Bookkeeping Guide
Learn bookkeeping in easy to follow steps. All the bookkeeping concepts are simplified to understand and remember for beginners. So go ahead and start. Stripe Atlas' guide to what you need to know about bookkeeping and accounting for your business in the first year. Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.
What is bookkeeping, exactly? Bookkeeping is the process of tracking all of your company’s financial transactions, so you can see exactly where your business is spending money, where your revenue is coming from, and what you’ll be able to claim as tax deductions. This should be done at regular intervals throughout the year. It may seem tedious, especially when you could just throw a box of receipts at your accountant at tax time. But keeping your books up to date between tax filings serves the very real purpose of offering real-time snapshots of your business’ financial health. How is bookkeeping different from accounting?
Bookkeeping and accounting both help your business stay financially healthy, but they serve different purposes. Bookkeeping is how you keep track of your finances. Accounting is how you interpret those financial records for strategic purposes.
Bookkeeping includes things like entering your expenses into a spreadsheet and filing your receipts. Accounting might include activities like, tax planning, financial forecasting for the upcoming year, or creating annual financial reports at year end. Learn more about the differences between bookkeeping and accounting.
Why it’s important to stay on top of your bookkeeping It ensures that you don’t miss out on deductions You might not know the entire small business tax code in and out, and you don’t have to. But the more information (and supporting documents) your CPA has at tax time, the more deductions you’ll be able to legitimately claim.
It can help you secure a business loan Thinking of expanding your business? If you need financing of any kind, having well-kept books gives lenders or investors a clear idea of your business’ current financial state, and allows them to make financial projections about your company’s ability to pay off your loan in the future. It helps you to catch banking errors quickly If you wait until the end of the year to reconcile your financial transactions, then you won’t know if the bank made a mistake until you’re buried in paperwork at tax time. It can be more difficult to reconcile an overcharge with your bank months later, than if you’d caught it right away. It gives you a clear picture of where your money is going You may be able to see your bottom line by glancing at your bank balance, but the ups and downs in your account are also telling a story. Are sales up? Are your shipping costs too high?
Your bookkeeper does. Paying attention to your financial statements is a great way to get to know the story of your business. Bookkeeping in 7 steps When it comes to the actual work of bookkeeping, here’s what the process looks like.
Step 1: Separate your business and personal expenses First thing’s first—to track your business finances effectively, it’s important to permanently separate them from your personal finances. Liability—if you’re running a corporation or limited liability entity and there isn’t sufficient distance between your personal and business finances, there’s a chance that you could be held for any debts incurred by your business. Plus, you’ll want to pull your hair out when it’s time to reconcile bank statements, and you have to try to remember if that restaurant expense was with a client or not.
Step 2: Choose a bookkeeping system There are two main bookkeeping methods: single-entry, and double-entry. There’s no right or wrong, it’s just a matter of picking the system that’s right for your business, and sticking with it consistently. Single-entry is a simple system that might work for you if your bookkeeping is very straightforward. Entries are recorded one time, as either an input or output. Especially if you’re doing your own bookkeeping, this is likely the approach you’ll want to take. Double-entry is more complex, but also more robust.
First, all transactions are entered into a journal, and then each item is entered into the ledger—you guessed it—twice, as both a debit and a credit. For example, if you own an ice cream shop, each time you sell a pint of ice cream, the sale is entered as a credit to your “cash” account and as a debit to your “ice cream” account (more on accounts later). Debits and credits entered in the ledger should always add up to zero. The IRS has published a to help you understand the ins and outs of double-entry. Using the double-entry method is complicated at first, and may require the help of a trained bookkeeper.
Step 3: Choose an accounting method—Cash or Accrual It’s important to choose either a method before you start your books. If you’re using cash accounting, you only record transactions when money has exchanged hands. So if you billed a customer today, those dollars wouldn’t enter your ledger until the customer paid you. Using the accrual accounting method, you would record the income when you bill the customer, rather than waiting for them to pay you.
So at the end of the tax year, you’ve recorded all income that you earned during that year, even if you haven’t collected it yet. Same goes for deductions. You deduct them when you’re billed, not when you pay. If your company has inventory, in most cases you’ll be expected to use the accrual method. Step 4: Categorize your transactions Every transaction you make needs to be categorized when it’s entered in your books.
