How to Start a Bookkeeping Business Step-by-Step Guide

It’s also possible to link your cloud accounting software to other financial programs that your business uses, like your online banking or mobile payment apps. With all your software linked through the cloud, payments that you make and receive can be automatically recorded to a digital ledger. The software program can then make the calculations for you, giving you an accurate picture of your total income and spending that’s updated every time your money moves. As a responsible small business owner or bookkeeper, you should be aware of your company’s revenue streams. With accurate bookkeeping, you can tell how much your business is making in terms of income and track your spending to ensure that you have enough cash on hand to cover your business expenses.

You need an engagement letter with your clients that clearly states any request outside the scope of your work comes at an additional cost. If you’d prefer not to https://www.bookstime.com/ bill hourly, you can set a fixed fee or retainer bill for each client. This method rewards you for working efficiently as long as you’re getting the work done.

Use Accounting Software for Invoicing and Payroll

Send an email or text to any past employer or clients and ask them to leave a genuine review about your freelance bookkeeping work. Moreover, an optimized mobile site helps you get found on Google, plus, triggers 73% of mobile devices trigger additional action, according to research. As a contractor, you’ll https://www.bookstime.com/online-bookkeeping be responsible for invoicing for your time and receiving payment according to your policy. For example, you can get a customized website for your business with CPA Site Solutions. They work exclusively with CPAs and bookkeepers, and can create a site designed with your logo, images, and content.

This helps you keep clients files organized, protected, and backed up on a cloud you can access from anywhere. After you decide your business name and its structure, it’s time to register with your state. If you’re just starting out and limited on funds, you might consider a sole proprietorship. However, PROCEED WITH CAUTION and consult with an attorney before you begin your business. Preparing a business plan is essential for everyone should do before they start a business. It’s these types of questions your clients will have in and around data security.

Other Considerations for Doing Your Own Accounting

New small businesses usually use this process because of its simplicity, cost-effectiveness, and lack of formal training. Accountants rely on bookkeeping records to analyze and advise on the financial activity, health, and growth potential of a business. Small businesses also manage their own accounts receivable to make sure they get paid on time for goods and services that have already been bought or rendered. The process involves sending estimates and invoices and keeping track of due dates. Some accounting software comes with invoicing features, like automated payment reminders, or you may opt for separate invoicing software.

Consultations are a relatively easy way to build rapport with potential customers, and they can often turn into paying customers. You can easily post the offer on your website and social media accounts, something you can handle on your own without hiring marketing help. Meeting clients with reliable, cloud-based software helps make the bookkeeping work easier. A business email address that uses your company domain (yourbusiness.com), and your name gives your virtual bookkeeping company a polished look.

You get to establish your own management style.

Bookkeepers use a chart of accounts to see all of the accounts in a company’s general ledger. In many instances, an accountant prepares the initial chart, and the bookkeeper references it while recording transactions. If your business chooses to keep this task in-house, it’s best to stick to a predictable expense tracking schedule. Developing a bookkeeping routine prevents you from accidentally forgetting important steps in the accounting process. Over 6,000 accountants and bookkeepers use Jetpack Workflow to standardize client work, automate deadlines, and track firm progress.

• Your business’s books are balanced when all of the debits equal (or cancel out) all of the credits.
• Yes… this software would require you to spend more money, but the features easily make up for it.
• Keep your skills up to date, evolve the depth in which you know your preferred platforms and stay apprised as their features change, as well.
• These exams test your knowledge of analyzing business transactions, payroll taxes, financial statements, and more.
• Both work arrangements afford more freedom when it comes to working hours and where you do your work.

You can also hire a bookkeeper to work directly for your business. If you go this route, make sure to brush up on interview questions that’ll help you determine who’s the best fit. You can take this exam from anywhere, as long as you have a reliable internet connection. One organization to look into is The American Institute of Professional Bookkeepers.

Outsourced bookkeepers like yourself can offer flexibility to adapt, see things from an outside perspective, and be more cost-effective for the company. Your client doesn’t have to pay for your time-off, health insurance, 401k, and share of payroll taxes. There are few boundaries to who can become a great virtual bookkeeper.