Do you have strong math, accounting, and computers skills? Then why not start a bookkeeping business. According to the American Institute of Certified Public Accountants, over 60 percent of all small businesses use contract or part-time help for their bookkeeping needs.
That translates into plenty of work available just waiting to be done. And with online tools making it easy to set up an independent professional practice, an increasing number of people are turning this opportunity into a successful home-based business. You can too if you know what you’re doing.
One of the biggest questions business owners face today is how to start a bookkeeping business. When you are starting any kind of business, it can be overwhelming with having to think about your product or service, find customers and marketing, inventory control… so many things!
But one thing that is important to have in place before you even begin your business is financial records. Especially for small businesses. This may seem obvious but I’ve seen again and again someone that has just started their own business who doesn’t know where they stand financially.
They don’t have accurate income statements, balance sheets, cash flow statements. And if they’re not actively managing their finances then there’s no way they’ll ever make good decisions as to any kind of leader.
If you are in the same boat, don’t despair. Most people run into this problem at some point or another; it’s very common and manageable if you know what to do.
A bookkeeper is the one who keeps records of all financial transactions for an organization. The job can be done in-house or by outside individuals, freelancers or business owners, who are hired to do the work.
This service could be used by small businesses, corporations and individual professionals. However, to start a bookkeeping business, you will need to understand that it takes time and effort in building up your business before it becomes profitable
If you’ve ever dived into a pile of receipts and tried to make sense out of them, it’s clear that bookkeeping services can be valuable. The best way to start your own business is by getting qualified as a bookkeeper first. Even if you’re already employed as one, courses and qualifications will help you advance and grow in the industry.
Get certified by an accredited organization such as CPA or IAPB (International Association of Bookkeepers). There are many options for certification depending on where you live, so search around to find the program that works for you.
This will give you credentials and connections to help you get started professionally. The course takes about 5 months full- to complete, so enrolling in school or online classes are a great way to get started.
Get the license you need to work in your area. If you’re in Canada, register with your provincial chamber of commerce through the Canadian Bookkeeping Centre (CBSC).
This will give you access to networking with other accountants and clients, as well. If you’re in the UK, become a registered bookkeeper with the Association of Accounting Technicians (AAT) which gives members access to study manuals and other resources that can help them advance their careers.
In Australia, join the Australian Society of Certified Practising Accountants for information about seminars and courses that can earn you Professional Indemnity Insurance so people know they are hiring a professional service provider. The US equivalent is the American Institute of Professional Bookkeepers.
Bookkeeping can be a great business to start on your own or with other people because it’s easy to make connections and gain clients through networking. It’s up to you whether you want to invest in starting your firm or handle accounts for businesses as an employed bookkeeper first, then branch out into freelancing side-by-side once you’ve established yourself. Happy accounting!
If you want to know how to have a bookkeeping business name, click it.