This helps your bookkeeper catch more deductions, and will make your life easier if you get audited. Six months later, an unmarked receipt for lunch at a restaurant might not mean much to you. Was it a client lunch? Did you treat your employees after a successful quarter? The way you will depend on your business and industry.
Generally speaking, your transactions fall into five account types—assets, liabilities, equity, revenue, and expenses. Individual line items are then broken down into subcategories called accounts.
In our ice cream shop example, some accounts in your ledger might be “revenue-ice cream sales”, “expenses-ice cream ingredients”, etc. The actual work of categorizing will depend on your bookkeeping solution. If you’re doing it all yourself, you could make a note on each receipt. If you’re using an online bookkeeping service like, you’ll just have a conversation with your bookkeeper, and they’ll take it from there. If you’re going to be doing your own bookkeeping, it’s worth talking to a pro when you set up your system, to make sure the accounts you create align with your industry standards and CPA expectations. Step 5: Organize and store your documents At tax time, the burden’s on you to show the validity of all of your expenses, so keeping supporting documents like receipts and records is crucial.
Diamonds may be forever, but the ink on your expense receipts is not. Since the IRS accepts digital records, it’s smart to use a cloud-based system like, or so you never have to deal with smudged receipts. You can also use apps like, which are specifically made for receipt tracking. Plus, let’s face it, that overflowing shoebox has got to go. Step 6: Organize potential deductions The IRS’ is that they must be both ordinary (a common expense in your field of work), and necessary to your business.
For example, pens would be an ordinary expense for a writer, but a $900 pen might not fall into the category of “necessary” (well, it definitely wouldn’t). Even when an expense is ordinary and necessary, it may not work out as a one-to-one deduction on your taxes; just because you mostly work from your dining room table, doesn’t mean that you can deduct your entire monthly rent. Luckily, the IRS has made. Step 7: Make it a habit It’s easy to fall behind on your bookkeeping when you’ve got other things happening.
To stay on track, try setting a finance date with yourself (or your business partner) once a month to get it done. If you do happen to fall behind, Bench. Should you go it alone or work with a professional? There are a ton of options out there for.
They fall into two basic categories: doing it yourself or having them done by someone else. The DIY approach If your business is starting out as a side hustle with a limited budget, taking a DIY approach is a great way to get started. If you go this route, a consultation with a CPA or bookkeeper to help you set up your books will ensure you don’t end up with a year of books that have to be re-done by a professional. Your DIY bookkeeping can be handled using a simple spreadsheet, or you can work with one of the many online bookkeeping programs available.
Outsourcing to a professional If you have a larger business, or if your bookkeeping duties just keep getting pushed to the side, it might be time to hire a professional. Our bookkeepers here at Bench can, and we’ll give you simple software to keep track of your finances.
If you have a lot of physical financial records or prefer meeting face-to-face, you might also hire a freelance bookkeeper or a firm in your area.
In addition to a bookkeeping business being a cash-cow, it also has built-in demand. Every business in the world is required to maintain accurate bookkeeping records. Small business owners need to know where their money is coming from and where it is going enter the great bookkeeper. Small business owners (we also call them entrepreneurs) need a great bookkeeper to make sure their financial statements are in order. However, entrepreneurs WANT more; they long for a bookkeeper that goes beyond the accounting / bookkeeping and helps their business to be more profitable. Small business owners want someone to help them to make sense of their balance sheet (one of the big three financial statements which shows assets, liabilities and equity) and explain it in laymen’s terms. With the advancement of cloud-based business accounting apps, bookkeepers now focus less on the boring aspects of the profession such as data entry, and can focus on providing real value to entrepreneurs in the form of advice.
And, that advice helps small business owners to be more profitable. A more profitable client means you earn more money too. It’s a win-win scenario. What does all of this mean for YOU? Is there a benefit for you starting a bookkeeping business? Starting a bookkeeping business means you get.
Be there for your life’s precious moments: maybe it’s your son’s first basketball game or your daughter’s recital. Maybe it’s that family vacation you’ve always dreamed of. These are the irreplaceable moments that you get to be a part of! Warning: Don’t Start Until You Read This!
Let’s get one thing clear up front: starting a bookkeeping business is NOT for everyone. There are certain character traits that you need to have in order to be a success. I have trained 3,491 bookkeepers (and counting) over the course of my career. I’ve learned what separates the great bookkeepers from the average bookkeepers. And, by the way, the GREAT earners from the average earners. To help determine if YOU will make a great bookkeeper, I’ve compiled a list of seven (7) key character traits that all great bookkeepers share. Before you discover the seven key character traits, I would like for you to pause and write down what you think they are.
