How to Start Your Bookkeeping Business – Part One

Running your own bookkeeping business or practice may be for you if you don’t like working for an employer or being an in-house bookkeeper; if you want more flexibility and control over your work hours. Sure, starting your company comes with its own set of challenges – finding clients, setting up an office space, networking, promoting your business, and handling many other responsibilities  – but nothing beats being your own boss.

If you’ve made up your mind and decided being an entrepreneur is your calling, here are some helpful tips to guide you on your way forward.

Don’t Make a Hasty Decision

You may have already spoken about your idea to your family and friends and might have received mixed reactions. Some may have encouraged you to march on, while others may have frowned and asked you, “Why do you want to give up such a nice, safe job? Do you know how many people would trade places with you in a heartbeat?” Both points of view are valid.

This stat may please the pessimists: according to the Small Business Administration, 50% of all small businesses run out of gas in the first five years. Optimists may look at these figures and say: 50% of the businesses make it past five years!

As a new entrepreneur starting a business, the road ahead might be uncertain and full of risks. So treading your early steps with caution isn’t such a bad move. Before you quit your job take your time setting up your business; see how your services are received; whether your small business loan gets a go ahead; get familiar with the numerous challenges that come with running a small business.

And once your business takes off, which it will, with patience, dedication and hard work, you can say bye-bye to your old job and say hello to your new boss…you.  

Scour the Market

Do you agree that opening a food-truck to serve burgers next a McDonald’s or A&W may be bold and brave, but not the brightest of ideas? Then you will agree that starting a bookkeeping business in an already-saturated or competitive market may also not be the best move.

Study your neighborhood or market to analyze the competition. Decide whether operating a business in the area as say, Liberty Tax or H&R Block, is wise? If there’s a chance of being bulldozed by the big players, it’s better to reconsider the market you want to be in.

Get Certified

Once the grunt work is out of the way, you can now focus on improving your chances to succeed. Getting a certification is one of the most effective ways to do that. Even if you have heaps of bookkeeping experience, getting certified demonstrates to your clients that you have the knowledge, skills and training to manage their books effectively. See it like this: would you prefer going to a qualified doctor, or to someone who gives you his word that he has treated enough patients? Even if he really has.

Consider applying for a bookkeeping certification program with one of the many Canadian educational institutions that offer it both online and in-class. After graduating, you can apply for membership with the Canadian Bookkeepers Association, CBA to become a registered professional bookkeeper.

Create a Website and Register Your Business

Having a website today has become as important as having your name and number listed in the Yellow pages used to be in the past. Since everything happens online now, you may want to create a website. It will help your clients to find you easily. You can choose to list your background, experience, services and prices. It’s also a place for you to brag a bit about your credentials and client testimonials if any.

Most businesses have to register their business name. Only if you’re a sole proprietor and are operating your business under your legal name, you usually don’t need to register your business name.

In all other cases, you will need to register your name with the government, as failure to do so might result in fines and other legal consequences. Check what rules apply in the province you’re operating in.

Hope you enjoyed part one of this topic. In part two – which we will publish next week –

we will discuss more on finding clients, positioning yourself, and marketing your business, amongst other things.