How to start up a bookkeeping business

No matter the reason, running your own bookkeeping practice can be extremely fulfilling. Likewise, consider becoming a member of a professional organisation like the AAT or International Association of Bookkeepers (IAB). You will have access to certain resources and be part of a professional community, which can ultimately help your business. But DOKKA also includes smart document management, chat and collaboration features, and many other features which aren’t classified as pre-accounting.

• You may initially operate your business independently and then hire more bookkeepers and other staff as your business grows.
• Jake has previous experience in the City consulting with investment funds.
• Once you’ve completed the AAT Level 4 Diploma in Professional Accounting and have the required work experience, you’ll apply to become a full member, with the internationally recognised designatory letters MAAT.
• You should also be aware of the services you cannot provide without certain certifications.
• Generally speaking, a bookkeeper will be charged with ensuring a business’ financial information is accurate and up to date.
• You can also work with as many or as few clients as you wish, as long as you put in the effort to find them.

Or perhaps you’ve always had a burning desire to start your own business, are good with numbers, organised, looking for flexibility, and want to do something that will help clients achieve their goals. Jake is currently finishing his Legal Practice Course with BPP before he commences his solicitor training contract with a City law firm. Jake received his Graduate Diploma in Law from the University of Law.

Do you need a license to be a bookkeeper in the UK?

Some bookkeeping businesses offer fixed price packages – for example an Accounting and Bookkeeping package and a Payroll package. If you do this, you might decide to offer a discount to clients who take more than one package. You might decide to offer bookkeeping services on a freelance basis to local accountancy firms that need an extra pair of hands during busy periods. To be a bookkeeper you need to have a money laundering license, also known as AML – Anti Money Laundering. If you don’t have this you would be breaking the law if you start a bookkeeping business from home. I have always been eager to branch out on my own but I know that there are a million things I need beforehand so having my own accounting practice is still in the future for now.

The next important point to consider is the size of business you want to target. Larger businesses will want more analysis, and although that analysis may not be done by you, the bookkeeping will become far more involved and therefore time consuming. Generating reports at least once a month is the surest way to stay on top of your business finances, and ensure you don’t get caught out by nasty surprises. Your monthly reports should include a profit-and-loss statement and the balance sheet, as a minimum.

Keep track of expenses

Jake has previous experience in the City consulting with investment funds. He has a master’s degree from the University of Oxford and received his undergraduate degree from Sarah https://grindsuccess.com/bookkeeping-for-startups/ Lawrence College in New York. You’ll have to register your business with HMRC, manage your own taxes, and do all the usual tasks that anyone who is self-employed has to do.

Most password manager software requires you to pay a monthly or annual fee, with prices starting as low as £5 a month for a reputable company. Deciding what to charge is always tricky when starting out, so again, utilise your network and draw on your previous experience to work out a fair fee to your client and allows you to run a profitable business. It can also be a good idea to get professional indemnity insurance – this is a requirement of some professional bodies.

Benefits of Hiring an Accountant for Small Business

You’ll need to get proper insurance, including professional indemnity insurance. Self-employment is fast becoming a popular career choice for bookkeepers. Whether you’re at the beginning of your bookkeeping career or you’re thinking of making the switch to self-employment, this guide will help you get to grips with starting a bookkeeping business. Before you leave your day job to go it alone it’s important to have a proper plan. Many one-man-band businesses that start to grow may be looking for your services. Most sole traders are likely to prepare their books themselves but need someone to prepare accounts and get them to the inland revenue.

Helping to turn around the finances of a business can also make you well-known within your industry. Bookkeepers are needed all over the world and many other countries place value on bookkeepers who have knowledge of the UK and US financial markets. You could move abroad and run your business from another country or even move bookkeeping for startups your business to another part of the UK. This is a great advantage for people who may want to travel or don’t yet know where they want to base themselves. Anti-virus software can detect and delete malicious codes and intrusions on your computer or laptop. This can protect you and your business against viruses and malware.

Marketing Your Book Keeping Business

Being an ICB member means you will receive supervision through the Practice Licence scheme that all self-employed bookkeepers need to have in place to be able to operate. It’s interesting to learn that bookkeeping will take longer when working for a larger company. My brother is wanting to become an accountant and he was wondering how he could prepare to be a good bookkeeper for financial accounts.

You could also choose to provide your clients with bookkeeping software that enables them to do some of the work themselves. As part of your bookkeeping business, you may choose to handle the finances of only one business or company, or you could bookkeep for multiple businesses. You could also hire additional bookkeepers in order to expand your business and offer your services to more clients. Once you’ve defined the broader aims of your business, it’s time to focus on achieving these, which means understanding your target market.

In part 5 of this course we will look at how to keep your clients and meeting deadlines. You must be bona-fide, the problem is, you haven’t even started yet! Follow these steps methodically and you will start to build your client list. Choose a classic font everytime you use it and people will remember you.

Many bookkeeping firms set out their fee scales on their websites so this will help you get an idea of what to charge. Although you will have to base your own rates on your costs and on the level of income you want to bring in, it’s also important to remain broadly competitive. However, it’s very important to make sure that the fees you charge for your services are enough to cover all of your operating costs, including staff wages and your own drawings. Your clients are likely to consist for the most part of small and medium size businesses.