Bookkeeping from Home: 9 Steps to Starting a Bookkeeping Business

In your ledger, the finished goods inventory will reflect the number of each type you have at any time. So, which of these methods should you use in your bookkeeping to get the best, most accurate picture of your spending habits? To understand the difference between these two methods, take this example. You ordered the parts in January, and the manufacturer sent you an invoice that same month.

You can go with the baseline plan, the Simple Start plan, for $30 per month. If you need more users, you need to move up to The Essentials plan for $55 per month. The ability to go above and beyond virtual bookkeeping is crucial if you want to become a great bookkeeper and earn a great living. One that rocks and shows you how to be a great bookkeeper in a “paint by numbers” format. There are several effective ways to manage bookkeeping responsibilities in-house or externally by using helpful tools and technologies.

What is the simplest bookkeeping software?

You might have prior professional experience that can serve as a springboard to gaining new clients and serving them well. Most remote QuickBooks Live bookkeepers work from home which means you need a reliable hard-wired internet connection and a landline phone. Intuit will provide a laptop with all the technology and software required to meet your responsibilities.

• Accrual basis accounting records those invoices and bills even if the funds haven’t been exchanged.
• If you’re considering starting a bookkeeping business, the first step is to familiarize yourself with the industry.
• If you’re still unsure of whether bookkeeping is the right choice for you, let’s break down some of the advantages and disadvantages.
• The information you get from your receipts should go into some kind of ledger (usually a digital option).
• It’s important to do your research before starting out so you’re clear about the path you want to follow and the goals you’d like to achieve.

There are a few different ways you could structure a bookkeeping business. All businesses need to keep bookkeeping records by law, and someone has to do that work for them. The marketing plan should clearly describe your target audience and how to https://www.bookstime.com/articles/toa-global appeal to them. In many cases, each of these strategies might be included in your broader plan. Furthermore, your marketing plan should include a SWOT analysis that clearly outlines your current strengths, weaknesses, opportunities, and threats.

What’s it really like to work in a bookkeeping business?

At this point, you may be thinking, “That all sounds nice, but how hard is it to actually start a bookkeeping business? ” There are two parts to that answer, and they’re actually both surprisingly simple. Remember that the amount that you charge should be contingent on your years of experience, specialization in industries, certifications you carry and your area. And, how to start a bookkeeping business of course, your rate isn’t fixed — you can always change it if you feel like you’re not priced correctly. If your clients will be sending you things such as receipts or statements, you might want to consider the tool that you’ll use to share files. A popular option is Dropbox, in which you can create a shared folder that both you and your clients have access to.

The Talent Acquisition team is dedicated to connecting people with exciting career opportunities and partnership within Intuit. You can work with other bookkeepers and tax experts to share and expand your knowledge. Many programs will provide certificates to show you completed the course. Some provide free and low-cost resources, while others may be more expensive but provide more knowledge. Learn about bookkeeping, typical responsibilities, how to become a bookkeeper, and remote bookkeeping opportunities with Intuit’s QuickBooks Live in the U.S. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear), but does not influence our editorial integrity.

REASSURE YOUR CLIENTS.

This is particularly true when a business is smaller and doesn’t have the demand or budget to justify hiring a full-time bookkeeper. As a result, independent bookkeeping services may balance multiple accounts at any one time. Once your business gets under way, you can make a monthly budget to track your cash inflows and outflows. You’ll also need to give some thought to how you plan to invoice your clients for your services.

The specific amount you charge your clients for bookkeeping services will depend on your certifications, years of experience and familiarity with the client’s business. You can look at freelance sites, such as Upwork, to see what others are charging for bookkeeping services, but you can also learn a lot by asking around. Talk to businesses in your area to see what they are currently paying for bookkeeping services.

With accurate bookkeeping, you can tell how much your business is making in terms of income and track your spending to ensure that you have enough cash on hand to cover your business expenses. Proper financial records make it easier for you to analyze the financial state of your firm and determine areas that need improvement. Local colleges may offer bookkeeping courses, and there are plenty of options online. LinkedIn offers online courses and access to expert-led tutorials for $19.99/month-following a 14-day free trial. If not done at the time of the transaction, the bookkeeper will create and send invoices for funds that need to be collected by the company. The bookkeeper enters relevant data such as date, price, quantity and sales tax (if applicable).

To open an account, LLCs and corporations typically need to bring to the bank a copy of their articles, their operating agreement or bylaws, and their EIN. Before you start marketing and branding your business, you’ll need to ensure your name is available. Most states prohibit or restrict businesses from adopting names that are already in use. Even if it’s legally allowed, a copycat name puts your business at risk of a lawsuit. As reported by Payscale.com, the average bookkeeping business will earn between $17.40-$25.50 per hour. However, you may also choose to charge a flat rate, depending on the circumstances.

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However, it can be difficult to catch up if you fall behind on reconciling transactions or tracking unpaid invoices. Regardless of your small business’s complexity, bookkeeping will still take time out of your week, so be sure you have the resources before committing to handling it yourself. Then there are the practical aspects to consider, including buying a computer or laptop, purchasing accounting software and business stationery, and setting up a business bank account. Professional Indemnity Insurance protects you against claims made by unhappy clients and your employees.

• You want your business name to reflect you as a person and the type of services you provide.
• You might have to work for free and undergo training before you can make the business work, so don’t quit your day job immediately, but remember that everyone has to start somewhere.
• I’m an entrepreneurial CPA that founded Xen Accounting, a
  100% cloud-based accounting firm, in 2013.
• Bookkeeping, as it turns out, is one of the best online businesses you can start.
• The terms “bookkeeper” and “accountant” are occasionally used interchangeable, but they are in fact 2 different roles.
• If you have already purchased the equipment you think you’ll need, that means you are finally ready to begin pursuing clients.

I don’t have a ton of suggestions here as there are so many models and it depends on if you’re a Mac or PC person. If you expect to find new clients in different geographical regions, consider getting a local number in addition to a toll-free number. While some companies use Slack with their clients, I typically advise against that in most cases. Therefore I recommend putting together 3 custom service options in a gold, silver & bronze type approach for each prospective customer you have. A very good CTA can convert about 10% of your readers to clients to be. By clicking on “Learn More”, you’ll be prompted to set up a meeting with them.