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Understanding the Legal Requirements

Acquiring bookkeeping skills, creating a business plan for your bookkeeping business, marketing strategies for your bookkeeping business, managing finances in your bookkeeping business, acquiring clients for your bookkeeping business, is bookkeeping a profitable business, can you start your own bookkeeping business, how much should i charge my bookkeeping clients, the bottom line.

• Small Business
• How to Start a Business

How to Start Your Own Bookkeeping Business: Essential Tips

Understanding the legal requirements

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips CURRENT ARTICLE
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

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Starting a bookkeeping business is something you might be interested in if you naturally love numbers and want to break free of the traditional nine-to-five. It’s possible to offer bookkeeping services to clients in person or remotely, which may be ideal if you would prefer a work-at-home job.

Before starting a bookkeeping business, you’ll first need to know the basics of operating legally. It’s also helpful to understand how to market your services and manage the financial side of running a business.

Key Takeaways

• A degree in accounting is not required to start a bookkeeping business, though a certification in bookkeeping can be helpful to have.
• You’ll need to choose a business structure, and register your business with the proper state authorities if required by law where you live.
• If you plan to hire employees, you may need to obtain workers’ compensation insurance in compliance with state law.
• Developing a solid marketing plan can help you build your brand and attract clients to your business.

The legal requirements for starting a bookkeeping business are similar to any other type of business. Some of the most important things you’ll need include:

• Selecting a business structure (i.e., sole proprietorship, limited liability company, etc.)
• Choosing a name for the business
• Registering your business with the proper state agencies
• Obtaining a federal Employer Identification Number (EIN) and state identification numbers, if necessary
• Applying for any necessary licenses or permits
• Opening a business bank account
• Getting business insurance , including liability coverage and/or home-based business insurance

The exact requirements for starting a small business will depend on the state in which you live. You may need to contact your secretary of state or department of revenue for more information on what paperwork you may need to complete to legally establish your bookkeeping business.

There may be additional steps required if you plan to hire employees for your business. For instance, you may need to obtain workers’ compensation insurance. The requirements for workers’ compensation vary by state. For instance, California requires workers’ compensation for all employers, regardless of the number of employees. In Alabama, on the other hand, businesses are not required to purchase workers’ compensation insurance if they have fewer than five employees.

Some states may impose steep penalties against businesses that fail to obtain workers’ compensation insurance.

Starting a bookkeeping business requires an understanding of accounting and bookkeeping practices. You may need to first complete a training program before you can launch.

For example, you might pursue any of the following:

• Bookkeeping certification
• Tax certification
• Accounting software certification

Unlike the requirements to become an accountant, the training required to become a bookkeeper is less strenuous. It’s possible to find and complete an online training program from home.

As you compare online bookkeeping courses , consider the range of topics covered, the course format, and the cost. Whether it makes sense to obtain just one bookkeeping certification or additional tax and accounting software certificates can depend on your niche and the types of services you plan to offer. 

While a degree in accounting may be helpful for starting a bookkeeping business, it’s not an absolute requirement.

A business plan is a detailed overview of how you plan to launch and grow your business. There are several key elements that are typically included in a comprehensive business plan. Here’s what yours might look like as you draft a plan for your bookkeeping business.

• Executive summary : The executive summary should offer a brief overview of what your business is about, your mission, and how you’ll be successful. Your mission statement can also include information about your employees (if you plan to hire any) and your plans for growth.
• Company description : Your company description is an opportunity to provide additional details about your business, including who you plan to serve and what problems you’ll solve for your clients.
• Market analysis : Market analysis allows you to look at your competitors and identify their strengths and weaknesses. Completing this section can help you better understand what makes your bookkeeping business unique.
• Organization and management : This section should describe how your business is legally structured and who’s responsible for running it. If you’re operating as a one-person business, this part of your plan will likely be brief.
• Services : In the services section, you can expand on what types of services you plan to offer as a bookkeeper and who you expect your customers to be.
• Marketing : How you market your bookkeeping business can depend on your niche or target audience and what resources you have to invest in advertising. You’ll use this section to sketch out your marketing plans for attracting clients to your business.
• Financial projections : This section is where you’ll outline how much revenue and profit you expect to make from the business.

