A 10-Step Checklist for Starting a Bookkeeping Business

Because, without clients, you don’t have a bookkeeping business…you have a hobby. Now that we’ve provided you with a roadmap to get your bookkeeping business started, I want to challenge you to pick a date for everything you need to know about the income statement when you would like to be ready to take that first client. Then, take this guide and create a weekly to-do list based on the steps we have shared with you. When starting out, keep your costs low by setting up a home office.

We recommend choosing courses that provide a certificate so that you can include it on your resume. If you are not a CPA and want to prepare tax returns, I recommend becoming an Enrolled Agent (EA) through the IRS. EAs must initially pass an examination and then complete annual continuing education to renew their certification every three years. While no formal education or classes are required, the examinations are difficult and will prove you have the knowledge to serve tax clients properly.

It offers several advantages, including lower overhead costs, flexibility with scheduling, and overall convenience. If you can’t make a home office work, look into the top virtual office companies or office sharing. This step is important because it establishes your business as legitimate and may help to limit your personal liability if your company is ever sued. Whether you’re doing this part-time or full-time, you don’t want to skip this step. These might include options from various providers alongside Intuit’s offerings. Topics like basic bookkeeping, financial accounting, cost accounting, and financial management are covered.

How To Start A Bookkeeping Business (2024 Guide)

You’ll receive a dedicated account manager and free access to the Premium plan when you become a Zoho Advisor. The Online certification is free, but the Desktop certification requires the purchase of QuickBooks Desktop Accountant software, which starts at $499.99 per year. There are two professional bookkeeper organizations that we recommend you certify with. There are also other opportunities to earn a bookkeeper specialization, such as through a university like UCLA. Things are different when it comes to self-employed/independent bookkeepers, considering the self-employment tax they are obliged to pay. In order to be a quality bookkeeper, you need to learn the tricks of the trade.

Step 4: Create Your Business Targets

First, decide whether your target market will be limited to your surrounding area or if you’ll offer online services. 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. After starting your online bookkeeping business, you should join freelancing platforms such as Upwork, Guru, or Toptal. Keep an eye out for job offers, and never stop learning through webinars, online panel discussions, and courses. Arm yourself with a cloud-based accounting platform and make sure to have credentials because clients are less likely to put their trust in home-based bookkeeping agencies.

Step 4: Set Up Business Operations for Your Bookkeeping Business

Now, just because we learn how to start a bookkeeping business using QuickBooks Online, your learning and development does not stop there. Before you dive into your discovery of the EXACT tools, technology and professional certification you need to start a bookkeeping business, there is a critical mindset you must adopt. It’s been used by more than 17,000 other women and men to start a bookkeeping business. See our guide on How Much Bookkeepers Charge for an up-to-date review of bookkeeping rates by state. My recommendation is that you use QuickBooks Online, which we rated as the overall best small business accounting software. You can get QuickBooks Online Accountant for free when you join the QuickBooks Online ProAdvisor program, which is also free.

Certified Bookkeeper

1. Above, in the “how much does it cost to start” section, we covered some of the specific pieces of technology and tools you need to start a bookkeeping business.
2. Make a list of all tasks and processes that you’ll have in your business and rank which ones are most important.
3. Your brand is more than just a name and a logo; it’s the essence of your business.
4. And if you’re working remotely with your new clients and/or your team, there is just no replacing a video call.
5. It’s much easier to become an expert in accounting for a particular business niche than for all businesses in general.

Create tiered service packages with increasing levels of complexity and features. We’ll take you through our step-by-step guide with tips and tricks on how to do bookkeeping. Get ready for a detailed lowdown on each and every move you need to make in order to kick things off successfully quickbooks self employed version and land your first client. Christine is a non-practicing attorney, freelance writer, and author. 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 website Scary Mommy.

Certification revenue definition and meaning courses will cover topics such as accounting principles, tax preparation, and software proficiency. They not only enhance your knowledge but also demonstrate your commitment to professionalism. To establish credibility and expertise, consider enrolling in bookkeeping certification courses. A robust business plan not only helps you clarify your vision but also serves as a valuable tool when seeking financing or attracting potential investors.

For instance, both the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB) offer certification programs. That’s why it’s crucial to stay on top of bookkeeping tasks for up-to-date snapshots of the health of your business at any given time. I am not a lawyer, so I can’t give you legal advice, but you want to decide which type of business will suit your needs best. The process is fairly simple to do yourself, though, and you will save quite a bit of by cash figuring it out on your own. You can find additional information about each of these entities on the IRS website. If you’re looking for more, check out my curated list of accounting podcasts.