How to Start a Bookkeeping Business for Lasting Success

Do you have a talent for numbers and a drive to help others manage their finances? If so, starting a bookkeeping business might just be your ticket to financial success and freedom.

Offering bookkeeping services can generate income and offer the flexibility to work on your own terms.

But where do you begin to start a profitable business? With my step-by-step guide, I’ll show you exactly how to start a bookkeeping business.

Get ready to take charge of your own destiny and create a life that you love!

Key Takeaways

Learn Bookkeeping Basics: Before you start a bookkeeping business, learn the basics from Bookkeeper Launch. It’s the meat and potatoes of your future business!
Find Your Bookkeeping Niche: Carve out your special spot and tailor your bookkeeping services to match. This is your golden ticket to standing out in the crowd.
Craft a Genius Business Plan: Planning is your best friend. Sketch out an epic roadmap that outlines how your business and how it will grow.
Invest in Quality Bookkeeping Software: Utilize software that streamlines operations and grows with your business.
Build an Online Presence: Create a professional website and engage on social media to attract and retain clients.
Utilize Job Platforms: Platforms like FlexJobs can connect you with potential clients and talent for your business.
Plan for Growth: Set long-term goals and adapt your business plan to scale your services and increase revenue over time.

How To Start A Bookkeeping Business

Becoming your own boss sounds epic, doesn’t it? And when you add the potential for a comfortable income, it’s like hitting the jackpot.

Flexibility and freedom– fancy setting your own hours? How about choosing exactly who you want to work with?

Your own bookkeeping business offers you a golden ticket to having a work-life that seamlessly meshes with your personal life. Say goodbye to the 9-to-5 life and hello to life on your terms.

Learn About Bookkeeping

Bookkeeping is all about tracking every financial transaction within a business. You record income, expenses, and financial movements to ensure that every penny is accounted for.

If you’re starting from square one, begin with understanding the foundational principles of bookkeeping.

You’ll need to learn the basics of bookkeeping – terms like assets, liabilities, equity, revenue, and expenses and the different types of financial statements.

You could learn everything you need from taking an online course and getting certified, prepping for your new business venture.

Getting a certification isn’t always required, but it can help your credibility and reassure clients that you are an expert.

Several organizations offer certifications that involve completing coursework and passing an examination, including Bookeeper Launch.

These 3 FREE lessons from Bookeeper Launch can help you dive deeper into bookkeeping and what your new business entails!

Their free lessons are tailored to give you a solid introduction, covering everything from the basics of recording financial transactions to preparing financial statements.

But once you’ve completed the course, that isn’t the end-all-be-all! Finance is always evolving, and clients will have different needs as time goes on.

To keep your bookkeeping business profitable, stay ready to shift gears based on what you learn, market shifts, and your own evolving interests.

Pick Your Niche

One of the key moves you’ll make is zeroing in on the right niche.

By aligning your business with a niche that you’re passionate about or have extensive experience in, you can tailor your services to meet the needs of bookkeeping clients in that sphere.

What gets you fired up? Have you got a history in retail, construction, or maybe the nonprofit world?

Are you all about the hustle and bustle of startups or the tried-and-true realm of established small businesses?

Digging into these questions can help spotlight a bookkeeping niche that not only benefits from your know-how but also keeps you engaged.

Start with a few clients in your chosen niche. This will give you a good sense of whether this niche is truly your cup of tea or if another would be better for your business.

Price Your Services

Before setting your prices, compare what other bookkeeping businesses charge for similar accounting and bookkeeping services.

This doesn’t mean you should just copy-paste their pricing structure, but it does give you a ballpark idea of what clients might expect.

Here are some things to think about:

Remember, your prices can be higher or lower depending on your expertise, the specific niche you serve, and the complexity of your services.
Think about offering a variety of pricing models to meet your clients’ different needs. Offering choices can make your services appealing to a broader range of clients.
You can start with a project-based rate for one-off tasks or an hourly rate for ongoing, variable support. This means you’ll take projects as they come if your project load isn’t full.
Others might like the monthly retainer model, in which they pay a set amount each month for a bundle of services.
Transparency is key when it comes to pricing. Be clear and upfront about your rates and what those rates include.
Your bookkeeping business will grow, and so should your pricing. As you gain more experience and expand your services, you can adjust your rates at a reasonable rate.

Create Your Business Plan

Think of your business plan as your roadmap; it’s going to guide you from where you are now to where you dream of being.

Whether you’re pitching to investors, applying for a loan, or just setting clear goals for yourself, a solid business plan is your best friend.

