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. Once you’ve picked a business name, the next step is to register your business and make things official. The exact process will vary depending on how you plan on structuring your business and where you’re planning to do business. You’ll want to look up the exact rules for how to register your business with your secretary of state’s office. Before you choose your business name, make sure someone else isn’t already using it, lest clients get confused.

You’ll also need to learn some basic Search Engine Optimization (SEO) practices or hire someone to help you. Unlike other finance professionals, such as accountants and financial planners, bookkeepers don’t need any licenses or certifications. Some bookkeepers may decide to earn optional credentials, such as the certified public bookkeeper (CPB) designation. Marketing is one of the most difficult things for accountants and bookkeepers to master.

Your one stop shop for starting a business

You can get certified in each of these programs, which can not only help you become a power user but can also help you market yourself as an expert. A user-friendly option for small business accounting, FreshBooks makes it easy to track income and expenses and includes a self-employed version just for you. Before you can start recording any financial transactions, you’ll need to create a chart of accounts for your company. The chart of accounts is a list of accounts in your general ledger that will be used to record financial transactions.

• The reason why you need to comply with money laundering regulations is that as a bookkeeper, you need to satisfy a legal requirement to spot and reduce the risk of your clients laundering money.
• Anticipating (and planning for) these concerns helps make sure you’re working as efficiently as possible.
• Proper small business insurance is an important part of starting a bookkeeping business, but it’s also a pain for many.
• If you’re looking for more, check out my curated list of accounting podcasts.
• Outside of those circumstances, a fixed fee is recommended and preferred.

You’ll want to register your business with the appropriate local authorities in order to make things official.

Step 8: Market Your Bookkeeping Business

These resources provide additional opportunities for in-depth learning. Next, set up a separate meeting to present the 3 service options you’ve created to your client to be rather than just blindly sending a proposal. After potential clients contact you, you’ll schedule a meeting for your initial consultation, aka discovery call. Starting a bookkeeping business is one thing, but, building a client base is an entirely different challenge. This could be the easiest marketing strategy but also can be the most effective in getting your first few clients.

The first method of accounting is the cash-based accounting method. This method records financial transactions when money is exchanged. This means that you don’t record an invoice until it is actually paid. Similarly, you don’t notate outstanding bills until you actually pay them. This method offers a true snapshot of your assets and debts at any given time.

Business development

Gain 1-3 years of on-the-job work experience, earn a couple of certifications, and then venture out to start your own business. You can deduct repairs and maintenance to the area used for business and a portion of utilities, real estate taxes, and insurance on your home. Getting how to start a bookkeeping business a unique phone number for your business is incredibly easy and often free. You can get a free Google Voice number that includes a local area code, voicemail, texts, and unlimited calling. You can explore other options in our guide to the top-recommended business phone systems.

• If you use Xero, check out the Xero Partners Group on Facebook or the Xero Discussions group on LinkedIn.
• It’s easy to get overwhelmed with choosing the right apps for your bookkeeping business.
• Another aspect of marketing is dialing in your brand, which goes hand in hand with the type of clients you want to bring in.
• Please consult the applicable policy for the exact terms and conditions.
• This is a trend that’s changing how bookkeepers and accountants do business, so it’s important that you understand how it works since it’ll have a direct impact on your business.

For business owners who don’t mind doing the data entry, accounting software helps to simplify the process. You no longer need to worry about entering the double-entry data into two accounts. Even if your aspiring bookkeeping business currently has no assets and no employees, it will still be a good idea to create a separate business bank account. Taking the time to separate your personal and business expenses will help give you an additional layer of financial protection and also make it much easier to organize.

Google My Business

Bookkeeping is the process of tracking income and expenses in your business. It lets you know how you’re doing with cash flow and how your business is doing overall. Staying on top of your bookkeeping is important so that you don’t have unexpected realizations about account balances and expenses. We’ve put together this guide to help you understand the basics of small business bookkeeping. The first step you’ll need is a business bank account, which allows you to keep your personal and business expenses separate.

While it’s tempting to offer your services online to a worldwide audience, it adds a lot of complexity to your operations. You should plan on paying for help with online advertising, web design, search engine optimization (SEO), and website content management. Also, some Certified Public Accountants (CPAs) don’t provide bookkeeping services.