There are endless opportunities to start an online business of any size or shape in the digital age.
Although it might seem overwhelming to start a business from scratch, particularly if you don’t have any previous experience in bookkeeping or running a business, we can help you navigate the process. You won’t become a billionaire overnight by starting a virtual bookkeeping company.
However, you can still make a decent income by working remotely and offering a valuable service. Every business needs accurate financial transaction records. Bookkeeping can be a viable business option. How do you get started with this virtual business?
What is a Bookkeeping Business?
Bookkeeping is essentially about accounting. It helps businesses to balance their books.
This term covers a wide range of services, including:
- Management of accounts receivables and accounts payable
- Preparation of income tax and self-employment taxes
- Invoice preparation
- Supplemental financial reports (e.g. budget)
- Long-term asset tracking (e.g. equipment)
These services can be classified into three main categories: income statement, balance sheet, and statement cash flow. All businesses require accurate records of income and expenses when the financial year is over and taxes are due.
There’s more to bookkeeping than that – business owners want to be able to see the numbers and understand them. This involves looking at the assets, liabilities, equity, and profit and understanding what they mean for your business.
A bookkeeping business can help clients grow their businesses by giving them advice and getting geeky about the numbers. This can be a rewarding career path that is both enjoyable and fulfilling for the right person.
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Starting A Bookkeeping Business
These are the steps you should consider when starting a bookkeeping business.
There aren’t any costs associated with starting a bookkeeping company. If you have a reliable laptop, you don’t need to purchase anything. You can complete the work from your own computer. A laptop is not enough.
Most clients expect you to use their accounting software. You must purchase or subscribe to the appropriate programs. You should only purchase one piece of software as it can be quite expensive.
Insurance for errors and omissions
Insurance is another must-have. As bookkeepers are responsible for sensitive client information and keeping accurate records, they also have to take on a serious role.
You could be sued by your client if you make mistakes. In the event of such an unfortunate event, insurance protects you. An insurance policy that covers errors and omissions is what you will need.
There may be additional costs if you are completely new to bookkeeping. If you lack the experience, it might be worth completing training or getting a certification. This will be discussed later.
There are some optional costs that you may want to consider, but they are not necessary.
- Business cards
- Office Supplies
- Website creation and hosting
- Your domain is linked to an email account
- Computer Safety Software (disk encryption, password administration)
- Starting a business costs
There are many ways to structure your bookkeeping business.
It is easier to set up a sole proprietorship. This means that you are a self-employed person and not a business. It’s simpler to start a company as a sole proprietor. However, this can be riskier since you will be responsible for any problems that may arise.
If someone sues you, for example, you may become bankrupt and lose all of your assets. You would be subject to monetary restrictions if you started a business. Legal matters should not be overlooked (documentation is a particular area that start-ups often ignore), but registration fees should be kept low. An LLP is cheaper.
The cost of registration is only Rs. Register for an account and pay Rs. 4,040 to comply with MCA regulations. An audit is not required if your turnover exceeds a certain threshold. This is why LLP is a better option than a private limited business and we recommend it to you.
How do I find bookkeeping clients?
- Connecting with new clients is like meeting friends, or even dating, in the bookkeeping business. It takes time. You may need to meet several times before you can trust one another enough to make a commitment to building a relationship.
- You are in this situation. Will you ever share your entire company’s financials with anyone else? Never, Right? Credibility is the most important thing.
- Find out who you’re looking for.
- Who are your ideal clients? This will help you narrow down your client list. Marketing was the only way to solve all problems ten years ago. It doesn’t work today. You shouldn’t be friends with anyone.
- How will you attract the perfect client?
- You’ve heard it all: Content rules the internet. You should create content that is attractive to your prospects. It is important to research topics that will help clients solve problems related to your services.
- It could be an accounting, payroll, tax, or financial problem. Impressive content can help you get their attention, show your expertise, and establish a connection with them.
- Now you have a plan. Now, it’s time for you to market your solution. The leads will find you if you do the right marketing.
Step 1 – Make Your Website
Your primary purpose should be:
1) It will prove that you are a legitimate business and help you gain credibility.
It will be a powerful tool for converting visitors into potential customers.
Set up your website here
Select Your Website Platform
There are many website builders available. GoDaddy, Wix, Squarespace, etc. WordPress is the best platform for SEO right now, especially if your goal is to blog.
Step 2 – Select Your Web Pages
You will need to decide what content you want on your website, regardless of whether you hire a web designer or create it yourself. You may find yourself overwhelmed by the number of links available when you go to a website.
Step 3 – Write your web page content
Websites should not be novel. Websites are not read by people. They are scanned. Website visitors need to be able to quickly and easily digest the information.
One tagline is the best thing for your homepage. It should be bold and direct. This is not a place for fancy writing. The simpler the message, the better.
The about page is a great place to show off your work.
- Who are you and your team?
- Your culture
- How you can solve the problems of your target market?
A bookkeeping business could be the right fit for you if you have a knack for numbers, and are organized. This is also a highly-demanded area. Every business must have timekeeping software Someone has to do this work.