Bookkeeping businesses are an invaluable tool used by many enterprise businesses to streamline their financial accounting needs. Managing income / expenses, processing payroll and preparing tax returns are a few of the ways they do this. You don’t need to have your CPA certification in order to make profits bookkeeping. All you need is semi-decent computer skills and a desire to help business owners. As an aspiring entrepreneur, you may be overwhelmed by the many varied methods of launching a bookkeeping business. Read on to discover important steps to launch a bookkeeping business virtually.
Making sure you have proper knowledge and certifications is the first step in launching a virtual bookkeeping business. Moreover, it’s the law, and as such, it carries serious penalties including fines and potential jail time if not done properly. Proving that you have the right credentials will also gain you credibility with potential clients. You can get certified through one of two professional bookkeeper organizations. The American Institute of Professional Bookkeepers is ideal for those with no prior experience. Their program is based upon a 3,000 hour work experience requirement. Alternatively, you can get certified through the National Association of Certified Public Bookkeepers. Their requirements are an exam and proof of an Accounting degree. Consider also getting certified in the use of some of the leading accounting software as well. Surely, getting the proper certifications is an imperative step in starting a virtual bookkeeping business.
Defining goals for your virtual bookkeeping business is the second step in making it profitable because it provides a direction for your business. When creating your company, you need to focus on goals vs outcomes. Otherwise, becomes impossible to prioritize decisions, initiatives, and projects without direction. Choose a target date sometime in the future. Two, five, or ten years are good time frames. Think about what goals you want your business to reach by that date, and make sure they are measurable. This will make it much easier to determine how close you are to the goal. A good goal is one that’s numerically oriented, such as hitting $1 million in revenue. Absolutely, defining goals for your virtual bookkeeping business in both the short and long term will keep it on track and making profits.
Choosing the right accounting software for your bookkeeping business is the third step in making sure it’s profitable. There is a vast number of software providers. Each offers different services to fill different needs for different price points. For example, you may need software that can be used for a wide range of tasks. These can include managing bills, invoicing, and payments, as well as monitoring cash flow. Alternatively, software that allows multiple users on one account might be needed if your virtual business continues to grow. Think about the differences between the various software available to determine which is best for you and your business. Deciding on the right software is an imperative step in the profitable launch of your virtual bookkeeping business.
Defining your fees is the fourth step in launching your bookkeeping business as profitably as you can. Deciding how much to charge for your services will have a direct impact on your profitability. You’re determining how much money will be made per service. Reading the industry is a prudent decision here, as there is no be all end all rule for how much you should charge. Research how much your competitors are charging, and you will have a good idea of an average price to start from. Undercutting them is also a viable option. Once you have your first client, using their rate as your minimum is also a great way to keep your pricing as competitive as possible. This is perhaps the most important step in determining the profitability of your newly-launched bookkeeping business.
Gathering clients and promoting your new business is the fifth step in launching a virtual bookkeeping service. Your business simply will not be profitable without marketing strategies to get more clients. Some examples of promotions include social media advertisements, creating social media accounts for your business, and client referral programs. Broadening the services your business offers is also a great way to gain new clients. It will open up new markets and clients that otherwise wouldn’t need your services. Gathering new clients is one of the best strategies for maintaining the profitability of your new virtual bookkeeping business.
There are many methods and approaches to launching a virtual bookkeeping business. One of the first steps is to make sure you have all the required certifications to ensure credibility with clients as well as to protect yourself from legal repercussions. Defining short and long term goals is a second step to take for keeping your business on track. Deciding on which of the various accounting software to use is a third step to keeping your business profitable. Defining how much to charge for your services is a direct factor in the profitability of your business. Finally, marketing to clients is imperative in making sure your business stays in business. Consider the 5 step method described above when launching a virtual bookkeeping business.