How To Start a Bookkeeping Business in 2023 Step by Step

How To Start a Bookkeeping Business in 2023 Step by Step

how to start a bookkeeping business

The earning potential of bookkeepers and their businesses proves that it’s certainly a profitable area. At the end of the day, businesses will always need to record their profits, and doing this requires a bookkeeper. It’s about as safe an industry as you could find, and having a steady flow of clients means there’s a good chance of making a healthy profit. According to the Bureau of Labor Statistics, the average bookkeeper can expect to earn $18.87 an hour – this won’t quite make you rich, but it’s not bad for a basic starting salary.

People who knew I had been laid off were asking me about my “job seeking” prospects and I would tell them that I was starting my own bookkeeping business. 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. That’s partly because bookkeeping businesses don’t have a lot of barriers to entry or even a lot of startup costs to worry about. All you really need is some bookkeeping experience, access to accounting software, and a way to market yourself to prospects.

Who should manage small-business bookkeeping tasks?

If you have an eye for design, you may be able to create these materials yourself. If not, there are plenty of templates for sale and freelance designers that can help for a reasonable price. They may meet clients in their home office or at a local coffee shop but some advise to rent a small office as soon as possible. As of right now, what does your bookkeeping business currently own, and what, if anything, does it currently owe?

how to start a bookkeeping business

If you don’t have the space for this, aim to have a desk with locking drawers where physical paperwork can be kept. Also, make sure your computer is password-protected, and that no one but you signs into it. 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. As with most services, the amount you can charge for your bookkeeping business depends on your level of skill and experience. QuickBooks is better for invoicing and project management, and offers some features Xero doesn’t, like tax support and lending.

All-In on the Cloud When Wanting to Know How to Start a Bookkeeping Business

In this part of your bookkeeping business plan, choose and describe the type of organization you want to have. This part of the business plan should discuss Best Online Bookkeeping Services 2023 what your bookkeeping business does and its main goals. The summary should be interesting enough to make people want to read the whole thing.

The question is, how should 50-year and older entrepreneurs finance their startup? Getting access to capital to fund a new business is difficult for anyone. But older entrepreneurs confront the additional challenge that potential funders often see their advanced age as a negative.

Jobs that Don’t Require a High School Diploma and Are Easy to Get

You don’t have to be an accountant or a financial whiz, you just need to follow the process. With the right software, it’s very simple to learn, and day-to-day work doesn’t require any heavy math. Not only can anyone become a bookkeeper, but every business needs a bookkeeper, which means there’s no shortage of customers out there. Some bookkeepers choose to obtain certifications for their business. Bookkeepers can be certified in various financial platforms, such as QuickBooks, or via training programs.

  • If you want an in-depth idea of the principles of bookkeeping then it’s a good idea to consult a training program or book on the topic, but here are some key aspects.
  • For example, QuickBooks costs between $20 and $200 depending on the package you choose – and since you’re a professional, it makes sense to choose the Advanced option.
  • For example, business owners must be diligent about keeping personal and business finances separate.
  • Some accounting solutions offer a bookkeeper or accountant edition specifically designed for bookkeeping companies to use both for their books and as a portal to their client’s books.
  • Now, add the different levels of support to your gold, silver, and bronze plans.

With the right approach, you can optimize your website to increase traffic, but you’re probably more likely to find clients through networking. Talk with your personal and professional contacts to see if they know anyone who needs a bookkeeper. Many businesses hire based on referrals, so word-of-mouth advertising can be a great first step.

Network to Find Clients

However, if you plan to set up a home office, you’ll need to obtain a business mailing address so that you don’t have to use your home address. This will make your business appear more professional and maintain your privacy. This step is important because it establishes your business as legitimate and may help to limit your personal liability if your company is ever sued.