Why Should You Start a Bookkeeping Business from Home?
Bookkeepers are high in demand these days, as this is a time consuming mentally stressful job. Beginning a bookkeeping business is easier today as the advanced technology helps in easy maintaining of the following duties of a bookkeeper:
- Managing the cash flow of the business
- Processing Payroll
- Filing the tax return
When you start a bookkeeping business from home, the setup is easy as long as you’re a certified bookkeeper. You can choose your client, your schedule, your pay.
Following are the steps which will guide you to start a bookkeeping business from home in Singapore:
1. Create a Business Plan
The foremost thing to do is creating a business plan. Writing about your business plan will help you in understanding your business better, the process of how the business will flow and you will also understand the funding of the business.
Creating a business plan for starting a bookkeeping business from home will help you in understanding about the products or services you will sell, the products you need (there are much DIY software for bookkeeping which you may need), how to market your services, how to raise funds and finally who your competition is.
2. Setting Up Business
The foremost step in setting up a bookkeeping business from home will require you to choose a company name. A company’s name must be easy to pronounce and it must convey what exactly you must do. It should give complete clarity to your client.
Selecting the right business module for your business is important. There are four common types of business modules: Sole proprietorship, partnership, limited liability company (LLC) and corporation. The business model that you select determines your tax liability, the capital required to start the business.
3. Set Up a Business Bank Account
One of the most important steps that you must do is set up a bank account for your business. Do not wait to open the bank account until the cash starts flowing in, it is always better to open a bank account now than later.
Opening a separate bank account for your business will help you in supporting the limited liability status. Also, you can separate the personal funds from business funds; otherwise you will never know what amount is really personal and the profit that the business is generating.
4. Get an Insurance
Bookkeeping business is a highly tedious job and there is a possibility that you can make a mistake. Having an insurance protection can protect you from the lawsuit as you may have to pay a huge amount to both the clients and the lawyer.
5. Buy the Right Accounting Software
It is mandatory to have the right and accurate accounting software such as QuickBooks. These Do it yourself accounting software offers payroll options and it becomes easy to file tax returns.
The accounting software has a practice management tool which allows you to track the client’s work and progress.
Always have software that allows you to share the documents with the clients. Documents such as invoices, bank statement, copies of receipt need to be shared. This software also allows users to use Dropbox or Cloud. This is safer than sharing files via USB as to access the documents, user id and password is required. Dropbox or cloud can allow you to access the information from anywhere at any time.
6. Set Up a Home Office
When you want to start a bookkeeping business from home can cut down the office lease. Have a private room in your home from where you can work or meet clients. Make sure to get a home office tax deduction
7. Marketing Your Business
It is important that you must market your bookkeeping business to get clients. Having a website with a business email address is very important. Following are some of the ways through which you can market your business:
- Become an instructor
- Have social media accounts
- Sign up on freelancer bookkeeper websites
- Client referral policy
- Join a local accountants group.
- Get featured in a magazine
Attending conferences on accounts and bookkeeping will keep you educated and updated about the last trends such as SAAS- software as a service. You can subscribe to various blogs on accounts to get valuable information.
Get started to get your clients. The best way to market yourself is by announcing your business to friends and family – as they usually become your first client. Having a client referral policy can help you in getting more clients and it increases your reach to the potential clients.