How To Start A Bookkeeping Business 2023 Guide

Once you have a name, you’ll need to decide on a business structure, also know as a business entity. In addition, you have to be motivated and tough enough to go through the process of setting up your business alone, which is an isolating experience for many people. They let you process bills in the cloud for clients and approve them without anyone needing to print or mail checks.

However, to help market your business and set it apart amongst the competition, you may decide to specialize in a specific industry. We believe everyone should be able to make financial decisions with confidence. It can take several months to gain traction and get more views on your social media content. The key is to post valuable information, post on a regular schedule, and make sure your personality shines through in your online interactions. Make sure you take the time to build a sustainable culture in your firm that supports people on a personal level.

For a bookkeeping business just beginning, an insurance policy costs less than your daily cup of coffee. You should request quotes from several agencies to ensure you get a good deal. If you are starting the company with a partner, make sure a partnership agreement is part of your business plan. This agreement ensures you are both on the same page concerning business operations. Keep in mind that you must be self-driven, organized, and have excellent time management skills.

Certified Bookkeeper

Getting your first client means you’ll have someone who can back your claims of offering high-quality and cost-effective services. Once you’ve equipped yourself with everything you need on starting a virtual bookkeeping business, you need to make it known to everyone that you’re in business and raring to go. To start a business, you will have to pick a name for your virtual bookkeeping business.

That’s not only important for separating your business and personal finances, but can help you with your own bookkeeping come tax season. If you’re just starting a bookkeeping business, it’s likely that you’ll just be working solo, at least for the beginning. Consider starting your search into business entities for bookkeepers by looking into sole proprietors and LLCs. The latter could be a great option if you might bring in some help down the line. A business plan involves outlining your plans for your company in detail.

Niching down is one of the keys to success as an online bookkeeper. Even if you end up being one of the many freelance bookkeepers, you can stand out because of your niche. So, pay attention to these two tools, make some changes if necessary, and especially if you are serious about becoming a remote bookkeeper. When you are trying to build your portfolio to attract your won clients, you will be relying heavily on your laptop and a good and stable internet connection. This certification consists of a 4-part exam which you have to pass and have the necessary 3,000 hours of work experience in order to become AIPB-certified. Your efficiency and ability to navigate around these programs will enable you to work faster and take on more clients.

How to Start a Bookkeeping Business with No Experience?

The amount of coverage you need will depend on your client list. Many freelance websites work as a platform for business owners to post their bookkeeping needs. You can submit your proposals on these platforms and you can also make it known that you provide remote bookkeeping services and you can snag yourself some virtual bookkeeper jobs. In starting your virtual bookkeeping business, you may be wondering whether you should provide your services to a particular type of business or industry. Hubdoc automates the process of obtaining and downloading bank statements.

Even though your bookkeeping service is virtual, you will want to consider both traditional and online marketing tactics. Virtual bookkeeping businesses provide the much needed support to businesses looking to outsource this key part of their operations. When you start a bookkeeping business, there are a few different approaches you can take. You can approach your business as a chance to be self-employed and create work for yourself, or you can aim to hire employees and eventually create a self-sufficient business. If you have lots of clients and projects to work on at once, it’s easy to lose track of what you’re doing.

Accounting Fee Increase Letter: Sample Template & Tips

CorpNet offers registered agent services in all 50 states, which makes it easy if bookkeepers decide to expand their services or relocate to another state. If you want to start a virtual bookkeeping business, but don’t have the necessary skill, you can start by learning on the job as an assistant. I know that’s not always an option, but it IS the best way to learn practical ways to run a business. An Employer Identification Number is the business equivalent of a Social Security Number, so it’s important to obtain an EIN when starting a virtual bookkeeping business.

You are responsible for categorizing expenses, indicating who and how much was paid, and keeping track of receipts. For income, you’re responsible for tracking payments and handling any invoice issues. Some small businesses choose to do their own bookkeeping to save on costs, while others prefer to hire bookkeeping professionals.

I have a couple of contractors who help out with simple tasks, so I use my project management software to keep track of who is doing what and what has been completed. Trello, Asana, and Monday can all be used as project management software. I have used Monday and Trello, and prefer Trello because the free option is more robust and the setup makes sense to me.

• As a contractor, you’ll be responsible for invoicing for your time and receiving payment according to your policy.
• And a workflow app like Pixie, developed specifically for small accounting firms, can tie everything together and keep you organized.
• To figure out how you’ll make money as a virtual bookkeeper, you’ll need to write a business plan.
• You need a number of other business essentials to start offering virtual bookkeeping services to clients and make money.
• My firm will be offering both bookkeeping and payroll to start with, and I plan for next year to also offer taxes.

This is by far the most time-consuming method of training, but you can use your certification to attract more clients. To gain access to these facilities, you must first create a free Accountant account in order to access the training and certification. How can you provide an added personal touch to make your clients smile?

It’s important to remember that you may need to register with additional states later. Once you have a name and business structure, you need to register with your state’s government and the IRS. You can’t register a new business using the same name as an existing business.

My favorite social media platform for getting bookkeeping clients is LinkedIn®. The ability to go above and beyond virtual bookkeeping is crucial if you want to become a great bookkeeper and earn a great living. As we hold onto this professional’s mentality, let’s now shift our focus to the exact tools, technology and certifications you need. Our comprehensive bookkeeping business course, Bookkeeper Launch, is designed to be completed in ten weeks. Some students even get their first client while still in the course!

They know that email is my preferred method of communication and that I usually work in the evenings. A certificate of occupancy – this permit is about where you plan to do business. You need a certificate of occupancy even when working from home. Getting permits and licenses is different for every country, so it’s best to inform yourself about the laws in the country or state where you plan to operate. Some people do a small amount of brainstorming before they have a eureka moment and come up with the perfect business name.

In general, the incremental costup costs for a bookkeeping business can be low if you work out of a home office as opposed to leasing office space, which we’ll discuss in the next section. The experts say that you should always have at least six months’ worth of expenses in the bank. Also, even though your business is brand new and hasn’t generated any revenue, you may still qualify for startup business financing. Depending on the bookkeeping/accounting software you choose, there generally will be a payroll processing option you can turn on when you’re ready to hire employees. If you decide to go with QuickBooks, it offers a variety of payroll options from which to choose.

If you can’t make a home office work, look into virtual office spaces or office sharing. You can deduct repairs and maintenance to the area used for business and a portion of utilities, real estate taxes, and insurance on your home. For more information on the right insurance coverage, check out our article on Bookkeeper, Accountant, and CPA Insurance. 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.

Even though not a basic necessity, most clients will prefer a professional bookkeeper. This is because they are entrusting you with confidential information about their finances. Having a certificate also boosts your market value on leading freelancer job boards. Furthermore, he adds that you don’t need to have a CPA to become a qualified bookkeeper. And coming from a person who has trained over 8400 independent bookkeepers, this is good news for beginners.

Also, take the necessary precautions (anti-virus software with malware protection) to prevent cybersecurity disasters. According to zengig.com, in the United States, a bookkeeper’s annual salary ranges between $36,000 and $55.000, with the national salary average of about $42,000. That’s a great income for a position that allows you to be your own boss, live anywhere, and work on a schedule that fits your lifestyle. For quick check-ins, Zoom meetings are a great option that saves a lot of time. I have an external monitor, keyboard, and mouse to make my work hours more comfortable.