How to Set Up a Bookkeeping Business
For entrepreneurs who enjoy working with numbers, starting your own bookkeeping business can be one of the most rewarding steps you can take. Almost every business requires some level of bookkeeping. With new businesses starting up every day, there's a constantly growing pool of potential clients. Reaching those clients and establishing a core group of business accounts may be a struggle, but once achieved, your bookkeeping business can become a stable and growing enterprise that keeps clients coming back month after month.
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Instructions
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Write a short business plan that outlines exactly which services you'll provide, who your target market will be, what your marketing and promotional plan will include and financial projections for your first one to three years in business. Use your plan as a guide as you develop your new business.
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Choose a name for your business that's both distinct and memorable. Ideally, your name should convey a positive attribute about your bookkeeping service, such as "Accubooks" or "Fastbooks." Using your own name for your service is also appropriate, such as "Dave Thompson, Professional Bookkeeping."
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Buy a computer, if you don't already own one, and a business accounting software package to use in your business. According to Universal Accounting, QuickBooks Pro is the most popular accounting package available, and as of October 2010, costs less than $250.
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Consult your local city hall or county clerk to find out whether you're required to obtain a vendor's permit or business license. Requirements vary by state. You may also find information about the licensing requirements for bookkeeping businesses in your state by visiting your secretary of state's office website.
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Decide what price you'll charge for your services. Most bookkeeping services charge a monthly rate of $200 to $800 per month, based upon their estimate of the time that each job would take, and use $25 to $75 per hour as a guideline for their estimates.
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Write a basic contract that explains exactly which services are included in your price, what the price will be, what reports you'll provide to the customer each month and when payment is due.
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Present your business professionally by having professional stationary, business cards and brochures printed. Many print shops and major office supply stores provide basic stationary and business card design free when you order printing.
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Make yourself visible in the community. Join the local Chamber of Commerce and fraternal service organizations, such as Rotary or Kiwanis, and attend community-related business functions, such as charity events and fundraisers. If available, join the Better Business Bureau in your area.
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Promote your bookkeeping business by placing an ad in the service section of your local newspaper, advertising in the Yellow Pages, and by sending brochures to new businesses listed in your local paper and to employers who advertise full- or part-time bookkeeping jobs. Canvass your area by going door to door to businesses, introducing your service and handing out brochures and business cards. Inexpensive industrial areas are often prime client locations.
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Contact local accountants in your area. Because they generally serve larger clients with more demanding needs than bookkeepers do, accountants are a great source of advice. They may refer clients to you when they're approached by smaller companies who can't afford their terms, or when they have overflow customers they won't be able to serve.
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Tips & Warnings
Maintain your current job until you can replace your income with your new bookkeeping business.
References
Resources
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