How To Start A Bookkeeping Business
Bookkeeping has gained huge ground among small businesses concerned with the management of accounts.
It doesn’t seem to decline in popularity on account of the fact that many people are always in search of those formally qualified to help them draw up tax returns, handle payrolls and manage income and expenditure professionally.
However, being a bookkeeper not only requires having formal qualifications in the field of bookkeeping/accounting but also having an unbending passion for helping people to manage their complex financial lives.
With that said, this article revolves around how you can start the business of bookkeeping in the most professional way.
Bookkeeping Business Checklist
1) Get Certification in Bookkeeping
Getting certified is certainly one of the best ways you can assure your prospective clients that you’ve established reasonable formal foundations in the field of bookkeeping.
Even if you have once attached yourself to a professional bookkeeper and acquired the basics required for plying the business of bookkeeping, you may still need to get certified in order to appear more professional to clients.
In getting certified, you could enroll into any of the reputable bookkeeping organizations such as:
- NACPB (National Association of Certified Public Bookkeepers) and
- AIPB (American Institute of Professional Bookkeepers).
Meanwhile, do well to find out all the certification exams, requirements and details your chosen bookkeeper organization will expect you to undergo or provide.
2) Get Your Business Incorporated
One of the good sides about incorporating your bookkeeping business is that any incident of a business suit will only affect your business property and not personal property.
In addition, this incorporation will prove that your business is legally qualified to operate.
Importantly, business incorporation is one of the administrative tasks you have to execute before you fully establish your business as a going concern.
3) Write a Business Plan
There is no need to emphasizing the importance of a business plan to you except you neither wish to establish your bookkeeping business on a full-time basis nor capture financial assistance from private investors.
Although creating a business plan could be somewhat hectic, you’ll surely reel in benefits if you have a well-written business plan.
On one hand, you can create a business plan by yourself and on the other hand, you can choose to engage the service of a professional who should do that for you.
Whichever way, ensure your bookkeeping business plan comprises essential details including:
- your marketing strategy,
- analysis of business competition,
- projected revenue,
- cost of business start-up,
- company overview,
- business product/service and
- your expected level of profit probably after few years of operation.
Notably, the listed details are what you should include in your business plan in addition to your estimated balance sheet and cash flow.
4) Choose a Business Structure
Some people either fail to decide or make the wrong decisions concerning the appropriate structure for their businesses.
As it comes in four different forms, business structure is very essential for anyone who wishes to avoid certain business setbacks.
- First of all, you should be sure of your financial capability before choosing to establish your bookkeeping business as a sole proprietorship.
- Secondly, do not shy away from having business partners if you think you alone can’t shoulder business liability.
In the case of business suit, the kind of business structure you’ve chosen will likely determine if your business will progress or liquidate.
Most advisable, contact an attorney in order for you to be guided on the appropriate structure depending on your business capabilities and expectations.
5) Get Your Business Insured
The need to insure your bookkeeping business may arise in certain respects: You could be handed business suit for grave errors made on a client’s book.
Perhaps, some lawsuits can so drain your pockets that you’ll be left with little or no money.
However, provided you’ve covered your bookkeeping business with liability protection, you won’t be the only one to bear all your business risk.
6) Obtain Appropriate Accounting Software
This is an indispensable step in getting started with bookkeeping simply because there’s a good deal of accounting software and you just have to single out the suitable one for you.
Advisably,
» QuickBooks has been deemed the best accounting software option for small businesses as it offers video tutorials, training guides and an online program known as ”QuickBooks Online Accountant”.
You’ll have to attempt the QuickBooks ProAdvisor certification exam and with the help of the tutorials and guides offered, you’ll likely excel at it.
Although QuickBooks has drawn much attention as the best small business accounting software, there are a couple of programs you can use in place of it.
Some of them include
- Zoho Books,
- Officewise,
- ZipBooks, and
- Wave.