Are you a traditional office bookkeeper who wants to know how to start a bookkeeping business?
If you want to earn more income while working from home in 2023, online bookkeeping is a profitable small business you can consider, especially if you’re good with numbers.
It’s one of the most in-demand services in America today, very easy to set up, and offers a better profit margin of 18.4%, according to Entrepreneur.
Now, if you’re looking to start immediately but don’t know how to, you have nothing to worry about.
Discussed in this article are steps to follow if you want to start a bookkeeping business from the scratch. So keep reading as we forge ahead!
How to Start a Bookkeeping Business in 2023
Knowing how to start a bookkeeping business begins with understanding the concept of bookkeeping.
In simple terms, bookkeeping refers to the process of recording day-to-day financial transactions, which include sales and receipts, with the help of accounting software like QuickBooks.
Small business owners hire bookkeepers on a part-time or full-time basis to help them manage and organize their finances, making it easier for them to budget and make other informed decisions.
Top platforms like ZipRecruiter offer bookkeeping jobs that pay between $10-$20 per hour.
Starting a bookkeeping business can be an excellent opportunity for you as more and more companies join in the search for professional bookkeepers.
Best part? You don’t need a college degree to start one and won’t have to jump buses en route to the office every morning.
Next up is a step-by-step guide to help you get started.
Step-by-Step Guide on Starting Remote Bookkeeping Business
1. Gain Bookkeeping Experience
Before starting your own bookkeeping business, it’s essential to gain some experience in the field.
This could mean working as an in-house bookkeeper for a small business, completing bookkeeping courses or certification programs, or working for an accounting firm.
Speaking of certifications, organizations like the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) provide certification programs that enable you to upgrade your skills and market yourself better as a public bookkeeper.
By gaining experience, you’ll be able to understand the ins and outs of the bookkeeping process, which will help you to better serve your clients in the future.
2. Create a Business Plan
One of the prerequisites for starting a successful business, regardless of the industry, is a business plan. So, you must know how to create it.
A business plan is an essential document that outlines the goals, strategies, and objectives of your bookkeeping business.
It should cover everything from your target market and pricing structure to your marketing and branding strategies.
Your business plan should also include financial projections, which will help you to determine the financial viability of your business and secure funding if necessary.
3. Register Your Business
Once you have your business plan in place, you’ll need to register your business with your state or local government.
This will involve selecting a business name, registering for a business license, and obtaining any necessary permits.
A caveat here is to choose a business name that best reflects your service or personality—one that is not already in use—to make it easier for clients to differentiate you from others.
4. Choose Your Software
The next thing to do after registering your business is to choose the right business accounting software you will work with moving forward.
There are countless options out there, including QuickBooks, Xero, Zoho, and so on.
However, it helps to be familiar with more than one software to meet your client’s preferences.
Besides selecting accounting software, you have to set up a website where clients can come in contact with your business, a file-sharing tool like DropBox to enable you to share files between your clients with ease, and a project management tool for tracking your work progress.
5. Set Up Your Office
Setting up a dedicated office space for your bookkeeping business is essential for staying organized and productive.
Consider investing in a comfortable office chair, a spacious desk, and high-quality equipment such as a computer, printer, and scanner to stay on top of your remote work life.
6. Market Your Business
Marketing is a key aspect of any successful business, and bookkeeping is no exception.
As said before, consider creating a website for your business and also utilize social media platforms such as LinkedIn to connect with potential clients.
You may also want to consider attending local networking events, reaching out to other small business owners in your locality, and offering free consultations to help build your client base.
7. Determine Your Pricing Structure
Now it’s time to price your services.
As a bookkeeper, you want to be paid what you’re worth, so it helps to research the current rates other bookkeepers in your area charge for their services and then determine a pricing structure that is competitive yet profitable.
You may also want to consider charging an hourly rate or offering monthly packages, depending on your clients’ needs.
8. Provide Exceptional Service
When you start working with clients, ensure you provide exceptional service to your clients.
Be responsive to their needs, communicate clearly and effectively, and be reliable and consistent.
Doing so will help you build a loyal client base that will recommend your services to others and help your business to grow.
In the words of Walt Disney, “Do what you do so well that they will want to see it again and bring their friends.”
FAQs About How to Start a Bookkeeping Business
Is a bookkeeping business profitable?
Of course. A top benefit of running a bookkeeping business is that it increases your earning potential, such that you can easily make over 6 figures, whether as a part-timer or full-time worker.
How many clients can a bookkeeper handle?
This depends on the individual, but the number of clients a bookkeeper can handle at once ranges from 10 to 40.
You can find these clients by applying for jobs on job boards like LinkedIn and Indeed and pitching your services on freelance sites such as Upwork and Fiverr.
Should I focus on a specific niche as a bookkeeper?
Yes, you can specialize in a particular niche/industry to attract quality clients and deliver better services.
However, when you’re starting, you’re encouraged to work across different types of industries to gain more exposure.
How to Start a Bookkeeping Business: Final Thoughts
Everything summarises that starting a bookkeeping business requires careful planning and preparation.
Will it be tough? Yeah.
Are you going to have some off days? You bet!
But with hard work, sheer dedication, and religiously following the steps already outlined in this article, you’ll be able to set yourself up for success and build a thriving business that helps small business owners manage their finances with ease.
We hope you enjoyed reading this, and if you have any questions, please let us know in the comment section below.