How To Run A Modern Bookkeeping Business (Hint: You Need The Right Software)

There is a widespread misunderstanding that keeping books entails doing nothing but crunching numbers and is a dull occupation. On the other hand, if you take pride in your organisation and enjoy lending a helping hand to others, becoming a bookkeeper can be the ideal profession for you. It sounds like you have the skills necessary for this line of work, including the ability to manage your time effectively and a basic understanding of accounting.

In the post that we have for you today, we are going to discuss the many reasons why running your own contemporary business as a bookkeeper may make a significant impact on your life. This blog post will show you how to establish your own contemporary business as a bookkeeper by providing recommendations gleaned from my own personal experience. Topics covered include locating clients and marketing your services. In addition to this, we will go over the essential items that must be had in order to get off to a good start.

You can launch and manage your own bookkeeping company with the assistance of a variety of sophisticated accounting software packages. This article on the site will detail the many advantages of utilising the aforementioned kinds of software, as well as the various kinds that are now accessible and some useful pointers for starting started. It's possible that some people have the misconception that they need years of experience before they can launch their own company, but this is not the case at all!

You can learn how to do it yourself with the help of the plethora of materials that are available, or you can network with businesspeople who already have experience in the field. You don't need any prior knowledge in order to get started; all you really need is some self-assurance that you know what has to be done!

Running A Bookkeeping Company

When you take into account the fact that almost all of Australia's businesses are considered to be small and medium-sized enterprises (SMEs) because they have fewer than 50 employees and that almost three-quarters of all businesses are run by a single person, is there any room for doubt about the need for bookkeepers?

There is no shortage of businesses that would be interested in contracting out their bookkeeping duties to a third party. Learn all you need to know to launch a successful bookkeeping business with this comprehensive guide.

Starting your own business has the potential to be a transformative experience in one's life. Take the example of Dianne Gilbert, who went from being a part-time bookkeeper to owning her own bookkeeping business after working in the field for several years. She prepared herself for opening her own bookkeeping business by attending a few classes and doing "plenty of reading." Personal satisfaction, autonomy over one's schedule, and increased earnings are only few of the potential benefits of working for oneself.

Your accounting practise

With the appropriate credentials and the assistance of the handbook Starting Your Own Bookkeeping Firm, it is possible for you to launch your own business, during which you may provide services to a variety of customers and even hire more bookkeepers.

Should I go ahead?

Before diving headfirst into the world of business, there are a lot of things to think about. Personality is equally as important as being able to create a certain amount of revenue in this game, which is a numbers game. Forget about entering into business for yourself if the idea of selling oneself makes you cringe. Because we understand how important it is for you to be self-assured and well-prepared before beginning your own bookkeeping business, we are pleased to make this resource available to you. This book serves both as an instructional manual with detailed step-by-step instructions and as a textbook for the BIA's many training programmes.

Is It Hard To Start A Bookkeeping Business?

The management of the books is something that many owners of small businesses want to contract out. This is due to the fact that it is not something that they find enjoyable to do, or that it is something that they have no interest in learning. For this reason, beginning a firm in which you act as a bookkeeper for other people who operate small businesses can be a very good business concept.

Bookkeepers that work with small businesses can offer a variety of services, including the management of accounts receivable and payable, reconciliation, payroll, reporting, and the preparation of income tax returns, amongst others.

You require experience working professionally in either bookkeeping or accounting, in addition to having knowledge with a variety of accounting software, such as QuickBooks. When you are keeping the books for another organisation, in addition to having a high level of integrity, you need to be exceedingly accurate in your job, reliable, and dependable.

Even while there are options to buy an accounting firm that is already established as a franchise, there are strong reasons to venture out on your own and begin one from the ground up. Your familiarity with accounting and the many software packages used in accounting forms the primary foundation of a bookkeeping business. However, your success will also be determined by how well you get along with people, as well as how productive and cost-effective you are, which is especially important if you work as a virtual assistant.

It's possible that you'll find your initial consumers through word-of-mouth marketing among your friends if you're the kind of person who gets along well with others and puts in a lot of effort. Visit our meetup page and investigate the many opportunities if you are interested in networking with other bookkeepers in the Sydney area.

The management of income and spending, the processing of payroll, and the preparation of tax returns for company clients are the three main components of a bookkeeping business. To get your business up and running, some of the things you need to accomplish include developing a business plan and gaining an understanding of how to attract customers. If you are only planning on using bookkeeping as a side hustle to bring in some additional cash, you might be able to get away with missing some of the procedures. These aspects will be highlighted in the relevant places.

Knowledge

If you don't know how to keep books, you can't hope to make a life out of doing accounting work. If you want a more in-depth understanding of bookkeeping principles, it is recommended that you study a training programme or book on the subject; however, the following are some important factors to bear in mind.

