Lastly, your blog and contact pages are pretty self-explanatory. To do this, set up a pricing table that breaks down your solutions in terms of what’s included. Next, showcases your core offerings that were created in Chapter 2. 1) Outline some benefits that small businesses can expect from your solution. Feel free to add and/or remove pages as you see fit if you think it will help you find clients. For the long term though, there is no better platform than WordPress, especially if you plan on blogging.
It might sound intimidating, but a business plan doesn’t have to be complicated or even all that formal. It’s simply a chance to organize your ideas around your business and put them in writing. That way, it can help guide your decisions about your business as you move forward. Starting a bookkeeping business is going to take a lot of effort, but the barriers to entry have never been lower.
Establishing your bookkeeping business
Most states prohibit or restrict businesses from adopting names that are already in use. Even if it’s legally allowed, a copycat name puts your business at risk of a lawsuit. Before you get started, you’ll need an idea of what resources you’ll need—and how to monetize your business in a practical way. We’ve answered the biggest questions about clients, costs, and profits below.
You’ll want to look up the exact rules for how to register your business with your secretary of state’s office. This seems counterintuitive when you want to get experience, but it’s easier than firing clients down the road. It’s also less you have to learn, about industries, softwares, etc, so you aren’t stretched thin learning #allthethings. As a freelance bookkeeper, like virtual bookkeepers, you can set your own rates, which make thrice as much by working for multiple clients. Entry-level bookkeepers without any prior work experience work at an average of $15.50 an hour.
Your Guide to Starting a Bookkeeping Business: Is it for You?
You will likely want to establish a business banking account and credit card. This can help you keep your own business expenses organized and separate. If you plan to hire employees, such as an administrative assistant, you may also want to seek a small business loan.
- In fact, you’re onto something that could turn out to be quite lucrative for you in the short and long term.
- You can gain certifications in bookkeeping itself as well as in the accounting software you plan to use to serve your clients.
- Maybe it’s numbers-oriented like hitting $1,000,000 in revenues or servicing 1,000 small businesses.
- You can get bookkeeping courses from Accounting Coach, Coursera, or LinkedIn.
- This is a trend that is completely changing how bookkeepers and accountants do business, so you must understand how it works since it will have a direct impact on your business.
There are two pieces of the business plan that deserve a little extra consideration. Deciding on your services creates boundaries FOR YOU more than anyone else. With business liability coverage and professional liability, this will cover any errors or omissions, or data breaches.
Plan for the Future
As long as there are businesses, there will be a market for people who can help them track their money. Although technology has reduced the need for human attention to some bookkeeping tasks, it has increased the need for people to operate these new systems. Plus, there is always a need for smart people who can make connections across different business areas and find creative ways to save money. Xero does not provide accounting, tax, business or legal advice.
You should consider the following questions when picking a billing method. Lastly, part of this process is picking a business name, which you should do with care. You’ll be using the name for years, so be sure it’s a professional and accurate description of your work. You may not want to hire employees right away, but prepare yourself now, so the process is easier in the future. You can research how to hire employees and download or bookmark any necessary forms like the W-4 and W-9 through the U.S. The process for getting your business license is different for each of the 50 states.
Accounting Software Certification
Small business owners don’t care about which automated software they’re on, so just pick the one you like best. The cloud allows you to work remotely (and to offer that option to your new clients) and automate your workflows while keeping your accounting secure. To get Starting a bookkeeping business bookkeeping clients, click here for a ton more marketing strategies. Collect business cards from every new business owner you meet. The next day, hop on to LinkedIn, sort through them, and connect with all business owners you met and send a personalized message.
You will be dealing with someone else’s private and sensitive data being a bookkeeper. A successful business needs a strong marketing strategy from the start. By learning early on what your target audience is, you will gain huge insight on what procedures you need to take to keep your bookkeeping business at the top of potential clients’ radar.
Cards are great for in-person meetings if you have a local client. The right workflow management system can save you hours and allow you to monitor your team without micromanaging it. Business insurance will protect you from claims against your business, but you need the correct types of insurance policies.
Select a Name for Your Bookkeeping Business
If you make any mistakes, this could have serious consequences, and your client might end up suing you. The name of the insurance policy you’ll need is Errors and omissions insurance. Northwest Registered Agent is here to help with all your small business ideas and needs. Answer a few simple questions about your business, and we’ll prepare and submit your formation paperwork to the state. We also provide your new business registered agent service, free business forms and guides, and much more.
- Sole proprietorships do not require formation filings, though they often require business licenses.
- Northwest Registered Agent is here to help with all your small business ideas and needs.
- If you expect to find new clients in different geographical regions, consider getting a local number in addition to a toll-free number.
- Whether this is your side gig or full-time business, you can get a website customized for your business with a company that offers specialized marketing services, like CPA Site Solutions.
- There’s no need to be fancy—just go for something uncomplicated and easy to pronounce.
As reported by Payscale.com, the average bookkeeping business will earn between $17.40-$25.50 per hour. However, you may also choose to charge a flat rate, depending on the circumstances. To determine your flat fee, simply take your hourly rate and multiply it by the number of hours you typically work per month. For as long as there have been businesses, there has been a need for bookkeeping. Having a good bookkeeper can help a business monitor its financial activity, plan its future expansion, and establish a competitive advantage. Starting a bookkeeping business can be very profitable, but you will need to do some work upfront.
Whether this is your side gig or full-time business, you can get a website customized for your business with a company that offers specialized marketing services, like CPA Site Solutions. When starting out, keep your costs low by setting up a home office. If possible, plan to meet your clients at their offices or virtually. I don’t recommend inviting clients to your home office unless you know them very well and have a private room where you can work. Read our home office setup ideas to learn about the must-haves and productivity hacks. Another tool that will make your life easier is practice management software.
Starting up a virtual business doesn’t require ordering a bunch of office supplies. We no longer need ten keys or ledger paper, especially in a virtual bookkeeping firm. 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. All content on this page is for general informational purposes only and does not apply to any specific case, is not legal, tax or insurance advice and should not be relied upon.
How does a bookkeeping business make money?
You can use a business formation service to help you decide which structure is appropriate for you and file all necessary paperwork with the state. If you’re not ready to go all-in as a full-time, self-employed bookkeeper, you can start slowly by taking one or two clients as a side hustle. That gives you the chance to make sure that bookkeeping is really for you before quitting your day job to hang out your shingle. Similarly, if you just want to work part-time hours, you can do that, too. Networking opportunities exist through social media channels and industry organizations.
You also want a services page where you explain the packages you offer. Make sure you provide a contact page as well to make it simple to find you. You should also research file sharing options to determine the best way to share needed documents with your clients.