BOOKKEEPING BUSINESS: What Is It, How to Start One, Cost & Salary

There will always be a need for bookkeeping services in all kinds of businesses. However, If you want to become a bookkeeper, read our guide to learn how to start a bookkeeping business, how much it cost to start one, what your salary will be, and booming the bookkeeping business.

Bookkeeping Business

A bookkeeper is an important part of running a business. Moreover, a business employs a bookkeeper to oversee and manage its finances, which includes keeping track of all transactions and grouping them. They help small business owners keep track of their cash flow, which is one of the best ways to tell if a business is doing well. Often, they also help businesses make important financial statements like the profit and loss report and the balance sheet.

But keep in mind that bookkeepers are not the same as accountants because they can’t do things like file taxes or do audits like certified public accountants can. Bookkeepers also don’t have to have a degree in accounting. They can get certified through training programs, or they can just get experience on the job to start their own bookkeeping business.

Normal bookkeeping services include:

Using business accounting software to keep track of a business’s money.
Take care of accounts payable and receivable.
Help businesses understand how they spend their money by giving them an overview of their finances.
Create financial statements.

How to Start a Bookkeeping Business

Bookkeeping is a great business that you can do from home and start with very little money. Whether you want to make a little extra money or grow a business to support you and your family, our eight steps on how to start a bookkeeping business will help you reach your goal. These steps include:

#1. Design Your Business Model

It’s important to know why you want to start a bookkeeping business and work with small businesses. This will be the basis of how you run your business. Think about:

Whose needs do I want to meet?
What kind of solutions will I offer?
How will I get these solutions to the people?
Think about where you want to end up. Are you building a business to sell? How many people do you need to hire? Do you want your business to grow around the world?

When you start making plans, it helps to know where you want to end up. It will affect how you run your business, who you hire, what kind of clients you want, and how hard you try to get new business.

It’s also a good idea to come up with a backup plan in case you can’t work for a while. Whether it’s because of illness or a family emergency, it’s very good for your brand if you can give your clients a good alternative.

#2. Getting Set Up

It is simple to collaborate with people from all around the world with the correct apps and tools.

To get started, you don’t need a lot of equipment. Get a computer and a cell phone, and then go online. Using online accounting software, you and your client will be able to look at the same accounts at the same time. This means you can answer their questions over the phone instead of having to meet with them.

Automatic data entry, daily bank reconciliation, and payroll will all be possible with smart accounting software. You should also think about using software to manage your practice. You can manage workflows and get your business in order with the help of these tools. Some accounting software comes with them for free, and they keep getting smarter.

#3. Narrow Your Focus: Who Is Your Ideal Client?

Inventory, bank reconciliations, accounts payable, tax returns? What will your new bookkeeping business offer?

Perhaps you’ll specialize in real estate or construction? As an expert, you may target your marketing and speak to one audience.

Offering everything to attract clients is appealing. If you can’t provide, you’ll get into trouble. Start small and don’t promise more than you can deliver. After identifying your target client, you may create tailored solutions. Package appropriate services for your client. They might choose the general service level. Work with them to customize the package. To walk clients through the bundles, present them in person or by phone. Set fees upfront after agreeing on a service bundle. Don’t list fees on your website—price the client, not the service.

Also, provide customers with a credit card, Stripe, and electronic transfer payment choices.

#4. Build a Digital Presence

Consider your website and internet presence to be your storefront. It should clearly say who you are as well as what you do. Your website needs to be simple to use, clean, and full of useful information. Think about what information you would like to see and what you would leave out.

Make your site more about you. Show what you care about and who you are. Try to see things from the point of view of a possible client. Why would they want to talk to you instead of someone else?

Just as important as having a good website is having a good social media presence. You can reach out to potential clients through Facebook, Twitter, and LinkedIn. Set up a Facebook page for your business that makes it clear what services you offer.

#5. The Importance of Networks

As a sole practitioner, it can be a little lonely to start a bookkeeping business. Talk to people like you. There are ways to meet new people through social media and industry groups. With online networking, you can find other bookkeepers who use the same software, work in the same industry, or live in the same area.

How Much Does It Cost to Start a Bookkeeping Business

It is important to know how much it will cost to start your bookkeeping business. It can help you plan your finances, figure out how much you need to invest at first, set your prices, and plan your profits. The costs to start a bookkeeping business include:

#1. Equipment

Your bookkeeping business won’t need much in the way of physical equipment. Use the list above to figure out what kind of equipment you will probably need. The equipment to start a bookkeeping business will probably cost between £2,000 and £15,000.

#2. Monthly and Annual Equipment Costs

Many programs, software, and other subscriptions your business will need will require you to pay a monthly or annual fee. You can expect to pay at least £40 per month for subscriptions, but the cost go could go high as £200 per month, depending on which ones you want and how they are set up to start the bookkeeping business.

#3. Branding

A bookkeeping business needs to spend money on branding. It can help you make a name for your business and make you stand out from the competition. Creating a brand for your business could involve making a logo, deciding on a name, and making a website. You can hire a pro to help you brand your business, or you can do some of the work yourself. Depending on how much branding you need, it can cost anywhere from £500 to £10,000.

#4. Marketing and Advertising

Marketing and advertising are important ways to get customers and grow your business, especially in the first year of your business or when you want to grow it. It is recommended that you invest between 1% and 3% of your annual turnover on marketing to ensure your bookkeeping business attracts clients and generates revenue. For instance, if your annual sales are $100,000, you should spend between $1,000 and $3,000 on marketing each year.

