Steps to Starting an Accounting Business

Money

If you're interested in starting your own business, accounting is a great choice. People will always need someone to help keep their finances organized. With the tax codes getting more complicated every year, it can be a great relief for businesses who can turn responsibility for their accounting over to a hired firm. Service businesses such as these are the perfect choice for new business owners because they require very little start-up funding, as no major equipment or storefronts are required. Simple knowledge of accounting principals, income taxes and payroll are all you need to get your business off the ground.

Instructions

1. Become educated in basic accounting principles, federal and state income tax requirements, and payroll taxes. You can earn a certificate of degree in the accounting field, and even earn your CPA license. Of course, the higher your education level in the field, the more you can market your services towards high-end and high-paying clients.

2. Get licensed. Depending on your state or county requirements, you may be required to obtain one or more licenses. All states require a basic business license, but some areas also require special certifications or licenses for financial businesses, such as accounting or investment firms. Your local Commerce or State Departments can help you determine what is required.

3. Learn how to use basic accounting software, such as Quickbooks. Most small businesses who attempt to do their own accounting use this program, or one that is similar. You will need to be familiar with how the software works in order to take over the books (see Resources below).

4. Find clients. As a new company, you will have the most luck finding clients out of the people you already know. Contact friends and family and let them know about your business. Visit past employers and see if they need help with accounting services. As your reputation grows, you will be able to get clients from other sources as well.

5. Keep meticulous records of your work. Accounting mistakes can result in huge fines and even potential jail times if they are tax-related. Keeping records can help you prove that any mistakes you made were indeed just oversights, and were not intentional.

Resources

• Quickbooks Software