How to Launch Your Bookkeeping Business: A Complete Beginner’s Guide

Starting a Bookkeeping Business? Here’s Everything You Need to Know.

If you’re looking to break free from the traditional 9-to-5 grind and gain control over your career, starting a bookkeeping business could be the perfect move. The desire for independence and the flexibility to set your own schedule are powerful motivators for many new entrepreneurs. By launching a bookkeeping business, you can not only enjoy the freedom of being your own boss but also help small businesses thrive by managing their finances. It’s a rewarding path that allows you to turn your skills with numbers into a stable and scalable business, all while having control over your schedule.

Here are the advantages of starting a bookkeeping business:

• Low Startup Cost: Requires minimal investment, with only basic tools like a computer, internet, and bookkeeping software needed to get started.
• High Demand for Services: Every business needs accurate financial records, ensuring a steady demand for bookkeeping and consistent income potential.
• Flexible Work Schedule: You have the freedom to set your own hours, work part-time or full-time, and choose to work remotely, making it easier to balance work with your personal life.
• Scalability: Start as a solo bookkeeper and gradually expand by offering additional services like payroll or tax preparation or by hiring staff.
• Recurring Revenue Stream: Setting a flat rate for ongoing bookkeeping services offers clients consistency and provides you with a predictable monthly income.
• Opportunity to Make a Positive Impact: Help businesses succeed by ensuring accurate financial records and informed financial decisions, adding value to your clients.

Business Set-Up

Setting up your bookkeeping business is an essential first step to establishing a solid foundation for success. Here’s a breakdown of the key elements to consider:

1. Choose a Business Name: Select a name that reflects the services you offer and resonates with your target market. Make sure the name is unique and has not already been used by another business in your state.

2. Decide on Your Business Structure: Decide on the legal structure for your business. Options include a sole proprietorship, limited liability company (LLC), or corporation. Many bookkeepers opt for an LLC to protect personal assets and keep business liabilities separate.
3. Register Your Business: Once you’ve chosen your structure, you’ll need to register your business name with the appropriate state or local government agencies.
4. Obtain Required Licenses and Permits: Depending on your location, you may need specific licenses or permits to operate legally. Check with your local government for any bookkeeping-related business regulations in your area.
5. Get an EIN (Employer Identification Number): If you plan to hire employees or structure your business as an LLC or corporation, you’ll need to apply for an EIN from the IRS. This number will also be useful when opening a business bank account and filing taxes.
6. Open a Business Bank Account: Keeping your business finances separate from your personal finances is crucial. Open a dedicated business bank account and credit card to manage income and expenses efficiently.
7. Set Up Business Insurance: Protect your business by purchasing the necessary insurance, such as general liability, professional liability, and cyber security insurance. This can help safeguard your business from potential legal issues or claims made by clients. Some of the most popular insurance providers include BiBERK, The Hartford, Next Insurance, Hiscox, and Chubb.
8. Create a Home Office or Workspace: Set up a comfortable and organized space where you can work efficiently. Make sure it’s equipped with the necessary tools, such as a computer and high-speed internet.
9. Set Up a Secure Filing System: Implement a secure method for storing and managing client documents, using encrypted cloud storage for digital files to protect sensitive financial information.

Professional Development

If you’re looking to start or grow your bookkeeping business, getting the right education is essential. Whether you’re new to bookkeeping or want to advance your skills, there are numerous resources and courses available to help you gain the expertise needed to succeed in this field. Below are some recommended resources for starting and advancing your bookkeeping career.

1. QuickBooks Online ProAdvisor Certification

QuickBooks Online is one of the most widely used bookkeeping tools, and becoming a certified QuickBooks Online ProAdvisor can significantly boost your credibility. The QuickBooks ProAdvisor Program, offered by Intuit, is a free training and certification program that helps you master the software. It includes various modules covering topics such as setting up client accounts, managing finances, running reports, and reconciling accounts. Once certified, you’ll also gain access to marketing materials and the ProAdvisor directory, which helps potential clients find you.

• Bookkeeper Launch

Bookkeeper Launch is an online course and training program designed for individuals who want to start and grow their own bookkeeping business. Created by CPA Ben Robinson, this course covers both the technical bookkeeping skills and business-building strategies needed to succeed as a freelance bookkeeper.

Additional Bookkeeping Courses

There are several other platforms that offer excellent bookkeeping courses:

• Udemy: Udemy provides a wide range of bookkeeping courses, including beginner and advanced options.
• LinkedIn Learning: The Become a Bookkeeper learning path on LinkedIn Learning offers a comprehensive package of courses covering everything from bookkeeping fundamentals to accounting software like QuickBooks and Excel.
• Coursera: Coursera offers courses from top universities and institutions, such as Financial Accounting Fundamentals, which provides a strong accounting foundation useful for bookkeeping.
• National Association of Certified Public Bookkeepers (NACPB): NACPB offers courses that prepare you for the Certified Public Bookkeeper (CPB) certification, which can further boost your professional credibility.
• Accounting Coach: Created by Harold Averkamp, a CPA and MBA, AccountingCoach is a valuable resource for bookkeepers, offering comprehensive and easy-to-understand explanations of bookkeeping and accounting fundamentals.

YouTube Channels for Bookkeepers

In addition to formal courses, YouTube offers free educational content on bookkeeping.

