Creating a business plan and learning how to get customers are a couple of examples of things you need to do to get up and running. If bookkeeping is just going to be a way to make a little extra cash, you may be able to eliminate skipping a few steps. We’ll point out those areas where appropriate.
Listed below are the eight steps to Begin a bookkeeping business:
1. Become a Certified Bookkeeper
One of the quickest ways to gain credibility with prospective clients is to show that you have the credentials to perform bookkeeping work. If you are a CPA, then you’ve already shown that you possess the knowledge and expertise to perform the responsibilities required of a bookkeeper, and you may proceed to the second measure.
However, if you have either formal instruction in the accounting/bookkeeping field or you have worked as a bookkeeper, subsequently you ought to get certified before you start a bookkeeping company.
There are just two top professional bookkeeper organizations that we recommend you certify with:
Once certified, you may get the right to put the letters CB (Certified Bookkeeper) supporting your title and display this on your resume and business cards, which will provide you an advantage with companies and prospective customers. This certification is ideal if you do not have any formal instruction in the bookkeeping and accounting discipline.
National Association of Certified Public Bookkeepers (NACPB) — To make certification through the NACPB, you have to pass an examination and submit proof that you have made an Associate’s or Bachelor’s degree in Accounting. Once you are certified, you may earn the credentials CPB (Accredited Professional Bookkeeper). It’s possible to put these letters behind your name on manuals, business cards, and other materials to display your accomplishments to employers and future customers.
Have a look at our How to Become a Certified Bookkeeper guide for all of the details on the requirements, price and certification exams.
In addition to becoming a certified bookkeeper, you should also consider getting certified in a couple of the leading accounting software providers, such as QuickBooks and FreshBooks. Check out our Bookkeeper Certification guide for information on how software certifications work.
2. Create a Business Strategy
While a business plan can definitely be used to acquire funding for your business, the value in going through the exercise of creating a business plan is all about the procedure.
During the company plan writing process, you are able to think about each aspect of your company, like what goods and services that you will sell, how you will market those services and products, and who your competition is. You will also produce a financial plan which should comprise a 12-month profit and loss projection, projected Cash Flow, and a projected Balance Sheet.
Here are the key items that should be contained in every business strategy:
Check out our thorough guide to establishing a business plan.
3. Incorporate Your Bookkeeping Business
Like starting any company, there are numerous administrative tasks that need to also be performed before you can start servicing clients. This step is a significant one since it builds your company as a legitimate one. Additionally, it helps to limit your personal liability; even if your company is ever sued, the sole assets which could be taken away are the company assets, not your personal assets like your home or your own personal bank account. Whether you are doing this part-time or fulltime, you don’t wish to bypass this step.
Here is a checklist of what you Want to do to establish your business at the local, state and national levels:
4. Select a Business Name
Naming your business can be both a fun and stressful exercise. Your name must convey your brand, because this is what a potential customer will see before they sit down with you personally for that initial consultation. You want to be certain your business name says just what you do, so that people do not have to guess. This isn’t the opportunity to become”cute” unless you can also achieve”clarity” on what it is you do in the same moment.