Are You Ready to Start a Bookkeeping Business?
I get emails all the time from people sharing their stories and asking me if I think they are ready to start a bookkeeping business. This is a complex question to answer and it depends on many factors, including your personality and what experience you have.
In this article I share 4 signs you are ready to be a bookkeeper. I also give you 4 tips to see if you're ready to start. Many people have a hard time taking the ACTION steps to get going.
Hopefully this article will encourage you to actually start your bookkeeping business!
Watch the video here, or keep reading!
4 Signs You are Ready to Become a Bookkeeper
There are different views on when you should start your bookkeeping business and different people you talk to might give you different advice. These are 4 signs that I believe indicate you are ready to start your bookkeeping business.
#1 - You are Proficient in QuickBooks Online
The first sign that you might be ready to be a bookkeeper is that you are proficient in QuickBooks Online. In order to start your bookkeeping business, make sure you learn everything you need to know about QBO.
I recommend taking the free QuickBooks Online ProAdvisor training and certification.
Many people believe that in order to be a bookkeeper you need more training than only the ProAdvisor certification, but it’s a good place to start.
LEARN BOOKKEEPING - Bookkeeper Launch
#2 - You Know and Understand What a Bookkeeper Does
The second sign you are ready to become a bookkeeper is that you know and understand what the job entails. This means you know the range of duties and services that a bookkeeper provides to their clients.
As a beginning bookkeeper, you will want to know how to categorize bank transactions, reconcile bank accounts, and send reports. These are the very basics. Check out my blog post “Best Services to Provide Your Client as a New Bookkeeper” to learn more about these services.
From there, you can learn and offer more services to your clients (like payroll and invoicing) as you grow your business down the road.
If you don’t know where to start as a beginning bookkeeper, I have a free Decision Tree Chart that will guide you through the process. It contains all the decisions you need to make in order to become a bookkeeper and lays it out for you very clearly.
#3 - You Set Up Your Bookkeeping Business
The third sign you are ready, is you have set up your bookkeeping business. This shows that you are prepared and ready to start.
This can sometimes happen simultaneously as you look for clients and do your training. In some cases you may already have a client, so you are now setting up your bookkeeping business.
If you are looking for guidance on how to set up your business (get your business license, choose a business name, set up a website or email address, etc) my course, Bookkeeper Business Coach, will walk you through this process step by step. This course is designed to help you set up your bookkeeping business in 30 days and will prepare you to take on your first client.
FREE CHECKLIST - Start a Bookkeeping Business
#4 - You Have the Right Attitude
The fourth way you know you’re ready is by your attitude!
I know it can be overwhelming to step out on your own and start a business. However, I see people questioning if they are ready, even when they have more experience than me. It’s a mental block or lack of confidence that keeps some people from getting started.
Of course, you also don’t want to be overly confident either. If you are entrusted with a client's books, you want to make sure you know QuickBooks and have the knowledge you need to do your job well.
4 Tips to Becoming a Bookkeeper
Next, I have 4 tips that will, hopefully, help you get your bookkeeping business started. If you’re trying to decide if you’re ready, these 4 tips will give you the confidence to start!
#1 - Start Small
Don’t try to take on a giant, complex client as your first attempt at bookkeeping. Think about what you know and what you have learned and apply that in a small way, to a small client.
RELATED VIDEO - Client Examples: Small, Medium, & Large for Bookkeepers
#2 - Don’t Wait Until Everything is Perfect
It’s very likely you may never feel ready to start your bookkeeping business, but you don’t have to wait until everything is perfect.
Whenever you start a new job it is overwhelming and there are things you will need to learn on the job. There won’t be a magical time where you are 100% confident and you have all the skills and knowledge you need.
Don’t forget, even after you start your bookkeeping business, you can learn and do research. Spend some time watching YT training videos or google bookkeeping services that you don’t fully understand. I did this all the time as a beginning bookkeeper.
#3 - You Likely Know More than the Business Owner
Oftentimes business owners do their own bookkeeping. It’s common for a new business owner, just starting out, to get a QB subscription, but this doesn’t always turn out well for them.
If you are on the road to becoming a bookkeeper; you have completed some training or passed the QBO ProAdvisor certification, you likely already know more than the business owner who is doing their bookkeeping as an afterthought.
FREE TRAINING CHART - Bookkeeper Classes and Certifications Chart
#4 - Know Your Personality
Do you have the confidence to put yourself out there and stay motivated to not give up? Or maybe you’re the type of person who needs extra support at the beginning in order to feel confident? Knowing who you are and what you need is important when starting your bookkeeping business.
One option for people who want to boost their confidence before starting their bookkeeping business is to learn on the job. Getting trained in a formal setting before you branch out can allow you to build your skills and gain experience that you can carry over to your bookkeeping business when you are ready.
My post next week will be on real life examples of people who emailed me about their personal situations. You can compare your situation and decide if you are ready to start bookkeeping.
Let me know in the comments where you are at in your bookkeeping journey!
