How to Start a Bookkeeping Business By Building Trust - If you have worked as a bookkeeper, either for another business or for your own business, then you can also start your own bookkeeping business. Especially if you like doing this.

For this business to work, it works best with word of mouth. Personally, I would not waste too much money on ads in the local paper. Most small businesses tend to look to other businesses for word of mouth or recommendation, rather than a stranger in the newspaper. After all, you are going to be diving into their business, and will get to know exactly how much they are making etc.

This is a very personal part of a business, especially a small business, where you may be working for one client. He wants to know that his business is safe with you.

How to Start a Bookkeeping Business - If you don't have any clients right now, you can start with your friends. Let them know that you are open for business. You will first have to decide how you are going to operate your bookkeeping business.

So, you will need to decide on the following points, as you will be asked:

1. Will you work from home and have the client bring things to you, or will you be willing to go to their office and do the bookkeeping on site. (many businesses like this option and will be willing to pay more for it too)

2. What type of simple bookkeeping software will you be using? If this is going to be on your own personal computer, you need to make sure it is up to date, and can handle the size of business you may be looking at.

3. If you are going to head to their office, then you need to know what type of simple bookkeeping software they have on their computer, and are you familiar with it? Could you get them to change if need be? Can you learn a new system?

Once you have the above questions answered, then you can approach a potential client.

There are ways now with computer programs to be able to go to a small business office or operate remotely too. A computer expert can show you the programs that will let you into a clients computer bookkeeping program. But many companies don't like doing this unless there is the trust factor there.

If you just don't know too many people with a business that might like some bookkeeping work done and be willing to pay, then ask your accountant if you have one. They will quite often have customers or clients that may need a bit of bookkeeping work done. Some accounting offices will do the bookkeeping services for larger clients, but may not have the manpower for some of the smaller ones, and you may be a cheaper option for that small business.

How to Start a Bookkeeping Business - If you land a client, and you do a good job, and feel you could handle more work, then ask your present customer if they can recommend you to anyone. This works well. This is how I got started.

If this is not working, then another option is to sign up for a "how to do bookkeeping course". Even if you already know how to do bookkeeping, it wouldn't hurt to update your skills, and you can now mingle with people who may need your services.

Many businesses will take one of these course, hoping to be able to handle all their very own bookkeeping, but while taking the course, they may find this is not for them. This is when you start letting them know that you do bookkeeping work for a business. Answer a few questions for them for free. Once they get to know you through this course, they may just hire you.

How to Start a Bookkeeping Business - One other resort, is to take on temporary work. Check with local employment agencies, they will quite often have listings for contract work or temporary work. Check to see if they have any in the bookkeeping fields. It may not be the perfect solution to starting your bookkeeping business, but it will get your name out there.

Once you have worked for someone, you may be able to ask for references that you can use when you start a bookkeeping business.

When you start a bookkeeping business, you will need to keep up with updates to, from tax rules to source deductions etc. There are government websites that will let you know of any changes, especially if you will be doing payroll. Many small businesses will outsource payroll, but not all of them. So, you can find out all the wage deductions etc on many of the government websites.

When you start a small bookkeeping business, you may find that the business you have approached is interested but wants you to meet up with their accountant. This is a great way to get started. This way you know exactly what the accountant is looking for at the year ends.

This is actually one of the first things you should do once hired. Is to find out the name of the business accountant, and setup an appointment. Tell them you are going to be doing the bookkeeping, and confirm what they want to see, with regards to reports etc.

If the business you are going to do bookkeeping for, does not have an accountant, then let them know you can recommend one. Most small businesses, that need bookkeeping services done, should have an accountant. A bookkeeper to keep the numbers organized, payroll and keep taxes paid etc, and an accountant for their year end.

This will keep a small business running like a well oiled machine. The bookkeeper can let them know if expenses are rising or if there are any tax issues throughout the year, and the accountant can do the income tax return at the year end. This way the business owner can concentrate on running their business.

Once you have a system in place that is working, then you can take on more customers. But do not take on too many customers, you may need to allow room for growth of your present businesses, which will keep you busy and be making you money.

How to Start a Bookkeeping Business - Charge by the hour. This is the best way. Keep track of the time you are at the business or the time you spend on the business at your own office. Send invoices regularly with an explanation of the work you did and the dates.

Also see:

Bookkeeping for Small Business

Simply Accounting 7.0 - How to Upgrade to Simply Accounting PRO 2010

How to Do Bookkeeping