In these uncertain times, a well-run bookkeeping business can be a reliable form of income with little expenditure. Bookkeeping businesses can be run efficiently from the comfort of your own home meaning that you do not have to worry about having a physical office and worry about the expenses that come with it. In the United Kingdom, a bookkeeping business can be a lucrative one. There are small business owners that need help with their books. One can start by being a self-employed bookkeeper who works at home and work their way up to being a company that works on the books of big companies.
What services does a bookkeeping business offer?
There are a variety of services that a bookkeeping business can offer its clients. It is important for someone to know if they can offer these services before starting one. Those who do have a bookkeeping business are the ones in charge of making sure that their clients’ financial records are kept maintained. There are also times when some business administration services are needed, which includes the likes of:
• Data entry using accounting software • Paying the clients’ suppliers • Making sure that regular payments (like PAYE) are completed on time • Bank reconciliations • Going after customers of the clients should they be late for payments • Preparing wages • Preparing the clients’ books so that they would be ready for accountants by year-end • Filing invoices • Making any payments for the clients • Customer reconciliations • Supplier reconciliations • Submitting VAT returns • Scanning necessary documents • Paying all cheques
What are the requirements for someone to start their bookkeeping business?
The basic requirements for starting a bookkeeping business are simple and obvious – you must have either qualification, experience (or both) in bookkeeping. The more experience and qualifications that a person has, the more likely that they can attract new clients and even charge a higher rate. A wide network of contacts is a definite benefit or at least the willingness to engage with networking groups to help grow your network and win clients.
Common and recognizable qualifications and associations for bookkeepers are listed below:
• International Association of Bookkeepers (IAB) • Association of Accounting Technicians (AAT) • Institute of Certified Bookkeepers (ICB)
What should be done to start a bookkeeping business?
A bookkeeping business that will be run from home can be easy once a person knows the necessary steps.
• Planning. o List all of the services to be offered by the business. o Know the target client. Envision the size, industry, location, and type of clients that the business would be targeting. o Work on the pricing. Would it be on a per hour basis? Would it be at a fixed rate? o Plan how the services would be sold and marketed. o Do a computation of how much it would cost to set up the business. This would include equipment like printers, computers, and software. o Do a computation of the running costs of the business. This would include electricity and internet. o Start thinking about the business’ name and brand. • Setup. o Incorporate your company with Companies House or a formation agent like us, Company Address Services. o Purchase all necessary equipment to run the business and set up the home office. o Acquire a Money Laundering License to make the bookkeeping services legal. o Pay the needed fees for Data Protection and comply with the General Data Protection Regulation. o Get business insurance. o Open a bank account for the business (if you form your company with us, you can be offered a free business bank account during checkout) o Create a good branding for the business via different channels. o Create a business email. o Find the best bookkeeping software to use. o Prepare templates as well as policies for, but not limited to, engagement letters, cancellation policy, termination letter for clients, and client proposals. • Launch the business. o Start marketing the business to bring in sales. o Have a network of people and business to help support the business.
How to register your business business?
The first thing to do would be to register with the HMRC and Companies House. It is important to know the type of structure of the business to be set up as this will be used in registering the business. Registering as self-employed would be the quickest and cheapest way to do this. However, there may be some people who may find it difficult to do so since they are not familiar with the process. But it is a good thing that there are company formations being offered by companies like Company address that can help business owners do this.
What licenses and insurances need for a bookkeeping business?
One of the requirements by the UK government would be a Money laundering license known as the Anti Money Laundering (AML). It is a legal requirement so a bookkeeping business owner should have this. Business owners who would be working with the personal information of their clients and would also be storing these pieces of information, they should pay the £40 data protection fee to the (ICO) to make sure that they are compliant with the General Data Protection Regulations. Bookkeeping business owners should also have a professional indemnity insurance. For those who have clients visiting their office at home, they should think about getting public liability insurance. If they start to plan to get more staff, they should also think about getting employers liability insurance.
Why is it important to market a bookkeeping business?
A bookkeeping business should be marketed to help get the needed customers and clients to keep it afloat. It should also be a good way to tell people about the services offered by the business and why it should be the best option over all other bookkeeping businesses out there. There are already established bookkeeping business out there and proper marketing of a new bookkeeping business should help a business attract customers and clients.
published under Business Address Guides
