All businesses will need bookkeeping. Read our guide on launching a bookkeeping service in 2023 if you are considering becoming a professional bookkeeper. We’ll cover everything from the legal aspects of starting a business to pricing and marketing.
Common Bookkeeping Responsibilities
Many companies hire bookkeepers to maintain their financial records and prepare accounting reports. A bookkeeper is often responsible for the following.
Document and categorize all transactions, including income and expenses
Accounting software such as QuickBooks and Xero can be used to manage a business’s finances.
The cash flow of a business can be assessed.
Prepare financial statements such as balance sheets, profit and loss statements, etc.
What Makes a Bookkeeper Different From an Accountant
Contrary to certified public accountants (CPAs), bookkeepers do not file tax returns or audit financial statements. A bookkeeper is not required to hold an accounting degree. Bookkeepers are only allowed to prepare or sign tax returns if they have a CPA certification.
Start your bookkeeping business in Tennessee.
In the southeastern United States, Tennessee offers a delightful blend of rich history, vibrant culture, and a thriving business environment. If you are considering launching a career in bookkeeping, Tennessee presents an excellent opportunity to excel in this field. With its diverse industries, from music and entertainment to healthcare and manufacturing, Tennessee offers a dynamic market that calls for skilled and detail-oriented bookkeepers. Embrace the spirit of innovation and embark on a fulfilling career in bookkeeping in Tennessee’s scenic and emotional state.
For a holistic safeguard against unforeseen risks, it is worth contemplating acquiring errors and omissions insurance in Tennessee. This valuable coverage extends crucial protection to both you and your business, ensuring comprehensive peace of mind.
Some bookkeepers decide to get certified for their business. Bookkeepers may be permitted on different financial platforms such as QuickBooks or through training programs. You can become a publicly certified bookkeeper to market yourself as a professional bookkeeper better.
You can also get certified by professional associations to improve your skills and promote yourself as a bookkeeper. The American Institute of Professional Bookkeepers and the National Association of Certified Public Bookkeepers provide certification programs.
Create a Business plan
A solid business plan is essential for new businesses. This includes bookkeeping firms. A plan will not only help you clarify your goals and objectives but can also be used when you seek funding from investors or lenders. A business plan includes the following in general:
The “elevator pitch”, or executive summary, of your company
A more detailed description of your company.
Description of the critical products and services offered
Marketing and sales plan
Budget and financial projections
You can add information about your specialization and any certifications you hold.
Select a business name.
Your business name should reflect your personality and the services that you offer. Your business name will be the first thing customers, clients, and competitors see to learn about you and your services.
Register Your Business
After you have chosen a name for your business, you must register it in the state where you plan to do business. Your business structure will determine your specific requirements to register your business. For example, whether your business is a sole proprietorship or a corporation. A business license may be required. Find out more about how to create an LLC.
Choose the Right Software
Accounting software for small businesses is plentiful. Popular options include QuickBooks, Xero, FreshBooks, and Zoho Books. Read more about our rankings for different business accounting software by visiting. Being familiar with several software is essential, as your clients might have specific preferences for the software they would like you to use.
Pricing Your Services
It can be not easy to decide what you should charge your customers. Do your research and keep some flexibility in your pricing.
Asking around can be a great way to learn more. You can check freelance sites like Upwork for information on what other people charge for bookkeeping. Ask around to find out what businesses in your locality are paying for bookkeeping. Ask people who are bookkeepers in your network what they charge. You can then get an idea of the price range that bookkeepers charge.
Your certifications, experience and familiarity with the client’s company will determine how much you charge for bookkeeping.
Research funding options
You will likely want to open an account for business banking as well as a credit card. You can keep track of your business expenses in a separate report. You should apply for a loan to hire an employee, like a secretary. Your business plan is crucial if you seek funding from a lender or an investor. It will help them understand your business.
Marketing Your Business
It would be best to create a marketing plan and sales strategy before launching your bookkeeping company. This will help you to be successful. Your bookkeeping sales and marketing plan could include the following:
Determine where your clients will likely find you and how to meet them (e.g. Google My Business Ads, Google Ads etc …).
Create an online presence by creating a search-engine-optimized website. Learn to create a small-business website.
You can add your bookkeeping service to relevant online directories.
Assess your network to see if you have any potential clients or customers.
Assess which members of your network could be potential referral sources for business.
If you have the budget, consider whether or not you can afford to pay for marketing and advertising materials.
Consider local advertising options
A successful bookkeeping company requires more than being good at finances and accounting software. It also requires you to stay up-to-date on the latest trends in accounting software, market your business, manage your own business, and maintain positive relationships with clients.