Have you been considering starting a bookkeeping franchise? Are you wondering what qualifications you need to start this business?
Starting a bookkeeping business can seem daunting right away, but you will be able to accomplish this with little to no experience. While you may feel nervous, starting this sort of business is far easier than it seems.
We are going to walk you through some of the best tips and practices to start this business. There are many ways to gain experience and certifications so you can get as many clients as possible.
Let’s take a look at these options and opportunities for your bookkeeping franchise.
Certifications For Bookkeeping
You can become a bookkeeper with no experience. While many people believe otherwise, there is not a certain kind of training or education that you need before you start a bookkeeping business.
If you are looking for certifications or training to pursue, there are a few ways to build your credibility. Here are a few options that are available to you.
Certified Public Bookkeeper (CPB)
You can earn the CPB accreditation through the National Association of Certified Public Bookkeepers. Companies across the country recognize it.
This license allows the holder to validate their skills in bookkeeping, accounting, Payroll, and QuickBooks. It includes a 4-part exam, verification of experience, continuing education hours, and agreement to the professional code of conduct.
Certified Bookkeeper (CB)
This certification program is offered through the American Institute of Professional Bookkeepers. The certification process includes a 4-part exam and is a nationally recognized program.
QuickBooks Certification
This certification is useful in many businesses that are learning QuickBooks or need help to get started. This certification allows you to assist them in making the most of the program.
It also helps you to keep all of your financial statements in order. You will learn accounting basics through this program through in-person training and practice. You can test your knowledge and abilities by taking an exam in a location near you.
Gaining Experience
While you can start a business with little to no experience, it is still important to gain experience. Having a bookkeeping franchise will be more successful and profitable if you take note of a few things. Here are some ways to gain experience and knowledge.
Practical Experience
Before you start the specific aspects of launching a business, you will need to expand the abilities that you already have. You can do this by taking a few online classes.
Make sure that these classes are offered by a reputable institution. This will help you with your marketing efforts. It will also give you a strong foundation of the basic accounting principles and methods to attract certain types of clients.
Organizing The Tasks
Many of the tasks you will need to do include structuring the operation and making sure that you have enough resources to make it through the first critical year. This means that you will need to make a checklist for starting a bookkeeping franchise and addressing each of them individually.
Each point on your checklist will prepare you to address the next one. This will help you to avoid wasting time and track your progress. As long as you are moving forward, you are getting closer to having your first client.
Determine How You Will Finance The Bookkeeping Franchise
The main part of starting a bookkeeping franchise is knowing how much it is going to cost. You will have to make room for funding that covers general business expenses and provides you with a type of income. This is especially important if this will be your only job.
Financing may seem difficult, but it can be a smooth process! When you talk with a franchisor, you may only need to come up with a small amount on your own. The franchisor may have connections with vendors who can provide you with the rest of the funding that you need.
Create A Legal Entity
If your business is incorporated and set up in compliance with current regulations, it will be easier to start a bookkeeping business. Your clients will want to make sure that your business is recognized as a legal entity before working with you.
Do not forget that you will need to register the legal name and the trademarks. You will also need to comply with all of the requirements of the structure you choose. You may also want to consider being a limited liability corporation. This will help when you expand the bookkeeping franchise later.
Structure Your Rates
When you have a bookkeeping franchise, it is important to spend time researching what other businesses are charging. Your goal is to match or beat their rates. If you can do this, you will capture the attention of your potential clients.
Make sure to set rates that provide a reasonable return for your time and effort. While it may be tempting to set very low prices, you will pay for it later. It will only lead to having a lot of work to do and very little returns.
Advertising Your Services
To gain new clients, you will need to use a combination of online and offline methods to get the word out about your services. Social media is a great option for this. By setting up a social media account and a website, you will be able to reach many kinds of clients.
You can learn about how to find bookkeeping clients by observing how other businesses communicate with their customers. This can be done by setting up a Google My Business account to redirect traffic to your website. You can also use text and email campaigns to reach people who may need your services.
Benefits Of Bookkeeping
Having a bookkeeping franchise can be very beneficial. Here are a few of the best perks of bookkeeping.
