How to Start a Bookkeeping Business at Home With No Money or Experience in 22 Steps

Saving up money, taking out a loan, or procuring funding from an investor are a few of your options. One of the reasons why starting a bookkeeping business is easier than starting an accounting business is that it requires less knowledge and experience. However according to industry watchers, in down times, you may have more competition, because some accountants need more business to keep busy and will seek to pick up bookkeeping business. Accountants are no longer trained for small-business bookkeeping though, so even they are apt to outsource the bookkeeping work they get. While doing business is getting more complex, people aren’t getting better at handling their money. Today virtually everybody needs some professional guidance. Yet most small businesses can’t afford to hire or keep full-time bookkeepers.

Another tool that will make your life easier is accounting practice management software. 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 both offer practice management software that are integrated with their accountant software. Many bookkeeping firms prepare financial statements that their clients take to CPAs or other tax pros to prepare a return.

Step 7: Set Up a Home Office for Your Bookkeeping Business

To do this, set up a pricing table that breaks down your solutions in terms of what’s included. Next, showcases your core offerings that were created in Chapter 2. 1) Outline some benefits that small businesses can expect from your solution.

Starting a bookkeeping business can be very profitable, but you will need to do some work upfront. In this guide, we will discuss the most important things you’ll need to keep in mind along the way. This is a trend that is completely changing how bookkeepers and accountants do business, so you must understand how it works since it will have a direct impact on your business.

How Do I Find Bookkeeping Clients?

It is also required when starting a bookkeeping business. With this bookkeeping service, you can keep your potential client’s account up-to-date and accurate. This function is very important for paying salaries to employees, including figuring taxes and government compliance.

• We’ve curated a list of best free software that every business owner must use.
• At this point, you’ll be ready to start looking for your first client.
• You will also create a financial plan that should include a 12-month profit and loss projection, projected cash flow, and a projected balance sheet.
• Starting a bookkeeping business is going to take a lot of effort, but the barriers to entry have never been lower.
• I don’t have a ton of suggestions here as there are so many models and it depends on if you’re a Mac or PC person.

Australian legislation states that businesses must have up to date financial records to ensure that they pay all necessary taxes and levies. The cost will depend on where you are starting business from either your home or an office. If you are starting from home this will immediately cut down costs because there will be no office rent to pay. The Total Fee for incorporating the Business in United States of America – $750.

The Investment Needed to Start a Bookkeeping Business

If you suspect you’re getting close to expanding, start looking! Give yourself time to find the right person and get them up to speed.

Again, some banks will offer different perks with their accounts, so take time and do some research on this to find the best solution. Once you have everything squared away legally, you will need to open a business bank account. This will help you keep your personal and business expenses separate, which is important come tax time. This can be a tricky part of the process, but I recommend as you start out charging by the hour. A great starting place is $40 an hour, and you can raise your prices as you go along and gain more experience.

Training

Because of this I was thinking to open my own bookkeeping business. I have no clients, and I would like to ask you if you consider this would be worth it for me? Once you have everything set up, it’s time to market your services. There are industry job sites and professional associations you can join to help you business bookkeeping find clients, but you also want to look into other options. While a specific certification isn’t necessary to set up a bookkeeping business, it can help validate your business and your qualifications to do the work of your business. Online education programs provide useful ways to train for bookkeeping jobs.