Insurance is a good idea if you want to safeguard your company, your equipment, and your customers. Unfortunately, bookkeeping firms are vulnerable to hackers, miscalculations, and even equipment damage.

#5. Staff

You could hire people as full-time employees or as free agents. If you hire someone full-time, you have to pay them at least £9.50 per hour, which is the national minimum wage. You also have to pay for things like holiday pay, sick pay, and maternity/paternity leave.

Once you know how much it usually costs to set up and run your bookkeeping business, you can start to figure out how to price your services.

Bookkeeping Business Salary

The bookkeeping business salary is just the base pay. Depending on the company, bookkeepers may be eligible for other types of pay, like performance bonuses.

Payscale data from September 2022 shows that this extra income can give your earnings a nice boost. Some bookkeepers say that bonus payments, profit sharing, and commissions give them an extra $1,000 to $19,000 per year.

Experience and education can also make a difference in pay. A bookkeeper can also make more money by getting certifications.

#1. Salary by Education

In the past, a high school diploma was often enough to become a bookkeeper. But many employers today prefer or even require entry-level bookkeepers to have an associate’s degree in accounting or a related field. Some bookkeepers have an accounting bachelor’s degree. On the other hand, master’s degrees in accounting are usually for people who work in more advanced or technical jobs.

Instead of getting a master’s degree, bookkeepers can get professional certifications that show they are more skilled. One of these is the American Institute of Professional Bookkeepers’ Certified Bookkeeper (CB) designation.

#2. Salary by Experience

The bookkeeping business salary depends on experience. Payscale data from September 2022 on bookkeeper salaries shows that their pay goes up steadily as their careers continue. As a bookkeeper moves from an entry-level job to a mid-career job, these increases reach their highest point. Payscale says that some bookkeepers also get bonuses and extra money from profit sharing and commissions. Payscale says that these extra sources of income can add up to $19,000 to a bookkeeper’s annual salary.

Most people get better at their jobs as they gain more experience. Bookkeepers might also improve their skills by getting certifications like the CB and CPB. This could increase their overall pay rates.

#3. Salary by Location

A bookkeeping business salary varies by location, depending on things like the local job market and the cost of living. When there is more demand than supply, salaries tend to go up. In these situations, employers may raise pay rates to attract the best applicants.

Employers tend to pay a premium in places where the cost of living is higher. But keep in mind that higher costs of living could cancel out the money-saving effects of higher bookkeeping salaries.

Booming Bookkeeping Business

Bill Von Fumetti is a Certified Public Accountant and an Advanced Certified QuickBooks ProAdvisor in Redondo Beach, California. Five years ago, he was just an average guy who wanted more out of life. More happiness, more money, and more freedom. So, what do you know? He got there by doing bookkeeping, of all things. It could also get you there. In fact, one of the easiest ways to make more money and live life on your own terms is to start an online bookkeeping business.

Reviews of the Booming Bookkeeping Business

Bill Von Fumetti’s online course, called Booming Bookkeeping Business, has helped people from all walks of life start successful bookkeeping businesses. If you’re thinking about taking the course in 2023, they will give you the facts so you can make the right choice. Online courses aren’t for everyone, but they do have some advantages: you can take them from anywhere, go through the material at your own pace, and slowly put what you’ve learned into practice.

Heidi Whitney decided to take the plunge and join Booming Bookkeeping Business because of these benefits. Whitney finished the course in two months, in the middle of October 2021, while working a full-time job. She now makes over $100,000 a year from the comfort of her own home. She can now spend more time with her family and do things that are important to her.

“I did exactly what Bill told me to do.”

“He talks about how to get certified in QuickBooks, which lets you make a profile on QuickBooks. Then he talks about how to stay on top of all the reviews in your area,” Whitney says.

Booming Bookkeeping Business has everything you need to start your own business as a bookkeeper. The course lessons are short and simple to comprehend, and you’ll gain all the information you need, from pricing to forms to marketing methods. The course also educates bookkeepers on how to identify their specialties and narrow down the clients with whom they wish to collaborate.

Is a Bookkeeping Business Profitable?

Extremely. In fact, you’re onto something that could be very profitable for you, both now and in the future. The best full-time bookkeepers can earn well over $100,000 a year. In the economy we have now, even part-time bookkeepers can do well.

How Do I Start a Bookkeeping Business?

How to start a bookkeeping business in 8 steps

Choose your market and niche.
Create a business plan.
Register your company and obtain insurance.
Select your bookkeeping software.
Set up your company’s infrastructure.
Pricing your services…
Locate your customers.
Learn about your funding options.

What Is a Bookkeeping Business?

Businesses frequently employ bookkeepers to assist them in maintaining financial records and accounting reports. A bookkeeper will frequently do the following, among other things: Record and categorize transactions such as income and expenses. Handle a company’s finances with accounting software like QuickBooks or Xero.

Is Bookkeeping a Good Side Hustle?

Bookkeeping is a rewarding side hustle when it’s a hobby that you enjoy and is really excellent at. Consider this: Every organization will require the services of a bookkeeper at some point. It implies that there is always someone looking for bookkeeping services.

How Do I Find Bookkeeping Clients?

Here are some tips for finding more clients for bookkeeping:

Craigslist.
Subcontracting is an option.
Upwork and Other Sites to Find Work.
A page for a business on Facebook.
LinkedIn.
Cards for business.
Talk to SBA clients
Lists of local businesses.

References