Bookkeeping is a lucrative business that offers high earning potential and low startup costs. It can be done as a side hustle or as a full-time job.
There are many advantages to starting your own bookkeeping business. For example, most bookkeepers work from home and incur minimal overhead costs. With the right planning, you can make a steady monthly income from clients by tracking their expenses and incomes.
However, before you start a bookkeeping company, there are many things to consider. For instance, you will need to register your company, get the necessary certificates, hire the right people, and finally, calculate the initial expenses.
Follow these steps to successfully start your bookkeeping business.
Create a bookkeeping business plan
All business owners should create a detailed business plan if they want their start-up to succeed. To launch a successful bookkeeping company, you must first think about writing a winning business plan. This will define your company’s goals and how you will achieve them.
If you aren’t familiar with crafting a business plan, you can always use a template. A bookkeeping business plan template will help you cover all aspects required for a successful business operation and set you up for success.
A good business plan needs to outline your services and the competitive advantages you will have in your target market. This written document will help you improve your strategy and raise funding. Keep in mind that a good business plan is very important, especially if you’re a new entrepreneur that’s inexperienced in starting a business.
Choose a business name
Your business name is what new clients will see first. It will also reflect your expertise, personality, and most importantly, knowledge. Before you decide on a name, make sure it’s not already taken by another business. Once you have narrowed down your options, you can check the state database to verify whether the name is available or not.
To run a legal business in bookkeeping, you must become a certified professional by obtaining the certificate issued by the American Institute of Professional Bookkeepers. Additional training will help you boost your motivation and expertise.
Register your bookkeeping business
Once you have completed your business plan, come up with a name, and obtained proper certificates, the next step is to register your company. The cost of legally registering your bookkeeping company can vary depending on where you live and what type of structure you choose.
It is a good idea to hire a lawyer to help you decide the right business structure for you and file all necessary paperwork. Note that it would be best to select a business entity that offers liability protection if something goes wrong.
It’s also a good idea to get insurance for your bookkeeping business. If you don’t have it, you could face expensive professional and general liability in case of a mistake in your clients’ books. This can be devastating for your finances and business in general.
Set up your prices
The most difficult task for small business owners is to decide what price to charge their clients. If you charge too little, you won’t be properly compensated for your labor and years of industry experience. On the other hand, if your fees are too steep, your company will struggle to compete against other bookkeeping companies.
For that reason, take a look at the competitors and see how much they are charging. Bookkeepers with similar skillsets and experience can serve as a benchmark on how much you should be charging.
It doesn’t matter how good you are at bookkeeping if nobody knows about you or where they can find you. This is why marketing is important from the very beginning.
During the first months of business operation, it’s important that you market extensively. However, you should consider your budget as you might not have the required funds to create a solid marketing strategy in the beginning. For that reason, take to social media and market your way to success organically and cost-effectively.
When the funds start to roll into your bank account, consider paid ads and billboards.
Keep your skills current and expand your business organically. You must remember that investing in your business means investing in yourself. Be prepared to work hard and put in the effort to make it a success. Make sure you follow the right steps so you can promote and grow your business successfully.