We think so, we certainly wish we’d had access to something like this when we started our practices. But don’t just take our word for it, ask a question about the programme in The 6 Figure Bookkeepers’ Club on Facebook. We’re here to help you build a profitable bookkeeping practice which works around your life. With our training, you’ll know which actions to take next so you can start taking on clients sooner than you thought possible.
With any start up it’s best to keep business and personal finances separate. Unlike a regular employee, your tax isn’t deducted from your pay as you earn. That means you need to put money aside for your tax bill and you need to be disciplined.
How to start a bookkeeping practice
And more and more business people are using bookkeeping software to record their financial transactions themselves. So it’s essential to make sure that the services you plan to provide will prove attractive to potential clients and that your role complements that of your client’s accountant. You may be able to bookkeeping for startups offer a cheaper or more personalised service, for example. When starting a bookkeeping business, the rate you can charge will depend on your experience and the services you can offer. It can include advising how they can save money and complete their accounts, provide management reports and deal with year-end.
An accountant or bookkeeper can also help you select the right accounting software and set it up so that it works well for you and your employees – especially your bookkeeper. Company formation
As noted in our guide about hiring an accountant, you should use an accountant to help you set up your business. Accountants can help you create your business plan and set up a company structure that best suits your business. Each client you take on will be long term and even clients who hire you for a one-time bookkeeping job will likely require your services for weeks or months. The longer sales process involved in bookkeeping will mean you won’t have the capacity to take on more clients and it will take longer for you to earn each commission. Any person or business who is involved in the preparation of financial reports must comply with the regulations regarding how reporting is done.
How you set away this money is also significant for bookkeeping purposes and will be determined by the type of business you operate. You won’t have a previous tax return to assist you in estimating how much tax you’ll owe if you’re a first-time business owner. In this instance, the ideal way to save is to place 30% of each client or customer payment into a company savings account or a specifically designated account for this purpose. You might charge a fixed monthly fee for undertaking specific, regular tasks such as payroll administration. This might include all the record-keeping, production of payslips and online submission of RTI files to HMRC.
- It also aids in forecasting how much earnings are required to operate your business and pay monthly expenses such as stock, services, taxes, and suppliers.
- You must apply for an Anti-Money Laundering Licence at least 45 days before your business begins operating.
- As well as considering your local competition, you will also need to consider bookkeeping businesses that operate remotely.
- Although you might be prepared to service some clients by post and email or offer them an online service, most of your clients are likely to be local concerns.
- Provided you can keep your fees affordable this type of client may be well worth cultivating – as they grow and prosper so you can increase the range of services you offer them.