Starting a bookkeeping business can be a lucrative and rewarding career. However, it requires careful planning and execution to ensure success. If you’re specifically interested in working as a bookkeeper remotely, establishing a website and social media profiles may be a starting point for your marketing plan. Both can make it easier for potential clients to find you in online searches. You can also leverage social media to build your brand and increase your visibility. In fact, you can even deduct your home office space from your annual tax returns.
- The Wix website builder offers a complete solution from enterprise-grade infrastructure and business features to advanced SEO and marketing tools–enabling anyone to create and grow online.
- First, your business needs bookkeeping software like QuickBooks Online or Xero to manage clients’ books.
- Efficient client onboarding is essential for a smooth start to your bookkeeping business.
- Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes.
- A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to.
This is a practical guide that will walk you step by step through all the essentials of starting your business. These strategies are absolutely crucial to your business’ success yet are simple and easy to apply. Are you considering starting a Bookkeeping Business and you’re in need of a bookkeeping business plan PDF?
Common Bookkeeping Responsibilities
This can help you organize and track the progress of client work and, in some cases, provide a portal to access your client’s books. QuickBooks and Xero offer the best what solvency is in a business accounting practice management software that’s integrated with their accountant software. Freelancers have to pay their own taxes for their bookkeeping business.
Before we jump into the essential bookkeeping checklist for small business owners, let’s quickly touch on why it’s so important to have a bookkeeping checklist in the first place. Figuring out what to charge is any small-business owner’s greatest challenge. Too little and you aren’t fairly compensated for your work; too much and you’ll have a tough time competing with other bookkeeping businesses. As you grow your client roster, you’ll want to make sure you’re tracking them effectively and completely.
In doing so, you can get a good idea as to the range bookkeepers charge for services. A business plan involves outlining your plans for your company in detail. It is a comprehensive document that explains not only your services but also your market and the competitive advantage you’ll have in your business. It’ll help you focus your business and run efficiently out of the gate. Determine your pricing structure based on factors like the complexity of the work, industry standards and the value you provide.
Best Small Business Accounting Software
Identify your target market and develop a marketing strategy tailored to reach potential clients. Consider focusing on specific industries or niches where you have expertise or can offer specialized services. Not only can it be a fulfilling endeavor, but it also holds great potential for profitability. As your business grows, consider diversifying your services to cater to a broader market. This could include adding related services such as window cleaning, gutter cleaning, or deck restoration.
Payroll Software or Provider
From grasping the essence of the industry to mastering efficient management and successful promotion, we’ve got you covered. Identifying your target audience is the first step in marketing your bookkeeping business. Your target audience is the group of people who are most likely to use your services.
Step 3: Take Bookkeeping Certification Courses
While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes. If you focus on a specific industry, you can gain referrals from others within the industry and join industry associations. 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. Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business. You want your business name to reflect you as a person and the type of services you provide.
More senior bookkeepers who have some accounting skills can charge between $40 and $75, while those offering bookkeeping and accounting services can charge more than $150. Arm yourself with a cloud-based accounting platform and make sure to have credentials because clients are less likely to put their trust in home-based bookkeeping agencies. Now that you’re up and running, spread the word about your online bookkeeping services and wait for your dream clients. Just make sure you have a plan to pay off the balance before the introductory offer ends and a variable APR sets in. It’s not compulsory, but you might want to look into insurance for your bookkeeping business. Common business insurance policies for bookkeepers include things such as professional liability and general liability.
How a Bookkeeper Is Different Than an Accountant
By following the tips outlined in this section, you can ensure that your business runs smoothly and that your clients receive the best possible service. Invoicing and payments are critical components of any bookkeeping business. You need to ensure that you invoice your clients accurately and on time, and that you receive payment promptly. To achieve this, consider using invoicing software that allows you to create and send professional invoices quickly and easily.
A cloud-based solution that makes it easy for accounting firms to manage client work, collaborate with staff, and hit their deadlines. 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.