How To Start A Bookkeeping Business – Thinking of starting an accounting business but don’t know where to turn for advice? We’ve created a guide to give tips and advice on getting clients and setting up your bookkeeping firm.
Starting an accounting business has many benefits: most accountants work from home and have very low overheads. You can get a regular monthly income from a fixed set of clients and with proper planning, it is quite easy to manage.
How To Start A Bookkeeping Business
We’ve written a full section on starting a new company, including information on company formation, insurance and bank accounts.
Skills You Need To Start A Successful Bookkeeping Business
You should consider whether you want to set up your accountancy business as a Limited Company, a sole trader or even a partnership with another accountant. Before you start, make sure you have the right business insurance.
When starting a bookkeeping business, it’s helpful to know who your competitors are. Call them and find out about their services and prices. Do they sound professional on the phone? Check out the local papers. Are there many accountants offering their services in your area?
Ask yourself what you can do that is different or better than your competitors. What value can you offer your customers that your competitors don’t?
Even if you don’t need an accountant for your accounts, it can be very beneficial to offer the services of an accountant. Being able to help a limited company have the opportunity to deal with all the year end accounts and any queries that may arise will take the pressure off the client.
How To Start An Online Bookkeeping Business
Accountants can also offer good tax advice and help you with any questions you may have. Talk to a few accountants to find the best fit for your needs. Remember, the cheapest company may not be the best. They can also advise on starting a bookkeeping business.
When starting a bookkeeping business, the price you can charge will depend on your experience and the services you can offer. You will be able to charge more if you can add value to a company. It may include advice on how they can save money and complete their accounts, provide management reports and cope with the end of the year. If you’re doing data entry, you’re not as likely to charge higher fees.
Try to find the current bookkeeping price in your area as this will vary from place to place.
When starting out, make sure the prices you charge are enough to earn an income to make it worthwhile. Don’t forget when calculating your fee you must include all taxes that will be due.
Tips To Boost Client Numbers And Take Your Bookkeeping Business To New Heights
It will depend on the customer. Most customers prefer a fixed fee so they know the cost and can budget for it. Fixed rate work can be difficult to estimate how long the work will take. Make sure you have an agreement to check the price, especially if workloads change.
If you charge an hourly rate, you may need to calculate the cost. A client may not settle a large bill when they have not been given a quote for the time and cost involved. If you find that the job is taking longer, let the customer know as soon as possible so you can agree.
When starting a bookkeeping business, you need to figure out the number of hours you can work. Subtract time for completing your accounts, meeting potential clients and research time.
Make sure you don’t overload your work at certain times of the year. You may have clients that require monthly, quarterly or yearly accounts to be prepared. If everyone is after work at the same time, you will have problems balancing your time. It is better to turn down work than to work 24 hours or not finish work on time.
Start Your Own Bookkeeping Business
Plan time for your vacation or time off you may need to care for children. Find another accountant in your area who could cover some of your work.
Unless you plan to work on a client’s site, you’ll need a computer. A laptop is useful as you can take it to client meetings with all the right information. If they have questions, you will look for the answers, but this is not necessary.
If you need a new computer, PC World is a great place to look. They have a good selection at reasonable prices and offer
Credit and leasing to new businesses. The TechGuys technical support team can be found in all PC World stores and can help you get your new PC up and running whether in the store or at home.
Bookkeeping Business Plan
Check out our software guide. It is better to choose the software package that you have experience with rather than trying to learn new software. We also have an accounting software comparison tool.
Look at your chosen accounts software website. Many run affiliate programs and offer support to accountants and bookkeepers. It may include listing your company in their directory, free software and support for an annual fee.
Many businesses looking for an accountant do not have accounting software, and you can earn extra income by selling accounting software to your clients.
You can also earn extra money helping companies who want to run their accounts but need help setting up their accounting software package.
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It is possible to run your entire accounting business online and never meet the client with the technology available. All documents can either be uploaded directly to the accounting software, uploaded by the customer or sent via the Internet.
I am a partially qualified or fully qualified accountant – do I need to register with my accountancy firm when I start a bookkeeping business?
Each of the accounting bodies expects members in practice to register. There are benefits to registering, which may include:
As an accountant running your own business, you should be covered by the Anti-Money Laundering Regulations – The Money Laundering, Terrorist Financing and Transfer of Funds (Payer Information) Regulations 2017 (MLR 2017). Most accountancy bodies can offer supervision or you can go directly to HMRC.
Low Cost Business Startup Ideas
Insurance is an essential part of any business and it is vital that you have the right insurance before you start. The first place to look is your accounting body. most can offer a discount. If you are not a member of an accountancy body then complete an online search. You will need Professional Indemnity Insurance, but depending on how the business is set up, there may be other insurance you need too.
If you have bookkeeping experience, you can still run your own bookkeeping business, but companies may prefer a qualified accountant. It can be helpful to advertise your knowledge on a website.
Home study courses are available leading to qualifications accepted by accountancy bodies such as the International Association of Biologists or the Association of Technical Accountants. Look online as home based courses are also available.
After you’ve done your research, it’s time to write your business plan. It doesn’t have to be a detailed document, but it should set out your company’s goals and describe how you plan to achieve them. Write a cash flow forecast to make sure you can survive the first few months and above all – be realistic!
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Starting any new company takes time. Don’t expect to have a lot of paid work from day one. It usually takes 6-8 months from starting a bookkeeping business before you get to the point where you can expect to generate a reasonable income for yourself.
Finding customers can be the hardest part of starting a new business. There are a few things you can do to try to get new customers, including:
When taking on new clients, there will be a fair amount of upfront work as you get to know your new client. Learn about their company and understand their existing accounting methods. You should budget for this extra time when onboarding your new client. It can often be worth asking for a down payment before starting this work.
Selling skills can take many years to perfect. Chances are you are not a trained salesperson. However, it is worth learning some sales skills. This includes your first meeting, writing a proposal, how to win the business.
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Unfortunately, some businesses don’t hire an accountant until their company has a problem. They may already have cash flow problems, problems with the bank or late submission of bills.
In many cases, these businesses have already passed the point of no return. Working with these businesses as their accountant is fraught with problems. You will end up finding missing documents, work hard to complete their accounts. Very often they end up not getting paid if the company goes bust.
If you are concerned about your prospect’s financial situation, don’t be afraid to ask for bank and business references. It might be worth asking for payment in stages, which would help both the customer and you. Don’t be afraid to turn away clients if there’s a question mark
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