Having a business plan to start a bookkeeping business isn’t a requirement, but creating one can help you get some clarity on what your goals are and how you plan to proceed with growing the business. Even if you’re just planning to offer bookkeeping services remotely as a sole proprietor , it can still be helpful to flesh out the exact steps you’ll need to take to succeed.

A business plan may be required if you plan to apply for business financing from banks or investors.

When you start any new business, you can’t expect customers or clients to magically find you. Instead, you’ll have to invest some time (and perhaps, money) in marketing your business.

If you’re specifically interested in working as a bookkeeper remotely, establishing a website and social media profiles may be a starting point for your marketing plan. Both can make it easier for potential clients to find you in online searches. You can also leverage social media to build your brand and increase your visibility.

Aside from a website and social media, there are some other options you might consider for marketing your services. They can include:

• Using LinkedIn to build out your professional network and establish credibility
• Joining a local meetup group of bookkeepers in your area
• Joining a professional business association in your area
• Participating in local small business events
• Seeking out opportunities to be a guest on podcasts in the finance niche
• Offering a seminar or workshop, either online or in person

When planning your marketing strategy , it’s important to think about the message you want to send to prospective clients. That message should be consistent across all of the channels you use to market your business, whether that includes YouTube, Facebook, TikTok, or another platform. 

It’s also important to consider who your message is targeting. Your marketing content should speak to the needs and pain points of the types of customers you’re most interested in attracting to your business.

Keeping track of cash flow is essential for running any business. As you prepare to start your bookkeeping business, it’s important to keep track of your expenses, which may include:

• Website hosting
• Accounting software
• Customer relationship management (CRM) software
• Cloud storage fees
• Home office supplies (if you’ll be working remotely)
• Registration fees
• Fees for certification or training
• Marketing costs

Once your business gets under way, you can make a monthly budget to track your cash inflows and outflows. You’ll also need to give some thought to how you plan to invoice your clients for your services. That includes choosing when to send invoices , how quickly you expect them to be paid, and which payment methods you'll accept. 

Running a business also means paying taxes on your earnings. That includes income tax and estimated quarterly taxes . Generally, you’re required to make estimated quarterly tax payments to the Internal Revenue Service (IRS) if:

• You expect to owe at least $1,000 in tax for the year, after subtracting withholding and refundable credits.
• You expect your withholding and refundable credits to be the smaller of 90% of the tax shown on your current year’s return or 100% of the tax shown on your prior year’s return.

If your state imposes an income tax, you’ll also be responsible for making estimated tax payments to your state agency.

Opening a business bank account can make it easier to keep track of what funds go in and out. You can open a business bank account at a traditional bank, credit union, or online bank. You’ll need to provide your personal information, along with your business details, in order to open an account. Comparing fees, features, and accessibility can help you choose the best business bank account for your needs.

You might also consider applying for a business credit card to help cover expenses until you start making money. You can apply for a business credit card using your personal credit score and income ; business credit is not a requirement. If you’re considering a business credit card , you might want to look for one that offers a generous rewards program and/or charges no annual fee. 

Once you’ve covered all the legal aspects of starting your business, it’s time to start finding your first clients. There are a few ways you can go about doing this. These include:

• Looking for remote bookkeeping opportunities on freelance job boards
• Establishing profiles on sites like Fiverr or Upwork, which connect companies with freelance workers
• Reaching out to local businesses to ask if they need bookkeeping services
• Running ads on social media
• Joining local small business directories
• Offering a free consultation to local businesses
• Asking friends, family, or other business owners for referrals

Once you start getting your first clients, it’s important to focus on customer satisfaction. Clients who are happy with your services are more likely to stay loyal and continue to hire you. They also may be willing to refer you to people they know who might need a good bookkeeper.

Bookkeeping has the potential to be a profitable business if you’re able to maintain a solid roster of clients who are willing to pay competitive rates for your services. A typically remote bookkeeper’s salary is just over $63,600 a year, but it’s possible to make much more than that, depending on your clientele and the rates you charge.

