Are you planning to kick start your own bookkeeping business? If yes, you have landed at the right place. In this article we are going to discuss with you the complete process of starting your own bookkeeping business step by step. Since this business involves teaching finances including income, expenses, processing payroll, and preparing tax returns, it is a very crucial job.
So, let’s get to the tips of starting a bookkeeping business
- Complete the certification
- Create a business plan
- Register your business
- Setup your business
- Invest in a good accounting software
- Market your business
These are the 6 primary Tips involved in initiation of a bookkeeping business. Let us take you through each Tip one by one.
1 – Complete the certification
The first and foremost tip that one has to take is to complete all the required certifications. These certifications include –
After you are done with the course, it is vital that you become a certified bookkeeper. Here are a few top places that are recognized for their bookkeeping certifications – Western Community College, CPA, CPB Canada, and more. You must apply for certification at any of the recognized colleges. Another certification that is necessary for you to start your own bookkeeping business is accounting software certification. This is viable for one to showcase the knowledge on different accounting software. Some of the famous accounting software include – QuickBooks, FreshBooks, and Xero. The third certification that you need is the tax certification. This is required for a paid preparer to sign a client’s tax return.
2 – Create A Business Plan
The second tip that you need to take when it comes to starting a bookkeeping business is to create a solid business plan. While creating a business plan here is everything that you need to include –
- Cover story
- Executive summary
- Company overview
- Competitive analysis
- Marketing plan
- Costing
- Financial projection for at least 2 years.
So, after you get certified, get going and create a business plan.
3 – Register your business
The next tip in starting a bookkeeping business is to register it. For that you first need to select a business name and decide on the business structure which is whether you want to go with proprietorship, partnership or corporation. Once you have everything, you are all set to register your business. Remember before you start providing your services to the client, it is vital that you have your business registered.
4 – Setup your business
The next tip is to set up your business with everything that is a must. For example you will need an answering service, set up a business account, establish a mailing address and get bookkeeper insurance. These are some most basic amenities that are required to get your business up and running.
5 – Invest in a good accounting software
Another major investment for your bookkeeping business is to invest in good accounting software. Here is the types of software you should have with you if you are running a bookkeeping business –
- Accounting software like QuickBooks etc.
- Payroll software or provider
- Practice management software
- Electronic file management and sharing software like Dropbox.
6 – Market your business
The last thing for you to do is to build a strong business marketing strategy both – online and offline. Here, we would recommend taking help of professionals like CPA site solutions who provide marketing services to bookkeeping businesses. They will create, implement, and monitor your marketing without you having to lift your finger.
In the end, we would like to say that you are moving in the right direction by thinking of starting your own bookkeeping business. Bookkeeping is an integral part of every business and around 70% of businesses outsource this task to the professionals rather than handling it on their own. There is a huge scope in the business.
We wish you all the luck and hope you succeed and share your story with us.
