How to Start a Bookkeeping Business in 9 Simple Steps 2023

Also, don’t forget to factor in expenses like admin time, software, and taxes when setting your rates. Getting started can feel tough when you don’t have a client base yet. Many new bookkeepers start by reaching out to their personal network, joining local CARES Act small business groups, or listing services on sites like Upwork or LinkedIn. Expect a learning curve in marketing yourself and building trust. As your bookkeeping business grows, revisit your business goals every quarter to measure your progress. Stay updated with the current trends in the software and industry.

Step 9: Develop your pricing strategy

There could be other start up costs such as telephone and electricity connections (unless these are already part of the rental or you are working from home). Bookkeeping can be incredibly lucrative – there’s always a demand since every business needs someone to track its money. Still, there are benefits and drawbacks to consider before launching your business. Rates vary, but QuickBooks bookkeepers typically charge between $20 and $50 per hour.

Step 2: Establish your legal structure and licensing

According to the Bureau of Labor Statistics, the average bookkeeper can expect to earn $18.87 an hour – this won’t quite make you rich, but it’s not bad for a basic starting salary. If you’re successful at building your business and attracting high-quality clients, you could easily charge more. Yet it’s not just about how good you are at your job and how professional you are. As your client base grows, consider hiring additional bookkeepers or administrative help to manage the workload. This expansion can help you take on more clients and offer additional services.

• Enhance your professional image by setting up a business email address and phone number to communicate with clients.
• Building a professional website, leveraging social media, and attending industry networking events can be effective ways to attract clients.
• Now that you have a clear checklist for how to start a bookkeeping business, it’s time to delve into the specifics of setting it up.
• For example, you can charge a monthly rate for ongoing bookkeeping help and then offer a 10% discount for bookkeeping clients who pay a year in advance.
• For bookkeeping businesses that need to accept payments on-site or on-the-go, JIM offers a streamlined solution.
• A business plan is more than just a formality, it’s a roadmap for how your bookkeeping business will operate, grow, and succeed.

Research your funding options

You’ll also need certain soft skills like accuracy, reliability, and organization. Since bookkeeping involves working with sensitive information and keeping it confidential, you’ll need to project yourself as a professional who they can trust. There are a few different ways you could structure a bookkeeping business.

Step 7: Find the right bookkeeping software

Even spending just an hour a week learning can help you stay ahead of changes that might impact your clients. A professional website doesn’t have to be fancy—but it does need to be clear, up-to-date, and easy to navigate. It’s your 24/7 storefront, and it helps Opening Entry potential clients find you, learn about you, and reach out when they’re ready to work with you. As a bookkeeper, you handle sensitive financial information, and even small mistakes can lead to big consequences. While insurance isn’t always legally required, having the right coverage can protect you from costly legal issues, accidents, or cyber threats. It also adds credibility and professionalism to your business in the eyes of clients.

• Bookkeeping involves the systematic recording, storing, and retrieving of financial transactions for a company.
• Once you’ve got your services, pricing, and software in place, it’s time to set up the behind-the-scenes systems that keep your bookkeeping business running smoothly.
• It takes care of the daily number crunching and data entry, but that’s ALL they do.
• You can also accept credit cards for convenience, but you must account for processing fees.
• To increase revenue, you might offer complementary services such as tax preparation, payroll processing, or financial advising.

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Many offer free trials, allowing you to explore their features and usability. This firsthand experience is invaluable in making the right choice for your business. Selecting the best bookkeeping software is a key step for your business. The right software can streamline your operations, making you more efficient and effective. The information provided on this website (the “Site”) is for general informational purposes only and should not be construed as legal advice. While we strive to ensure the accuracy, validity, and reliability of the information on the Site, we cannot guarantee its completeness or availability.

Step Four: Create a Business Website

And if you hire employees, you’ll also need to invest in worker’s compensation insurance. Starting your own business may seem overwhelming, but the process is surprisingly manageable. Here’s how to start a bookkeeping business in just nine simple steps.