How to Start Your Own Bookkeeping Business: Essential Tips


bookkeeping startup

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future. When you decide to go into business for yourself, a big part of your decision may be the thought of making your own hours and working less. The only way to make that transition a reality is by time management.

What are the differences between accountants and bookkeepers?

She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the Navigating Financial Growth: Leveraging Bookkeeping and Accounting Services for Startups website Scary Mommy. From University of Wisconsin–Madison, and she lives in the Chicago area with her family. Having a clean, modern website will empower you to showcase your services.

You will be able to take time off with confidence that all will be taken care of.

bookkeeping startup

For example, QuickBooks costs between $20 and $200 depending on the package you choose – and since you’re a professional, it makes sense to choose the Advanced option. By following the tips and best practices outlined in this guide, you’ll be more equipped to set a strong financial foundation for future growth, profitability, and ultimate success. Bookkeeping beginners need quick wins to get started quickly and efficiently. The tips below are industry standards that will help any small business excel at bookkeeping. You can also conduct surveys to learn more about your potential clients and their problems.

How to Start a Bookkeeping Business: FAQs

bookkeeping startup

Here are the differences between bookkeepers and accountants to keep in mind as you start your number-crunching journey. After completing your business plan, you’ll have a good idea of what your estimated startup costs will be. In general, the startup costs for a bookkeeping business can be low if you work out of a home office as opposed to leasing office space, which we’ll discuss in the next section. The experts say that you should always have at least six months’ worth of expenses in the bank.

  • Manual accounting requires inputting all financial transactions into a spreadsheet or tracking method.
  • A platform like FreshBooks, specifically designed for small business owners, can be transformational.
  • This will give you the spending power to set up your company and put all of your business expenses in one place.
  • As I mentioned, the DEAR systems platform can touch several aspects of your company’s operations — making for a steeper price tag than most other solutions on this list.
  • Another popular option is Xero, but there are plenty of bookkeeping apps to choose from.
  • To hire a bookkeeper, you can start by contacting accounting firms that offer startup bookkeeping services.

Certifications for Your Bookkeeping Business

The software lets you automate workflows and work collectively across departments. It includes first rate tools for inventory management, banking, time-tracking, and financial reporting — all backed by an industry-leading UX. Most accounting software offers a range of features that are suited for almost any type of small business. Using the data you gain from keeping a ledger, your next step will be to generate and prepare financial reports for analysis. The major reports to include are the profit and loss, the balance sheet, and a cash flow analysis. Additionally, the aged accounts receivables and aged accounts payables reports are helpful in knowing which customers have not paid and which vendors are yet to be paid.

  • You can easily spend 15 minutes on setup during onboarding and not have to worry about payroll ops.
  • Whether it makes sense to obtain just one bookkeeping certification or additional tax and accounting software certificates can depend on your niche and the types of services you plan to offer.
  • If you have mistakes to fix or transactions to track down, don’t stress.
  • Developing a bookkeeping routine prevents you from accidentally forgetting important steps in the accounting process.
  • Once your business gets under way, you can make a monthly budget to track your cash inflows and outflows.

It comes with an easy-to-read dashboard that virtually any member of your organization can make sense of. It also offers benefits like excellent customer support and the ability to accept payments online. One of Xero’s most impressive characteristics is its mobile experience, making it an excellent option for businesspeople who work on the go. The software allows you to send custom invoices, track inventory, and create purchase orders to attach to bills — all from your phone or tablet. Once these items are completed, you’re ready to start managing financial transactions for your small business. Of course, this is a challenging route that not many people will be able to take.

Set Aside an Emergency Fund for Major Expenses

Understanding your target market is important for a successful bookkeeping firm. So before entering into this field, you need to conduct thorough market research. Accounting software eliminates a lot of the busy work bookkeepers were required to complete…even just 5 years ago… and free you up to deliver premium service at premium rates.

bookkeeping startup

What does a bookkeeper do?