How to Start a Bookkeeping Business from Home

how to start a bookkeeping business from home

If you suspect you’re getting close to expanding, start looking! Give yourself time to find the right person and get them up to speed. You should also consider health insurance as an added expense, especially if you previously had health insurance through your employer. Replacing employer-sponsored coverage can be one of the most expensive costs of going into business for yourself. If you plan on operating under a fictitious business name or several different names, you may need to file a “Doing Business As” (DBA) statement.

  • Pay.com offers all of the above, making it simple for your clients to pay for your services.
  • It allows you to focus on being the best in your niche and provide high-quality services efficiently and profitably.
  • I am not a lawyer, so I can’t give you legal advice, but you want to decide which type of business will suit your needs best.
  • Easy Doc Filing, LLC, and its employees, agents, and representatives, are not affiliated with the Internal Revenue Service (“IRS”) or any other governmental or regulatory body or agency.

You’ll also need to learn some basic Search Engine Optimization (SEO) practices or hire someone to help you. Even if you plan to start a bookkeeping business from home, you will have to market yourself. You can even choose to market your services on Facebook and Google so that you can reach out to the potential audience. Am so greatful to interact with your guidance on bookkeeping, i am student of CPA UGANDA. I Work with about 3companies as a part time accountand/bookkeeper however i also do some work like tax return filling with other companies.

What does a bookkeeper do?

Proper small business insurance is an important part of starting a bookkeeping business, but it’s also a pain for many. The process of finding and securing insurance at an affordable rate can seem overwhelming, but it doesn’t have to be. However, if you’re already a CPA or professional bookkeeper, then read on—you’re ready to start your bookkeeping business, and we’re ready to show you how. 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.

Below, we’ve done the legwork for you to provide a free guide to starting a home-based bookkeeping business today. When you start a bookkeeping business, there are a few different approaches you can take. You can approach your business as a chance to be self-employed and create work for yourself, or you can aim to hire employees and eventually create a self-sufficient business.

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Through my own experience in establishing my business, as well as extensive research on setting up a bookkeeping business, I’ve broken down the process into 9 simple steps. Nearly all LLCs and corporations will need to request a federal employer identification number (EIN) from the IRS. If you file corporate income taxes, have employees, or file certain franchise taxes, you must have an EIN. An EIN is also a common requirement for opening a business bank account.

But when you get bookkeeping clients, you may also need a phone service over and above this, I would recommend setting up a VoIP phone service, which is basically an internet phone service. 4) If you provide tax preparation services, they’re a great way to avoid a crazy tax season. With a productized service offering, you can smooth out your workload throughout the year to eliminate this from happening. The exact process and costs for this vary from state to state and depend on the type of business structure you choose. If you decide to go into business as a sole proprietor, you can simply hang out your shingle and start working.

Health Insurance

Once you get into the network of piano teachers and learn that business really well, and, hopefully, your clients will suggest you to their friends for services. The main thing you need starting out is a computer, otherwise it’s just basic office supplies! As a virtual bookkeeper, your computer is 95 percent of what you will use, but other than that you may want a printer, paper, pens, and things like that. This is one reason the overhead is so low when starting bookkeeping.

how to start a bookkeeping business from home

Let’s take a look at the main categories of technology that you’ll need to set up at your bookkeeping business or accounting firm. You have a business license, a business name, business insurance, a strategic plan, and your core offerings in place. In addition to bookkeeping software, consider file-sharing, client management, https://www.bookstime.com/articles/accounting-errors and document signing software. You want to make the entire process seamless for your clients. You can get started with Google Drive for file-sharing and organization for free with any Gmail account. As you grow your client roster, you’ll want to make sure you’re tracking them effectively and completely.

Know Your Major Competitors in the Industry

Local colleges may offer bookkeeping courses, and there are plenty of options online. LinkedIn offers online courses and access to expert-led tutorials for $19.99/month-following a 14-day free trial. Every company needs to manage their finances, but you may want to narrow down your clientele to a specific audience. For example, do you want to work with big or small businesses?

Can you make money doing bookkeeping from home?

If you're looking for a great way to make money from home, a bookkeeping side hustle could be a great option. There are so many benefits of becoming a bookkeeper from home: There is no prior experience or degree required. You can make $60-100 per hour.

The basis for financial reporting comes out of generally accepted accounting practices or GAAP. Bookkeepers should familiarize themselves with the Financial Accounting Standards Board’s Accounting Standards Codification, which includes guidelines for recording specific transactions. Digital software can help you monitor the workings of a business in real time. You can then report analysis from those numbers and enable your clients to make better informed decisions based on their finances.

If you need to do some marketing, you might say “I will think about it along the way”. Whether you’ve been working as an accountant or bookkeeper for a private company, or just think that bookkeeping might be the career for you, bookkeeping is a business that you can run from your home. The challenge, of course, is finding enough clients to earn the type of salary that you need.

As you establish a client base and get more comfortable with your bookkeeping business, continue your learning and consider offering more services. And any time you add a new service is a great opportunity at which to re-evaluate your pricing structure how to start a bookkeeping business and sell your clients on those new packages! Developing a more robust set of offerings is also a solid way to attract new clients. Although bookkeepers are often referred to as accountants, there are distinct differences between the two positions.

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