how to start a bookkeeping business

Keep these in mind when you’re faced with decisions like taking on an extra client, increasing your fees, or hiring your first employee. Smart accounting software Nonprofit Accounting: A Guide to Basics and Best Practices will also allow automatic data entry, daily bank reconciliation and payroll. Knowing where you eventually want to end up is helpful when you begin planning.

Most sole traders are likely to prepare their books themselves but need someone to prepare accounts and get them to the inland revenue. So promote your services through the many online business forums and offer impartial advice to get recognised. Bear in mind that existing A 2023 Guide to Tax Returns for Seed Stage Startups businesses will usually have bookkeepers or accountants already so your success rate with these will be less so look for new business start-ups. The data from these books or ledgers creates the foundation for the annual accounts for tax and company accounting purposes.

Starting a bookkeeping business – Finding a good accountant

With online networking you can find like-minded bookkeepers who use the same software, serve the same industries, or work in the same area. Setting up a bookkeeping business as a sole practitioner can be a little isolating. In the meantime, you’ll need to get your name known and starting to win new business.

The highest certificate will allow you to use the letters AATQB (as you’re an AA bookkeeping member) after your name. “This covers AML [anti-money laundering], policies and procedures, insurance, logos, templates. The IAB (and a number of other organisations such as AAT) offers a number https://accounting-services.net/bookkeeping-tax-cfo-services-for-startups/ of bookkeeping courses designed to fit around your lifestyle. That means you can work with your clients in real time to go over their bookkeeping and highlight any queries with ease. Remember, you’re selling your expertise and adding value to clients who need what you’re offering.

Register Your Business

Begin with a few headings and bullet points that map out your vision, goals, milestones and predictions. It’s great if you already know how you’re going to get started, but it’s still important to write everything down. For one thing, you’ll want to record all your golden ideas before they’re forgotten. Just as with any other profession, it’s the internet which makes it possible for bookkeepers to work from home. A business plan may be required if you plan to apply for business financing from banks or investors.

  • That message should be consistent across all of the channels you use to market your business, whether that includes YouTube, Facebook, TikTok, or another platform.
  • In Alabama, on the other hand, businesses are not required to purchase workers’ compensation insurance if they have fewer than five employees.
  • Don’t forget when calculating your fee, and you need to include all the taxes which will be due.
  • You can then report analysis from those numbers and enable your clients to make better informed decisions based on their finances.

These tools enable you to manage workflows and get your business in order. They come free with some accounting software and are getting smarter all the time. Online accounting software will let you look at accounts at the same time as your client. This means you can talk through their questions over the phone, reducing the number of meetings you have. It’s also helpful to develop a contingency plan in case you’re unable to work for a period of time.

Ask the author a question or share your advice

Bundle relevant services into packages and offer them to your client that way. You can then work together to customise the package to their specific needs. It’s tempting to offer everything in an attempt to attract prospective clients. But if you aren’t able to deliver on what you promise, you could get yourself into trouble.

how to start a bookkeeping business

When taking on new customers, there will be a fair amount of up-front work as you get up to speed with your new client. Learn about their company and understand their existing accounting methods. You should budget this extra time when taking on your new customer. It can often be worth asking for an upfront payment before starting this work.