Do you want to start a bookkeeping business? But having no previous experience? Nothing to worry about. You can still be a successful bookkeeper and earn money. Read this stepwise guide to know the steps to start a profitable bookkeeping business without past experience.
The growing world of the internet and technology has evolved the ways how we did business. With more opportunities, people are now more independent and it’s far easier to make money from home. There are several people from around the globe who earn a full-time income working as a freelancer from home. Yes, without any work experience or degrees.
You need to know what to do, and there are plenty of opportunities available on the Internet. Well, we are not here to talk about how to make money from the internet, but on how to start a bookkeeping business from home.
While people are making comparatively more money than they did a decade back, thanks to the internet, growing opportunities, and financing options. But, while an array of people are making money, most of them don’t know how to manage it. Boom! There opens up a massive market of potential customers who need bookkeeping services.
Not all can afford a professional financial facility or planner. They need standard bookkeeping services which will basically help them manage their finances.
Below, we have jotted down all the important steps to becoming a professional bookkeeper to make it easy for you to understand.
Here are the 12 Steps to Start a Bookkeeping Business
1. Getting Started
Yes, you will need some experience before you start. Not like working at a bookkeeping agency or something, but maybe managing your own finances or someone you know. It’s better to take up a bookkeeping course and learn the basics. Even if you do not have any idea, start with the basics and in a few days, you will have the idea.
Unlike other professions, bookkeeping positions are entry-level. You won’t need any degree in most cases. But do your homework properly. Do an online course, or work at some local bookkeeping firm, as the skills are necessary to land a position. There are several such jobs available online, often overlooked. Being an entry-level job, you can apply for such jobs online without any prior work experience.
2. Create a Bookkeeping Business Plan
A well-detailed plan is important. You need to have a business plan elaborating on the various aspects of your home-based bookkeeping business. You can choose to offer services from your home or can look for any virtual bookkeeping job. Some of the major topics that must be addressed in your bookkeeping business plan document are as follows:
- Startup and recurring costs
- Target customers
- Pricing plan
- How do you plan to promote your bookkeeping services?
3. Name Your Bookkeeping Business
Like any other business, an attractive name for a bookkeeping business goes a long way to not only fetch new customers but also help to create a reputed brand in the long term. You can check our detailed guide on how to name a business to learn more.
4. Financing Your Business
Starting a bookkeeping business from home will involve some standard start-up costs. You will need no major investment. The primary costs involved in the business are registration costs, legal filing, and some marketing. You can easily start a bookkeeping business from home with your little savings.
5. Registering Your Business
Starting as an independent bookkeeping firm will need a legal business registration. You have to register your business to start operating legally. First, file an official name, and then choose a business structure.
For example, if you are from the United States, forming an LLC will help you to enjoy added legal advantages and tax benefits in some countries.
This may involve some sort of preliminary costs for registration and filing.
6. Permits & Licenses
As a bookkeeping firm, you will be dealing with sensitive data. While most countries have no license or permit specifically for bookkeeping agencies. This may vary from country to country, so it’s better to take legal help to clarify all the working terms and conditions. Do not start to take up any assignment before you complete the legal process.
7. Insurances You Will Need
There’s no specific insurance you will need for a bookkeeping business. But as it’s a service-related business, you may go for professional liability insurance. You will be dealing with someone else’s private and sensitive data being a bookkeeper. You must get insurance to protect yourself and your company.
With business liability coverage and professional liability, this will cover any errors or omissions, or data breaches.
8. Select a Proper Bookkeeping Software
It is without saying, bookkeeping software is the engine of a bookkeeping business. There is plenty of reputed accounting software that is available online. You need to select the one that fits your business best. If you are a beginner and not sure which one to buy, then go for Quickbooks Online accounting software. This bookkeeping software is easy to use and is widely popular.
9. Fixing A Fee
As a beginner, you should always start to price your service below your competition. Start by researching your local competitors and even the virtual bookkeeping services. Calculate your average price including your operational expenses.
Do remember, that you need to build your audience first. You can’t start by charging your initial customers high. First, build your market, and with a steady client base, you can definitely go for higher charges.
With experience and the value of your services, you will get clients who are ready to pay high.
10. Marketing Your Bookkeeping Business
Even if you plan to start a bookkeeping business from home, you will have to market yourself. Start with flyers and business cards. You can even choose to market your services on Facebook and Google so that you can reach out to the potential audience.
Having a website is a must for any business nowadays. It not only helps in reaching customers online but also enhances your brand. It is advised to register a relevant website domain name as soon as possible.
Also, you can send your brochures to local businesses, small businesses, and stores, that may need bookkeeping services.
11. Keep Learning
In the bookkeeping business, you will have to keep learning every day. Either from your mistakes or good work, you need to learn the art of managing a company’s finances. So, do continue your learning and consider taking up more verticals. As a bookkeeper, you will get to encounter several projects. You will deal with new clients every day.
Make sure you are offering the best service possible. The quality counts, not the number of customers.
12. Expanding Your Services
As you grow, you will have to diversify your services. With your bookkeeping services, you have to now expand your portfolio. For example, you can start to offer packages that may include payroll for your clients. With bookkeeping, you can help them file their business taxes. In addition, you can help new businesses with their financial planning and loan packages.
Adding services offers you an opportunity to expand your market and as well grow in the domain which will help you to attract new clients.
Learn What Does A Bookkeeper Do?
A bookkeeper is different than an accountant. Bookkeeping is an entry-level job, and generally, doesn’t require a degree or certification. You can start to bookkeep without any formal education or even experience.
A bookkeeper is primarily responsible for paying bills and collecting payments on invoices. You have to update financial records, create financial reports, post-financial records, and debit and credit to appropriate accounts.
You may also have to receive receipts, reimburse employees for work-related expenses, and maintain accounts receivable. On a whole, you will keep a check on all the money going in and money going out on a daily basis.
How Much Can You Earn as a Bookkeeper?
Entry-level bookkeepers without any prior work experience work at an average of $15.50 an hour. With a few months of work experience, you can make close to $40,000 a year (for bookkeepers working in any accounting department of a company or corporation).
As a freelance bookkeeper, like virtual bookkeepers, you can set your own rates, which make thrice as much by working for multiple clients.
Can I Start a Bookkeeping Business Without A Degree?
Entry-level bookkeepers don’t need a degree. Most of inexperienced bookkeepers primarily rely on a combination of existing skills and on-the-job training. With your work experience, you can turn into a successful bookkeeper.
How To Be A Bookkeeper Without Any Professional Experience?
Understand that it is a very basic job. A small organization is not run by a permanent bookkeeper. As a freelance bookkeeper, you will help them maintain their financial records, and this does not require any previous work experience.
If you are someone who has some experience, it’s an added advantage. If not, chill, we have you covered. Let’s start with how you can start a bookkeeping business with no experience from home.
With so many flourishing small businesses, you can easily start a successful bookkeeping business in such a market. Follow our complete guide to having a blazing start for your home bookkeeping business!
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 businesses.