We live in unprecedented times, and starting a new business may sound like a risky proposition. More than 10 million Americans remain unemployed, and the COVID-19 pandemic closed 23% of small and medium businesses at its peak. <\/p>\n\n\n\n
But amid the economic meltdown and the subsequent signs of recovery, an increasing number of businesses need accounting firms to help them keep their operations on track, manage loans, and identify potential sources of revenue. <\/p>\n\n\n\n
If you\u2019re trying to figure out how to start a bookkeeping business, you\u2019re probably not alone. According to at least one survey, accountants are busier than ever, with 69% experiencing a higher than usual workload. So, if you\u2019ve found the perseverance to launch your small business, check out the bookkeeping basics below, which will help you develop the right strategies and give you the confidence to move forward.<\/p>\n\n\n\n
Contrary to popular belief, the leaders of the accounting profession aren\u2019t a bunch of gray-haired men who are sitting around crunching numbers all day. Starting a bookkeeping business can pave the way for a modern, innovative, and creative job that involves keeping and interpreting financial records. <\/p>\n\n\n\n
In addition, accountants are tasked with ensuring compliance with local laws, preparing tax returns, managing income and expenses, processing payroll, and dealing with a broad range of other paperwork. Of course, some businesses don\u2019t need this level of assistance and prefer to go with virtual bookkeeping services<\/a>.<\/p>\n\n\n\n Before we delve any deeper into the bookkeeping business, it\u2019s important to make a distinction between bookkeepers and accountants<\/a>. These two terms are often used interchangeably, but there are subtle differences.<\/p>\n\n\n\n While every accountant can perform the tasks of a bookkeeper, not all bookkeepers can be accountants. A bookkeeper will typically record daily financial transactions. <\/p>\n\n\n\n On the other hand, an accounting business performs a broader range of tasks. Upon collecting and recording data, an accountant analyzes it. They need to be licensed, and they charge more for their services.<\/p>\n\n\n\n We\u2019ll take you through our step-by-step guide with tips and tricks on how to do bookkeeping. Get ready for a detailed lowdown on each and every move you need to make in order to kick things off successfully and land your first client. <\/p>\n\n\n\n The first step is getting your credentials. Although having a bookkeeping license is not a must for doing this job, many bookkeepers choose to get certified to gain credibility with clients and charge more for their services. <\/p>\n\n\n\n While you\u2019re figuring out how to start a small bookkeeping business, the certification process should be at the top of your list. Having a certificate can be a game-changer in the bookkeeping business. You can become a certified public bookkeeper through a number of organizations, including the American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers.<\/p>\n\n\n\n AIPB is a more suitable option for those without a formal education in bookkeeping and accounting. You can get certified once you meet the 3000-hour work experience requirement and pass a certification exam. Meanwhile, CPB requires proof of a degree in accounting, and you\u2019ll also need to pass an exam to get the credentials.<\/p>\n\n\n\n Every business needs a long-term vision, and the business of bookkeeping is no exception. But before you can reach your long-term goals, you\u2019ll need to outline your strategy and identify every significant aspect of your business. Here\u2019s a roadmap for your business plan:<\/p>\n\n\n\n Now let\u2019s deal with daunting administrative tasks that will make your business legal. First, select a catchy name that conveys your brand and clearly states what you do. Next, get insurance<\/a> to protect your firm from potential threats, set up a mailing address that you plan to use with your clients, and open an account with a bank that offers favorable terms for small businesses<\/a>. <\/p>\n\n\n\n While you\u2019re working out how to start a bookkeeping business, bear in mind that the structure of your company impacts everything from your earrings to your taxes and your personal liability. The four most common structures are sole proprietorship, partnership, limited liability company, and corporation.<\/p>\n\n\n\n Tracking your clients\u2019 finances and creating financial reports can be exhausting if you\u2019re doing everything manually. Thanks to modern-day technological advances, we can lean on accounting software to make our lives easier. If you\u2019re starting from scratch and working on a budget, there are a number of free accounting software<\/a> options that can help you with your bookkeeping business. <\/p>\n\n\n\n On the other hand, many of the businesses that prefer the paid option choose the QuickBooks bookkeeping software. Tailored to small and medium-sized businesses, the software can help customize your invoices, track expenses, and manage reports. This cloud-based program allows you to store information and forget about piles of paperwork on your desk. <\/p>\n\n\n\n Once you\u2019ve identified your target market, you\u2019ll want to deliver a service with all the bells and whistles. Focus on services that are valuable to your potential clients. Think about designating your services in different tiers and offering different pricing plans. <\/p>\n\n\n\n Those navigating the ins and outs of how to start a bookkeeping business need to focus on making their services both reliable and affordable. Make a list of your core offerings: monthly bookkeeping, financial statement preparation, invoicing, sales, tax filings, and catalog the prices. Now, it\u2019s time to tell the world about it. <\/p>\n\n\n\n The next step is implementing marketing strategies. Whether you\u2019re offering bookkeeping services from home or your office, make sure people know about you. Business cards and a website with SEO-optimized content are not enough these days. Starting a bookkeeping business isn\u2019t difficult, but staying in the game requires going the extra mile. <\/p>\n\n\n\nChecklist for Starting a Bookkeeping Business<\/strong><\/h2>\n\n\n\n
1. Get your certification<\/strong><\/h3>\n\n\n\n
2. Create a bookkeeping business plan<\/strong><\/h3>\n\n\n\n
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3. Incorporate your business<\/strong><\/h3>\n\n\n\n
4. Choose the accounting software <\/strong><\/h3>\n\n\n\n
5. Offer your services to the world<\/strong><\/h3>\n\n\n\n
6. Spread the word<\/strong><\/h3>\n\n\n\n