Everything you need to know about starting a freelance bookkeeping business

You must also ensure compliance with any applicable laws and regulations. This step-by-step guide will map out the process to get started on your own bookkeeping business. We’ll cover building a bookkeeping plan, creating a strong accounting system, marketing and gaining clients and other helpful tips to get your business set up. Following the above steps will help get your bookkeeping business off to a good start, but don’t rest on your laurels. Keep up with changes in the industry and continue to evolve your skills.

Email marketing sits near the top of the list of effective marketing channels. You can grow your list through your website and create simple campaigns to start. As you increase your email marketing know-how, you can develop more complex campaigns to reach prospective clients. Naturally, you want to spend the majority of your time serving clients. However, you need to know how to attract and land bookkeeping clients.

Software certifications

This helps keep accounts reconciled and secure for clients and keeps the information easy to access. There are many books available that offer advice on topics such as setting up a business, building a client base, and managing business finances. Some books focus specifically on tax preparation and compliance, which are essential for any freelance bookkeeper. Familiarity with the laws and regulations governing bookkeeping and financial management.

• You can accept credit and debit cards, ACH transfers, and a wide variety of other payment methods.
• Maybe it’s numbers-oriented like hitting $1,000,000 in revenues or servicing 1,000 small businesses.
• For now, the important thing is to walk yourself through the steps you’ll need to take to be successful.
• For a bookkeeping business, you may also want to include information regarding your niche and any certifications that you have as well.
• The two best-known certifications are the American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers .
• You can gain certifications in bookkeeping itself as well as in the accounting software you plan to use to serve your clients.

Use CorpNet’s free Corporate Name Search tool as a starting point for determining if your name is available. If they want to use a fictitious name (e.g., Precision Bookkeeping Services), however, they must file a DBA or equivalent application. After you have finished your bookkeeping certification classes and completed these steps, you’ve done it!

Stop RunningYour BusinessLike This!

Attending local events would be fruitful in making new connections and acquiring new clients. It’s easier to standardize your own accounting business if you build processes around one of them. The more you can standardize, the more streamlined your business model will be when you get clients. 1) Head to LinkedIn and type some keywords into the social media search bar that might describe the kind of new clients and business owners you’re looking for. When starting an accounting firm, if you’re not crystal clear on what you are working towards down the road, prioritizing decisions, projects and initiatives becomes impossible.

• After completing your business plan, you’ll have a good idea of what your estimated startup costs will be.
• If you end up using your personal credit card for business expenses, get into the habit of reimbursing yourself.
• It’ll focus on designing a website that increases revenue, improves client loyalty, and drives brand awareness.
• Although bookkeepers are not responsible for filing a business’s taxes, they do often act as financial interpreters between companies and accountants.
• Determining where clients will find out about you and finding ways to meet them there (e.g., Google My Business, Google Ads, etc…).
• You may be ready to be your own boss, work virtually, make your own hours, and build your own accounting software program.

Dealing with these ad hoc questions would form part of the support that you’ll be expected to provide. Every core offering will contain professional services and accounting work. After establishing the purpose of your accounting https://bookkeeping-reviews.com/ business, you’ll need to establish early on in your first year exactly what your ideal client profile looks like. Being the best bookkeeper in the world won’t help you if no one knows who you are or how to find you.

Important Considerations to Keep in Mind Before Launching a Business Venture

You may also need to register with the IRS as a sole proprietor. The most expensive thing I could think of that bookkeepers need to spend is on QuickBooks software, which is a cornerstone of your bookkeeping business. You can charge your client for their subscription, but I personally like to add it into their bookkeeping plan with me. If you don’t manage your workflows well, work quality will suffer and things will start to slip through the cracks.

The two best-known certifications are the American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers . Both these organizations offer classes that can help prepare you to take their exams. Many community colleges also offer programs designed Starting Your Own Bookkeeping Business to help you get formally certified. Bookkeepers handle sensitive data for their clients, and an error on your part could be costly. Errors and Omissions insurance protects you and your assets if that happens. Finally, as we’ll talk about below, startup costs are manageable.