Go on, I will wait.:) Ok, you’re back! Awesomewithout further adolet’s look at the character traits you need in order to start a bookkeeping business. The top seven character traits of great bookkeepers. T rait #7: Positive outlook Remember the Disney movie Pollyanna? My kids used to love that flick. You see, Pollyanna always played what she called “the glad game.” She tried to find the good in every situation.Now, I do not suggest that you have to take things to the Pollyanna extreme.While that is certainly wonderful if you can, we don’t live inside a pretend world.As for starting a bookkeeping business, a positive outlook means that regardless of what happens you KNOW (without a doubt) that you will prevail. You know that your SUCCESS is a given.
You don’t always know HOW you will succeed. Sometimes you have to make that up as you go.Being a successful entrepreneur is sometimes lonely. There are no help desks, bosses to ask for help or resources to tap into other than your own ability.To be confident in your own ability; that, my friend, is a positive attitude. Trait #6: A difference maker Do you like to help? Are you a nurturer? If so, then YOU are a difference maker.In the world of starting a bookkeeping business, being a difference maker is all about impact.
This impact is to help your client, the entrepreneur, to succeed. And not just in terms of dollars and cents.Remember in trait #7 above when I said it’s sometimes lonely for entrepreneurs? Your clients are no exception. Just like you, they have no one to turn to in most situations. To understand this fact is the root of a special relationship between you and your client.Yes, the main focus of your difference-making ability is on finances: make more money, get rid of debt, more cash flow, etc.However, as a great bookkeeper, you look beyond just making money, and look at the big picture. And, guess what It’s so FREAKIN’ SIMPLE to do this – IFYOU are a difference-maker.And bookkeepers who are difference makers with positive attitudes make a LOT more money than those without these key character traits.
Trait #5: Hard-worker Wow, did I REALLY just say that? I mean, if you own your own business – isn’t this a given?Well, it should be. However, it’s important for you know, up front, that to start a bookkeeping business requires hard work. I liken this to having a new-born. When the baby is first introduced to the world, she requires around the clock attention.
Bookkeeping Guide For Lawyers
This means lots of sleepless nights.To start a bookkeeping business: it’s not about diaper-changes and the like, but it does require a lot of your attention. Especially during the first months and years of existence.But, oh the rewards! I always say that it’s a short-term sacrifice for a lifetime of benefit. Trait #4: Organization Ummm, you deal with other people’s money. That means you must be organized.Now, I am NOT the most organized guy in the world, so I rely on systems and software to help me. Luckily, “there’s an app for that”!All the tools you (and I) need to keep our ducks in a row are out there.However, you must be somewhat organized to be a great bookkeeper.
Slobs need not apply. Trait #3: Ability to handle multiple projects As a great bookkeeper, you will serve many clients. It could be two or two hundredthat all depends on you and how big you want your bookkeeping business to be.We must be able to look at the work that needs to be performed and prioritize it to meet or beat any deadlines. Most days this is easy-peasy. Some days, however, it gets a bit dicey.Bookkeeping has times of peak workload and then down times.One of the systems we help students to implement is all about productivity – getting the most stuff done in the shortest time possible.Mix in organization with productivity and you’re off to the races.
Trai t #2: Detail-oriented Numbers. Enough said, right?. Trait #1: Personable and caring And this #1 trait of successful bookkeepers comes as a shock to most, including yours truly, as I discovered what makes a GREAT bookkeeper.How about you?Was personable and caring on your original list?Bookkeeping is first and foremost a RELATIONSHIP BUSINESS.While numbers are important, that is not why business owners pay you the “big bucks” so to speak. Numbers are numbers and if we try to compete on this level as bookkeepers, we are viewed as a commodity.However, when we let our personality shine through and show business owners that we truly care and are personable – well, that is something unique to YOU.Being personable means that you can speak to your client on their level. No fancy bookkeeping talk here; just plain and simple explanations about what’s going on in their business.
And, more important, how they can make their business better.The great news is: it is simple to speak simpleto your clients that is. One of the things we teach our students who start a bookkeeping business is how to talk to their clients in a way they understand and appreciate.You see, entrepreneurs are prideful people. (That includes me as well.) We don’t like to admit that we don’t know something. So, if you speak to them with a lot of fancy bookkeeping mumbo-jumbo, they won’t understand. To make matters worse, they won’t ask you to explain.This is what leads to frustrated clients. And a frustrated client won’t be a client too much longer.And there is such an easy solution. (More on this later.) What do the seven character traits of great bookkeepers mean for you?
