How to Start a Bookkeeping Business from Home

You don’t need to have a degree or any prior knowledge to start learning about bookkeeping. The most common route for someone new to accountancy is to study the AAT Professional qualification. This gives you a solid overview of accounting principles, with modules dedicated to bookkeeping and preparing accounts. ‘Establish a good relationship with your bank as it may have local start-up business consultants who provide advice for free,’ says Darley.

In fact, sole trader accounts don’t even need to be signed off by a qualified accountant for tax purposes. We have published a series of marketing articles to help those interested in copywriting (the science of writing persuasive sales copy to build businesses) really get your business noticed online. To https://www.apzomedia.com/bookkeeping-startups-perfect-way-boost-financial-planning/ ensure you keep everything up to date and you do not miss deadlines, open a spreadsheet and record your client details together with when you expect to receive and deliver paperwork, tax returns etc. You could open new worksheets in the same spreadsheet, which will give you quick access to previous years.

Association of Accounting Technician’s (AAT)

The amount a self-employed bookkeeper working from home can charge per hour varies according to experience and qualifications. But self-employed bookkeepers in the UK are currently typically charging between £15 to £35 per hour. Whatever you choose to charge, you should make sure it covers your expenses, holidays and taxes. Read my guide to setting your hourly rate to help you set the right wage for you and to download a free calculator to help you work it out. As well as considering your local competition, you will also need to consider bookkeeping businesses that operate remotely. You will first need to check whether there is enough demand for your services.

My bookkeepers do these but have little to no tax knowledge outside this so it is not necessary unless you want to progress to accounts/tax returns in the future. Start profiting from your own bookkeeping business today with our bookkeeper franchise. If you’d like a guide more focused on starting your own bookkeeping business (not just freelancing), check out how to become a self-employed bookkeeper in the UK. This is a great option if you’re still studying, want a taste of running your own business or want to specialise in bookkeeping. As an AAT Licensed Bookkeeper you’ll be able to offer up to five services, including VAT and bookkeeping. You’ll need to have an easy method to get client paperwork from your customers.

How to start a virtual bookkeeping business

You could explore several pricing options, from billing by the hour to flat fees for specific work or even a monthly retainer. All have their pros and cons, and it may be that you use different models for different clients. All of these are also recognised internationally should you wish to work with overseas clients. Generally speaking, a bookkeeper will be charged with ensuring a business’ financial information is accurate and up to date. Key tasks will include data entry to record financial transactions and balance the books; bank reconciliation; and creating monthly reports that summarise the business’ financial position. Insurance is an essential part of any business, and it is vital to get the correct insurance in place before you start.

Your work as a bookkeeper in public practice falls under the scope of the Money Laundering Regulations (MLR). You will therefore need to satisfy a legal requirement to put in place certain controls to spot and reduce the risk of your clients laundering money. You are considered to be engaging in public practice if you offer bookkeeping services to the public, whether paid or unpaid. This applies even if you do not intend to actively promote your services, use the ICB Crest or call yourself a Certified Bookkeeper.

Research current trends, plus legal and tax issues

The following pointers will help you to get started in bookkeeping for your small business. These are usually the minimum records (‘books’) you’ll keep – there will probably be more. Keeping accurate books is important for financial reporting, and vital if your business faces an audit. Purchase invoice – this records what you’ve bought (including services) and how you’ve paid for each purchase.

Running your own business is rewarding, but can be tough, especially in the early days. Think carefully about whether it’s a challenge you’re ready for and whether you have the necessary skills. Being your own boss means you have to be driven, highly-organised, motivated and diligent – all skills you’ll have picked up during your AAT qualifications. Once you have a few customers, use the “member get member” technique to win more business.

In this in-depth article we look at all the basics you need to be aware of to set up your home based bookkeeping practice. You can claim tax back from lots of business expenses to bookkeeping for startups reduce your overheads. You’ll need receipts to substantiate your claims from HMRC, so keep them stored somewhere safe and organised in different business categories.

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