AIPB is a more suitable option for those without a formal education in bookkeeping and accounting. You can get certified once you meet the 3000-hour work experience requirement and pass a certification exam. Meanwhile, CPB requires proof of a degree in accounting, and you’ll also need to pass an exam to get the credentials.
The nice thing about it is that you can set all tasks to repeat at a template level. This feature is a great way to avoid creating bookkeeping tasks manually. As a newcomer in financial services, gaining trust and credibility is challenging. While it may seem simple, perfecting your pitch requires practice. To address client inquiries throughout the year effectively, consider offering different support levels at various price points. I recommend you to visit this blog post on 3-tiered pricing if you want to know why this approach is ideal.
Offer your services to the world
This is a highly effective and convenient way to engage in continuous learning and connect with fellow professionals in the bookkeeping industry. Make a list of all tasks and processes that you’ll have in your business and rank which ones are most important. When you get clients and establish a team, you’ll want the option of being able to work remotely. And if you’re working remotely with your new clients and/or your team, there is just no replacing a video call.
Get the Right Software
If you decide to go with QuickBooks, it offers a variety of payroll options from which to choose. You can learn more about the solution in our in-depth QuickBooks Payroll review. Renting an office when you’re starting from scratch might be costly. Meetings with clients can be scheduled online, especially during the pandemic when virtual what is noi and why is it important bookkeeping is becoming increasingly popular. Unlike certified public accountants, bookkeepers don’t file tax returns or audit financial statements.
How a Bookkeeper Is Different Than an Accountant
There are a few tools that will come in handy as you begin this journey. 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. The next step is to go to your Secretary of State’s website and file “Articles of Organization.” It’s a fairly simple process and done online through a series of questions.
But get something with lots of RAM in order to power the cloud-based apps I’m suggesting above. 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. (You might also enjoy this article comparing the most popular systems on the market). Next, you want to use the 3-tiered packages how to calculate the employee labor percentage you created from Step 5 of this article.
It’s important to keep that in mind when you set your rates and offer your services. Hiring freelance bookkeepers is becoming increasingly popular among small businesses trying to cut costs. As a freelancer, you’ll also need to purchase bookkeeping and payroll software and earnings per share formula preferably have a PC with robust features. You could also use online posting sites such as Craig’s List or LinkedIn and share that you are looking for bookkeeping clients. One thing that will help you is creating a niche that you want to become an expert in. Once you get into the network of piano teachers and learn that business really well, and, hopefully, your clients will suggest you to their friends for services.

How To Start a Bookkeeping Business: 11 Actionable Steps
After interviewing dozens of successful bookkeepers and firm owners on our podcast, Growing Your Firm, we know what it takes to launch a new bookkeeping business. Drawing from their practical tips and suggestions, we created this helpful step-by-step checklist to get your bookkeeping venture up and running. You are an awesome human being, and use the reporting on financial transactions provided by the bookkeeping apps to help your clients improve their businesses. They may also assist with the preparation of tax returns and other regulatory filings. The specific tasks and responsibilities of a bookkeeper may vary depending on the company they work for and the nature of their role.
- I recommend you to visit this blog post on 3-tiered pricing if you want to know why this approach is ideal.
- So, see if you know anyone who is a Certified Public Accountant and contact them.
- Karbon ain’t cheap, but it’s certainly slick and very popular with certified public accounting firms & bookkeeping teams.
- As we hold onto this professional’s mentality, let’s now shift our focus to the exact tools, technology and certifications you need.
- While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes.
When it comes to naming your business, the purpose should be to establish a brand identity. Starting a business often requires an initial investment or capital. Lessons learned on how top firms grow fast, build stronger teams, and increase profit while working less. Most businesses cost tens if not hundreds of thousands of dollars to launch.
A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered. As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely. It’s important to have an efficient bookkeeping system in place if you want your firm or business to grow and succeed. You will need to decide on an accounting software, and I highly recommend Quickbooks Online Accountant. You will want to make sure you register with the accountant version.
Things You Should Include as Part of Your Bookkeeping Checklist
Always include a call to action (CTA) or a simple way for interested how to apply for grants leads to contact you for further information. If you’d prefer not to work from home, consider sharing an office with other professional service providers or coworking spaces. Check with local and state guidelines to see whether you must file for a business license. On top of forming your LLC, there’s some additional administrative paperwork to handle before opening your doors. This step can be tedious, but ensuring you’re operating as a legitimate business is vital. Limiting who you work with by niching down may sound counterintuitive when launching your business.
Online Bookkeeping Classes
Many bookkeeping firms prepare financial statements that their clients take to CPAs or other tax pros to prepare a return. You may find yourself working closely with their tax preparer, and together, you can provide outstanding service to your mutual clients. It’s free to join, and there’s no cost to use the FreshBooks software for accounting professionals. FreshBooks offers a 30% discount for accountants and bookkeepers on the first six months of their clients’ paid subscription to FreshBooks.
Standardizing these processes with custom templates can help you be more efficient. Consider other software options like an invoicing app to make client billing easier or a file-sharing app to collect and manage client documents and e-signatures. Over time, you also build credibility with that specific type of client and distinguish your bookkeeping business from others in your area. You discovered why starting a bookkeeping business could be one of the best decisions of your life.
Step 4: Set Up Business Operations for Your Bookkeeping Business
She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. You can deduct repairs and maintenance dual aspect concept of accounting to the area used for business and a portion of utilities, real estate taxes, and insurance on your home.
Now that you’re up and running, spread the word about your online bookkeeping services and wait for your dream clients. If you want to know how to start bookkeeping for a how to calculate payroll tax liabilities small business, you need to think outside the box and start diversifying your approach. Think about hiring a marketing company that can help you brand your services and come up with advertising strategies. Coming up with a unique logo can also play an important role in developing your identity.
Start by creating a business plan, structuring your business, and incorporating it. You’ll gain more credibility with your clients if you get certified. Once you’re done with the administrative side, purchase cloud-based accounting software and start marketing your services online.