In short, they mean a lot! Before starting a bookkeeping business, you need to be honest with yourself about your ability to succeed. You want to make sure bookkeeping is a good fit for you. Here is a simple 2-part exercise for you to complete BEFORE you start a bookkeeping business. Ask yourself: “Do I have the seven character traits of great bookkeepers?” Now, you don’t have to be a ’10’ in each of these traits. To have the seeds of them is enough.
But, we must develop these over the course of our existence as great bookkeepers and overall swell people. Ask others who know you well and that you respect: “Do YOU think I have the seven character traits of a great bookkeeper?” Show them this list and the explanations.And, please don’t get offended if they say you don’t. Also, make sure you ask people who will shoot straight with you and not sugar-coat reality. Once you determine you have the seedlings of the seven character traits of a great bookkeeper, you need to answer this question: “Why do I want to start a bookkeeping business?” Before we dive into this philosophical experience, I want you to think back to Halloween as a kid. Really, think back and recall your costumes over the years. Wait, bookkeepers?
Ok, so none of us, when we were kids, aspired to become bookkeepers. While bookkeeping is one of the noblest and most-needed professions, you have a deeper reason to start a bookkeeping business. Your job is to outline, in specific terms, why you want to start a bookkeeping business. Is it so that you can earn a great living in a respectable profession? Are you starting a bookkeeping business so that you can be there for all of your kids events?
Do you want this so that you can travel, work from anywhere at almost anytime? You must be clear on WHY you want to start a bookkeeping business.
And why is this WHY important? Well, your why is what gets you through the rough patches. Your big why is what causes you to push forward through the pain. In short, your why is the rocket fuel that propels you into the stratosphere of success. Your BIG Why Exercise I enjoy this fun activity. But, I will warn you: it’s a bit woo-woo.
You know, like head / psychological stuff. As a man, I used to be too proud to do woo-woo.
Now, since I’ve changed my attitude toward it, my life and business have been transformed. And, not just a little transformation – a boat load. Here’s what you do:.
Brainstorm all of the benefits for you to start a bookkeeping business. WRITE THESE DOWN – the faintest pencil is more potent than the best memory. Now, referring to your list from step 1, ask yourself “Why do I want this?” Often times, I list a benefit like: “I want a new car” or something superficial like this. When I ask myself “WHY do I want a new car?”, now I am getting somewhere. I want the car as a symbol of my success.
Or, for others impression of meor, well you get the picture. The takeaway is to keep asking yourself why you want that which you want. Woo-woo power here. Make a physical collage. Say what Ben? You mean like a scrapbook? Find pictures that represent why you want to start a bookkeeping business.
This could be a photo of your children, your spouse, a vacation — whatever.This is your project, so do whatever you want. Now, get out the glue stick and paste those suckers to a piece of poster board or a box.
Naacp Bookkeeping Guide
Finallyput this Picasso (your collage) in a place where you can see it all the time. Study it at night before you go to bed. Look at it first thing in the morning.This simple exercise etches in your subconscious your “why” for starting a bookkeeping business. At this point you’ve determined you have the seven character traits of a great bookkeeper. And, you are crystal clear on why it is you wish to start a bookkeeping business. That’s great news.
However, there are a few questions that should be swirling around your head. Questions like:. What if I don’t know a thing about bookkeeping or accounting?.
How long will it take me to start a bookkeeping business?. How much money does it cost to get started?.
What tools, technology and professional certifications do I need to be successful?. If cloud-based bookkeeping is so great, why do entrepreneurs need me as their bookkeeper?. How do I get clients and earn a living?. What accounting and bookkeeping services can I provide to small business owners? These are all important questions.
And, you need to know the answers BEFORE you dive into the bookkeeping business pool. Should I start a bookkeeping business with no experience? I will cut to the chase: this is NOT a big deal. You don’t need to know the ins and outs of double-entry bookkeeping to make your bookkeeping business work. What IS a big deal are the seven character traits and knowing your big why. You do NOT need a bachelor’s degree, associate degree in bookkeeping and accounting.
You see, when I owned my accounting firms, we did tons of bookkeeping. Which meant, I needed lots of great bookkeepers to serve our clients.
