How To Start a Bookkeeping Business: A Step-by-Step Guide

Insuring your business operations is one of the most sensible things you can do as a bookkeeper that’s just starting out. Your business will be liable for any mistakes in your customers’ books, and these incidents can be quite expensive. For as little as $30/month, you can give yourself some peace of mind and know that you’re covered against most types of mistakes. Having a professional business phone number and email address is an important aspect of running a successful bookkeeping business.

I budgeted $25 a month on advertising for this bookkeeper, as those costs truly are relatively low and only optional expenses. This offering is attractive to clients so they don’t have to worry about keeping a subscription. Plus, as a bookkeeper, I get QuickBooks much cheaper for them than they would have otherwise. My ProAdvisor QuickBooks Online Plus subscription discount is $35 a month per client. So this bookkeeper who has eight clients would be spending $280 a month to hold their subscriptions. The work is broken down into about 20 hours of billable time each week or 80 hours per month.

I’ll probably start that this month since we are finally done with January. Gusto is decent bad I got a bad impression from them years ago because of their old setup and I still can’t seem to shake that feeling. Gusto seems to be the one everyone loves, but my guess is that OnPay will be taking a good share of their market soon enough. If I have to handle accounts payable for a client, I utilize Bill.com. With Bill.com, I’m able to process my clients’ bills in the cloud and then give them the green light to pay their bills virtually. Bill.com just takes care of all of that and I make sure everything is accounted for properly.

The next time you move, you can keep your clients, so you don’t have to search for a new job. Anyone who moves or wants to travel a lot will also enjoy this benefit. Not only can you make your schedule, but you don’t have to start your business without some help. Angie Nelson began working from home in 2007 when she took her future into her own hands and found a way to escape the corporate cubicle farm. Today she balances several successful online ventures and loves to share her passion for home business with others. There’s no better time to check outBookkeeper Launchand get started on your next successful career.

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Also, you don’t need a degree, plenty of experience in the field, or a bunch of money to become a successful bookkeeper. This will help you to build trust with your customers and grow your bookkeeping business over time. As always, consult with a certified professional accountant before making any final financial decisions. Once you’ve found the right bank account for your bookkeeping company, you’ll be one step closer to building your business. Yes, bookkeeping businesses can be very profitable, depending on the size of the business and the services offered.

If your virtual bookkeeping firm has employees in several states, you may want to work with an insurance agent to find coverage that works for all your employees. Professional liability insurance will protect you against errors, negligence, and omissions that may occur during your bookkeeping engagements. Your premiums will vary depending on what type of services you offer and your projected revenue.

So if you just love the technical aspect, it may be better just to work under a different business owner. If you feel like you can handle the technical side, but also enjoy client interaction, it may be a good fit for for you. That being said, if you are a good communicator I think you can be a solid bookkeeper. Really, I’ve just been building it up by trying to connect meaningfully with as many people as possible and building lasting relationships. By building up a network of referral partners, I’m both receiving referrals for myself, but also building a team I can refer to, so that’s how I receive most of my business.

Best Accounting Practice Management Software in 2023

Your site doesn’t have to be complicated—a single page with your name, what services you offer, contact information, and some testimonials is plenty. Consider the costs of having a site created (if you don’t have the skills to do it yourself), web hosting, and domain registration. Check out our guides to the best free website builders and cheap web hosting for a great place to start. I have a dream to help several number of other companies having bookkeeping challeges.

Many people don’t think they have the skills necessary to land a position. Despite its closely relatedaccountingcousin, bookkeeping positions are often considered entry-level. While being detail-oriented and having the ability to stay on task is key – you do not have to be a certified public accountant to be a bookkeeper. Hi, I recently made the switch to accounting and I love it. While I am not a CPA I absolutely love working in this field. The thing is I don’t know if i have enough working experience yet.

If you’re considering becoming a bookkeeper, read our guide to learn how to start a bookkeeping business in 2023. We’ll cover everything from the legal side of registering a new business to pricing, marketing and more. It’s not compulsory, but you might want to look into insurance for your bookkeeping business. Common business insurance policies for bookkeepers include things such as professional liability and general liability. But, so many business owners already had a bookkeeping solutions they thought was good enough, or were doing it themselves, or just didn’t know who I was, etc.

Since you are starting a bookkeeping business, I’m sure that you have already given some thought on which accounting software to use for your business. Starting a virtual bookkeeping business won’t help you become an overnight billionaire. This could include friends and family, your previous workplace, local advertising, website and social media marketing, and word of mouth. This is very inspirational right now, thank you for the information.

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Being part of these associations can also help you build your network with other bookkeepers, CPAs, and tax experts. A document-sharing program will allow you to share information—such as bank statements, copies of receipts, invoices, and accounting files—with your clients no matter where you’re working. If you don’t want the headache of dealing with payroll, check out our guide on the leading payroll services for small businesses. My recommendation is that you use QuickBooks Online, which we rated as the overall best small business accounting software. As discussed earlier, you can get QuickBooks Online Accountant for free when you join the QuickBooks Online ProAdvisor program, which is also free.

Again, you don’t have to come up with the perfect answer—it can change over time. However, find the UVP that feels right to you now and leverage it in all your marketing. Repetition of your UVP on your website, business cards, and all other marketing materials will help define your company’s identity to potential clients.

pyxeroing with a sole proprietorship and transitioning into an LLC as your business grows is also a possibility. A general business permit or license – most countries require all business owners to obtain a general business permit that allows them to run a business, both online and offline. Even though the company you’re starting operates only online, you still need to obtain the necessary permits and licenses to ensure that you follow all legal procedures.

Step 5 – Get a business bank account and credit card

You basically have to learn the software to pass the tests. If you aren’t willing to get certified in a software, I’d say you probably aren’t serious about having your own bookkeeping biz/side-hustle. If you are a job-seeker seeking a sub-contracting job, you won’t get past the front door if you don’t have software certifications. A business bank account keeps your personal finances separate from your business finances. For LLCs and corporations, keeping separate finances is essential for maintaining liability protection.

You can read more about our ratings for various business accounting software here. You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use. Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. You’ll also want to make sure that you set up a business bank account to keep your business finances separate from your personal finances.

However, you’ll be liable for all business debts and lawsuits as a sole proprietor. Business name registration – bookkeepers must register a name for their business. This will also prevent other business owners from using the same name for their companies. They are only responsible for handling the transactions of the business. An accountant looks into those transactions in more detail and provides useful information that can help steer the company in the right direction.

NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a https://bookkeeping-reviews.com/ institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. You should think about both your clients’ and your own financial management when choosing an online accounting package.

• Journal entries have very specific reporting requirements when you’re working with someone from another country.
• Regarding hardware tools, you should decide whether you want to work on a desktop computer or a laptop.
• It’s important to shop around and compare features and fees before making a decision.
• If you and your spouse move a lot, you can work on your bookkeeping business from home.

It holds information about you, your business, and your services. It’s also a place for you to clarify for your potential clients why they should want to work with you. You can build your website yourself, but if you have the budget invest in a web designer and copywriter to help build it for you.

But you may also think about forming a limited liability company or corporation. Naturally, getting paying customers is the most important part of starting any business, and this is also true for your own bookkeeping business. Getting your first client means you’ll have someone who can back your claims of offering high-quality and cost-effective services.