Here’s how to start:

Dive Into the Details – Your business plan should dive into how you are going to run your business- your niche market, your services, and how you plan to market those services.
Pick A Business Structure – Are you going solo and creating a sole proprietorship, LLC, etc.?
Market Analysis Is Key – Who needs your bookkeeping skills? What does the competition look like? A thorough market analysis lets you know the landscape for a new business.
Financial Projections – Let’s talk numbers- a language you should know. You need a solid financial background to create projections for income, expenses, and when you expect to break even.
Plan for the Future – Where do you want your new business to be in a year? Five years? Set some long-term goals and outline the steps you think you’ll need to take to get there.

Pick A Business Name

Your business name should be a mirror to the bookkeeping services you offer. It should give small business owners and other possible clients a clear hint of what you’re all about.

Your name will be your banner as your business grows.

Whether your name is straightforward and descriptive or a bit more abstract and creative, the key is relevance. Your name sets the stage for expectations and building a reputation.

You also want something that’s easy to recall and pronounce and stands out in the crowded marketplace for starting a bookkeeping business.

Choose a name that’s broad enough to encompass any future expansion of your services but specific enough to remain relevant to your core offerings.

Once you’ve found the perfect name, you will want to protect it. Trademarking your business name safeguards it from being used by others in your industry.

Register Your Business

Now that you’ve chosen a fantastic name, you should register your bookkeeping business.

Registering your business entity isn’t just about getting a certificate to hang on the wall. It’s about understanding and complying with legal and tax obligations.

You picked your business structure, right? Now’s the time to know so you can plan for taxes and more.

A sole proprietorship is the simplest form, but a limited liability company (LLC) may offer protection from personal liability. If you are sued, your home and life aren’t at risk.

Once you’ve decided on the structure that best suits your bookkeeping business, you should register for a business license with the appropriate state and possibly federal agencies.

This business infrastructure is one step to starting other pieces- from opening a business bank account to managing business finances and tax reporting, you’ll be ready to set things up.

Get Email Address Set Up

Setting up a professional email address using your business name is a simple yet impactful step in getting your bookkeeping business ready for success.

Use Your Business Name: Start with your business name for instant recognition and professionalism.
If your business is called “Savvy Mamas Bookkeeping,” an email address like info@savvymamasbookkeeping.com instantly tells people who they’re dealing with.
Keep It Simple: Your email address should be easy to remember and type. Avoid complicated spellings or unnecessary numbers.
If your business name is long, consider abbreviating it in a way that’s still recognizable. This is a good time to see if your acronym is NSFW or taken already!
Choose a Reliable Provider: Opt for a reputable email hosting service that offers features beneficial for small businesses, such as calendar integration and enhanced security.

Open A Bank Account/Payment Services

Opening a business bank account keeps your business finances separate from your personal finances, knowing your cash flow and business spending separately form your heart and home.

It not only helps you manage business expenses and income effectively, but it also keeps the picture of your personal and business finances crystal clear.

Choosing the right bank means finding one that aligns with your business needs and offers services that support small business owners like you.

When you go to open your account for your business operations, you’ll need to have your business documentation ready, including any registration papers and possibly an EIN if your setup requires it.

Savvy Tip: Check out the online banking features, low transaction fees, and specialized support for businesses.

Apply For Funding

Kicking off your bookkeeping company means being upfront about the estimated startup costs.

Thankfully, bookkeeping businesses are very inexpensive if you plan on freelancing and doing everything remotely.

However, if you want a brick-and-mortar shop with other bookkeepers and staff, you’re going to need to figure out financing ahead of time.

To cover these costs, you might find yourself considering the best ways to apply for funding. Some options are:

Small Business Loans: Many banks and financial institutions have loan packages designed to meet the needs of small businesses.
Grants: Depending on your location and the nature of your business, you might qualify for grants. These are particularly appealing because, unlike loans, grants do not need to be repaid.
Personal Savings: Many people use their savings to start their own business; any amount could cover some estimated startup costs.
Business Credit Card: For ongoing expenses or smaller purchases, a business credit card can be a convenient option. Plus, business credit can help with costs beyond starting up.

Get Bookkeeping Software & Business Programs

Choosing the right accounting software is all about finding a tool that manages your bookkeeping clients and fits well with your business’s workflow and budget.

A tailored small business accounting software should not only streamline your day-to-day tasks but also boost your overall productivity and accuracy.

Also, small business accounting software should not only meet your current needs but also anticipate your future needs and be capable of scaling as your client list expands.

QuickBooks Online stands out as a go-to accounting software for many in the industry, praised for its adaptability to a range of business sizes and needs.

Join Job Sites

Platforms like FlexJobs are bustling marketplaces that offer dual benefits to get your business and services out there.

You can use it to find potential clients who need bookkeeping services or even hire employees and freelancers to grow your business.

