Bookkeeping has, over time, developed into an industry of its own; branching off from the accounting profession. With accountants happy to pass on more menial tasks like receipt sorting and books for simple businesses, and bookkeeping being the perfect fit for a home based business, this particular industry may be very appealing.
A major plus to starting a bookkeeping business is that it is one of few low-risk start up opportunities because it is completely feasible to run the business out of your home office. This minimises overhead costs leaving more profits for the business.
Minimal amounts of equipment are required to get up and running, with the basics consisting only of a computer, Internet access, mobile phone and a small functioning workspace. If you have decided this is the opportunity for you, then provided here are simple steps and tips to help you get started in the right way and make your endeavour as successful as possible.
Step 1: Educate Yourself.
In order to start your own bookkeeping business, being properly accredited is an absolute must as it is required for all bookkeepers to complete a certificate program in either accounting or bookkeeping to be able to work in the industry. Online courses for bookkeeping can be a really great way to ensure that you learn whilst keeping your current job. For those looking to change career, it’s a fantastic way to start!
Step 2: Write Your Business Plan.
Writing a business plan is the most important step for any prospective business owner, bookkeeping included. It will help you decide what types of clients you are looking for, how you are going to market yourself and any costs associated with doing so.
A good business plan will help to determine how much capital will be needed and how heavy of a workload you will have to take on in order to be profitable.
Step 3: Secure Insurance and an Accountant.
Every business owner is required to carry insurance, so be sure to look into what kind of coverage will be necessary and how much the premiums are going to cost. Speaking to an accountant will be of great benefit, as they will be able to advise you on how to maximise business deductions and guide you through any other questions you may have. Your accountant may also prove to be a valuable business contact in the future.
Step 4: A Plan for the Future.
When you are organised and prepared to start taking clients, congratulations! You have achieved your goal. You are open for business and that is fantastic! However, to ensure your business stays financially viable, it is also important to have plans for the future. What direction do you want to see your business go in? Do you plan to specialise in any particular area? Will you eventually expand to have other employees? The answers to all of these questions and more should be outlined in the plan you have developed for the future of your business. Having plans and goals in place from the very start will provide a clear path on how to successfully achieve them.
If you have managed to work your way though all of the above mentioned things you are well on your way to owning and operating your own bookkeeping business.