How to Start Your Own Bookkeeping Business: Essential Tips

startup bookkeeping

CEOs of early-stage companies have a tremendous number of things to accomplish. Kruze’s bookkeeping team strives to handle all the minutia so you can focus on growing your business, achieving product-market fit, advancing your R&D, hiring, etc. We understand the pressure of running a hyper-growth business, and want to make your financials as easy as possible. Kruze Consulting is 100% focused on helping seed and venture funded businesses, and one of our key services is accurate and affordable bookkeeping for startups. Launching a successful bookkeeping business requires a strong marketing campaign, with a large part of clients likely to come from effective lead-generation efforts. As a one-person operation, you may find it hard to get back to clients right away, especially during tax season.

Bookkeeping For Startups

Once you have a bank account and credit card dedicated to your business, you can connect them to the software. It’ll pull the activity directly from your accounts and use it to populate your transactions, even generating your income statement. Some business owners still keep track of their transactions by hand, but there’s little reason to do so these days.

Monthly bookkeeping tasks

startup bookkeeping

Online bookkeeping services range in price, with some as low as $49 per month and some as high as $995 per month. Determine your budget before shopping around for services to make sure you are choosing the right one for your startup’s financial needs. For dedicated that you can trust, look no further than 1-800Accountant. Their bookkeeping services are done by Certified Public Bookkeepers (CPB) dedicated to each account. Eversmann maintains that a business is ready for a bookkeeper when there’s enough accounting to reconcile to make you hate the process. She suggests tracking the time it takes to evaluate your books every month to see what your tolerance is.

Understanding the Legal Requirements

Startup tax prep firm Fondo raises $3M – Axios

Startup tax prep firm Fondo raises $3M.

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This will make your business appear more professional and maintain your privacy. This step is important because it establishes your business as legitimate and may help to limit your personal liability if your company is ever sued. Whether you’re doing this part-time or full-time, you don’t want to skip this step. The next decision is whether to focus on a particular small business niche or offer services to all small businesses. It’s much easier to become an expert in accounting for a particular business niche than for all businesses in general.

  • Bookkeepers are essential for other businesses to thrive, making sure that they’re keeping track of their financials correctly and on the right track to grow.
  • For dedicated startup bookkeeping that you can trust, look no further than 1-800Accountant.
  • This system is much more secure than sending files via email or flash drive.
  • Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy.
  • There are more than 33 million small businesses in the U.S., and many could benefit from freelance bookkeepers to keep track of their finances.

startup bookkeeping

If not, you might consider using a file-sharing service such as Dropbox so you and your clients can exchange important data such as receipts or financial statements. Choosing the right bookkeeping software is one of the most important steps in setting up a bookkeeping business. While sole proprietorships are typically the easiest to manage, other business structure options can be helpful if you add employees as your business grows. Keep in mind that your choice of business entity will influence how you pay your taxes, as well as what type of liability protection you’ll receive—if any. Starting your own business may seem overwhelming, but the process is surprisingly manageable. Here’s how to start a bookkeeping business in just nine simple steps.

Bookkeeping experience in the most important startup industries

Effective bookkeeping is essential to the financial management of your startup, accurate tax filing, and financial reporting. To determine the right online bookkeeping service for your business, there are a few factors to consider, like startup bookkeeping price, features included, service, and hidden fees. In addition to their bookkeeping services, they also offer income tax filing and user-friendly financial software, including personal tax filing for sole proprietors and contractors.

How a bookkeeper is different from an accountant

Register your business and get insured

What are the differences between accountants and bookkeepers?

startup bookkeeping

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