The problem was (and still is)GREAT BOOKKEEPERS ARE HARD TO FIND! It seemed that every bookkeeper I hired with lots of “experience” turned out to really suck at bookkeeping. I needed great bookkeepers. And finding a great bookkeeper is like locating The Loch Ness Monster. So, I improvised I began to hire quality people who I knew were: personable, caring, hard-working, etc., etc. I then trained them to become great bookkeepers. Now, in all fairness, this training did NOT happen overnight.
It took time. But, the more rookie bookkeepers I trained, the more efficient our training program became. “What does this have to do with me?”, you might be asking.
Our bookkeeper training cuts through the clutter. It focuses on what you need to know in order to become a great bookkeeper and tosses all the garbage you don’t need to know into the trash. Even though you have no prior bookkeeping experience, relax. No worries mon as they say in Jamaica. Make sure you have the seven character traits. Know your big why. Then, find a hands-on, roll-up-your-sleeves bookkeeping course.
One that rocks and shows you how to be a great bookkeeper in a “paint by numbers” format. A follow-up question I get is: “Well, I DO have bookkeeping / accounting experience. Does this help or hurt me?” Answer: it dependsnice cop out Ben.
It hurts if you are set in your ways and won’t adapt to the new way of bookkeeping. It helps if you are receptive to a new and better way to serve your clients. How long will it take me to start a bookkeeping business?
Ever see the movie Sandlot? It’s one of my all time favorites. There’s a part where someone asks how long Mean Ol’ Mr. Myrtles has to keep his dog caged.
And the police chief answers: “Foreverforeverforever.” It certainly does NOT take you forever to start a bookkeeping business. However, it does take some time for you to immerse yourself into learning the Xs and Os of bookkeeping as well as how to setup and market your business. Our comprehensive bookkeeping business course, Bookkeeper Business Launch, is designed to be completed in ten (10) weeks. Some students even get their first client while still in the course! I know, crazy. While we design Bookkeeper Business Launch for you to start a bookkeeping business in 10 weeks, it’s really up to you. If you can focus full-time on starting your bookkeeping business, then it will take far less time to launch.
Look, bookkeeping is a simple business. But, that does NOT mean that it is easy. Nothing in life that has lasting worth is easy. Again, it is a short-term sacrifice for a lifetime of benefit.
Bottom line: you can be up and running in as little as ten weeks. It’s all up to you mi amigo! You control your own destiny. How much are the start-up costs? Starting your bookkeeping business costs a lot less than you might expect. And remember bookkeeping is the #1 most profitable business. This is a virtual bookkeeping business, so you will definitely need:.
a computer. access to high-speed internet. cloud-based bookkeeping applications necessary to start your bookkeeping business (and run it.) Beyond these three key items, here are the other startup costs you can expect when you start a bookkeeping business:.
business cards (even though you hand them out on rare occasion), $20. office supplies (ask Dwight Schrute for a deal, but they might run $100). website domain name and hosting to get started, $50.
do-it-yourself website, around $100it’s mainly your time and effort. This cost estimate is for stock photography and the actual platform like Wix or Square Space. You can also use WordPress if you need more flexibility. scanner, for the rare times when you need to send a document.
You might already have an all-in-one solution that you could use and save some coin. However, if you don’t have one, you can pick up a decent used scanner for about $200. I like (and use) the Fujitsu ScanSnap S1500. It’s an older model. The new, fancy one has built-in Wifi.
Ok, I am geeking out over here. Xero certification to show your clients you are a bookkeeper-bad-ass. This runs $249.
But, I can get that cost waived. More on this later. Errors and omissions insurance downpayment; around $200. What exactly is errors and omissions insurance? Well, in case something goes awry, you commit an error or you omit forget to do something, this is your saving grace. Just like any other insurance, you hope you never have to use it. But, just in case, you MUST have this insurance. Don’t start a bookkeeping business without it!.
fancy pants computer safety software (like disk encryption, password management)this runs about $185. setting up your bookkeeping organization, getting your business license and paying some other well-used taxes (uh-hummmm). This can vary SIGNIFICANTLY from state-to-state and county-to-county. But, I am going to to benchmark it to be $300. You could begin your business without setting up as a corporation or limited liability company (LLC). But, like errors and omissions insurance I stress the importance of you having it. BTWwhen you setup a business entity, there are several flavors.
