How to Start a Bookkeeping Business in 8 Easy Steps?

bookkeeping for startup businesses

Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. If you can’t make a home office work, look into virtual office spaces or office sharing. Typically, these spaces include a mailing address, local telephone number, receptionist to answer calls, physical office space, and access to a conference room that you can rent by the hour.

bookkeeping for startup businesses

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. As you compare online bookkeeping courses, consider the range of topics covered, the course format, and the cost. Whether it makes sense to obtain just one bookkeeping certification or additional tax and accounting software certificates can depend on your niche and the types of services you plan to offer.

How much does it cost to start, and what can you expect to make?

Clients who are happy with your services are more likely to stay loyal and continue to hire you. They also may be willing to refer you to people they know who might need a good bookkeeper. When planning your marketing strategy, it’s important to think about the message you want to send to prospective clients. That message should be consistent across all of the channels you use to market your business, whether that includes YouTube, Facebook, TikTok, or another platform. Starting a bookkeeping business requires an understanding of accounting and bookkeeping practices.

Never leave the practice of bookkeeping (or your business assets) to chance. No matter what system you implement, incorporate a practice of reconciliations, by comparing the numbers in your system to the source records, like bank statements, receipts, startup bookkeeping and invoices. This habit improves communication, boosts transparency with your bookkeeping team, and promotes longevity and compliance. The specific amount of an emergency fund may depend on the size, scope, and operational costs of a given business.

How To Do Bookkeeping For a Small Business

Additionally, regularly monitor your business expenses and maintain accurate financial statements to track your cash flow and ensure financial stability. Decide whether you want to operate a virtual bookkeeping business, work from a physical office, or have a combination of both. Virtual bookkeeping offers flexibility and cost savings, while a physical office can provide a professional image. Consider factors like your target market and personal preferences when making this decision. Your bookkeeping also tracks timing and valuation of assets like inventory, fixed assets and accounts receivable.

  • When signed by both you and your client, this agreement will protect you against any liabilities.
  • Most people have experience with what they earned working for a bookkeeping firm.
  • Client referral programs work by offering your existing clients a bonus or reward for referring you to their contacts.
  • This type of software will inform you about your company’s financial position and make it easy to keep files, receipts, documents, and records in order.
  • The next step is to go to your Secretary of State’s website and file “Articles of Organization.” It’s a fairly simple process and done online through a series of questions.

Over the years the demand for bookkeeping services has witnessed a steady increase. In 2022, the Bookkeeping services industry was estimated to be worth about $65 billion, with an annual growth of 2% between 2017 to 2022. A cloud-based solution that makes it easy for accounting firms to manage client work, collaborate with staff, and hit their deadlines. There are a lot of moving parts when running your bookkeeping business.

Tax Planning

You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use. Determine your pricing structure based on factors like the complexity of the work, industry standards and the value you provide. Decide whether you will charge an hourly rate or offer fixed pricing packages. Establish clear payment terms and policies to ensure timely payments from clients and you’ll be well on your way. While some bookkeeping services offer a guaranteed fixed price or membership cost, there are some with hidden fees and additional hourly rates. To ensure your bookkeeping services meet your startup’s budget needs, do your research on the platforms that utilize hidden fees and extra costs before you sign up.

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