In general, you need experience with bookkeeping and/or accounting on a professional level, plus experience with various accounting software, such as QuickBooks. It’s also necessary to be extremely accurate, reliable and work with a high level of integrity when you’re managing the books for another company. Organized financial records and properly balanced finances produced by the bookkeeping and accounting processes are both key factors to this success. Some business owners learn to manage their finances on their own, while majority opt to hire a professional so that they can focus on the parts of their business that they really love. Although bookkeepers are often referred to as accountants, there are distinct differences between the two positions. 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.
- So, you can put a bigger chunk of your startup costs toward these functions.
- Your first few clients will always be from your friends and family.
- After potential clients contact you, you’ll schedule a meeting for your initial consultation, aka discovery call.
- In this article, you will learn everything you need to know to start your own bookkeeping business.
Bookkeepers are also not required to have an accounting degree. Unless they are a certified public accountant , bookkeepers should not prepare tax returns or sign the returns as a paid preparer. In this post, we’ll talk about the different bookkeeping services you can offer. You can also learn how to make a plan, set up your business, and market it. The Xero Partner program provides accountants, bookkeepers, and other financial professionals with the training, resources, and support they need to succeed in cloud accounting.
Hit Your Accounting Deadlines
Military spouses may also want to start a bookkeeping business for the flexibility. Whether or not you have kids, you may not be able to find a traditional job. If you and your spouse move a lot, you can work on your bookkeeping business from home. You’ve set up your business, and you will start taking on new clients, but before you do this you need to create a streamlined onboarding process. This is essential as the first impressions and this process will set the stage for your relationship with the client. You may need a business license depending on where you are conducting your bookkeeping business. Check your state, county, and city websites to see what the requirements are in your area.
One thing that will help you is creating a niche that you want to become an expert in. Once you get into the network of piano teachers and learn that business really well, and, hopefully, your clients will suggest you to their friends for services. For more ideas, check out Jetpack Workflow’s suggestions on how to market your virtual bookkeeping business. Without a website—and since you have no physical office—your business may appear to be fly-by-night.
Step 1: Create a Business Plan
While the steps outlined below need to be completed at some point as you establish your business, getting your first virtual bookkeeping client should be the first thing you do. This way, you’ll be growing your reputation alongside building your business. Your website is where you can drive all your traffic from other marketing channels. 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.
Reference your initial https://bookkeeping-reviews.com/ plan — what type of clientele are you aiming to serve? You will definitely want to check this system out as an option as it’s incredibly popular for bookkeeping businesses and accounting firms. Once you can get your head around that, marketing and explaining your accounting and bookkeeping services to prospective clients will become far easier. 4) If you provide tax preparation services, they’re a great way to avoid a crazy tax season. With a productized service offering, you can smooth out your workload throughout the year to eliminate this from happening.
Step 3 – Write Your Webpage Content
You could also look into Xero if you’d like, which is the second most popular accounting software as of now. The LLC is to form your business into a legal structure, and you only need to do the set up one time. After you file your Articles of Organization, it’s time to get your business license, which lets you practice in your county, city, or state. You’ll need to do some research to see which one of those you may need a license for. These articles and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”).
It is also required when starting a bookkeeping business. The benefits of both corporations and partnerships are combined in a limited liability company . It reduces taxes and business requirements while protecting small business owners from legal problems. A sole proprietorship is the simplest way to run a business. The business owner’s tax returns also include income and expenses. EAs can work in any way they want, just like lawyers or certified public accountants. They have no limits on who they can represent as taxpayers, what kinds of tax issues they can handle, or in which IRS offices they can represent clients.
Getting started (business set up)
Be sure to set a rate that you’re comfortable with and that will allow you to make a profit from the prospective client. This will vary depending on your location and business type.
Can bookkeeping be a side hustle?
Bookkeeping is a side hustle that can be very rewarding if it's something you enjoy and really good at. Just think about it, every organization is going need a bookkeeper at some point. That means there's always someone out there who's looking for bookkeeping services.