how to start a bookkeeping business

It’s possible to start a bookkeeping business from scratch, even if you don’t have a professional or educational background in accounting or bookkeeping. Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online. Likewise, you don’t need to have experience running a business, but that could also prove helpful.

Maybe you’ve been made redundant and setting up for yourself gives you a great opportunity to take control of your destiny and try something new. Once you’ve identified your ideal client, then you can put specific solutions together for them. Maybe you’ll focus on serving a niche like real estate or construction? By positioning yourself as a specialist, you’ll be able to target your marketing and talk specifically to one audience. With the right software and apps it’s easy to work with people wherever you are in the world. The worst thing you can do is sit at your desk waiting for the telephone to ring.

Pros and cons of home-based bookkeeping

There may be additional steps required if you plan to hire employees for your business. For instance, you may need to obtain workers’ compensation insurance. For instance, California requires workers’ compensation for all employers, regardless of the number of employees. In Alabama, on the other hand, businesses are not required to purchase workers’ compensation insurance if they have fewer than five employees.

  • You can also leverage social media to build your brand and increase your visibility.
  • The tax and other non-cash related items such as depreciation get calculated when the accounts are drawn up.
  • No, a separate office isn’t necessary for a bookkeeping business.
  • You will be able to charge more if you can add value to a company.

You’ll also need to give some thought to how you plan to invoice your clients for your services. That includes choosing when to send invoices, how quickly you expect them to be paid, and which payment methods you’ll accept. Your marketing content should speak to the needs and pain points of the types of customers you’re most interested in attracting to your business.

Acquiring Bookkeeping Skills

If you’re starting from scratch, then here are a few ways to get those first customers. As an entry level to becoming an accountant, it provides some exemptions from the other more formal routes such as CIMA, ACCA and ICAEW. The AAT Accounting Qualification Crucial Accounting Tips For Small Start-up Business divides into three levels, Foundation / Certificate, Intermediate / Advanced Certificate and Technician / Diploma. The history of bookkeeping comes from the term “bookkeeper” who is generally a person who keeps the “books” for an organisation or business.

A business plan is a detailed overview of how you plan to launch and grow your business. There are several key elements that are typically included in a comprehensive business plan. Here’s what yours might look like as you draft a plan for your bookkeeping business. Unlike the requirements Accounting Advice for Startups to become an accountant, the training required to become a bookkeeper is less strenuous. It’s possible to find and complete an online training program from home. These articles and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”).

How to become a bookkeeper

Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do. Take advantage https://business-accounting.net/bookkeeping-for-solo-and-small-law-firms/ of courses and training to learn new skills and expand your service offering. Facebook, Twitter and LinkedIn can all help you reach prospective clients.

  • Just as with any other profession, it’s the internet which makes it possible for bookkeepers to work from home.
  • For one thing, you’ll want to record all your golden ideas before they’re forgotten.
  • By positioning yourself as a specialist, you’ll be able to target your marketing and talk specifically to one audience.
  • If you have experience in bookkeeping, you can still run your own bookkeeping business, but companies may prefer a qualified bookkeeper.
  • If you’re starting from scratch, then here are a few ways to get those first customers.