Did you know that the average small business owner spends about 200 hours a year keeping books? Yup, that’s about one hour per day. And when you’re a small business owner with limited time and resources, 200 hours is usually more than you can afford to spend on bookkeeping. In this blog post, we’ll teach you how to start a bookkeeping business so that you can cut down on your own accounting time and begin making money instead of spending it. Whether you are just dipping your toes in the world of entrepreneurship or have been working for yourself for years, having an expert knowledge of bookkeeping will prove invaluable to any business owner. We spoke with the folks at Calgary Bookkeeping Services (yes, they are located in Calgary, Alberta, Canada) to give us some insights on the topic. They said, “keeping books is not something many people enjoy, but as an entrepreneur, it is something that needs to be taken seriously and business owners like to outsource their business pain points.”
What is bookkeeping?
Bookkeeping is the record-keeping aspect of accounting (where we measure the financial activities of a business). A bookkeeper is the person who records the financial transactions of a business, and they play a vital role in all businesses, both large and small, by ensuring financial activities are transparent and accurate. In addition, businesses rely on bookkeepers to keep their financial records up-to-date and in order, since these records are the basis for tax filings and other financial decisions, such as obtaining financing. Bookkeepers usually specialize in a segment of the accounting industry, such as auditing, payroll, or financial analysis. In addition, they might work in a specific industry, such as real estate, healthcare, or government. Bookkeeping requires strong organizational skills and attention to detail, since transactions must be categorized, recorded, and summarized accurately.
3 Steps to Becoming a Successful Bookkeeper
If you’re considering a career as a bookkeeper, the most important thing you can do is to gain experience. Here are some ways you can break into the field: – A great place to start is by volunteering for your local Chamber of Commerce. You will be able to meet and work with local business owners, in an environment that will allow you to learn by doing. – If you are still in school, consider taking a bookkeeping course. – Get some on-the-job experience. Ask your friends and family if they know of any small businesses that need bookkeeping help. – Apply for a job at a bookkeeping firm. – Study your local job listings. Look for small businesses that might need bookkeeping help, and reach out to them with a resume and a one-page marketing plan.
Why should you start a bookkeeping business?
– You set your own hours – This is a great benefit of starting a bookkeeping business. When you are self-employed, you have the flexibility to set your own hours, which means you can take care of your family responsibilities and make time for your hobbies. – You can make good money – According to the Bureau of Labor Statistics, bookkeepers earn a median annual salary of $34,690. Most people who work in the field say they enjoy their jobs, and the work is relatively stress-free. – The work is helpful – While you may occasionally come across a client who is reluctant to part with their money, the majority of business owners are grateful for your help, especially when you’ve completed their taxes for them. – You can build a bookkeeping business on a part-time basis – If you are a mother who is looking for a way to earn some extra income, or an entrepreneur who is looking for a side hustle, starting a bookkeeping business on the side can be a great option.
How to build your own bookkeeping service?
With the rise of the gig economy and the pervasiveness of online accounting software, many small businesses are finding it difficult to find a quality bookkeeper. This is a great opportunity for you to start your own bookkeeping service and fill a much-needed gap in the market. Here are some ways to get started: – Offer a free introductory consultation – When you meet with prospective clients, be sure to offer a free introductory consultation. This is a great opportunity for you to learn about the clients’ businesses and their needs. You can also use this meeting as an opportunity to pitch your services and secure repeat business. – Develop a marketing plan – Once you’ve found your first few clients, you’ll need to develop a marketing plan that will help you to find more clients. Here are some tips for marketing your bookkeeping business: – Try social media – Start a blog, and use it as a platform to discuss common business bookkeeping problems and solutions. You can also find and connect with other business owners on social media channels such as Facebook, Instagram and LinkedIn. – Develop a referral network – Good bookkeepers are always in demand, so once you’ve established yourself as a reliable business partner, you’ll start to receive referrals. – Offer free or discounted services – If you’re just getting started, consider offering free or discounted services to your first clients to help you get your name out there. – Hire a virtual assistant – If you are just starting out and do not have the capacity to take on a lot of additional work, consider hiring a virtual assistant.
3 Steps to Start a Bookkeeping Business
– Get your finances in order – Before you can start your bookkeeping business, you need to make sure your finances are in order. This means creating a budget and tracking your spending. You will also need to set aside some money for business expenses, such as marketing and advertising, as well as for potential taxes. – Get the right equipment – You will need to get the right equipment to get started with your bookkeeping business. At a minimum, you will need a computer, a scanner, a printer, and an internet connection. You may also want to invest in security software to protect your computer from viruses and hackers. – Get your bookkeeping license – In some states, you will also need a bookkeeping license. To obtain one, you’ll need to take a course in basic accounting and then pass an exam.
2 More Steps to Take Before Starting Your Own Business
– Find a mentor – A mentor can help you avoid mistakes and guide you through the challenges of starting your own business. You may be able to find a mentor through your local Chamber of Commerce or online. – Start small – You should start small, even if you have big dreams for your bookkeeping business. It can take time to build your client base, so start with a few clients and establish yourself before expanding.
Bookkeeping is a vital business function, and if you’re serious about starting your own business, you need to know how to keep the books. You can save yourself time and money by hiring a bookkeeper, but if you’re serious about entrepreneurship, you should know how your numbers are being calculated. Creating a great business bookkeeping system will help you understand your finances, make better business decisions, and avoid getting audited by the IRS. Are you ready to take the next step in your entrepreneurial journey? You can start by learning the ins and outs of bookkeeping, building your business network, and getting your financials in order. Once you’ve done that, it’s time to start pitching your services to clients and building a brand for your business!