The Ultimate Checklist for Starting a Bookkeeping Business

Trying to handle startup bookkeeping on spreadsheets is difficult as transaction volume increases. Cloud-based bookkeeping software provides a much better solution designed for the needs of small business. The best software seamlessly syncs with your bank accounts, automates transaction categorization, allows collaboration, and provides mobile access with real-time reporting. Actual costs will vary based on individual business goals, service offerings, and local market conditions.

Can you run a bookkeeping business from home?

This will not only help you manage your budget but also ensure that you can claim all eligible tax deductions. Investors want to see that a startup is financially sound before they put in their money. Detailed financial records demonstrate that you are managing your business responsibly, which can make it easier to attract funding. Any documents that show income, expenses, deductions, and credits shown on your tax returns will be stored. Choosing your business entity and knowing what your accounting methods are will be necessary to your business. Another major step in running a business is having proof of all of your financial records.

Startup Costs

Whether you’re doing this part-time or full-time, you don’t want to skip this step. Once certified, you’ll earn the credentials CPB (stands for Certified Certified Bookkeeper Professional Bookkeeper). You can put these letters after your name on resumes, business cards, and other materials to display your accomplishments to future clients.

A professional website

He also is an expert in Canada bookkeeping, expat tax, notice to reader and review engagement clients. He has successfully transitioned multiple processes related to Records to Reports, Financial and Management Reporting from different geographies. This includes transitions from the USA, Indonesia, and the Netherlands and some of the remote transitions. He has handled multiple buy side, sell side deals, and Private equity investment deals for US market clients. Additionally, has also worked as an Article assistant in the Statutory Audit team during his internship of 3 years at a CA Firm. Review and AdjustRegularly review your accounting system to ensure it is working as intended.

• You’ll receive a dedicated account manager and free access to the Premium plan when you become a Zoho Advisor.
• This increased efficiency can free up time and resources, allowing you to focus on growing your business.
• In addition, you may need to obtain specific bookkeeping licenses as well as other permits.
• Common business insurance policies for bookkeepers include things such as professional liability and general liability.
• Transactions include sales, payroll, bills, debt, interest earned, tax payments and more.

Cash basis will track income when it is received and expenses when they payout. You discovered why starting a bookkeeping business could be one of the best decisions of your life. Want to know the ins and outs of how to start a bookkeeping business? This might be one of the best decisions you ever make as you consider your own respectable, home-based business. If bookkeeping has you tangled up as you scale your startup, let Uplinq provide some much-needed relief. We combine intelligent software automation with human accounting expertise so you can get strategic insights without the grunt work.

Step 6: Fund Your Bookkeeping Business

• Revathi holds a master’s degree in accounting and taxation, and she’s on her way to becoming an Enrolled Agent (EA) and is diligently preparing for her CPA.
• Additionally, some bookkeeping businesses may offer additional services that can generate additional revenue.
• Revathi brings a wealth of knowledge with over a decade of experience in US direct taxation (high net-worth individuals).
• Ltd., as an Analyst, where he provided support services for client-based application.

You can get certified in each of these programs, which can not only help you become a power user but can also help you market yourself as an expert. If you’re just starting a bookkeeping business, it’s likely that you’ll just be working solo, at least for the beginning. Consider starting your search into business entities for bookkeepers by looking into sole proprietors and LLCs. The latter could be a great option if you might bring in some help down the line. As we mentioned above, you don’t technically need to be certified to run a bookkeeping business. You might also consider applying for a business credit card to help cover expenses until you start making money.

What are the most common accounting mistakes made by startups?

With accrual accounting, revenue and expenses are recorded when transactions occur, regardless of when money exchanges hands. Sales get booked at the time of invoicing rather than when you collect payment. Expenses are recorded when obligations are incurred regardless of when you get billed or pay. Professional liability insurance protects against potential errors in financial records or client claims. Cyber liability insurance may also be necessary since bookkeepers handle sensitive financial information.

As your business grows and you hire employees, you can consider whether to rent office space or keep working remotely. You want your business name to reflect you as a person and the type of services you provide. Your business name is the first thing that lets customers, clients, competitors and others in the marketplace know about who you are and what you do. Get a business bank account that provides $3M in FDIC insurance coverage and generates up to 3.73% APY on your deposits.