10 Tips for Starting a Bookkeeping Business
Most of the jobs in the field start in an office-based environment, and it is probably best to look for a job locally and then see if it can be transitioned into a work-at-home accountant job. Small business needs to keep track of the finances to gauge their success, fix what isn’t working and know when it’s time to grow.
Meanwhile, due to the focus of the EA’s activities on tax preparation, it is natural to engage services of the tax preparers once a year. The non-CPA tax preparers may be a good, cost-effective option for an individual or a business whose tax situation has remained constant from previous years. The EAs are well qualified to prepare tax returns, and may represent clients with inter-state tax issues, which a regular CPA cannot. Because of this, some CPAs also get qualified as EAs in order to provide their clients with a more versatile suite of tax services, though at higher CPA rates. My QBCU certification gave me credibility with potential employers.
The last word on accountants and bookkeepers
At the end of the day, the answer to this question will ultimately depend on what you and your small business need from your bookkeeper. Either way, having a bookkeeper keeping track of your small business’s finances will free up the time and energy you need for growing your business. The next time you find yourself wondering, “What does a bookkeeper do? ”, you now know that the answer can be anything from reconciling transactions to processing payroll—the answer can even be managing all of the above. It helps to think of a bookkeeper as the chef who prepares the meal.
As part of our goal to build our bookkeeper/accountant community, we have a bookkeeper directory that includes bookkeepers in every state who provide bookkeeping, payroll and tax services. Often, we have small business owners who are looking for a local bookkeeper in their area and we always refer them Bookstime to our bookkeeper directory. Join our directory so that our 2 million-plus monthly readers can find you. Some bookkeeping, accounting, and auditing clerks become certified. For those who do not have postsecondary education, certification is a particularly useful way to gain expertise in the field.
This is a great way to get exposure for your business and to get potential clients to find you. Facebook is undoubtedly a popular social media site that is used by professionals to meet prospects and build a network. You can create a Facebook page for your business, join local Facebook groups, post your services, and ask recommendations from those groups. You’ll be surprised to find out that there are many potential clients who are also looking for services and recommendations in the same Facebook groups. Meeting new people is essential if you want to grow your network and client base.
Intuit also offers seasonal jobs as a QuickBooks Live Senior Expert Bookkeeper. If you plan to work in the bookkeeping domain, a four-year degree is preferred; if you want to work in the tax prep domain, a four-year degree is required. ClickAccounts provides business process outsourcing (BPO) service provider for small and medium-sized companies. To apply for an accounting or bookkeeping position, email your resume to
Working at a small company, this position may be in charge of every aspect of the company’s finances. Full charge bookkeepers don’t need to have college degrees, but nearly all of them have some college coursework and additional education and training. Typically, full charge bookkeepers prepare a company’s records for review by a certified public accountant. They may be in charge of accounts receivable, payable and payroll and tax deposits.
- Freelance bookkeepers typically charge between $30 to $50 per hour for basic bookkeeping tasks.
- Overall, bookkeeping plays a vital role in the progress and performance of the business.
- As part of our goal to build our bookkeeper/accountant community, we have a bookkeeper directory that includes bookkeepers in every state who provide bookkeeping, payroll and tax services.
- To me, this is an important distinction, which is why I have a CPA who helps me review my books and who gives me tax advice, as well as preparing and submitting my business and personal tax returns online.
- Professional, scientific, and technical services $42,560Finance and insurance 41,720Wholesale trade 41,170Healthcare and social assistance 39,310Retail trade 35,170 Most bookkeeping, accounting, and auditing clerks work full time.
- A full charge bookkeeper who wants to work for a small to medium-sized business does not need to be a certified accountant.
It is an amazing program with endless possibilities, and a great achievement just in general. Now that you have learned how to get bookkeeping clients quickly, we recommend that you take a sequential approach and start with getting certified, become an accounting software expert and determine your target audience. Once you have achieved those three, you can implement the marketing ideas that you are most comfortable with first and then work your way down the list. If certified through the AIPB, you can put the letters CB (certified bookkeeper) behind your name and, if certified, through the NACPB, you can put the letters CPB (certified professional bookkeeper) behind your name on business cards and other marketing materials to inform prospective clients that you have the knowledge and skills required to manage their books. After you have obtained your credentials and identified who your target audience is, it’s time to take action.
Therefore, someone in the group who does not like to train their clients will send them over to me and, in return, I send them clients who are looking for someone to provide bookkeeping services. Plus, there’s a wealth of knowledge in the group that can teach you how to get bookkeeping clients quickly. Another way to expand your client list is to partner up with other businesses that offer professional services like lawyers, tax professionals and bankers. They have small business clients that need your bookkeeping services.
Bookkeepers vs. Accountants
According to GlassDoor, current listings in high cost of living cities like New York or L.A. show full charge bookkeepers salaries creeping https://www.bookstime.com/ towards $70K. In addition, you’ll need to add around 20% on top of salary for benefits and overhead including office space.
Hourly rates for internal, part-time bookkeepers average around $20/hour depending on job description and location. They typically are performing basic bookkeeping duties and will need to be supervised and managed. Many small businesses in early stages are primarily concerned with compliance – paying bills, getting paid, recording transactions, ensuring payroll accuracy and following state and federal regulations. At some point, your business will cross a threshold and you’ll begin to place more emphasis on the need for timely, accurate financial reports and intelligence. This is when you’ll need more advanced bookkeeping, accrual based accounting and management or managerial accounting to help you make data-driven decisions.
Full charge bookkeepers have clear job responsibilities and regular work duties, making it a good position for people who like to have similar duties and a relatively quiet indoor work environment. The position changes and can have an opportunity to play an important role in a smaller or family-owned business. Some bookkeepers have opportunities for profit-sharing or working for organizations with a mission they share, like schools, religious organizations or health clinics.
Cost estimators collect and analyze data in order to estimate the time, money, materials, and labor required to make a product or provide a service. The National Association of Certified Public Bookkeepers offers the Certified Public Bookkeeper (CPB) certification. To obtain the certification, candidates must pass the four-part Uniform Bookkeeper Certification Examination. Bookkeeping, accounting, and auditing clerks usually get on-the-job training.
Many hold advanced degrees, such as MBAs with accounting or finance concentrations, or they have Master of Accountancy degrees. To sit for the Certified Public Accountant, or CPA exam, which is a common goal of many accountants, you must have a minimum of 150 postsecondary education hours.
An accountant can advise you on ways to conserve costs and increase profits and help you understand the financial impact of business decisions. Along with accounts receivable, many bookkeepers also handle their clients’ accounts payable. That means the bookkeeper will handle all of the vendor bills that the company receives.