It’s possible to start a bookkeeping business from scratch, even if you don’t have a professional or educational background in accounting or bookkeeping. Having a degree or certification in either area could be an advantage, but it’s possible to acquire the skills you need to become a bookkeeper online. Likewise, you don’t need to have experience running a business, but that could also prove helpful.

The amount you should charge your bookkeeping clients can depend on a number of factors, including how much experience you have, which certifications you hold, the types of services you offer, and the types of individuals or businesses you work with. Someone who’s new to the profession, for example, may start their rates at $20 an hour, while someone with several years of experience may charge $35 an hour or more. Researching average bookkeeper salaries for your area can give you an idea of what your competitors may charge.

Starting a bookkeeping business can be a great opportunity to take control of your career. Before diving in, however, it’s important to understand what’s involved to get your new business up and running. The more prepared you are before launching, the greater your chances of succeeding as an expert bookkeeper.

U.S. Small Business Administration. “ Launch Your Business .”

Insureon. “ State Laws for Workers’ Compensation .”

U.S. Small Business Administration. “ Write Your Business Plan .”

Internal Revenue Service. “ Estimated Tax .”

Glassdoor. “ Remote Bookkeeper Salaries .”

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Bookkeeping Business Plan Template

Written by Dave Lavinsky

Bookkeeping Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs create business plans to start and grow their bookkeeping companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bookkeeping business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Bookkeeping Business Plan?

A business plan provides a snapshot of your business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Bookkeeping Business

If you’re looking to start your own bookkeeping business or grow an established business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bookkeeping business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bookkeeping Startups

With regards to funding, the main sources of funding for a bookkeeping business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a bookkeeping company is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

How to write a business plan for a bookkeeping company.

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of business you are operating and the status; for example, are you a startup, do you have a bookkeeping business that you would like to grow, or are you operating a chain of bookkeeping companies.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the bookkeeping business industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of bookkeeping business you are operating.

For example, you might operate one of the following types:

• Traditional Bookkeeping and Accounting Business : the traditional bookkeeping and accounting business can provide the entire range of bookkeeping services, including maintaining journals and ledgers, balancing and reconciling accounts, preparing payroll, preparing and filing taxes, and providing billing and collection services.
• Tax Preparation Services : this type of bookkeeping business primarily prepares, reviews, and/or files tax returns and supplementary documents.
• Payroll Services : this type of bookkeeping business typically collects payroll information, processes paychecks, processes withholdings, and files reports.
• Billing Services : this type of bookkeeping business deals with sending bills and collecting payments.

In addition to explaining the type of business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the bookkeeping business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bookkeeping industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, it would be helpful to ensure your plan takes into account the seasonal nature of certain services such as tax preparation.

The following questions should be answered in the industry analysis section:

• How big is the bookkeeping industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your bookkeeping business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments : families, entrepreneurs, businesses, retirees, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bookkeeping business you operate. Clearly, families would want different pricing and product options and would respond to different marketing promotions than established businesses.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most bookkeeping companies primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your business clients.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other bookkeeping services and companies.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes accountants, companies’ internal accounting departments, professional employer organizations, and entrepreneurs/individuals doing their own bookkeeping. You need to mention such competition to show you understand that not everyone engages in bookkeeping services.

With regards to direct competition, you want to detail the other bookkeeping companies with which you compete. Most likely, your direct competitors will be bookkeeping companies located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior bookkeeping services?
• Will you provide bookkeeping services that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bookkeeping business plan, you should include the following:

Product : in the product section, you should reiterate the type of business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to account reconciliation, will you offer services such as tax preparation?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the services you offer and their prices.

Place : Place refers to the location of your business. Document your location and mention how the location will impact your success. Discuss how your location might provide a steady stream of customers. 

