How to Start an Online Bookkeeping Business
Starting an online bookkeeping business can be a difficult task. However, it can also be very rewarding. Keep reading to find out more.
The role of a bookkeeper is to keep records of the activities and financial affairs of a business. This is often called the general ledger. They generally make records of all transactions and post debits and credits to the ledger. Moreover, they create reports for supervisors and managers to read. These reports include financial statements, income reports and statements of cash-flow. A lot of businesses need bookkeepers because they don’t have time to prepare their own reports. You could start an online bookkeeping business if you are decent at math and have good organisational skills. Bookkeeping businesses are high in demand. Therefore, it is a very lucrative and competitive industry to be in. Although it may be difficult to start up, it is very rewarding. The following guide will help you get your business up and running.
An online bookkeeping business is one which you can start without having any prior experience. Although it would be helpful to have some, it is not necessary. Having some past experience will give you a good start in your business. However, you can always do some crash courses on bookkeeping.
Register as a business and protect yourself
You should always start your business off correctly. The best way to do this is by registering as a business. You can choose the type of business structure that you would like. Your business could definitely be a single proprietorship or you could form a limited liability corporation. The latter will allow you to share some of your liability with a partner. Moreover, you should get insurance since you are dealing with other people’s finances. Mistakes can easily happen and so you must ensure you are prepared for them.
Decide your clientele
Don’t be too eager to accept any client. It is extremely important to attract and serve the right clientele. You should try and serve companies that you like and would enjoy working for. If you have had previous experience, this can help you in gaining new customers. Moreover, being an online business will allow you to provide services globally. You should also try not to do work at a client’s office because this will tie you down to them too much. Providing your business online allows you to expand your earning potential.
Protect your clients
It is vital that your clients trust you with their private information. You should try to keep reassuring your clients that you are safely handling their details. Moreover, assure them that whatever they tell you is secure and protected by confidentiality. Take the extra steps of locking up important documents in a drawer. Moreover, you should definitely have a password to any important files on your computer.
Pricing and marketing
Make sure that the prices you set are justified and set out in an agreement. Do not charge something that does not match the amount of work you are doing. You should also decide the rate at which you are charging clients. Consider whether you will charge an hourly rate or a fixed rate. Furthermore, spend enough time on marketing and advertising. This will put your business out there especially if you are an online business. A website is generally the first thing clients will look at to learn about your business.
Although starting a bookkeeping business can be challenging, it is rewarding if you do it right. Following the right steps will get your business up and running. Make sure you have enough experience to start with and just keep expanding on it. Always ensure you are protecting your own business and your clients as well. You will be dealing with important information and mistakes can happen. Therefore, it is essential to have insurance. Finally, don’t forget to price appropriately and to advertise your business. This will allow you to maximise your earning potential. Contact a business lawyer for more information.
Aditi currently works in the Content Team as a Legal Intern for Lawpath. She is in her third year of a Bachelor of Law and Bachelor of Commerce (Accounting) at Macquarie University. She is particularly interested in Property and Criminal Law.