How Start A Virtual Bookkeeping Business From Home In 2020


how to start a bookkeeping business

If you have an eye for design, you may be able to create these materials yourself. If not, there are plenty of templates for sale and freelance designers that can help for a reasonable price. E&O insurance is cheap—some policies are around $25 per month. You don’t need to have years of experience as a practicing bookkeeper to start your small business.

  • Brands with big growth goals often need to secure funding to make investments in new product developments, inventory, retail stores, hiring, and more.
  • And you can ask for some tips about how to start an official client engagement.
  • Design a logo or have one designed for you that goes with your business name.
  • However, it can be easy to underestimate the work involved, which leads to undercharging due to misquoting.

It holds information about you, your business, and your services. It’s also a place for you to clarify for your potential clients why they should want to work with you. You can build your website yourself, but if you have the budget invest in a web designer and copywriter to adjusting entries help build it for you. You’ll also need to learn some basic Search Engine Optimization practices or hire someone to help you. For professionals and aspiring bookkeepers alike, certifications are a powerful way to boost your skills and add additional authority to your brand.

How To Set Up A Bookkeeping Business

Small business bookkeepers can provide a range of services from managing accounts receivable, accounts payable, reconciliation, payroll, reporting, income tax preparation, and more. The main thing you need starting out is a computer, otherwise it’s just basic office supplies! As a virtual bookkeeper, your computer is 95 percent of what you will use, but other than that you may want a printer, paper, pens, and things like that. This is one reason the overhead is so low when starting bookkeeping. You don’t need fancy gadgets or office spaces to start.

A business credit card can also be a great way to track your business expenses easily. This will go a long way toward making tax time a breeze.

A business bank account keeps your personal finances separate from your business finances. For LLCs and corporations, keeping separate finances is essential for maintaining liability protection.

Can A Bookkeeper Call Themselves An Accountant?

Outside of those circumstances, a fixed fee is recommended and preferred. As your skill and expertise grow, so will your abilities to complete tasks quickly.

The LLC is to form your business into a legal structure, and you only need to do the set up one time. I am not a lawyer, so I can’t give you legal advice, but you want to decide which type of business will suit your needs best. If you need help, you may want to seek professional counsel. The process is fairly simple to do yourself, though, and you will save quite a bit of by cash figuring it out on your own. You can find additional information about each of these entities on the IRS website. Choose a Structure – Different website platforms have many different styles and structures to choose from.

Do I Need A Degree To Become A Bookkeeper?

Competent accountants and bookkeepers never lack for work. For some CPA’s, April is enough to keep them in the black year-round. Others advertise their services to local businesses, families, and wealthy individuals.

how to start a bookkeeping business

Professional liability insurance, commercial general liability insurance, and cyber liability insurance will all help to protect a bookkeeping business. Credit card financing is a type of unsecured loan that is a good starting point for those who may not qualify for a small business loan.

Project Management Software

With a productized service offering, you can smooth out your workload throughout the year to eliminate this from happening. Depending on the bookkeeping/accounting software you choose, there will generally be a payroll processing option you can turn on when you are ready to hire employees. If you decide to go with QuickBooks, it offers a variety of payroll options from bookkeeper which to choose. If you decide that you don’t want the headache of dealing with payroll, check out our guide on Six Payroll Competitors Payroll Competitors that beat ADP when it comes to price. Since you are starting a bookkeeping business, I’m sure that you have already given some thought―or made a decision―about which accounting software to use for your business.

  • However, as you know, small business owners often have a constant flood of satisfying milestones, coupled with expanding to-do lists.
  • And that you can learn at SeekaHOst University SEO training course.
  • Different bookkeepers have different methods of accounting.
  • Having the word “bookkeeper” in your official name will clear up any confusion and also help your company show up on Google when people search for a bookkeeping business.

However, there are certain liability protections by becoming an LLC, including limiting risk for your business. Assets become owned by your business and are distinguished from personal assets. When a business is not incorporated, it becomes harder to draw that line and the entire enterprise becomes at risk. Design a website or blog and continue your marketing efforts by writing articles about various bookkeeping issues. Comment on other articles on websites to help drive traffic to your site. Make sure you have plenty of contact information on your site, so that potential clients can reach you easily.

How Much Should You Charge For Your Services?

This course can take you from zero to success, like it did for this person. Use your security features as a selling point in order to assure clients that their financial information is in safe hands. When you’re trying to build a brand without spending too much money, your top priority should be retention—make your customers happy and they’ll bring you business again and again. They may meet clients in their home office or at a local coffee shop but some advise to rent a small office as soon as possible. Get yourself the right accounting software and learn how to use it efficiently.

how to start a bookkeeping business

With what you have said, has proved to me that this can be done! My firm will be offering both bookkeeping and payroll to start with, and I plan for next year to also offer taxes. I am not a cpa, but I do have a degree in accounting and enjoy the work. My name is Shari Olson and I am the owner of Olson Accounting 2015 LLC.

Some processors charge an interchange plus rate, typically around 2.9% + $0.30 per transaction. Others charge flat fees for each transaction, while some have a monthly membership model for unlimited transactions. You can consult this list to help you find a payment gateway that will work for your location. When you’ve reached the point where it makes sense to hire outside help, you need to establish whether that individual is an employee or an independent contractor.

You can research how to hire employees and download or bookmark any necessary forms like the W-4 and W-9 through the U.S. At Huckleberry, for example, you can get a 60-second estimate and secure your small business insurance entirely online and in as little as 5 minutes. Your costs will increase considerably if you intend to hire an employee right away, contra asset account but otherwise, you can expect to be up and running for around $1,500 to $2,000. As you search for the right business name, check that the name is available as a domain for your website. The last thing you want is to come up with the perfect name only to find that it’s already taken. They’re likely to be forgotten as soon as they’re heard or read.

For example, in Texas, you register your business through the Department of State and you need a license to be an accountant, but not a bookkeeper. You can notify the federal government of your business by applying for an Employer Identification Number . You can also create a business name for yourself and file a “Doing Business As” or “DBA” notice. If you don’t already have an education and experience, it’s wise to take a bookkeeping course. Most community colleges offer them, but you can also find them online. You do not need to become a Certified Professional Accountant to be a bookkeeper, though doing so will increase the variety of services that you can provide to your clients. You need to remember you’ll be on your own as far a liability goes when you run your own bookkeeping business.

Once you’ve agreed on a package of services, set the fees upfront. Don’t advertise fees on your website – remember it’s about pricing the client and not the service. 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. Start small and don’t over promise on what you’re able to do.


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