How to Start & Operate a Small Bookkeeping Service
Starting and operating a small bookkeeping service can allow you to work from home and have the freedom to choose which clients you work with. The barrier of entry for this career is fairly low, and the need for competent bookkeepers is high. Many colleges offer courses in bookkeeping, but a college degree is not absolutely required. If you are great with details and numbers and feel confident learning new software, opening a bookkeeping service might be the perfect option for you.
Other People Are Reading
Things You'll Need
- Computer
- Bookkeeping software
- Printer
- Fax machine
- External hard drive
- Transportation
- Money for start-up costs
Instructions
-
-
1
Decide what type of business you will have. Business types include sole proprietorship, partnership, LLC, cooperative, corporation or non-profit. Many small businesses begin as a sole proprietorship or LLC. Talk with your accountant to see which type of business is right for you.
-
2
Choose a business name or the name you will be "doing business as" (DBA). You can use your real name or a fictitious one.
-
-
3
Apply for a business license in your state, and register your business name and business type. In many states, you can do this online.
-
4
Apply for an EIN (Employer Identification Number) through the IRS (see Resources.) You may also need additional tax permits and tax identification numbers for your small bookkeeping service. Check with the business office in your state.
-
5
Decide where you will work. Some clients require you to come to their offices to work. Other businesses will allow you to do their bookkeeping from your computer and send them the files. Many bookkeepers choose to work from home, occasionally working at their clients' offices.
-
6
Buy the hardware you will need for your business. If you work as a contractor, you may be able to use your client's hardware, but it is better to have your own. A small bookkeeping service requires, at the very least, a computer, an external hard drive to regularly back up data, a printer and a fax machine.
-
7
Buy a copy of the software you will be working with. Quickbooks is often the preferred software of accountants and many small businesses. Other options include Peachtree Accounting and Quicken.
-
8
Find clients for your bookkeeping service. You can find clients by responding to job ads, networking, and even by contacting local accountants and letting them know you are available for contract work.
-
9
Keep track of your expenses for tax time. Some expenses to track include the hardware and software you purchased, miles spent driving in your car for work, and business meals.
-
10
Pay your taxes when they are due. Talk with your accountant about your taxes, and make sure to set aside some of your earnings to pay them with.
-
1
Tips & Warnings
Becoming Quickbooks certified (or certified for the software you will use) could help you get clients more easily.
Check with your local city hall or courthouse if you need additional help setting up your business.
Business laws vary by state. Check the requirements for opening and operating a business in your state.
References
Resources
- Photo Credit Girl on her workplace working image by Angel_a from Fotolia.com