To understand what might work for you check out this helpful post about from FitSmallBusiness.com. Okay, if I did my math right (please, say I did else I might need to find a new line of work) – that means your estimated startup costs are about $1,404.
If you’re a thrifty person, I know you can reduce that amount. And, some of the items I list above you can hold off on purchasing right away. Most businesses cost tens if not hundreds of thousands of dollars to launch. But not your bookkeeping business! Get going for less than $1,500 smackersin the world’s #1 most profitable business. All kidding aside, that’s pretty cool!
What tools, technology and certifications do I need to start a bookkeeping business? Every craftsman (or craftswoman:)) needs his handy-dandy toolkit. To help him finish the job to the best of his ability, in the least amount of time possible, to deliver a high-quality finished product.
Before you dive into your discovery of the EXACT tools, technology and professional certification you need to start a bookkeeping business, there is a critical mindset you must adopt. Bookkeeping is an honorable, time-tested PROFESSION. And while there are currently no laws or regulations in the United States that stipulate you must be licensed, you still must adhere to this truth: “AS A BOOKKEEPER, I AM A PROFESSIONAL. AS A BOOKKEEPING PROFESSIONAL, I MUST CONTINUE TO DEVELOP MY CHOSEN CRAFT AND EACH DAY STRIVE TO BECOME BETTER THAN THE PREVIOUS.” As we hold onto this professional’s mentality, let’s now shift our focus to the exact tools, technology and certifications you need. 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. Right now, I want to discuss the MOST important thing you need: a solid bookkeeping application. A carpenter’s go-to tool is the hammer.
Or, the nail-gun. As a great bookkeeper, your go-to tool is the bookkeeping application. (BTW: from here out, I will call it your bookkeeping app.) There is one bookkeeping app that I am IN LOVE WITH. More on it in just a moment. To begin, I want to give you some qualifications on ANY software you use to serve your bookkeeping clients:. Cloud-based: you are going to operate a virtual bookkeeping business. That means you can serve your clients regardless of where you or they are located.
Never rely upon applications that are location dependent. This limits your ability to serve. Military-grade security: you’re dealing with a lot of sensitive financial information. So, it stands to reason that the cloud-based bookkeeping apps you use protect that info at great lengths.
Now that you know the criteria from which to judge bookkeeping and peripheral applications, let’s talk about the work-horse application which I love. Start a Bookkeeping Business Using QuickBooks® is the bookkeeping software most used by virtual bookkeepers across the globe. Be sure that when you start your bookkeeping business, you used the online version; not the desktop version. When you start a bookkeeping business with QuickBooks®, you want to become certified. The benefits in getting this certification include:. Greater understanding of how QuickBooks® function,.
A listing in QuickBooks® Online professional directory so that you can get referrals, and. Recognition from your clients as to your qualifications. Now, just because we learn how to start a bookkeeping business using QuickBooks ®, your learning and development does not stop there.
Next, you want to obtain your professional certification. In addition to QuickBooks Online, there are other small business accounting platforms to consider:. Xero ®. Zoho Books ®. Sage 50 ® Institute of Certified Bookkeepers It’s true: in the United States, bookkeepers are not required to be licensed, certified or ordained.:) But the people who paint your toes and nails? Yes, they are licensed and certified! Let me urge you to do one thing as you start your bookkeeping business: become a professional and get your certification.
Now, there are several “bodies” that offer up certifications to the bookkeeping profession. However, the one we like (and recommend) is the.
ICB (Institute of Certified Bookkeepers) is the largest bookkeeping institute in the world. It sets the recognized standards/qualifications of the bookkeeping profession. ICB provides continuous support to its members to ensure they have all of the current information regarding the laws and ethics.
The ICB also makes sure its members provide excellent service to businesses. ICB USA exists to make sure people understand the vital role bookkeepers play, and a bookkeeper’s worth in the preservation of the American economy. Being a part of ICB is proof that you are a capable/qualified bookkeeper. “ICB USA understands how important it is to the small business industry, and to the overall US economy, to have bookkeepers who are trained and independently certified,” said Jan Haugo, ICB USA CEO. Jan goes on to say: “we are confident that Bookkeeper Business Launch will maintain the high standard of education required for students to pass our stringent exams. Once ICB students have been certified and upgraded into ICB membership, any employer or client can be sure that they are fully up to the task.” If cloud-based bookkeeping apps are so great, why do small businesses need a bookkeeper?
