Starting a Bookkeeping Business

Whether you want to start a sideline to augment the income from your full-time job or launch a whole new career, you can begin keeping the accounting books for local small businesses. The beauty of starting your own bookkeeping enterprise is that you can grow the business at any pace you like. Start out with one or two clients and slowly add to your roster until you can migrate to working for yourself full-time. Here is what you need to know in order to start your own bookkeeping business.

Difficulty:

Moderate

Instructions

Things You'll Need

• Accounting software
• Business license
• Computer
• Business cards
• Document creation software
• Printer
• Basic business contract

1. Secure your own accounting software. While there are free versions available, not many of them allow you to set up multiple sets of books. Invest in a reputable software package that will allow you to post information, generate a variety of reports, process tax payments, handle payroll and generate invoices. This will allow you to provide a wider range of services to your clientele.

2. Consider obtaining your own Tax ID number. While it is possible to use your Social Security Number in lieu of a Tax ID, you will find it is much easier to keep your personal and business records separated. In addition, many local municipalities require that a business have a Tax ID before it is possible to obtain a business license.

3. Look into incorporating your business. While it is not necessary to register a sole proprietorship in most cases, incorporating helps to protect your business name and also will provide a perception of being a serious undertaking. A local attorney can help you with the incorporation process or you can accomplish the incorporation online.

4. Get a business license. In most cases, the cost of the license will be minimal. Many local businesses will insist on knowing you have the license before doing business with you. Your local Probate office can provide you with the necessary forms and assistance in filling them out for submission.

5. Print business cards. Keep them simple and businesslike. Cut images and backgrounds that make it hard to read the information are not in your best interests. Include your business name, your name and business address. Your business phone and fax numbers, along with your email address, should round out the basic information.

6. Prepare a sales brochure. A simple trifold brochure that can be left with prospective clients or mailed in a standard business envelope will do nicely. Make sure the text of the brochure identifies all the accounting services you offer, as well as some advantages of using your business instead of some other accounting service provider.

7. Advertise your business. Along with an ad in the local phone book, pass some of your business cards on to friends for distribution. Obtain the member list of the local chamber of commerce and prepare introductory mailings to each of them. Follow up with a phone call to set up an appointment to speak with them in person. If you have the resources, run a small ad in the business section of the local newspaper.

8. Prepare a basic service contract. Include all charges associated with each of the services you offer, as well as a start and end date for the duration of the agreement. Make sure the terms and conditions are very clear and there is a clear understanding between you and the client before the agreement is signed.

9. Deliver what you promise. Beginning with your first client, perform all functions in accordance with what you committed to the client. This will provide you with a solid reference that you can call upon as you add new clients to your roster.

Tips & Warnings

• Getting your bookkeeping business off the ground means setting everything in place before you secure your first client. You must be ready to dive in immediately when you land that first client and prove yourself from the very first day that you begin to keep the books.

• Be careful to grow your business incrementally. Make sure you can take on one more client and still provide the same level of service to your existing clients. Keeping your customer base depends on your ability to provide timely and efficient services on a consistent basis. Failure to do so not only will lead to the loss of current clients, but also close doors as word gets around that you are not able to handle the work.