Are you planning to start a home accounting business from home? Do you want to start a freelance accounting firm without prior experience? Here’s a complete in-depth guide on how you can start a home accounting firm from home without any work experience.
With the help of the internet and basic accounting knowledge, you can a full-fledged accounting business from home on a shoestring budget.
Every business requires some sort of accounting. While big businesses hire a full-time accountant, small and medium-sized businesses look for freelance home accounting services.
10 Steps to Start a Home-Based Accounting Business
Step 1. Starting With The Basics
You need to be a qualified accountant to start a remote accounting business. In case you don’t have a degree, either you can do a course or gain experience with a reputed accounting firm. Accounting and bookkeeping go hand in hand, and you don’t even need a degree to start offering bookkeeping services from home.
Also, make sure to work at some accounting firm before starting your home accounting firm.
Step 2. Buy an Accounting Software
You will have to learn to work on basic accounting software. This can either be Quickbooks or any accounting software that follows the accounting standards. Either you can learn it online, or via YouTube. There are several tutorials available online for free. Even Udemy and Coursera also have different online classes courses available on accounting software guides.
It is advised by most accounting experts to buy cloud-based accounting software for accounting jobs if you are working with clients. This type of software not only makes accounting processes easier but also helps in proper monitoring.
Step 3. Financing & Business Plan
You need a setup to start a home accounting business. Coming to finance, you need to have a budget for business registration, website, and some soft marketing (both offline and online). One client may sound easy to manage, but as you grow or have a number of clients, it’s important to manage.
Different businesses will report to you on a daily and weekly basis, so you need to have a proper business plan.
You need to create your own database and maintain records minutely.
Step 4. Register Your Home-Based Accounting Firm
You need to register your company to start offering services legally. As a home business, it’s better to have registered under sole proprietorship. You also need to buy a couple of accounting software to offer services virtually. Apply for an EIN to file for taxes.
Typically it costs $150 or less in the United States to register a business, though this may vary from country to country.
Step 5. Selecting Services
You need to select a few services you want to offer. You can work with one or two niche segments. It’s better to start with the prior professional experience you have. Selected services will help you to cater to a segmented client base.
Don’t go overboard with what you offer. You need to target only a handful of clients and make sure you serve them well.
Step 6. Creating An Interactive Website
Now you need to create a website. A good website will help you to gain more clients. The website should be interactive and inspire confidence in clients that their data is being handled with utmost security and confidentiality. As you will be working from home, therein you play an important role.
You may also offer a free 7 day trial with an integrated payment option where they can cancel anytime within the period if they don’t like it.
Step 7. Creating A Fee Structure
You need to analyze your competitors here. See what others are charging, how much local accountants charge, what’s the standard market rate, and more. As you are new, it’s better to charge below the competition. You should first focus on building a client base rather than emphasizing profits.
Research your virtual competitors to decide on a final fee.
Step 8. Ensuring Your Services
As you will have to deal with private and sensitive data, getting insurance is highly recommended. Most importantly it’s someone else’s personal information. This will help you to protect yourself against any unavoidable circumstance. It’s important to protect any kind of data breach coverage.
You should get liability coverage, professional liability coverage for errors and omissions, valuable papers, and records coverage.
Step 9. Marketing Your Remote Accounting Services
You will have to market and promote your services to bring in clients initially. The website will help you to score from searches, but you need to use social media to bring in traffic. Also, you can use professional social media platforms like LinkedIn to target businesses directly.
Print a few brochures and send them to local businesses and firms. Direct marketing is going to help you spread the word.
Social media marketing targets specific demographics, so you can use Facebook and Instagram to target small business owners and targeted customers.
Step 10. Staying Updated & Expansion
Embrace the learning curve. The methods may not change, but with time you need to update yourself with the changing technology. You will have to upgrade and expand in the coming years. As an accounting firm, you have the scope to sell different financial products.
You may also plan to add business tax filing, financial planning, and loan options for businesses. It’s up to you now how you wish to grow your home-based accounting business.
Frequently Asked Questions on Starting Accounting Business
What Qualifications Do You Need To Start Accounting Business from Home?
While bookkeepers don’t require any qualification, an accountant has to be officially qualified to handle a company’s accounts. You need any basic accounting degree to be a remote accountant.
Some added work experience in an accounting firm will serve as a cherry on the top.
How To Run A Home Accounting Business?
As a freelance home accountant, you can easily offer services over email and calls, without visiting your client. You need to be clear about how you want to communicate. You can either sign up on a daily or record intimation.
Also, make ask your client when you can contact them for any query.
How Profitable Is Home Accounting Business?
Quite profitable if you can maintain a steady base of clients. If you are dealing with a bunch of clients at a time, freelance remote accounting can be a highly profitable business. Maintaining a good relationship with different firms is important.
You also need to market yourself to small businesses and firms that offer efficient remote accounting services.
Home Accounting business comes with numerous opportunities. While there’s massive scope to grow, you just need to follow the path in the right manner!
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.