A method of bookkeeping known as double-entry bookkeeping involves performing every transaction and formula twice in order to reduce the likelihood of making a mistake. For the sake of this illustration, an expense needs to be recorded not just as one asset (cash) being spent but also as another asset (the purchase) being received when a company makes a commercial purchase, for instance. Make sense?

In addition to this, you'll find that you have to generate general ledgers or a record of each transaction that the company completes, which should include the date, description, quantity, and price of the transaction. To reiterate, this is nearly always done with the assistance of online bookkeeping software because it makes the process much simpler.

In a similar vein, one of the most significant aspects of bookkeeping is the classification of company transactions. A few examples of distinct categories are actions including producing a profit, sales and expenses, investing, and financing. If, on the other hand, these ideas are utterly foreign to you, there is absolutely no reason to be overwhelmed; after all, everybody has to begin somewhere.

Skills

In addition to that, you'll need to have some soft skills, such as precision, dependability, and organisation. Because maintaining confidentiality when working with sensitive information is a vital part of bookkeeping, you will need to present yourself as an experienced individual who they can put their faith in.

However, being skilled in your job and having a professional demeanour are not the only factors that matter. You also need to have a good personality. For instance, if you work as a bookkeeper, you will frequently be sitting one-on-one with your clients. If you have zero social skills and they don't enjoy spending time with you, they may find the experience uncomfortable and want to go elsewhere the next time. This is especially true if you are the only person in the room.

If that's not who you are, there's no need to put up an extremely energetic and charismatic face just because of this situation. It will be a relief for your customers to know that you are genuine and actually care about them if you listen to the problems they are having and take pleasure in finding solutions for them. Create a common ground by discussing the fact that you are both business owners and are willing to sacrifice anything for your companies.

Software

Because the vast majority of companies use some kind of accounting software these days, having a working knowledge of the various programmes used is absolutely necessary. It is tempting to learn how to use each and every piece of accounting software that is now available, but in reality, quality is frequently superior to quantity in this context.

You can present yourself as an expert if you are familiar with the program's interface and make it a goal to gain an in-depth understanding of it. Clients, on the other hand, might be inclined to be sceptical of somebody who claims to be proficient in ten different systems. In order for this strategy to be effective, you need to make sure that you use a well-known piece of software.

We propose that you utilise QuickBooks for your company because it is likely the most well-known brand in the industry and can meet all of your accounting needs.

Learn How to Become a Qualified Bookkeeper

Demonstrating that you are qualified to perform bookkeeping services is one of the quickest methods to establish your credibility in the eyes of potential customers. If you have already proved that you have the knowledge and skills necessary to execute the activities that are expected of a bookkeeper, then you can move to the second step of the process because you hold a CPA certification.

You should, on the other hand, obtain certified before beginning a bookkeeping business, even if you have previous experience working as a bookkeeper or have completed formal study in the field of accounting or bookkeeping.

How To Run A Modern Bookkeeping Business

Since the 19th century, there hasn't been much of a shift in accounting practises. We have moved on from using an abacus and have instead opted for software equivalents; nonetheless, a lot of it is still quite dated.

We would like to take this opportunity to welcome you to the world of modern bookkeeping, regardless of whether you are a new graduate interested in opening your own accounting firm or an experienced bookkeeper seeking for a better option to QuickBooks.

The following is a rundown of the six phases involved in operating a contemporary bookkeeping business (with the appropriate software):

Begin With the Fundamentals

If you make use of the appropriate technology, a contemporary bookkeeping service has the potential to be entirely computerised and, in all but the most stringent sense, cost you next to nothing.

G Suite, Google's corporate platform, is an excellent starting point for a business email, document storage, and even communication needs (linked to your device through Google Voice).

Regardless of whether you are prepared to launch a website for your company or not, you should definitely register a Google My Business (GMB) listing as soon as possible. Setting it up is completely free, and it will make a significant impact on your website's local search engine optimisation. Because Google places GMB listings at the top of search results, there is a greater possibility of you ranking whenever someone searches for a local bookkeeping service using Google. This boosts both visibility and the trust of the customer.

When you finally get around to launching your online retail store, you'll want to be sure you have the most finest accounting software on your side. It's possible that you're already familiar with QuickBooks, but keep in mind that it's not the only option available. Before making any decisions, it is in your best interest to first experiment with a few different choices. You should take advantage of free trials and reasonable pricing in order to determine which user interface is the most user-friendly for you.

Take some time to determine your fees when you are ready to start looking for your first customer. This can be a very stressful situation for young business owners, but keep in mind that you can always change your prices in the future if necessary. Although it is not difficult to determine an hourly charge, we recommend setting a monthly rate instead (for example, $150 for a month's worth of bookkeeping services). You may expect a more stable income from this type of recurring revenue, and it also helps you cultivate stronger ties with your customers.

Even if you're only charging for a one-time work (like catching up on the books from the previous year), having your clients pay you on a monthly basis will serve you better. By doing it this way, it becomes a connection rather than merely a transaction.

