How to Start a Bookkeeping Business

Why Bookkeeping?

There is money to be made as a bookkeeper. Many small businesses outsource their bookkeeping work, and there are lots of individuals and families who simply want someone else to manage their record-keeping for them. If you enjoy working with numbers and accounting, this could be the perfect career for you.

Why would someone want to start a bookkeeping business anyway? To start, bookkeeping is a very affordable and low-risk business to start. You can conveniently work from home or offer a mobile service without having to rent office space or open a store front.

You don’t have to hire employees and can run your bookkeeping company as a one-person business if you choose. A bookkeeper’s work schedule can be flexible: part-time, regular business hours, evenings, weekends or even varying hours by week.

Bookkeeping is one of the easier businesses to start, since it requires minimal cost. As long as you are skilled in this area, you can acquire a business license, get bonded put together a business plan and be ready to start your business.

What is Needed to Operate a Bookkeeping Business?

You’ll want a computer and an internet connection. A phone line and fax line are ideal for fast an efficient communication. With a car, you can provide mobile service, which can be a great asset to your business, especially if other local businesses do not offer that service. An accounting software program, such as Quickbooks, can help organize your work and allow you to accomplish more work in less time.

As I mentioned above, a bookkeeping business can be run from home. Many times, clients will prefer that bookkeepers come to them, so there is no need for you to have a fancy office. It is more important to have mobile equipment that can move with you, such as a laptop computer.

You will also need supplies like bookkeeping software, business forms, invoices, folders, paper, pens, a calculator, etc.. The more prepared and organized you are, the professional you will look.

Get a logo designed and have it printed on business cards, stationary, invoices, pens, folders, etc.. This can be very effective at boosting your company image when you don’t have that fancy office to impress clients.

Steps to Starting a Bookkeeping Business:

1. Educate yourself. Brush up on your accounting skills if necessary, get familiar with your accounting software program. Prepare your business to be competitive with other local companies. That means find out what services these other companies are offering and what their rates are.You can do this by searching on the internet or calling companies out of the phonebook directly. Being certified can also give you an advantage over your competitors – for example, the Certified Bookkeepers Designation is awarded by the American Institute of Professional Bookkeepers.
2. Locate your customers. Decide who you want to work with and specialize in that area, rather than trying to serve everyone. For example, would you prefer to work with individuals or businesses? Busy families or elderly people?You can find one good client, provide excellent service to them – and they can do all the advertising for you. Word-of-mouth and referrals is a great way to grow a bookkeeping business.

   That said, the best way to get your first customers may be through someone you already know – including a local business. Offer discounts or gift certificates for customer referrals, and you can start providing great service to a few customers to start the “referral” ball rolling.

3. Get licensed and bonded. Meet with an insurance agent and banker to get answers to important questions on insurance requirements and business management. You’ll end up saving time and money in the long run, and can avoid making some serious and sometimes costly business mistakes.

Bookkeepers Errors and Omissions Insurance:

Get information on Bookkeeper’s Errors & Omissons Insurance & Bonding from the North American Professional Liability Insurance Agency.

The American Institute of Professional Bookkeepers also has more tips for bookkeepers and a free weekly tips sent via email about accounting, tax, filing, record keeping or bookkeeping management.

Bookkeeping Business Plans

A business plan is an important first step to starting any business. Some people overlook this step because they think their business is too small to need a plan.

The reality is that a business plan helps lay out an outline so that the business owner has a path to follow. It helps you know (before your start your business) what services you will offer, how you are different from local competitors and how you will get the customers you need to reach your income goals.

There are a few ways you can to this: hire a planner, write it yourself or get business planning software for about $100. Many home-based entrepreneurs opt for the third choice simply because it is easier and cheaper. Before you decide, however, take a look at a sample plan for a bookkeeping business. This is a great (and free) way to see how your business plan should look.

If you want step-by-step instructions on starting your bookkeeping service, check out this page. There are lots of resources and list of basic steps to take to start a bookkeeping business on your own.

Increase Your Income with Quickbooks Consulting

Whether you are just starting your bookkeeping business – or you already have a bookkeeping company – you can add Quickbooks Consulting to your list of offered services for your customers. Gain a competitive edge of other local competing bookkeepers, and add more revenue to your business.

Get your questions answered by people who know this industry well. Not sure how to grow your business? Wondering how you’ll get clients or what rates to charge? If you want step-by-step guidance, plus advice from other top accounting consultants, this is the right spot. This is a wealth of the exact information an entrepreneurial accountant needs.