Are you considering beginning your own bookkeeping business? If that’s the case, you’ve come to the proper location to start your journey from concept to reality.
You may desire to establish a bookkeeping business for a variety of reasons. Perhaps you’ve worked as an in-house bookkeeper for a company and are now ready to strike out on your own.
Perhaps you’ve been laid off, and starting your own business allows you to take charge of your own destiny. Perhaps you’ve always wanted to start your own business, are good with statistics, are organized, value flexibility, and want to accomplish something that will assist clients achieve their objectives.
Almost every business requires bookkeeping and payroll services. The successful functioning of a business relies on accurate bookkeeping and payroll services. Some businesses can’t afford to recruit permanent employees, so they use freelance bookkeepers.
You set your own fees as a freelance bookkeeping and payroll service provider, take on as many clients as you want, and decide what services you want to offer.
Running your own bookkeeping business, for whatever reason, may be immensely rewarding. So, if you want to establish your own bookkeeping firm, read this article to learn the essential measures to do.
Choose the services you want to provide to your clients
Accounts receivable, accounts payable, bank reconciliation, pay stub, and financial report creation are some of the bookkeeping services to give clients. If you want to, you can add on services like auditing, loan bundling, company strategies, and accounting software training.
Consider obtaining optional certification
After satisfying the eligibility requirements, obtain certification from the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers (NACPB). The NACPB offers certifications in bookkeeping and payroll. Before getting certification, you must pass an exam covering bookkeeping topics.
Invest in accounting and payroll software
Choose software that you can tailor to your clients’ requirements, as well as software that is simple to use and economical. Check that your PC fulfills the software installation requirements’ specifications. To suit the needs of your clients, get training in a variety of accounting software applications.
Set your rates as a freelancer
Inquire about costs from nearby bookkeeping and payroll providers to get an idea of what to charge your clients. Choose whether to charge an hourly rate or a monthly flat price. If you have to go to your clients’ offices, consider charging more for mileage. The cost of bookkeeping and payroll varies depending on the region and level of experience. A bookkeeper with a lot of experience will usually charge more than a bookkeeper with a lot of experience.
Join your local chamber of commerce and local business associations
Introduce yourself to the owners of the businesses and give a brief description of your company and the services you offer. Set up an introductory meeting with people who are interested in your company. Describe your services in greater depth, including your bookkeeping and payroll procedures, as well as your prices. Sign a contract with clients who are interested in hiring you.
Employers seeking for part-time bookkeepers should get your resume
If feasible, follow up with a phone call. Employers should be informed about the advantages of using a freelance bookkeeper and payroll service provider rather than an employee. Clients do not give you health coverage or other fringe benefits, nor do they pay payroll taxes if you work as an independent contractor.
What makes a bookkeeper different from an accountant?
Although the phrases “bookkeeper” and “accountant” are sometimes used interchangeably, they represent two distinct roles.
According to the International Association of Bookkeepers (IAB), the world’s largest bookkeeping organization, a bookkeeper keeps track of money moving in and out of a firm by keeping correct financial records.
Small and medium-sized businesses (SMEs) can benefit from bookkeepers in the following ways:
- Prepare for tax and VAT returns at the end of the year.
- Keep track of your financial flow on a daily basis.
- Organize and manage their finances effectively.
Being accurate in your work and having a thorough understanding of financial matters are both desirable qualities in a bookkeeper.
Some bookkeepers also provide commercial brokering services, which include assisting firms in getting the best deal on insurance renewals, new equipment purchases, and vehicle leasing.
Final thoughts on launching Bookkeeping and Payroll Systems by yourself
Starting your own bookkeeping firm can be extremely gratifying, both monetarily and as a way of life.
You’ll also be delivering an important service to your clients, assisting them in running their businesses smoothly and efficiently.