As businesses focus on their core operations, outsourcing bookkeeping services becomes more common. By effectively marketing and networking, a bookkeeping business can attract new clients and expand its client base. Additionally, as businesses grow and require more complex financial management, the need for comprehensive bookkeeping services increases.
Hire a Team
If you love numbers and helping people, this guide will show you how to start a bookkeeping business from the ground up. We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. A business plan involves outlining your plans for your company in detail.
How to start a bookkeeping business in 9 steps:
BILL also integrates with many of the most popular accounting software providers. That’s partly because bookkeeping businesses don’t have a lot of barriers to entry or even a lot of startup costs to worry about. All you really need is some bookkeeping experience, access to accounting software, and a way to market yourself to prospects.
Choose your bookkeeping software
If not, you might consider using a file-sharing service such as Dropbox so you and your clients can exchange important data such as receipts or financial statements. Next, you’ll need to invest in payroll professional liability insurance, which protects you in the event you make an error in managing a client’s books. You might also consider general liability insurance coverage to protect against a broad range of risks.
- However, there are a few questions that should be swirling around your head.
- Our comprehensive bookkeeping business course, Bookkeeper Launch, is designed to be completed in ten (10) weeks.
- She has specialized in financial advice for small-business ownersfor over a decade.
- And if you hire employees, you’ll also need to invest in worker’s compensation insurance.
- Next, you’ll need to invest in professional liability insurance, which protects you in the event you make an error in managing a client’s books.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly. If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. Your business name is https://www.bookstime.com/blog/how-to-choose-an-accounting-method-for-your-business one of the key differentiators that sets your business apart.
If Cloud-based Accounting Software Is So Great, Why Do Small Businesses Need A Bookkeeper?
Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. Your business location how to start a bookkeeping business is important because it can affect taxes, legal requirements, and revenue. Start with a business checking account and, as your business grows, you may also opt for a business savings account to let your excess funds earn interest. Both traditional, brick-and-mortar banks and online institutions offer attractive banking options, so shop around before deciding where you want to park your hard-earned money.