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. For me, it was recommended to form an LLC because it keeps your business finances separated from your personal finances, so for instance, someone sues you, they cannot take all your personal assets.
A business credit card is a great financial tool for managing cash flow and expenses, floating working capital expenses, and earning rewards. When you own and operate your own business, it can be hard to get back to clients in a timely manner, especially during tax season.
Using Digital Marketing
Since you’ll be dealing with different clients on a day-to-day basis, having great communication skills are also necessary. While the bookkeeper uses computer software to post the financial transactions, and update statements and reconcile accounts without the need of been present in the office.
Check your state’s specific licensing requirements for details. Your costs will increase considerably if you intend to hire an employee right away, but otherwise, you can expect to be up and running for around $1,500 to $2,000. As you search for the right business name, check that the name is available as a domain for your website. The last thing you want is to come up with the perfect name only to find that it’s already taken. They’re likely to be forgotten as soon as they’re heard or read. If you’re having trouble with your business name, try a business name generator to jumpstart your imagination. Your UVP should be informed by both your competitor research, your target client’s main needs, and your unique set of hard and soft skills.
Worst-case scenario, it could result in you getting sued. Errors and Omissions insurance protects you and your assets if that happens. A laptop and printer are enough to get started—you may even have both already. A scanner can be helpful if you’re dealing with numerous receipts.
- The more people directed towards your services, the faster your business can get off the ground!
- Examples include QuickBooks ProAdvisor, and Xero Advisor.
- You’ll also need to learn some basic Search Engine Optimization practices or hire someone to help you.
- Even though the bookkeepers do not prepare tax returns, having books up-to-date can bring significant savings.
There is Quickbooks, Xero, Freshbooks, Sage, Wave, etc.My recommendation for SOLO-PRENEUR style side-hustlers is to stick with one as you get started. You also want to look into attending industry events to network and market your services. This helps you find clients while staying up with industry news.
Set Up A Business Bank Account
I just don’t deal with hardware issues or needing IT support with my Mac. The problem I finally ran into was needing more storage space on my MacBook.
- The setup costs of bookkeeping businesses are quite low, especially if you have your first business run out of your house and do not rent offices.
- Great branding involves creative and consistent marketing and earnest customer engagement.
- You don’t have to have a degree or be a Certified Professional Accountant to be a bookkeeper, but an educational background will certainly help.
- If you have the proper skill set you could start your own accounting or bookkeeping firm.
- Virtual bookkeepers have the benefit of working from a home office.
There wasn’t even any training or even a certification around the program. Luckily, my first client pushed me to QuickBooks Online and that has been my platform for my bookkeeping business ever since. Despite its name, good accounting software isn’t just for accountants. It can be used for your bookkeeping business, allowing you to view your clients’ finances and create financial reports, among other things. When you run a fully virtual bookkeeping business, honestly, there’s not much need for a phone. But when you get bookkeeping clients, you may also need a phone service over and above this, I would recommend setting up a VoIP phone service, which is basically an internet phone service.
How Much Can You Make Owning A Bookkeeping Business?
This way, you can develop a good relationship with them while also receiving rewards for referring to them- such as payment and feedback. Several day-to-day marketing activities need to occur after you’ve initially pushed for your online boutique. A brand guide is a helpful tool that will help you define your fashion brand in detail.
- Not all programs are available at all locations and not every program is enrolling at this time.
- The Purchase Ledger is a record of all purchases made and paid for; in larger firms, purchasing departments may charge this duty.
- Every year it gets harder and harder to operate a seasonal accounting business, especially if you’re looking to offer a variety of services.
- It may seem silly when you’re just a one-person business, but again, it will help if you ever have to prove to the IRS that you take your business seriously.
- Familiarize yourself with federal income tax, your state’s tax, and any local tax requirements.
- Finding a niche will also help you expand and earn more since you can learn the specific ins and outs of your clients’ business challenges.
It’s not as user-friendly as the options above but it’s extremely powerful and many Xero users swear by it. Let’s take a look at the main categories of technology that you’ll need to set up at your bookkeeping business or accounting firm. It’s important that you are thinking of your own business as a complete solution to your client. You are not just providing accounting and bookkeeping services, you are providing much more than that. In fact, using online, automated accounting technology was one of the keys to my success. Public accounting firms cannot provide a modern bookkeeping service without it. It’s tough to stay on top of new trends and changes in the industry.
Of course, you can’t run a profitable business unless you’re good at what you do, no matter how much potential the industry has. Before you decide to pursue a bookkeeping business, you need to make sure it suits your skillset and strengths.
Next Steps For Your Bookkeeping Business
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. Do you know if there are places where people who already have up and running successful businesses look for people to do work for them?
It also builds business credit and gives you additional financing to help with the initial growth of your business. Proper small business insurance is an important part of starting a bookkeeping business, but it’s also a pain for many. The process of finding and securing insurance at an affordable rate can seem overwhelming, but it doesn’t have to be. Bookkeeping businesses—especially if you’re the only employee—come with generally low startup costs. However, if you’re already a CPA or professional bookkeeper, then read on—you’re ready to start your bookkeeping business, and we’re ready to show you how. Some of the business owners look for bookkeepers who also can do payroll and other accounting work.
In reality, QuickBooks is cheaper for smaller businesses, and Xero is cheaper for larger businesses. There’s both an online and desktop application you can use, but it’s best to choose the online version. Bond over the fact you’re both entrepreneurs and willing to do anything for your businesses. This doesn’t mean you have to put on a mega-extroverted, charismatic front How to Start a Bookkeeping Business if that’s not who you are. Listening to the problems of your customers and enjoying helping them will take a weight off their shoulders and show them you’re genuine and truly care. Easy Doc Filing, LLC is not a law firm and does not offer legal advice or recommendations. Communications with Easy Doc Filing, LLC are not protected by attorney-client privilege in any way.
Tips On Opening A Business Bank Account
Check with your bank as to what you need to get that business account. Note – this is a great time to build https://www.bookstime.com/ a relationship with a local banker that could be a referral source for new business in the future.
If Im Not A Certified Public Accountant, Do I Need A Cpa To Open An Accounting Firm?
In addition, owning an accounting business typically requires a bachelors degree in accounting or finances—whereas owning a bookkeeping business does not require certification or a degree. Good accounting software will help you and your clients to send and view documents and real-time financial data at the same time, reducing the need for face-to-face meetings. It is one of the most valuable investments you will make as a bookkeeper, particularly if you are planning to start a virtual bookkeeping business.
Also, consider a filing cabinet, desk, and great chair for your dedicated workspace. As long as you have a space to work and a way to keep things organized, you’re good to go.