How to start a virtual bookkeeping business

how to start your own bookkeeping business

Before going it alone, many people look to pass level 1 and level 2 exams with the option to add to this as your business develops. However, it is worth learning some selling skills; this includes your first meeting, writing a proposal, how to win the business. Home learning courses are available that lead to qualifications accepted by accounting bodies such as the International Association of Bookkeepers or the Association of Accounting Technicians. Look on the internet as there are also home-based courses available.

how to start your own bookkeeping business

It’s not cheap but every bookkeeper I’ve known as generated too much business from it. Get in some Facebook business groups ASAP they’ll help with start up ideas too. For marketing set up a Facebook page (after choosing a name for your business and having done all the set up). My planning has just started (2019 resolution!) so does anyone have any tips on what else I may need?

bookkeeping tips for small businesses

And by using a cloud accounting solution, you’ll be able to access the numbers on any device, wherever you are. Claire Adams started her business Papertrail Bookkeeping after she was made redundant from her job of 27 years. Characteristics of becoming a bookkeeper include being accurate in your work and having a good understanding of financial topics.

As seen above, the introduction of MTD reinforces all of these reasons for businesses to out-source their bookkeeping, particularly smaller businesses without their own bookkeeping department. The introduction of Making Tax Digital (MTD) by HMRC means that businesses have to keep digital business records and submit quarterly returns to HMRC based on those records. Join our Sage community to speak with business people like you.

Products and Services

Now you have a running commentary on how well your business is performing. In fact, bookkeeping is a small but vital part of the overall accounting function. If you are handling or storing personal information on your clients, then you need to pay a data protection fee of £40 to ICO and ensure you are GDPR compliant. Due to the financial nature of a bookkeeping business, certain licences are required for handling personal information and protection against fraudulent funds.

how to start your own bookkeeping business

For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Let us say you are working for a client to process certain transactions the company has made this year. Suppose you make an incorrect calculation or fail to pick up on a key element of the deal and you do record it as you should have. Your client, relying on this information, proceeds to act as if it is correct. The definition of money laundering in the UK is quite broad, encompassing all forms of handling or possessing criminal property, including the proceeds (i.e., money) derived from a crime. An example will be the onboarding of new clients, and billing them – there are many apps in the cloud accounting app stores dealing with these.

AAT opens doors

Depending on how many clients you pick up, you’ll need to manage dates and deadlines. Alternative, project management and productivity platforms like Clickup can be really useful tools to help you manage your responsibilities. Your definitive guide to regulations that affect you as a business owner and ICB Practice Licence holder.

As with every start-up business, you should ensure that you have a thorough business plan, with particular attention paid to the financial elements when starting your bookkeeping business. You will also want to consider what business structure you should adapt and ensure you understand the implications of incorporated versus unincorporated structures. In addition, you will want to review the importance of qualifications particular to bookkeeping.

Most customers prefer a fixed fee so that they know the costs and can budget for it. Working for a fixed rate can be challenging to estimate how long the work takes. Ensure you have an agreement in place to review the price, especially if the workloads change. You might decide to offer a discount to local charities, ministers of religion, clubs and so on. Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

  • Additionally, if you provide accounting or payroll service, you are subject to laws against money laundering.
  • Other businesses will be established concerns which have more complex bookkeeping requirements that take up more and more of the proprietor’s time each week.
  • Others will choose to charge an hourly rate based on time spent.
  • These articles and related content is provided as a general guidance for informational purposes only.

We offer two types of licence, so you can apply for the one that’s the most suitable for your qualifications and experience. We’ll provide useful advice and updates, free and discounted events to help you build your business, free advice helplines, plus CPD and practice management resources, and much more. Obviously, you want local businesses bookkeeping for startups to be your customers so think about where you can get in touch with them. The local builders, electricians, plumbers and other trades are easy to hunt down because they will be on customers’ sites with their van clearly visible. The AAT qualification is the most basic for a qualified accountant although they can not sign off audited accounts.

If you operate remotely, you can also work with businesses all over the country, which expands your potential reach. You must register your business with HMRC before you begin operating. You will need to register your business name and any other relevant information. Any person or business who is involved in the preparation of financial reports must comply with the regulations regarding how reporting is done.

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