Promotions : the final part is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Email marketing to prospective clients
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites 
• Social media advertising
• Pay per click advertising
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bookkeeping business such as serving customers, procuring supplies, keeping the office clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your bookkeeping business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in the bookkeeping or accounting business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in bookkeeping businesses and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 customers per week or 20? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your bookkeeping business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bookkeeping or accounting business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computers and software
• Cost of maintaining an adequate amount of office supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.

Bookkeeping Business Plan Summary

Putting together a business plan for your bookkeeping business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert bookkeeping business plan; download it to PDF to show banks and investors. You will really understand the bookkeeping business, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bookkeeping business.

Bookkeeping Business Plan FAQs

What is the easiest way to complete my bookkeeping business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Bookkeeping Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of bookkeeping business you are operating and the status; for example, are you a startup, do you have a bookkeeping business that you would like to grow, or are you operating a chain of bookkeeping businesses.

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Other Helpful Business Plan Articles & Templates

Bookkeeping Business Plan Template

Written by Dave Lavinsky

Bookkeeping Business Plan

You’ve come to the right place to create your Bookkeeping business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Bookkeeping companies.

Below is a template to help you create each section of your Bookkeeping business plan.

Executive Summary

Business overview.

Pacific Bookkeeping is a new bookkeeping firm located in Seattle, Washington. The firm will focus on providing expert bookkeeping services and exceptional customer service. We will help both small businesses and individuals and provide them with tax preparation, forecasting, budgeting, and other bookkeeping/accounting services.

Pacific Bookkeeping is led by Rebecca Stone, an experienced accountant who has been managing a large bookkeeping firm in Seattle, Washington for the past ten years. She graduated from Washington State University with an accounting degree and has been working at a large payroll firm since then, starting at an entry-level position and working her way up to a management-level role. Her experience and education have fully equipped her to run her own local bookkeeping firm.

Product Offering

Pacific Bookkeeping will provide a full range of bookkeeping services for individuals and small businesses. Some of these services include:

• Recording invoices
• Tax filing and preparation
• Financial reporting
• Payroll processing
• Monitoring accounts receivable
• Documenting receipts
• Forecasting
• Customer analysis

Customer Focus

Pacific Bookkeeping will primarily serve individuals and small businesses in the Seattle, Washington area. The city is home to over four million residents and around 100,000 businesses and many of them have a need for professional bookkeeping services. We will offer a wide variety of bookkeeping services in order to serve as many customers as we can in this target market.

Management Team

Pacific Bookkeeping is led by Rebecca Stone, an experienced accountant who has been working at a large bookkeeping firm in Seattle, Washington for the past ten years. She graduated from Washington State University with an accounting degree and then began working at the firm, starting at an entry-level position and working her way up to a management-level role. Though she has never run an accounting firm of her own, her experience has given her an in-depth knowledge of the bookkeeping industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

Pacific Bookkeeping will be able to achieve success by offering the following competitive advantages:

• Location: Pacific Bookkeeping is centrally located in the community, which provides ease of access for clients. The firm’s office will be located between the retail and business districts, making it accessible to a larger customer base.
• Competitive pricing: Pacific Bookkeeping’s pricing is more affordable than its closest competitors.
• Management: The management team has years of accounting experience that allows the company to market to and serve clients in a much more sophisticated manner than competitors.
• Relationships: Having lived in the community for over 20 years, Rebecca Stone knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for Pacific Bookkeeping to build brand awareness and an initial customer base.

Financial Highlights

Pacific Bookkeeping is seeking a total funding of $200,000 of debt capital to open its bookkeeping firm. Funding will also be dedicated towards three months of overhead costs including the payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

Company Overview

Who is pacific bookkeeping, pacific bookkeeping’s history.

Once her market analysis was complete, Rebecca Stone began surveying local office spaces for lease and identified an ideal location for the bookkeeping firm. Rebecca Stone incorporated Pacific Bookkeeping as a Limited Liability Corporation in January 2023.

Once the lease is finalized on the office space, interior design work can begin to make the office an appealing place to meet with clients.

