Small Business Bookkeeping: A Beginners Guide

Consider enrolling in relevant courses or obtaining certifications to enhance your skills and knowledge. Familiarize yourself with popular bookkeeping software and stay updated with industry trends. Bookkeeping is an accounting process how to start a bookkeeping service of recording and maintaining accurate records of your company’s financial transactions. This information can help you make informed decisions about your business operations, investment opportunities, and other financial decisions.

Many banks offer additional services that can help you maintain and scale your business operations, such as business credit cards, small business loans, and more. Starting your own business may seem overwhelming, but the process is surprisingly manageable. Here’s how to start a bookkeeping business in just nine simple steps. My favorite social media platform for getting bookkeeping clients is LinkedIn®. Now, just because we learn how to start a bookkeeping business using QuickBooks Online, your learning and development does not stop there.

Bookkeeping Options for Small Business Owners

QuickBooks ONLINE is the accounting software most used by virtual bookkeepers. Above, in the “how much does it cost to start” section, we covered some of the specific pieces of technology and tools you need to start a bookkeeping business. You want your business name to reflect you as a person and the type of services you provide.

From entry-level bookkeeping and clerks to analysts and beyond, the finance field provides many opportunities for qualified candidates. A high school degree or GED is a requirement to become a bookkeeper. Since bookkeeping doesn’t typically require a college degree, this is a foundational education requirement. https://www.bookstime.com/articles/top-highest-paying-jobs A high school degree is also a requirement if you later earn a college degree in accounting or a related field. Create a functional workspace that accommodates your bookkeeping operations. Invest in essential equipment, such as computers, bookkeeping software, filing cabinets, and office supplies.

Why Bookkeeping Is Important for Small Businesses

A client’s financial activities will include all transactions related to their income and expenses and a bookkeeper is responsible for recording all of these transactions accurately. Some bookkeepers may also have to facilitate financial transactions and ensure  transactions are legally compliant. Bookkeepers are responsible for recording financial transactions related to the business. While most bookkeepers work with businesses, some individuals may also choose to hire a bookkeeper to track personal finances. Budget analysts advise companies on financial decisions based on financial health and other stats. Accounting professionals in this role help companies create budgets, plan for future financial decisions, and monitor the financial stance of a company based on financial records and data.

Staying on top of your bookkeeping is important so that you don’t have unexpected realizations about account balances and expenses. We’ve put together this guide to help you understand the basics of small business bookkeeping. Bookkeeping can be a great side hustle if you’re good at it and enjoy the work. Bookkeepers are administrators first and foremost and are responsible for updating and maintaining financial transactions and reports.

Consider an associate or bachelor’s degree

The new requirement comes after the IRS released final regulations in February amending the electronic filing rules for information returns such as the Form 8300. You can work with other bookkeepers and tax experts to share and expand your knowledge. There are many opportunities to work in a salaried position from home to gain on-the-job training. The Intuit Tax and Bookkeeping Talent Community is a great place to find remote bookkeeping jobs and access training material. You can also find remote jobs on job board websites such as Indeed.

For now, though, you’ll likely want to get a business credit card to fund your bookkeeping business. This will give you the spending power to set up your company and put all of your business expenses in one place. That’s not only important for separating your business and personal finances, but can help you with your own bookkeeping come tax season. Bookkeepers are not required to have certifications or specific education unless required by a specific employer. However, completing a bookkeeping certification program can teach you basic accounting and how to perform bookkeeping tasks and has the potential to set you apart from other bookkeepers.

In many cases, your future plans as a bookkeeping business owner will likely involve a combination of all three. Using the SMART Goal system—striving for goals that are specific, measurable, achievable, realistic, and timely—will help you chart a more effective path forward. Your business plan should also contain an executive summary that clearly illustrates how you plan to be successful. Even if you feel you have already thought about all of these key details in your head, you’ll still want to get everything on paper for potential clients, lenders, partners, and even regulators.