8 Steps to Follow to Start Your Own Bookkeeping Business From the Comfort of Your Own Home

Starting a bookkeeping business from the comfort of your own home can be a rewarding venture for individuals that are focused on numbers, the organization, and pay close attention to detail.

With the growing demand for financial management services in small businesses, bookkeeping offers flexibility and the potential for a steady income.

Let’s now wait any further because in this article, we’ll dive deeper and show you how you can start your own bookkeeping business from the comfort of your own home.

1. Understand your duties as a bookkeeper

Before diving deeper into a business setup process, it’s important to understand what the roles of a bookkeeper are and how it’s different from other financial roles like accountants.

Key responsibilities of a bookkeeper include handling day-to-day financial transactions, record-keeping, and making sure that all financial documents are accurately stated. These tasks almost always include invoicing, reconciling bank accounts, and preparing financial reports. Key skills of a bookkeeper should be to have proficiency in using bookkeeping software, being attentive to small details, and understanding small details on a deep level.

Many people will think bookkeepers and accountants are the same, but this isn’t true. Bookkeepers will focus more on recording and organizing financial data, while accountants will analyze the data for tax preparation and financial planning. Therefore, knowing your role helps you position your services effectively in the market.

2. Assess your skills and qualifications

Having a bachelor’s or master's degree isn’t always necessary to start a bookkeeping business, but it’s all about possessing the right skills and certifications that can increase your credibility. When presenting customers with what kind of skills and qualifications you have, you can always show them three important qualifications:

1. Education background: Even though this isn’t mandatory, a degree or coursework in accounting, finance, or any other related field is always beneficial.
2. Certifications: Use certifications like Xero Advisor, QuickBooks ProAdvisor, or that you’ve become a certified bookkeeper through organizations like the American Institute of Professional Bookkeepers (AIPB).
3. Experience: Hands-on experience, whether you’ve been employed somewhere or worked as a freelancer is always important and helps you build confidence and expertise.

You can include all of these important qualifications on your website and make sure that everyone sees your capabilities.

3. Price your services

Finding out what prices are the right ones for you might sometimes be a challenge, especially being a bookkeeping business owner. Prices will strongly depend on the region you are living in, how experienced you are, and if you charge at fixed or hourly rate.

As a general rule for the United States, the average hourly rate of a bookkeeper is $22.70. Hourly rates start anywhere from $16 to $32.

On the other hand, we have monthly prices for small businesses which range anywhere from a start of $300 to $2500.

4. Create your website using AI

Building a website has never been easier with AI web builders that simplify the process by a large margin. These platforms leverage AI to create professional, and user-friendly websites that are tailored to your business needs and preferences.

All you have to do is input your business description, what industry you are in (in this case, bookkeeping), and preview and publish your website once you’re done. You can use AI analytics to track web performance and regularly update your content to keep your website fresh and engaging.

The benefits of using AI web builders is that they are much more affordable and time-efficient compared to traditional web building methods. You’ll pay a monthly subscription and have your website up and ready in a matter of minutes compared to paying thousands of dollars to a web developer and wait months to get your site up and running.

5. Develop your business plan

Your business plan will outline the strategies and goals you need for starting and running a successful bookkeeping business. If you are confused at where to start, here’s what we recommend:

1. Include your business overview: Includes inserting your business name, industry, location, the type of business you own, and what your mission statement is.
2. Market analysis: A good market analysis is to include your target market, market need, and your competitor analysis.
3. Mention the services you offer: In this case, it would include bookkeeping services, financial reporting, payroll services, tax preparation assistance, and advisory services.
4. Your operations plan: Should include your business structure, the technology and tools you’ll use, your staffing, location, and how your client onboarding process will look like.
5. Financial plan: When starting your bookkeeping business, you’ll need to label out important costs such as your startup costs, revenue projections, profit margins, and what your funding needs are.

Above all, after you get through these points, don’t forget to label out your short and long-term goals.

6. Register your business and meet legal requirements

Regardless of which business you start, you need to make sure you are following the rules. First and foremost, you should make sure that the name you choose is professional and memorable for your bookkeeping business. AI business name generators are now a trend and helping all businesses get past these laws since they automatically generate names that will fit your target audience.

Secondly, after you’re done dealing with your business name, it’s now time to decide on your business structure. A bookkeeping business can go under any category, but in your case, this means that you’ll either start one as a sole proprietorship (on your own), or even as a partnership (one or more people involved).

Thirdly, it’s now time to obtain the necessary business permits and licenses. You can start by obtaining an Employer Identification Number (EIN), which you can do through the IRS website. Additionally, you can apply for a general business license to make sure you are operating legally. However, at the end of the day, you’ll need to check up on your local requirements since every state has different requirements and might even require additional licensing or registration.

Lastly, make sure to open a business bank account. Never mix your personal and business finances and always keep them in separate accounts. This is better for planning everything out and making sure that you are tracking your business expenses and revenue more effectively.

7. Set up your office

This will depend on where you’re going to operate. If you work from home, you can focus on choosing an organized space with reliable internet and using the proper bookkeeping tools to make sure you are working efficiently.

As an alternative, you can even consider using coworking spaces or virtual office services for a professional address and meeting facilities.

On the other side, if you are going to work at a physical office, it’s important that you have the necessary equipment in place, such as your computer, printer, scanner, and other necessary equipment you’ll need.

Creating a professional workspace is vital if you want to impress your clients and leave a good first impression. Above all, make sure to make your physical or virtual office organized and clean. You don’t want new clients coming in and seeing a mess!

8. Don’t forget to market your bookkeeping business

Marketing is the most powerful tool to attract clients and build up your brand. Marketing your business covers a wide range of applications, but some of the most important ones include leveraging on social media channels.

If you want to leverage your content on social media channels, you’ll need to see where your target audience is most active on (which channel) and start sharing valuable content on there more often. While it’s important to focus on the major social media platforms (Facebook, X, Instagram, LinkedIn, TikTok), you need to know that where your audience isn’t active, we wouldn't advise you to waste too much time on these areas.

Moreover, when you are active on social media channels, it’s important to focus on building up your network. This includes attending local business events, joining professional associations, and participating in online forums.

Above all, you can make sure to encourage satisfied customers to refer your business and there is no easier way to do this other than mentioning these referrals on social media channels. You can also add them to your website and directly link the referrals back to your social channels. 92% of consumers trust recommendations from family and friends compared to any other form of advertising.

As a bonus, you can also list your business on platforms like Google My Business. This is more helpful if you are working locally and you are concerned about attracting local clients. This is even more helpful if you are living in bigger cities where it may be harder to find your business.

It’s now time to start your own business

Starting your own bookkeeping business from the comfort of your home is a rewarding way to combine professional expertise with remote work. By following the steps we mentioned, you can easily start the business you’ve been dreaming of and it’s really not that hard to do so.

All you have to do is make sure you are consistent, obtain the necessary documentation and licenses, deliver excellent customer service, and purchase the right equipment when you are working.

Always remember that the journey to a successful business is careful planning, consistency, and making sure that you address your clients needs at all times.