Since incorporation, the company has achieved the following milestones:

• Located available office space for rent that is ideal for the bookkeeping firm
• Developed the company’s name, logo, and website
• Hired an interior decorating company to design and furnish the office
• Determined equipment and necessary supplies
• Began recruiting key employees

Pacific Bookkeeping’s Services

Industry analysis.

The United States Bookkeeping Industry is forecast to generate more than $66B this year. According to research reports, the largest bookkeeping firm in America generates approximately $9.5B annually. There are currently over 1.5M bookkeepers employed throughout the United States.

The top bookkeeping firms industry-wide are Automatic Data Processing (ADP) ($9.5B in annual revenue), Intuit ($7.8B in annual revenue), and Paychex ($4.0 in annual revenue). All other bookkeeping firms in the United States combined generate approximately $43.5B in annual revenue. An estimated 42% of industry revenue is generated through payroll services. Additional services such as billing, general accounting, tax preparation, and bookkeeping make up the remainder.

One of the biggest challenges for bookkeeping firms is the ability to keep up with changes in regulations. Additional hurdles include recruiting and retaining high-quality employees, keeping up with evolving technology, and acquiring new clients.

However, despite the challenges, the bookkeeping industry is expected to grow significantly throughout the rest of the decade. According to Data Intelo, the industry is expected to grow at a compound annual growth rate of 9.5% from now until 2030. This large growth shows that bookkeeping services are still in high demand, meaning that Pacific Bookkeeping has a solid chance of succeeding and maintaining a profit.

Customer Analysis

Demographic profile of target market.

Pacific Bookkeeping will serve individuals and small businesses in the community of Seattle, Washington, and its surrounding areas. Seattle has thousands of individuals and small businesses that would benefit from affordable bookkeeping services.

The precise demographics for Seattle, Washington are:

Customer Segmentation

Pacific Bookkeeping will primarily target the following customer profiles:

• Individuals
• Small businesses and nonprofits
• Government organizations

Competitive Analysis

Direct and indirect competitors.

Pacific Bookkeeping will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Young & Mitchell

Founded in the 1930s, Young & Mitchell has intentionally remained a small business so that the core group of professionals within the company could get to intimately know each one of their clients. The company is one of the leading tax firms in the Four State Region and offers financial guides and tax tools for individuals for free. Listed below is an outline of the services that the company offers according to its website:

• Tax Preparation and Planning Services
• Assurance and Advisory Services
• Estate and Trust Planning and Tax Preparation
• Bookkeeping/Write-up
• IRS Representation
• Accounting Services
• Audits, Reviews, and Compilation
• QuickBooks Accounting Help and Assistance
• Entity Selection and Restructuring
• Payroll Services

A Plus General Bookkeeping Services

A Plus General Bookkeeping Services is a bookkeeping firm that specializes in financial strategy and consulting for businesses of all sizes. The firm has been in business for over a decade and has acquired a loyal client base.

Clients may work with accountants in person, over the phone, through email, on video conferencing software, or completely through a new digital application. Although this firm has an excellent track record for service, it is also the most expensive bookkeeping company on the market.

Smith Brothers Accounting

Established in 1974, Smith Brothers Accounting is a privately held accountant practice that offers a wide variety of financial services including tax planning and preparation, payroll processing, financial planning, and small business accounting. Smith Brothers Accounting serves individuals and businesses.

Smith Brothers Accounting Services:

• Business Services
• Tax Services
• Individual Services
• Notary Services

Competitive Advantage

Pacific Bookkeeping will be able to offer the following advantages over the competition:

Marketing Plan

Brand & value proposition.

Pacific Bookkeeping will offer a unique value proposition to its clientele:

• Client-focused bookkeeping services
• Service built on long-term relationships
• Thorough knowledge of the latest regulations
• Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Pacific Bookkeeping is as follows:

Pacific Bookkeeping understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer others by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Website/SEO

Pacific Bookkeeping will invest heavily in developing a professional website that displays all of the features and benefits of the bookkeeping company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content and post customer reviews that will increase audience awareness and loyalty.

Special Offers

Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new clients and encourage repeat business.