And one more important initial step to take (even though you're an accountant, so hopefully this isn't anything you need to be reminded of), please keep your personal spending separate from your business spending.

Take Care of Your Clients

The first customer is always the most difficult to acquire, but before you know it, you'll have an excessive number of customers for a spreadsheet to properly track. Here is when having the appropriate software could make a world of difference.

For instance, if you use ZipBooks, you have access to a centralised Client List that provides rapid access to all kinds of information, from contact details to transactions that have not yet been confirmed. You are free to move quickly between different client accounts and accounts belonging to the same client. The vertical black bar at the very top of the screen ensures that you will never confuse your own books with those of a customer.

In addition, onboarding new customers is a breeze. When you add customers, an email congratulating them and offering them to create their own accounts will be sent to those customers. Customers are able to monitor the status of their books, manage their businesses, and communicate with you regarding any queries or concerns directly from the dashboard of their self-service account. Once more, you're the one working behind the scenes to make the magic happen.

In addition, using ZipBooks allows you to cobrand your company with each individual client account. The only thing required of you is to upload your company's logo, and it will be displayed prominently whenever customers log in.

It's possible that new customers will want to import their previous bookkeeping data. If you are moving a client over to ZipBooks from Quickbooks Online (or any other accounting software), we have put in all of the migration tools you will need to move client accounts in a matter of minutes. This will allow you to start using ZipBooks immediately after making the switch.

Enhance Communication

Everyone in the business world is aware of the fact that retaining existing customers is more valuable than acquiring new ones. As a result, you ought to do all in your power to make sure that conversations with customers are completely and utterly seamless.

The existing industry norm for communication between accountants and their clients relies on spreadsheets that are overly packed and emails with insufficient encryption. Not only is this procedure fairly laborious, but attempting to reconcile differences in this manner results in a significant amount of awkward exchanges and time lost.

Texting has been implemented into the workflow at many contemporary accounting firms in order to streamline reconciliation and boost client trust.

When it comes to their personal finances, customers don't want to talk to a stuffy bean counter in a three-piece suit. Finances are personal! Instead, customers are looking for bookkeepers that can serve as trusted consultants and business partners for them in their ventures. Texting customers is one technique to lend your company a more personable air.

The process of messaging customers is so streamlined in ZipBooks that you won't even need to open a separate tab to do it. From the list of transactions for your customer, all you need to do is click the "Ask client" button, and an immediate text message containing a link to the transaction in question will be sent to them. In a similar vein, customers check and respond to messages sent to their phones in order to facilitate quick and effective bookkeeping teamwork.

Accountants are able to view all of their messages in a centralised location there. Please confirm by checking a box and selecting a category from the drop-down menu. Quick and easy reconciliation in a few short moments.

In addition, customers are 5 times more likely to respond to a text message than they are to an email. You also have the option of texting customer reports to them (either in PDF form or live).

Automate Your Billing And Invoicing Processes

Your invoices will be sent automatically if you have any intelligence. For the sake of their own records, it is essential for customers to get invoices that are both consistent and professional. Not to mention the fact that the quicker you send out invoices, the quicker you will receive payment.

Do not even entertain the idea of mailing an invoice with the abundance of convenient digital invoicing options that are already available. You may get the speed and professionalism that your bookkeeping business needs from digital invoicing, and it also makes it possible to get paid digitally.

Both Square and Stripe are widely used payment processors that can hasten the procedure through which you are paid. You also have access to CPACharge, which is a payment processor that has been developed especially for accounting firms and accounting professionals. CPACharge has some of the lowest prices in the business, with credit card transactions costing 1.95% plus $0.20 each transaction. In addition, if you use ZipBooks, the $10 monthly fee is eliminated forever.

In addition to this, you need to establish recurring billing for the monthly bookkeeping services that you provide. You won't even need to give it a second thought because the monthly charges on your customers' credit cards will be processed automatically.

Boost Bookkeeping Activities

It's easy to lose track of time when you're managing a large number of clients, which means it's also simple to avoid getting compensated for the excellent work you do.

The built-in time tracker of ZipBook makes it possible to generate precise invoices for every client that you manage, down to the second.

The time-tracking feature of ZipBooks also makes it easier to manage larger teams. Every member of the team, from the entry-level bookkeeping intern to the most senior CPA, can use the same account to log their time in ZipBooks Accountant. You can personalise the permissions of individual accounts so that particular users only have access to the client accounts they are currently working on.

Bringing Joy to the World of Accounting

People that use accounting software on a daily basis are the ones who have the most right to expect it to be attractive and easy to understand.

The effort you put into locating the appropriate software for your accounting company will more than pay off in the long run. Your chosen programme ought to have these capabilities that could save people's lives:

• Auto-categorization
• Reports generated mechanically
• Secure document storing
• Unique tags
• Integrations of payroll systems
• Support that has won multiple awards