5 things to consider when starting a bookkeeping business
According to the list of the best careers now available in the modern-day business world, bookkeeping is ranked in the top 25. This is because bookkeeping requires a significant investment of time as well as careful attention to detail, so many organizations of all sizes now opt to outsource the activities involved in bookkeeping.
Even though the majority of bookkeepers are employed by other businesses, there is the opportunity to work independently in this field. Are you captivated by the prospect of being the sole proprietor of your own company? You can begin the process of starting a bookkeeping business if you have the appropriate training, abilities, and business plan.
However, running a successful bookkeeping business requires a solid game plan. Make sure you have a good understanding of the situation before you get in headfirst. So, whether you want to start a traditional bookkeeping business or even become a digital bookkeeping pioneer like Source Online, here are five things that you need to keep in mind and follow throughout your journey.
Draft a comprehensive bookkeeping business plan
Even though the term ‘business plan’ or ‘business strategy’ may sound intimidating, developing one doesn’t have to be challenging or overly formal. Simply said, a bookkeeping business plan is a chance for you to organize your thoughts regarding your future business and put them down on paper. This way, you will be able to have a detailed plan about your future venture on hand that you will be able to use to make informed decisions about your company.
In addition, if you ever want to seek a bank loan for your company, you will almost certainly be required to have a formal business plan. The most important thing for you to do right now is to mentally run through all of the steps that you need to perform to be successful and write them down in a document that will serve as a guide once you decide to pursue your dream of setting up a bookkeeping company.
Register your business
The particular actions required, as well as the fees that are linked with them, differ from one state to the next and are determined by the form of business structure you choose. Hanging up your shingle and getting to work can be your first step if you decide to run your business as a solo owner. On the other hand, registering your business as a limited liability company (LLC) affords you increased protection from legal responsibility.
If you decide to form a limited liability company (LLC), it is highly recommended that you seek the advice of an attorney and enlist their aid in preparing the documentation required for doing so. In addition, buying errors and omissions insurance is a good investment in general, but it is necessary if you choose to run your business as a sole proprietor, so make sure you get an insurance policy if you start out as a sole proprietor.
Open a company bank account
Next, you should register a separate account for your new company regardless of the kind of business structure you decide on. The main justification is to show the IRS that your business is legitimate and not just a hobby. Additionally, having a business bank account makes it simpler to maintain structured financial records, makes it simpler to file tax returns and aids in asset protection. Additionally, it just seems more professional.
Having a company credit card is not required, but it can be quite beneficial. Maintaining a separate account for work purposes will help you keep your personal and corporate finances apart. Make it a practice to reimburse yourself if you find yourself using your credit card for company purchases. Even while it may seem absurd when you’re operating as a one-person company, it will be helpful if you ever need to demonstrate to the IRS that you take your business seriously. To maintain organization, don’t forget to connect everything to your accounting program.
Don’t forget to market yourself
Even if you are the world’s best bookkeeper, it won’t benefit you if no one knows who you are or where to locate you. Just as vital as starting a business is marketing your services, but the specifics of your marketing strategy will rely on several variables, including your budget, location, and niche.
A combination of networking and advertising will make up the majority of your marketing efforts. Networking might take the form of physically attending conferences and participating in relevant Meetups, or it can involve interacting with individuals online.
Avoid attempting everything at once to save money and yourself from burnout. To determine what is and is not functioning, closely monitor your results from each marketing effort and stick to what works best.
Look up industry events
You should also consider going to events in your business so that you may network with other people and sell your services. You can locate clients this way while also keeping up with the latest industry news.
You can attract people’s attention to your services by setting up a booth at one of these events. You can also build relationships with other people in your field, which can lead to the introduction of new opportunities through referrals.
You might also consider giving lectures at these events as an additional means of marketing your services to attendees. People will be more likely to remember you and come back to you if the content you offer during these presentations is of high quality.
Final thoughts
Don’t rest on your laurels though. While the aforementioned methods will help your bookkeeping business get off to a strong start, make sure you also follow industry developments and keep developing your abilities. Once you’ve made a name for yourself as a bookkeeper, think about enrolling in accounting classes and/or earning a certificate to expand your service offerings and charge more.