Pacific Bookkeeping’s pricing will be moderate so consumers feel they receive great value when purchasing the bookkeeping services. The client can expect to receive quality bookkeeping services at a more affordable price than what they pay at other accounting firms.

Operations Plan

The following will be the operations plan for Pacific Bookkeeping.

Operation Functions:

• Rebecca Stone is the Owner and CEO of Pacific Bookkeeping. She will be in charge of the executive and operations aspects of the business. She will also provide bookkeeping services for her initial clients until she hires a full staff of accountants, bookkeepers, and tax preparation professionals.
• Rebecca is joined by Rhonda Wolfe who will be the company’s Administrative Assistant. She will help Rebecca with the administrative functions of the business.
• Rebecca is also joined by Samual Wright. He will act as the Marketing Manager and manage all the marketing and advertising functions for Pacific Bookkeeping.
• As the firm grows and takes on more clients, Rebecca will hire a team of experienced accountants, bookkeepers, and tax preparation professionals to help with the company’s service functions.

Milestones:

Pacific Bookkeeping will have the following milestones completed in the next six months.

• 3/202X Finalize lease agreement
• 4/202X Design and build out Pacific Bookkeeping
• 5/202X Hire and train initial staff
• 6/202X Kickoff of promotional campaign
• 7/202X Launch Pacific Bookkeeping
• 8/202X Reach break-even

Financial Plan

Key revenue & costs.

Pacific Bookkeeping’s revenues will come primarily from its bookkeeping services. The major costs for the company will include the salaries of the staff, marketing spending, and the rent for a prime location in Seattle.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Annual rent: $50,000
• Year 3: 100
• Year 4: 125
• Year 5: 150

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Bookkeeping Business Plan FAQs

What is a bookkeeping business plan.

A bookkeeping business plan is a plan to start and/or grow your bookkeeping business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Bookkeeping business plan using our Bookkeeping Business Plan Template here .

What are the Main Types of Bookkeeping Businesses?

There are a number of different kinds of bookkeeping businesses , some examples include: Traditional Bookkeeping and Accounting Business, Tax Preparation Services, Payroll Services, and Billing Services.

How Do You Get Funding for Your Bookkeeping Business Plan?

Bookkeeping businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Bookkeeping Business?

Starting a bookkeeping business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Bookkeeping Business Plan - The first step in starting a business is to create a detailed bookkeeping business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bookkeeping business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bookkeeping business is in compliance with local laws.

3. Register Your Bookkeeping Business - Once you have chosen a legal structure, the next step is to register your bookkeeping business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your bookkeeping business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bookkeeping Equipment & Supplies - In order to start your bookkeeping business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bookkeeping business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bookkeeping business:

• How to Start a Bookkeeping Business

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How to start a bookkeeping business – a step-by-step guide.

Bookkeeping is a tasking part of any small business. Small business owners know that time management , organization, and detail-orientation all need to go into keeping a strong system of accounting afloat. If these are skills you’ve mastered, you may consider starting your own bookkeeping business.

This step-by-step guide will map out the process to get started on your own bookkeeping business. We’ll cover building a bookkeeping plan, creating a strong accounting system, marketing and gaining clients and other helpful tips to get your business set up.

Here’s What We’ll Cover:

Benefits of Starting a Bookkeeping Business

Launch a thriving bookkeeping business, more resources for bookkeepers.

Perhaps you’ve worked as a bookkeeper for a larger company or firm and you’d like to branch out and start your own business . You may be ready to be your own boss, work virtually,  make your own hours, and build your own accounting software program.

There are some things you should consider when thinking about starting your own bookkeeping business. Learn the benefits of starting out on your own small business venture that will encourage you to take that leap.

You get to establish your own management style.

Different bookkeepers have different methods of accounting. Depending on your training, certification, and experience you’ll learn to navigate different strategies and dial in what will help your company succeed. Only you know what accounting style works best for you, choose a system that helps you thrive.

You can choose your hours.

As a small business owner , you get to decide how many clients you want to take on, how much money you want to make, and how many hours you want to work during the day.

You can personalize your business and grow at your own pace.

