How to Start a Successful Virtual Bookkeeping Business in 2023

You can use personal funds, but you don’t want to rely on this. Look into loans and other funding options to ensure you are sufficiently funded in order to cover the start-up costs. A bookkeeping services business is a profitable business in Canada because there are loads of small businesses that cannot afford to hire professional accountants. Players in the industry are expected to generate over $5.9 billion in 2023. Another popular option is Xero, but there are plenty of bookkeeping apps to choose from.

Fortunately, there are several ways you can learn, both online and in person. The cost per credit hour is generally much lower than a traditional four-year college, and you can attend full-time or part-time, depending on your schedule. https://www.bookstime.com/articles/music-industry-accounting There are tons of bookkeeping and accounting software tools available. Look for licensing that will allow you to keep the books for multiple or unlimited companies and consider any needs specific to your industry niche.

Starting a bookkeeping business

The LLC is to form your business into a legal structure, and you only need to do the set up one time. Additionally, you should ensure your computer system is password-protected, and that it is running the latest software, with no one but only you having access to it. Access all Xero features for 30 days, then decide which plan best suits your business.

If you decide to go with QuickBooks, it offers a variety of payroll options from which to choose. You can learn more about the solution in our in-depth QuickBooks Online Payroll review. Most people operating a part-time bookkeeping business with no employees will operate as a sole proprietorship, which works fine. However, if your business grows to the point of hiring employees, you need to consider becoming an LLC or corporation.

Set up your bookkeeping office space.

First and foremost, you should ensure that your brand is visible and well communicated which is why you should make provisions to work with different class of people in the society. Did you remember how to start a bookkeeping business to acknowledge their birthday or their child’s high school graduation? Great service isn’t a strategy; its thoughtfulness taking an interest in your clients as individuals will make you a stand out.

You now know how to start your bookkeeping business—exciting, isn’t it? You’re about to start an adventure, and just like any great adventure, you’ll need more help along the way. Look to certify in each type of accounting software you use to add credibility to your services. Base your services on the intersection of your clients’ needs and your skillset. The right business structure depends on your business goals, whether or not you want to raise capital, and the amount of personal liability you want to take on. Remember that your business plan is likely to evolve as you learn more about your business in relation to the market.

Step 2 – Get training and/or a certification

Based on this, I guess you will agree with me my gospel of telling you to start your business from your home as the initial cost is a bit on the high side. For example, in Texas, you register your business through the Department of State and you need a license to be an accountant, but not a bookkeeper. You can notify the federal government of your business by applying for an Employer Identification Number (EIN). In the bookkeeping industry there might not be a need for intellectual property except in the area of trainings, company logos and brands. If you’d be tempted to go along with a client who asks you not to report or to hide income, it’s best to look for another business because you won’t last long in this one.

Because clients trust you with their money, having an ultra-professional working environment may be important to some of your clients. Even though it is a discipline with a high penchant for accurateness and thoroughness, it is still one you can go into with not so much degree and education. To be successful, independent bookkeepers need to be thorough, dependable and accurate as well as skilled in using accounting and sometime spreadsheet software. You must enjoy paying attention to details, and honesty and integrity are crucial. Some business owners learn to manage their finances on their own, while majority opt to hire a professional so that they can focus on the parts of their business that they really love. A bookkeeper’s top responsibility is to keep a chronological list of related debits and credits of a business; which forms part of a ledger of accounts.

When is it time to bring in the professionals?

If you hire Northwest to form your LLC or corporation, we complete and submit your formation paperwork on your behalf for just $100 plus state fees. Check out LLC vs Corporation and Why Turn a Sole Proprietorship into an LLC to learn more about choosing the best structure for your business. The total cost is estimated to be around $10,000 to $40,000; which is a considerable investment for any business. However, there are ways to save on these costs from the beginning. Bookkeeping can be incredibly lucrative – there’s always a demand since every business needs someone to track its money.