Find a customer who can pay you and a customer who will refer you to other customers. Find a customer who will be a good partner and give you feedback on how you are doing your job. Then, you can have the support you need to start and grow a successful business as a bookkeeper. You also don’t have to share your business plan with anyone but yourself. However, it can be a good thing to reference if you ever want to remind yourself about your plans.

The simplest option is to start as a sole proprietorship – this means you’re a self-employed individual rather than a business. Although it’s easier to set up as a sole proprietor, it can also be riskier since you’ll be personally responsible for anything that goes wrong with the company. You may also look to become a limited liability company and potentially even office space at the time you hire on employees, so bear those regulations and costs in mind as well.

Advertising costs and office supplies

If you have a good and workable business plan in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business. However, one of the most important management functions is planning. Without planning, you don’t know which way your business is going and you cannot measure your progress. For example, in Texas, you register your business through the Department of State and you need a license to be an accountant, but not a bookkeeper.

Quickbooks online is a fantastic software for small businesses, as it is one of the most widely-used accounting tools available. It is scalable, has tons of integrations, and includes a responsive mobile app for working on the go. Not only do online systems give you the power to work from home, they cut back on a ton of costs. You skip the expense of commercial office space, and you knock out hours of data entry. That means you can deliver services at a fraction of what your competitors do.

How to cut down busy work to meet your small business goals

Look into our comprehensive guide to small-business marketing, which will cover how to reach people through SEO, search ads, social media and more. You should be a member of at least one professional bookkeeper association. The AIPB and the NACPB are the top two associations for bookkeepers.

That first client was all I needed to gain the confidence to get my next client, which came a few weeks later. Discuss your experience and what you can do to help your clients business. https://www.bookstime.com/calculating-retained-earnings Starting your own business full-time and implementing a new business structure isn’t easy, so don’t worry if your small business plan for starting an accounting firm isn’t perfect.

How Do I Know if a Bookkeeping Business is for Me?

Read our home office setup ideas to learn about the must-haves and productivity hacks. You’ll also want to open a business credit card account soon. A business card will likely be the first form of financing you’ll qualify for, and it can be a great financial tool to help how to start a bookkeeping business you with cash flow or necessary expenses early on in your business. It can also be a great way to track your business expenses easily—this will go a long way toward making tax time a breeze. Another tool that will make your life easier is practice management software.

Also, make sure your computer is password-protected, and that no one but you signs into it. Setting up your online bookkeeping business is easy if you follow all of the steps we’ve discussed above in this article. Many bookkeepers prefer to form limited liability companies (LLCs) to limit personal liabilities and enjoy the benefits of flexible management structures and taxation options. As a new business owner, you may also look for a mentor or consultant to guide you through the process of starting a bookkeeping business.