You Can Be Your Own Boss
This is one of the best aspects of starting a business. It can be an exciting decision because you can make all of the decisions. Everything is up to you, and you will always be able to do what you think is best.
This is a great benefit because one of the biggest problems with other jobs is having a bad boss. If you are your own boss, this issue will be eliminated.
It Is A High Demand Industry
The bookkeeping business is a high-demand industry in any economy. Every business requires bookkeeping at some level. Since bookkeeping is time-consuming and valuable, many business owners do not want to manage it on their own.
This is where you come in. You will be able to get many opportunities to work for other businesses. Due to the high demand, you are also likely to earn a lot of money.
High Margin Of Profitability
Entrepreneurs found that bookkeeping is one of the top 15 most profitable small business industries. This is partially due to easily being able to work from home or in a co-working space.
There is also no need for expensive equipment. This makes the business profitable in the long run and easy to run in a small space.
Must-Have Tools For A Bookkeeping Franchise
To start a bookkeeping business, there are a few tools that you should have in your back pocket. Here are 6 of must-have tools for your bookkeeping franchise.
Business Licenses
This is true of any business. You will need to get a state and local business license before working with your clients. You may also need to apply for a professional services license.
Business Insurance
It is beneficial to buy professional liability insurance. This can cover the mistakes that you or an employee make with a client’s financial records.
Some insurance providers provide professional liability policies with $1 million in coverage. You may only have to pay $50 per month for this service.
Accounting Software
One of the most valuable investments you can make as a bookkeeper is accounting software. Buying software that is made for bookkeepers and accountants will help you to keep track of your work for many clients.
It also helps you and your clients to send and view documents. You will be able to do this safely and quickly.
Document Collection Software
If you do not use software that is made for bookkeepers and accountants, be sure to buy reliable document collection software. It can help your clients to send you the information in a secure way.
This is a great way to ease the minds of your clients. You want them to feel safe sending you their financial information, so this is a useful method to gain their trust.
Antivirus Software
It is wise to invest in firewall and data protection software. Having cyber-security options is valuable because you will have sensitive and private data on your computer.
Losing or corrupting this data would be dangerous. It would also create problems with your clients. Installing antivirus software can prevent these issues and make sure that your clients return for another service in the future.
Computer And Data Storage
In the modern-day, it is necessary to have a computer and lots of storage space for client information. To run a bookkeeping business, there are many options to choose from.
You can store information in the cloud or on an external hard drive. No matter which option you choose, you need to always be sure that you back up your client’s data.
Funding A Bookkeeping Business
The costs involved in starting bookkeeping business from home can vary. Many different circumstances depending on the structure of your company and service.
If you start small, you can keep your expenses low by working at home and acting as your only employee. If you choose to hire a few bookkeepers or get a physical office, the costs can increase. Depending on the option that you choose, there is a wide variety of funding options.
Rollover For Business Start-Ups (ROBS)
This is also known as 401(k) business financing. ROBS is a great way for business owners to start a bookkeeping company without getting buried in debt.
ROBS can help you to access the money that you are saving in your retirement account without needing to pay taxes or penalties. You also will not need to take out a loan, which eliminates the monthly interest payments that you would need to make otherwise.
Small Business Association Loans (SBA)
Loans from the SBA are a great option for those who are looking to start a business with more money than they have available to them. This organization works with banks and financial institutions to get you up to 80% of the total loan amount.
They can encourage banks to offer better terms to small businesses as well. For example, they can offer loans of up to $5 million. This is a wonderful option if you are hoping to launch a physical location with multiple employees.
Unsecured Loans
Unsecured Loans are also known as credit card financing. These are fantastic choices for people who do not have money in their retirement account or do not meet the qualifications for an SBA loan.
The costs of starting a bookkeeping business are lower than other businesses. As a result, unsecured loans can be helpful for the first year. There is 0% interest and can increase greatly over the next few years.
Starting Your Bookkeeping Business
When starting a bookkeeping franchise, you may feel intimidated or nervous. However, it does not have to be as daunting as it sounds. As you get started, it is important to look over these tips and tricks. They will help you to be more prepared for having a business and attract more new customers.
We encourage you to take a look at our website and contact us about starting your own bookkeeping franchise. We will be happy to walk you through these tips and opportunities. You are sure to find the answers that you need.