You can search for bookkeeping jobs to gain experience before you launch your business or use FlexJobs to find your first clients working solo.

Putting yourself out there on FlexJobs means you’re signing up in a space where businesses are already looking for someone with your skills. Check out my FlexJobs Review to learn more!

Create A Website & Social Media

Think of your website as your online office. It’s the first place potential clients are likely to encounter your business.

Your own website is your chance to highlight your services, share your expertise, and, most importantly, make a connection that could turn a casual visitor into a client.

That’s why it’s important to create a website on a host like Bluehost that doesn’t just look good but also effectively communicates what you’re all about.

Bluehost is a low-cost service that offers web hosting plus a free domain name to launch your website.

Besides setting up your website, setting up professional social media accounts is another key step.

Social media extends your reach and provides additional channels for potential clients to discover and engage with your business.

Market Your Business Online

Online marketing can make a big difference for your business. It’s all about using social media, content marketing, and online networking to showcase your talents.

With social media, you can keep things lively and engaging, showing folks the human side of your business.

Use content marketing to share valuable insights, whether through blog posts, emails, or videos, proving that you know your stuff.

You can network in online forums, social media groups, local business organizations, or at networking events in your area.

And don’t forget about reaching out to people you already know, friends, family, or past colleagues, who might be able to introduce you to others who need bookkeeping services.

FAQs

Is becoming a bookkeeper profitable?

Yes! Entry-level bookkeepers can earn an average salary of $44,083, while experienced ones in specialized fields can earn up to $55,893 per year.

Do I need a degree to become a bookkeeper?

You don’t necessarily need a degree to dive into bookkeeping. It’s one of those fields where practical skills and experience can speak volumes.

Plenty of bookkeepers start with just a high school diploma, backed by bookkeeping courses, to get the ball rolling.

To really stand out and boost your job prospects, going for certifications like the Certified Public Bookkeeper (CPB) or Certified Bookkeeper (CB) can make a big difference.

How can I learn about becoming a bookkeeper?

Starting with bookkeeping courses is a smart move to learn about becoming a bookkeeper.

These can range from online tutorials that you can work through at your own pace to classes online or even some hands-on workshops at your local community college.

A popular bookkeeping course is Bookkeeper Launch, which offers 3 FREE lessons from Bookkeeper Launch that walk you through everything from the basics and launching your business.

Can bookkeeping be a good side hustle?

Definitely! Bookkeeping can be a fantastic side hustle idea if you’re into numbers or have a finance background.

What’s cool about starting bookkeeping businesses on the side is the flexibility they offer. You can work from anywhere, choose your own hours, and really target your market.

Does virtual bookkeeping pay as well as an in-person business?

The earning potential for a virtual bookkeeping business is on par with in-person services, thanks to the rise of cloud-based accounting software and the increased demand for virtual services.

Additionally, virtual bookkeeping offers the flexibility to work from anywhere without needing dedicated office space, potentially expanding your client base beyond your local area.

How can I start a bookkeeping business from scratch?

Starting a bookkeeping business from scratch might seem difficult, but breaking it down into manageable steps can help you navigate the process more smoothly.

Here’s a simplified roadmap to get your bookkeeping business off the ground:

Learning about bookkeeping: Get a solid grasp of bookkeeping fundamentals. This can involve self-study, online courses, or formal education.
Picking a niche: Focus on a specific industry or type of client to better tailor your services and stand out in the market.
Pricing your services: Develop a pricing strategy that reflects your value and fits the market you’re targeting.
Creating a business plan: Map out the details of how you plan to run and grow your business. This includes your services, target market, marketing strategy, and financial projections.
Registering your business: Make it official by registering your business according to your local laws and regulations.
Setting up a professional email and bank account: Establish separate email and bank accounts for your business to keep professional and personal finances distinct.
Applying for funding: If needed, explore funding options like small business loans, grants, or using personal savings to cover startup costs.
Investing in bookkeeping software: Choose software that suits your business needs and also helps you streamline your operations.
Creating a website: Build an online presence with a professional website that showcases your services to attract potential clients.
Joining job sites: Use platforms like FlexJobs to find clients or hire additional help as your business grows.
Marketing your business online: Utilize online marketing strategies to promote your services through social media, content marketing, and other digital channels.

Final Thoughts

Starting a bookkeeping business can be a profitable venture. With the right skills, planning, and marketing efforts, you can build a successful business serving a variety of clients.

As you set forth on this entrepreneurial path, keep in mind that every number tells a story.

Your role as a bookkeeper isn’t just about balancing books; it’s about being a trusted partner in your clients’ success stories.

So, why not dive into the adventure of becoming a bookkeeper? It’s an opportunity to craft a career that’s not only profitable but also deeply rewarding.