• FinePoints Bookkeeping: Morgan Law covers a variety of bookkeeping topics, focusing on practical, actionable tips and motivational content for bookkeepers.
• 5-Minute Bookkeeping: Led by Veronica Wasek, focuses on simple, easy-to-understand bookkeeping tutorials. She also offers the Facebook group 5 Minute Bookkeeping Community, a space for members to ask questions, share experiences, and connect with others. 5MN Academy provides bookkeeping courses.
• Hector Garcia CPA: Hector Garcia is a QuickBooks expert, and his channel offers detailed tutorials on QuickBooks Online and Desktop, and general bookkeeping tips.
• Bookkeeping Expert: Zack Pasquariello shares insights on scaling his bookkeeping business and provides bookkeeping tips, marketing advice and tutorials.

Podcasts for Bookkeepers

Podcasts are another fantastic way to continue learning and stay inspired while running your bookkeeping business. Here are some of the most popular podcasts for bookkeepers:

• I Love Bookkeeping: Hosted by Ben Robinson, the creator of Bookkeeper Launch, this podcast discusses everything from the basics of bookkeeping to advanced strategies for scaling your business. It’s a great resource for bookkeepers looking to start or grow their practices.
• The Accounting Podcast: (formerly known as Cloud Accounting Podcast) is a popular show that covers the latest news, trends, and insights in the accounting and bookkeeping industry. Hosted by Blake Oliver and David Leary, both seasoned accounting professionals, the podcast provides listeners with updates on technology innovations, industry challenges, and regulatory changes that impact accountants, bookkeepers, and financial professionals.
• Workflow Queen: Hosted by Alyssa Lang, is designed to help bookkeepers, accountants, and entrepreneurs streamline their workflows and improve business efficiency.
• The Ambitious Bookkeeper: Hosted by Serena Shoup, is a must-listen for bookkeepers who aspire to grow their businesses, streamline workflows, and achieve their professional goals. Serena, a CPA and experienced bookkeeper, shares actionable insights on everything from setting up efficient processes to navigating client management and scaling a bookkeeping business.

Marketing and Networking

Building a strong brand and networking with the right people are crucial steps to growing your bookkeeping business. Here’s how to get started:

1. Develop Your Brand

Start by creating a logo and a professional website. A well-designed website is more than just a digital presence—it’s your brand. Your website is often the first impression potential clients will have of your business, so it’s important that it reflects your expertise and professionalism. A strong website can showcase your services, highlight client testimonials, and position you as a knowledgeable and reliable bookkeeping professional. An effective, polished website can help you attract more clients by conveying trust and professionalism.

Click here to get a professional website that attracts clients.

2. Build an Online Presence

Establish profiles on key social media platforms, such as LinkedIn, Facebook, and Instagram. These platforms allow you to connect with potential clients, share insights, and showcase your expertise in real-time. Regular posting and interaction help build credibility, keep your brand visible, and provide clients with easy ways to reach you.

3. Network with Other Professionals

Networking is essential for gaining referrals and expanding your reach. Join Facebook groups and LinkedIn communities where business owners and bookkeepers connect. By contributing helpful insights and engaging with other professionals, you can build valuable relationships that might lead to referrals or collaborations. Networking also keeps you informed about industry trends and challenges, making you a more informed and capable bookkeeper.

4. Content Marketing

Attract potential clients by sharing your knowledge through various forms of content marketing. Start a blog on your website to post bookkeeping tips, create e-books on specialized topics, host webinars, or launch a podcast to engage your audience directly. Each of these content types offers a chance to showcase your expertise and help clients understand the value of bookkeeping. By consistently providing valuable information, you position yourself as a trusted expert, drawing in clients who value informed and reliable bookkeeping services.

Operational Set-Up for Your Bookkeeping Business

Setting up efficient operations is essential for running a successful and scalable bookkeeping business. Here’s how to get your operations in place:

1. Choose Software

Selecting the right bookkeeping software is foundational to your workflow. Options like QuickBooks Online, Xero, and FreshBooks offer versatile tools for managing clients’ finances, tracking transactions, and generating reports. Your choice of software should align with your service offerings and client preferences, ensuring seamless and efficient financial management.

2. Develop Standard Operating Procedures (SOPs)

Establishing clear Standard Operating Procedures (SOPs) is key to delivering consistent and reliable services. Create detailed workflows for each step of your process, including client onboarding, service delivery, and regular client communication. SOPs will help you streamline operations, maintain quality, and ensure clients receive the same high standard of service every time.

3. Decide on Types of Services

Determine which services you’ll offer based on your skills and client needs. Common bookkeeping services include general bookkeeping, tax preparation, payroll, accounts payable/receivable (AP/AR), and financial reporting. Deciding on your service offerings upfront will help you set clear expectations and attract the right clients for your business.

4. Pricing

Choose a pricing model that reflects the value of your services and meets client needs. Options include hourly rates, fixed fees, or bundled packages. Bundled packages can simplify your offerings and provide clients with predictable costs, making it easier for them to choose the level of support that best suits their needs. Setting a clear pricing structure helps build transparency and trust with clients. Most bookkeeping businesses choose a fixed-rate pricing model over hourly rates. Fixed rates reflect the value of your services, provide clients with predictable costs, and simplify the decision-making process.

5. Identify Your Niche

Focusing on a specific niche can set you apart from competitors and make it easier to market your services. Consider industries where you have expertise or a strong interest, such as healthcare, real estate, e-commerce, or nonprofits. Serving a particular niche allows you to tailor your services to meet specific industry needs, positioning you as a specialist in that area.

Conclusion

Starting a bookkeeping business offers numerous benefits: low startup costs, flexibility to set your own hours, a steady demand for services, and the potential for recurring revenue. It’s a career path that allows you to work independently, scale as you grow, and make a meaningful impact by helping businesses manage their finances effectively.

Now, over to you—take the first steps toward building a successful bookkeeping business and enjoy the rewards of being your own boss.