The bookkeeping process helps a business to understand its financial position and keep track of its profits, transactions, and losses. Different businesses hire a bookkeeper, which opens opportunities for people with experience to start their bookkeeping business.
Starting a bookkeeping business is a reasonable decision in today’s time. With the growing number of startups across the world, the business world needs more bookkeepers. Also, you can start with an as low budget as $100. Unbelievable, right?
If you are interested, I would recommend you to keep reading. This article will help you start your bookkeeping business with a few simple steps.
What Do Bookkeepers Do?
Bookkeepers are responsible for keeping a record of all the financial exchanges and transaction records of a business. They create and submit all the accounting reports of a business. Here are some responsibilities a bookkeeper has to follow –
- They need to keep track of and record all the transactions and expenditures of a company.
- Using business accounting software such as Quickbooks or Xero.
- Assessing the cash flow of a company.
- Preparing balance sheets and statements related to the company’s profit and loss.
Step-By-Step Process To Start Bookkeeping Business
So, if you are ready to start your bookkeeping business, you should start by taking a step-by-step approach. I have provided help regarding all the necessary obstacles you have to overcome to start your business as a bookkeeper.
Start With A Business Plan
A plan is an essential part of starting any business. Even for bookkeeping, you need to create and start with a plan. A plan helps outline the goals and objectives of the business and also helps estimate the funding you need from the lenders and investors.
A business plan will include the below-outlined parameters –
- An Executive summary.
- A business overview – describing what your business is about.
- A detailed competitive/market analysis.
- Product and service descriptions are also a part of it.
- Sales and marketing plans for the business.
- Financial projections through the proposed budget.
Choose A Business Name
Now that you are done with a business plan for your bookkeeping business, you should move forward and pick a name for the business. It is essential. Choosing a suitable business name will help you stand out as a business.
It is important to pick a name that represents what you do as a business and remains at the back of your customer and competitors’ minds.
Get your Bookkeeping Business Registered
In the next step, you need to register your bookkeeping business. You need to get your business registered in your state. However, the requirements for registering your business might change based on the type of structure you have for your business.
A business can run under a sole proprietorship, as an LLC ( Limited Liability Company), or as a partnership business. These are the three different structures any business can follow. Usually, small businesses remain under a sole proprietorship.
However, an LLC is considered the best option. Because the owner can keep their personal belongings and liabilities separate from that of the business following an LLC structure
Get The Best Bookkeeping Software & Get Certified
It helps if you have any prior experience working as a bookkeeper in any organization. However, you can get certification courses or get internship training. But prior experience is always helpful. Now, you need to select the perfect software to help you start your bookkeeping business. For example, you can choose –
- QuickBooks,
- Xero,
- FreshBooks
- Zoho Books,
If you have already been working as a bookkeeper, you should be familiar with more than one bookkeeper. You should also be familiar with more than one software.
Price Your Bookkeeping Service
When offering bookkeeping services to different businesses, you cannot come up with a price point right off the bat. It is important to set a price for your business. But you should do your research before settings random price points.
You should outline the basis on which you want to set your price. You can check the prices on different freelancing platforms, like Upwork. You can take notes from your competitors as well. But, the more experienced you are, the higher charges you can ask for.
Get On The Marketing Channels
The success of a business gravely depends upon how much it gets marketed. It is time to work on your bookkeeping sales and marketing plans. Here is what you should do –
- Get on Google My Business
- Create a business website for your bookkeeping business. Developing your online presence through a business website is essential.
- Get your business listed in relevant online business directories.
- Establish a network of clients and fellow bookkeepers.
- Try doing paid advertisements if your budget allows it.
- Local advertising opportunities are a must-grab.
- Get on social media. Use all the potential social media platforms for bookkeeping. LinkedIn might be helpful.
Frequently Asked Questions (FAQs):-
If you are planning to start your bookkeeping business, then you need to follow these steps. However, the questions and answers I have included might also be helpful.
Ans: Here is how you can get clients as a bookkeeper –
Trade referrals with businesses.
Share testimonials on blogs and business sites.
⦿ Write blogs.
⦿ Search job sites.
⦿ Guest speaking works well.
⦿ Check social media platforms.
⦿ Learn about different marketing tools.
Ans: If you can manage and grow your business as a bookkeeper, you can expect growth in the long term. You can even make money in six figures with a bookkeeping business.
It is a growing opportunity, and now is the right time to grab it. Working full-time as a bookkeeper can create a great business opportunity.
Ans: You can start a career as a bookkeeper even with the degrees of a secondary school degree. This job does not require any high educational qualifications. You can start with an internship program and learn about it on the job.
Final Words
But, if you have experience and skills in accounting, and if you are good at handling bookkeeping software, those could prove a huge advantage. If you are starting a bookkeeping business, you can follow the steps I have provided in this article.
I hope that this article was helpful. However, if you have any further queries, the comment box is all yours for the taking.
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