Bookkeeping - How to start an accounting business

A bookkeeping services business is a mixture of managing income and expenses, payroll, and tax returns for clients. To start your bookkeeping and accounting service your priority should be

1. Making an attractive business plan.
2. Finding the right client for the business

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Not every small business in the USA requires a certified bookkeeper. They are more comfortable to work with freelance bookkeeping to save some money. If you plan to start the bookkeeping just to make a few extra bugs the basic bookkeeping knowledge should work for you. But if you are planning to start a bookkeeping business following are the steps you should always keep in mind :

Bookkeeper Certification

Everyone is looking for an expert in the field. A freelancer can display his expertise in two ways. He must be a certified bookkeeper or he should have enough experience which can be displayed as client testimony on his profile.

In most cases, only the certification works. If you are a certified CPA (Certified Public Accountant), then you have already crossed the first hurdle of the process. You have the knowledge and skill which helps you perform your duties as a bookkeeping and accounting expert. But if you just have formal education about in accounting then you should be working on becoming a certified bookkeeper.

Attractive Business Plan

If you are thinking of staring your online bookkeeping services as a full-time then you need to work on the business plan. Make a list of suggestions and ideas you have about the business. These points will be beneficial when you start working on your business plan.  An attractive not only make you more systematic but also it will help you be the point of attention in front of investors.

A business plan should have all the important aspects of the business. Make sure that it covers in detail the products and services you sell, marketing strategy, competition, etc. A plan should have a minimum of 12 months projection for profit and loss, cash flow, and balance sheet. Some key items every business plan should have been

• Project Cover Page
• Project Executive Summary
• Overview (of the Company)
• Competitive analysis
• Marketing strategy and Plan
• Start-up Costs
• Financial Projections (12 Months)

Incorporating Your Bookkeeping business

just like any other startup, before we start serving the client few administrative tasks need to be completed. It's important to make business presentable and sound legit. It's also important legally. If any client sued your company it won't be affecting your assets as an individual. This complaint will only affect your incorporation not you as a person. But you can ignore this if you are thinking to work as a freelancer or bookkeeping virtual assistant.

Here are some important points you should keep in mind while incorporating your bookkeeping services business

Select the right name for your business: Finding the right name for your business can be stressful. The name should convey as a brand as that will be the first impression to your clients. Your business name should express the type of services you offer so the client doesn't have to guess.

Business Structure: Selecting a business structure is very important. It will determine your liability towards the business, the ability to raise capital, tax liability, and also if the company ever sued. There are four types of business structures.

• Sole Proprietorship
• Partnership
• LLC (Limited Liability Company)
• Corporation

Business Operations

As you are an incorporated business now so your attention should be toward business operations now. To start with getting a separate checking account and the right insurance for your business. Always keep your business separate from your personal finance. It will help you take full advantage of the liability protection you agreed to during incorporation.

Choosing the right software is also important as a part of operations. The software is not limited to accounting but also payroll, practice management, file sharing, etc.

Office setup and Funding

As a startup, you should always try to minimize your setup cost. Most bookkeeping service providers set up a home office instead of hiring an office. Also, try to plan your meeting at the client's office or virtually. It is not recommended to invite them to your home office unless you know them very well. Having a home office will also be helpful at the time of tax deductions. You can book repairs and Maintainance for the area for business, part of utilities, real estate taxes, and insurance on your property.

While creating the business plan you also created an estimate of start-up cost. If you plan to set up your home office it will be fairly a low cost. Its always advised keeping a financial backup of 6 months before starting any business. A business credit card can be a great financial tool when it comes to managing daily cash flow or expenses.

Marketing Bookkeeping Business

The first thing that comes to our mind after setting up incorporation is business cards and websites. Either you plan for full time or a freelancer you need to have a website. You can plan a productive website with the help of a web development and marketing company.

Mappoid can offer you both services under the same roof. Our web development experts can help you develop a great website including logo, landing pages, images, content, etc. Mappoid online marketing experts can help you increase your revenue by a powerful SEO for your online bookkeeping business.