How to Start a Bookkeeping Business

If you enjoy working with figures and know your way around a spreadsheet, setting up a bookkeeping service is a possible home business idea. Many small businesses and sole traders are not good at keeping track of finances and are happy to pay someone to do their bookkeeping. Others who have the skills will reach a point at which they need to outsource in order to free up their time for their main business activities.

You will need to be well organized and able to keep very precise records, as accuracy is essential. Customers’ financial details must always be kept confidential and you’ll need to send in your spreadsheet on a monthly basis and keep records up to date, so that they are ready for the accountant to prepare the client’s taxes.

A computer and software, a backup system, internet connection, phone and a system for filing customer’s details are the essentials for your startup.

You can advertise locally for clients or contact small businesses in your area either by phone or letter. You should have some business cards printed and design a brochure listing your services and prices. A website is a good idea, especially if you want to be able to attract customers from a wider area. You can learn basic html and build a site using a free html editor such as nvu. Or you can pay to have someone create a site for you.

Check online for similar businesses to see how they advertise and what they charge.
Look out for on and offline networking groups which will help you find clients and join your local chanber of commerce.

Once you have your first few clients, you will get referrals by word of mouth, but this is a business which can be started in your spare time with your first client, allowing your to test the business before giving up your day job. There are so many people starting up their own small businesses these days that you should have no problems finding clients for your bookkeeping business. Once you have enough clients, you can think about going part-time.