Yes, small business bookkeeping software is wonderful. These apps take care of the daily number crunching and data entry, but that’s ALL they do. Bookkeeping apps can not replace YOU. You are an awesome human being, and use the reporting on financial transactions provided by the bookkeeping apps to help your clients improve their businesses. This is a win-win for you and your client. They get better service, and YOU make more money. Bookkeeping apps eliminate a lot of the busy work bookkeepers were required to completeeven just 5 years ago and free you up to deliver premium service at premium rates.
When you take advantage of bookkeeping software, you can:. Be efficient so you can serve more clients and serve them fasterthis means more money and less work for YOU!.
Earn more money in less time. Live you ideal life / work balance. The ability to go above and beyond number-crunching is crucial if you want to become a great bookkeeper and earn a great living. The late Zig Ziglar – one of the most brilliant men on motivation and human relationships – said, “People won’t care how much you know until they know how much you care.” That care will never be replaced by a machine or an app. This is all you as a great bookkeeper! Remember that the #1 character trait was being personable and caring. The bookkeeping apps can run the numbers, but only a great bookkeeper can interpret the data, and translate it into simple language that the client understands.
And do these things in a personable and caring way. How do I get clients and make money while I’m starting a bookkeeping business? We just talked about how to spend money ICK:( Let’s talk about how you MAKE money YAY!
Because, without clients, you don’t have a bookkeeping businessyou have a hobby. There are many ways to get clients.
What works for you may be different than what works for someone else, but there is ONE killer way that works for everybody! It is the easiest and fastest way to get great clients. And the kicker.it’s pretty much FREE! As of this writing, we are in creation-mode of the ultimate marketing guide for professional bookkeepers. This will be a free resource for those who wish to acquire cool, high-paying clients. What accounting and bookkeeping services can I provide to small business owners?
Information is useless. Implementation is POWER! So, let’s iron out your implementation / action plan My first recommendation is for you to take our free training on. Next:. Do the two-part exercise to determine if you have the seven character traits.
Determine your big “why”.. Create your bookkeeping business plan. You discovered why starting a bookkeeping business could be one of the best decisions of your life:. Bookkeeping is a time-tested, respectable profession. It has great income potential.
Built-in demand (every business must do bookkeeping). Ability to control your work schedule and have time for LIFE!. Work with whom you want. Determine if you want to do bookkeeping full or part time. Freedom, flexibility And the list of benefits goes on and on.
Bottom line is: take action. If you determine that starting a bookkeeping business is right for you – JUST DO IT! Believe in yourself and you WILL prevail.
Speaking of prevailing, I would like to introduce you to a very special friend. Her name is Callie Sitek and she is an original member of our pilot group of bookkeepers. Callie, like most people, wanted a home-based business that provided her with a sense of accomplishment, good pay and a home/work balance that fit her family’s schedule. Callie has become a very successful bookkeeper and has graciously agreed to share her experiences and even some personal tips. I’m sure she will answer many of the questions that you have racing through your mind.
So, I invite you to listen to the following interview with Callie and benefit from someone who has gone down the career path. I came across this very informative article about Bookkeeping Business and I am very much interested in learning and starting a bookkeeping business. Our family used own a small bookstore where I did basic accounting by using old version of QickBooks. Since we were firced to close the store I tried doing several different jobs, but it was unsuccessful and now I’m just staying home, taking care of my family.
I would like to get back into the “saddle” and start a new successful business. I would appreciate if you could help me to achieve my goal. Sincerely, Rozalia. Thank you for the article! I really like Xero, but the data entry is challenging process, you have to import it either CSV or Excel format, we all know it takes time to process all the paper receipts, bills, cheques, transactions and so on. What I do now is i`m suggesting my clients to use this IQBoxy app (www.iqboxy.com), simple and intuitive app that kills two birds with one stone. Clients mange their expenses in a real-time and whenever needed export all the data to this accounting software Xero, as they are integrated.
What i really like is that there are few ways of how clients can input an expense to this app – super fast OCR scanning (actually you simply take picture of receipt or anything like that), you can simply email digital receipt of any transaction to this app or even dictate it with your voice. One of my clients invited me as their accountant to their IQBoxy account, where they manage their business expenses, so now i can see company’s documents (receipts, invoices, bills et al) in real-time 24/7 through the mobile app and web.
So i really find this tool helpful and timesaving. Hope any of you get advantage of it as well.