Starting a Small Bookkeeping Business

By Nicki Howell

  • Overview

    If you have a background in bookkeeping or accounting, starting a small bookkeeping business is a good venture.Typically, bookkeepers contract with business owners to track deposits and financial transactions. Many small business owners outsource this function because they don't have the resources to hire a full-time employee. But many individuals interested in this type of business aren't sure where to start.

    • Step 1

      Get your home office set up. You will need basic equipment such as a desk, phone, fax machine and a file cabinet and folders for organization. Also, purchase bookkeeping software like QuickBooks to perform your projects.

    • Step 2

      Complete a business license application. Visit your city's website to locate an online form, or you can call your city to receive a hard copy. Processing time can take a couple weeks and application fees are typically between $50 to $100.

    • Step 3

      Create a business plan. This should include detailed information on marketing, operations and financial strategies for your small bookkeeping business. If you haven't created this type of document before, use a free online template. Bplans is a company that offers bookkeeping business plan templates.

    • Step 4

      Market your services in the online marketplace. You can bid for bookkeeping jobs at websites like Guru, which allows you access to jobs in your area for free. If you pay a subscription fee of about $30 a month, you can bid on projects across the nation and the world.

    • Step 5

      Market your services to local businesses. Create simple marketing materials, like business cards and an inexpensive flyer with service offerings, and contact business owners. Set-up meetings and leave marketing materials and your pricing structure with the owner.
    • Skill: Moderate
    • Tip: Be prepared to market aggressively for a few months before your hard work pays off. It takes time for marketing efforts to produce results.
    • Warning:
    • Even after you have a solid clientele, continue to market your services. As a small bookkeeping business owner, you never know when a large client won't need your services any longer. If you continue marketing, you'll have plenty of business even if you lose a client. And if you get more business then you can handle, hire an associate to assist with overflow. This could be a college accounting student, or family member that can complete easy administrative tasks.

    © Demand Media 2011