New Business Accounting Checklist for Startups

Deciding what to charge your clients is often a difficult process. You will want to do your research before pricing your services, and you will also want to maintain some level of flexibility to adjust your rates in the future. For a bookkeeping business, you may also want to include information regarding your niche and any certifications that you have as well. Professional associations also offer certifications so that you can hone your skills and market yourself as a professional bookkeeper.

  • Elevate your skills & client experience in just 4 weeks to become the collaborative controller or CFO that your clients need.
  • It’s important to remember that, besides physical (or virtual) space, accounting firms need to find and install the necessary equipment and technology to help their practice run more efficiently.
  • Some popular options include QuickBooks, Xero, FreshBooks and Zoho Books, among others.
  • It depends on the type of bookkeeping services that are being offered.
  • For example, BILL offers tools that enable you to automate bookkeeping tasks and enable bill pay for all of your clients.
  • Not only is this seen as a discount by the client, but it also allows you to create a fixed-fee structure for your services and show the clients the savings and value they receive.

Countingup is the business account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. The right accounting software, like Countingup, will help you manage your new business accounting smoothly and efficiently. Once you’ve settled on a business name, you’ll need to register your business in the state in which you will do business.

How to open a Barclays business account

Find bookkeepers that are similar in your skill set and experience to help gauge what you should be charging. Many clients will look for your website to find out about you and your experience. If you’re specifically running a totally virtual business, a website is extra important since it can demonstrate to clients your skills.

Make sure you have a signed contract before beginning any work on the client. You will want to follow up with the client to collect any signed documents and payments if necessary. A welcome package of information could include an engagement letter, a proposal, a project description, an executive summary, a company overview, and a cost summary.

How to Automate Client Onboarding

Over 6,000 accountants and bookkeepers use Jetpack Workflow to standardize client work, automate deadlines, and track firm progress. For the most part, a simple online presence is relatively easy to start with minimal start-up costs. And while an online presence won’t guarantee an increase in exposure, not having one can have a negative impact and can discredit you to a potential client. In many cases, website and social media become an augmentation to your word of mouth referrals. Most people won’t simply call a number without the opportunity to do some basic online research.

bookkeeping business startup checklist

BILL also integrates with many of the most popular accounting software providers. For decades, accounting firms have focused primarily on credentials. However, more and more, it’s less and less about certification and more about aptitude. For the most part, it’s easier to train accounting knowledge than it is to build customer service skills.

Meet with the team or team member assigned to the client

Bookkeeping is when you record expenses and earnings to determine your overall profit or income. It also helps you determine the cash flow of your business, or how much money comes in compared to going out. To maintain accurate financial records for tax reporting and performance analysis, you’ll need proof of what you spend on your business. It’s also important to keep your receipts as proof of purchase. This budget will also take startup costs into account and help you determine what sales will allow you to reach profitability. Without an independent account for your business, you’ll have to shuffle through bank statements to pull out transactions relevant to your business.

  • While it’s not required for bookkeepers to specialize in a niche, many choose to do so for marketing purposes.
  • When considering a home-based business, it’s important to think about the unique challenges and opportunities involved.
  • You are providing a service to your clients, but you’re also giving them a value based on your credentials and experience.
  • Above, in the “how much does it cost to start” section, we covered some of the specific pieces of technology and tools you need to start a bookkeeping business.
  • You’ll also want to make sure that you set up a business bank account to keep your business finances separate from your personal finances.

Bookkeepers are essential for other businesses to thrive, making sure that they’re keeping track of their financials correctly and on the right track to grow. Plus, familiarise yourself with the Making Tax Digital (MTD) government initiative to streamline the tax process. Right now, only VAT registered businesses are required to follow these processes.

How to start a bookkeeping business from home

Keep in mind that bookkeeping responsibilities are a bit different from those of a certified public accountant (CPA). Certified public accountants can file taxes, perform audits, and even provide professional guidance on the best way to manage company finances. It also contains 31 other free accounting workflow templates to help you run your business more efficiently.

To establish credibility and expertise, consider enrolling in bookkeeping certification courses. A robust business plan not only helps you clarify your vision but also serves as a valuable tool when seeking financing or attracting potential investors. Your brand will be the face of your bookkeeping firm, so make sure it reflects your values and appeals to your target market. Remember that the amount that you charge should be contingent on your years of experience, specialization in industries, certifications you carry and your area.

Be sure that when starting a bookkeeping business with QuickBooks, you use QuickBooks Online; not QuickBooks Desktop. It’s the best accounting application in my experience hands down. A well-chosen tech stack can significantly improve your productivity and the quality of your bookkeeping services. Keep an eye on emerging technologies and trends in the bookkeeping industry to stay competitive. You can adjust your rates as your experience grows and as you add new services to your portfolio. Be transparent with clients about your pricing structure and any changes that may occur.

  • When you create a bookkeeping process for your new business, find what works best for you.
  • Things are different when it comes to self-employed/independent bookkeepers, considering the self-employment tax they are obliged to pay.
  • But if you open a business account, you can organise all your expenses and earnings in one place.
  • Consider starting your search into business entities for bookkeepers by looking into sole proprietors and LLCs.
  • In an effort to streamline operations and cut costs, many small business owners are outsourcing their administrative tasks to third-party firms.
  • You can also look into specific accounting practice management software, some of which integrate directly into software such as QuickBooks Online.