How To Start a Bookkeeping Business in 8 Steps

The main thing you need starting out is a computer, otherwise it’s just basic office supplies! As a virtual bookkeeper, your computer is 95 percent of what you will use, but other than that you may want a printer, paper, pens, and things like that. This is one reason the overhead is so low when starting bookkeeping. You will want to get some kind of insurance to protect you even further since you are in the service industry and working directly with clients. You can just call around to various insurance companies, let them know you’re opening a business, and share with them that you want to be protected with business insurance. Even if you haven’t started making money yet, it’s important to set up that bank account so it’s separate from your personal finances and ready to go once you do start bringing in the cash. To learn more about the ins and outs of setting up your own business, check out our small business guide on how to start a business and our guide on starting a bookkeeping business.

• My private Facebook group is Build Your Best QBO Practice.
• If you plan to lease office space, then your mailing address will be wherever your office is located.
• Bookkeeping by itself is a part of accounting, and cannot be compared with accounting as a whole.
• A certificate in bookkeeping shows how skilled a person is.
• You don’t need a huge amount of infrastructure to get started.

She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Deciding what to charge your clients is often a difficult process. You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future. Choose your business https://www.wave-accounting.net/ name, make sure someone else isn’t already using it, lest clients get confused. Also, run the name by a few people to see the impression they get of it. Once you have your finalists, run the names through your secretary of state’s business name database to make sure it’s available. Even as the nature of business changes, one job that is always in demand is bookkeeping.

What are the Key Segments of the Bookkeeping Industry?

I highly recommend Bookkeeper Launch, which is an amazing long-form course that provides teaching, support, resources, and community. It is my #1 recommendation for bookkeepers ready to invest time and money into their career.

She has also written extensively on parenting and current events for the website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. There are two pieces of the business plan that deserve a little extra consideration. Although I was expecting for a little bit of exact information regarding bookkeeping, it is fairly understandable why Ben did not brought up all the necessary things.

Market Analysis

Probably about half the people I told said that they needed or they knew someone who needed a bookkeeper, so I was already handing out my business cards. That first client was all I needed to gain the confidence to get my next client, which came a few weeks later. I project I will reach my income goal within three months. Once you have a solid business plan for your online bookkeeping company, it’s time to give it a unique name. Naming a business is a different experience for everyone. Starting an online bookkeeping business comes with plenty of advantages – you get to make your own schedule, work with any companies you’d like, and make a living working from home.

Ask clients to leave testimonials for you on social media and include put testimonials on your website. Remember to connect everything to your accounting software to stay organized. 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.

The Investment Needed to Start a Bookkeeping Business

The exact process and costs for this vary from state to state and depend on the type of business structure you choose. If you decide to go into business as a sole proprietor, you can simply hang out your shingle and start working. However, registering as a limited liability company gives you more liability protection. There are tons of bookkeeping and accounting software tools available. Look for licensing that will allow you to keep the books for multiple or unlimited companies and consider any needs specific to your industry niche. When starting out, you should keep your costs low by setting up a home office. If possible, plan to meet your clients at their offices or virtually.

Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more. PayScale, a site that tracks salaries and rates, puts the average hourly rate for a bookkeeper around $17 per hour ($10 on the low end and $24 on the high end). You might also want to look into freelance and for-hire contractor sites, such as UpWork or Fiverr, where people list their rates. Find bookkeepers that are similar in your skill set and experience to help gauge what you should be charging.

And, I feel like you have a huge asset in your experience now. Why don’t you consider offering those specific skills to larger businesses? And, I’m sure you have a lot of contacts in those areas now. Would you even need to know a specific accounting platform if you are working these types of models? I jumped from corporate to small business because I spent a lot of time doing general management reporting and I felt like I could provide that same support to small businesses. To connect with them, I had to lead with doing bookkeeping and then show them how much more I can do.