Bookkeeping services for small business: What you need to know

This helps business owners in the long run keep more of their income. Use your personal network, professional network, and—when you start to get them—client referrals to spread the word about your business in your local community and beyond. Your market research, along with your knowledge of your skills, should help you determine your niche. Think of your niche as a clear and specific direction for your business. It can be as simple as serving local businesses under 10 people or companies with an entirely remote workforce. Remember that your business plan is likely to evolve as you learn more about your business in relation to the market.

This explains why LLP is a cheaper option than a private limited company and is recommended to you. There are a few different ways you could structure a bookkeeping business. Bookkeepers take on the role of serious responsibility since they take care of sensitive information for clients and promise to keep records accurately.

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The Better Business Bureau can help or hurt your small business. Here’s what to know about becoming accredited, solving disputes and more. Discussed options for my business with Brian and he was very helpful bookkeeping for startups in suggesting how best to handle it. Business cards are a bit old school, but they still work well when trying to land a new client. Cards are great for in-person meetings if you have a local client.

You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future. 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.

How to Start a Financial Services Business

However, most businesses that make the leap see the value and experience an ROI rapidly. Bookkeeping is a specialized skill—there are only so many people with the education, experience, and certification needed to keep books and make corresponding decisions. Because the practice itself is specialized, bookkeeping businesses can charge specialized rates. You can always expand later as you take on more clients, hire employees, and potentially move into an office space. But bookkeeping gives you the option of starting on a shoestring budget.

Now that you understand the fundamental startup costs, let’s look at the steps you’ll need to take to launch your new bookkeeping business. In addition to bookkeeping software, consider file-sharing, client management, and document signing software. You can get started with Google Drive for file-sharing and organization for free with any Gmail account.

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If you’re specifically running a totally virtual business, a website is extra important since it can demonstrate to clients your skills. And luckily, there are plenty of website builders to make creating your website a breeze. This could help you build credibility inside that segment, as well as help you hone your skills.

Whether you’re doing this part-time or full-time, you don’t want to skip this step. If you’re not a CPA and want to prepare tax returns, I recommend becoming an Enrolled Agent (EA) through the IRS. EAs must initially pass an examination and then complete annual continuing education to renew their certification every three years.