How to Start a Bookkeeping Business in 2023 in 13 Steps

It’s just a matter of finding the events your preferred market hangs out at and heading there with some business cards. To get to know who’s out there, there’s no better way than attending local networking events to collect some business cards. how to start a 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.

• The process for getting your business license is different for each of the 50 states.
• Be sure that when starting a bookkeeping business with QuickBooks, you use QuickBooks Online; not QuickBooks Desktop.
• Outsourced bookkeepers like yourself can offer flexibility to adapt, see things from an outside perspective, and be more cost-effective for the company.
• Here’s the beauty of being a remote bookkeeper; you can also work with almost any type of small business you want.
• I was able to grow my public accounting firm quickly by hiring certified public accountants and professional bookkeepers thanks to many of the marketing strategies that worked well.
• Some bookkeepers may also have to facilitate financial transactions and ensure  transactions are legally compliant.
• The responsibilities handled by a service will depend on the provider, so be sure to discuss the scope of work and compare options to find the right fit.

It all begins with getting your accounting software set up correctly. Bookkeeping is the backbone of your accounting and financial systems, and can impact the growth and success of your small business. It encompasses a variety of day-to-day tasks, including basic data entry, categorizing transactions, managing accounts receivable and running payroll. Nearly all LLCs and corporations will need to request a federal employer identification number (EIN) from the IRS. If you file corporate income taxes, have employees, or file certain franchise taxes, you must have an EIN. An EIN is also a common requirement for opening a business bank account.

Choose bookkeeping software

However, the limitations and risks of these business structures quickly become more apparent as your business grows. In both of these business types, you are your business, legally speaking. Your company’s legal business name is YOUR name—so you’ll need a DBA to operate under any other name.

But if you need more personalized, specific advice on how to start your own virtual bookkeeping business, and make money from home, see our other resources today to get started. When clients enjoy working with you, they are more likely to offer referrals for you. Referrals are the most effective marketing tool for virtual bookkeepers and accounts.

Bookkeeping industry trends

Bookkeepers play an essential role in the financial health of a business. They meticulously handle the recording and maintaining of financial information, ensuring every penny is accounted for. It’s great to have sophisticated software to help you run your business, but the program needs to be simple enough to use. Accounting and bookkeeping should be something you can do without too much effort or stress, so if your software is making it harder for you, it might not be the right one for you. To keep on top of these outgoing and incoming expenses, sole traders usually need to make daily logs to avoid missing payments or making errors. Any errors you do make could incur fines and, in more serious cases, legal action as you’re not protected by a Limited Liability Company (LLC).

• If you decide to go into business as a sole proprietor, you can simply hang out your shingle and start working.
• It’s simply a chance to organize your ideas around your business and put them in writing.
• A bookkeeping certificate can help you find a bookkeeping role, either as an in-house bookkeeper or as a freelancer.
• The market is there; small business owners and large corporations need bookkeepers.
• Owners of the business have claims against the remaining assets (equity).
• When you keep detailed, organized records of your business transactions, tax season suddenly won’t feel like such a daunting chore.

Your site doesn’t have to be complicated—a single page with your name, what services you offer, contact information, and some testimonials is plenty. Consider the costs of having a site created (if you don’t have the skills to do it yourself), web hosting, and domain registration. Check out our guides to the best free website builders and cheap web hosting for a great place to start. There are already many bookkeeping businesses, making it a competitive industry.

Resources for starting a virtual bookkeeping business

If you’ve got a knack for numbers and a good head for organization, starting a bookkeeping business might just be the right choice for you. The digital age has brought endless possibilities to start online businesses of all shapes and sizes, so there’s something out there for all types of people. These articles and related content is the property of The Sage Group plc or its contractors or its licensors (“Sage”). Please do not copy, reproduce, modify, distribute or disburse without express consent from Sage. These articles and related content is provided as a general guidance for informational purposes only. Accordingly, Sage does not provide advice per the information included.