Even as the nature of business changes, one job that is always in demand is bookkeeping. 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. Next, you’ll need to invest in professional liability insurance, which protects you in the event you make startup bookkeeping an error in managing a client’s books. You might also consider general liability insurance coverage to protect against a broad range of risks. And if you hire employees, you’ll also need to invest in worker’s compensation insurance. For early stage companies, setting up solid bookkeeping practices may seem daunting amidst all the other priorities.

Pet Care Services

However, you do need a high-quality camera and may also want to invest in lighting accessories. To start a videography business, you’ll need a good digital video camera, lights, microphones and bounce boards to help you get the best quality footage. You should also launch a website that shows potential clients https://www.bookstime.com/ your portfolio of work. With hundreds of blogs and content streams starting every day, there’s a huge demand for reliable editors who can ensure high-quality content goes live. If you have an eye for grammar and punctuation, you might consider becoming an editor who reads and helps improve content.

• That’s partly because bookkeeping businesses don’t have a lot of barriers to entry or even a lot of startup costs to worry about.
• Using the data you gain from keeping a ledger, your next step will be to generate and prepare financial reports for analysis.
• If you plan to hire employees, such as an administrative assistant, you may also want to seek a small business loan.
• So, for example, if your customer signs a big contract, you’d consider the money earned, even if they haven’t paid you yet.
• Dogs’ coats need regular care, and dog grooming is a service that is in high demand.

Resources for Your Growing Business

Next, you’ll have to create a marketing strategy to reach your target market. It costs nothing to create professional social media accounts on top channels, though bookkeepers may have better results on sites like LinkedIn to connect with business owners. The accrual method provides a more accurate picture of profitability in a given period because revenues are matched to their actual expenses. This method works well for businesses that sell on credit, have long-term projects, or enter into many financial obligations.

Acquiring Clients for Your Bookkeeping Business

“Founders are typically smart, and [handling my own bookkeeping] is what I would do too,” she says. Eversmann encourages business owners to follow IRS guidelines on tracking transactions and to save all receipts for seven years. For example, prospective lenders and investors will always want to see your balance sheet and income statement before deciding to work with you.

Financial statements: A startup’s secret weapon

Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online. Likewise, you don’t need to have experience running a business, but that could also prove helpful. You might also consider applying for a business credit card to help cover expenses until you start making money. You can apply for a business credit card using your personal credit score and income; business credit is not a requirement. If you’re considering a business credit card, you might want to look for one that offers a generous rewards program and/or charges no annual fee. QuickBooks is a popular software platform used by small businesses and startups alike.

• You may be ready to be your own boss, work virtually,  make your own hours, and build your own accounting software program.
• You can choose a different method for tax purposes than financial reporting.
• You may be depositing bundles of money in the bank, but this number shows if you’re truly making a profit or just treading water.
• If grants don’t work out, you can always pursue business loans or private investors.

Also, run the name by a few people to see the impression they get of it. Once you have your finalists, run the names through your secretary of state’s business name database to make sure it’s available. The bookkeeping profession takes many forms, including virtual services and home-based businesses. Choosing the right bookkeeping software is one of the most important steps in setting up a bookkeeping business. Starting your own business may seem overwhelming, but the process is surprisingly manageable.

How to start a bookkeeping business