Build a marketing strategy that draws clients to your unique brand, while becoming familiar with the clients that you’re bringing in, and predict how they could support future business bookkeeping goals.

The great thing about starting your own bookkeeping business is that all of these decisions will be yours to make. You will be the one putting the work in, so creating a personalized business model will be what sets you apart from competition, and what will get you the most fulfilling feedback.

Step One: Draft a Business Plan

Take time to sit down and write out a business plan– a roadmap of what you’d like your business to look like. This can be as creative as you’d like, and include short-term and long-term goals that you have for your bookkeeping business.

Your business plan should define your purpose in wanting to start this new endeavour.  Be specific in what you’re trying to accomplish– what satisfies you about accounting and how you will amplify that satisfaction to create a practice of purpose?

Another key aspect of building your business plan will be finding your target audience. Again, it’s important to detect what potential clients you will be bringing in. Are you looking to get hired by small businesses bringing in large income ? Or freelancers starting out on their own?

Step Two: Create Your Accounting System

This step may be the most important aspect of beginning a successful bookkeeping business.

When you decide to go into business for yourself, a big part of your decision may be the thought of making your own hours and working less. The only way to make that transition a reality is by time management.

The key to time management is creating an effortless bookkeeping accounting system. This step may take trial and error but you will use your skills and experience to dial in a software program that is repeatable and strategic so that each client you decide to work with will be managed in the same structured pattern.

Having an effortless accounting system will be imperative when it comes to hiring on additional help for your business– as you could familiarize them with the existing software system and they could get started right away.

Step Three: Market to Prospective Clients

A successful business needs a strong marketing strategy from the start. By learning early on what your target audience is, you will gain huge insight on what procedures you need to take to keep your bookkeeping business at the top of potential clients’ radar.

Reference your initial business plan — what type of clientele are you aiming to serve? If you’re directing your accounting services to freelance businesses, you will implement practices that will be unique to serving freelancers, and that will encourage them to hire your business over a different bookkeeper.

Another aspect of marketing is dialing in your brand, which goes hand in hand with the type of clients you want to bring in. Knowing the market and what makes you stand out from other competitors will naturally draw your potential client base to your bookkeeping services .

Figure out what bookkeeping methods you’re good at (whether it be tax returns, payroll, financial data entry, insurance, etc.) and put emphasis on those services so that when potential clients see your website, they will know they want to work with you.

Step Four: Create a Business Website

When you dial in your business structure, accounting system, brand, and target audience, you’re ready to showcase it on a professional bookkeeping website.

Having a strong website will make you stand out against your competitors, and there are key elements to consider when building your platform.

• Choose a Structure – Different website platforms have many different styles and structures to choose from. Find a clean, manageable layout that will not distract visitors from your services.
• Make a Statement – What key statement do you want potential clients to remember that will set you apart from other professional bookkeepers and make them want to hire you? Fill guests in on your experience in the industry and they want to work with your company. Clients will prefer to work with an accredited professional bookkeeper– stating your certification and training could be useful.
• Guide Your Clients – Having organized and accessible services on your website will allow you to get clients familiar with what your business has to offer. Let clients know if you provide online bookkeeping service and how you can connect virtually. Make your services, your unique brand, and your mission apparent to each client that finds your site.
• Add Contact Information – How can clients contact you for your service? State where clients can find you online, via social media (linkedin, facebook, apps) and how they can get started and schedule a consultation with you.

Step Five: Strive for Business Success

Once your bookkeeping business is underway, you will have to trust that your system will draw clients to you. Time management, experience, and consistent energy will all be factors in your business success.

Maybe you learn that you’re drawing in different clientele than you’d anticipated, or you need to hire more assistance to help with a growing workload– managing and adjusting minor details in the beginning stages of your business will help dial in your bookkeeping services.

All the while, as you navigate your new business, keep in mind the initial goals you made, and continue to feed consistent energy into bringing those goals to life as you build your professional practice.

One of the most rewarding parts of building your own business is that whatever you put into it, you will see the outcome and reap the benefits. As you move along in your business plan, you get to decide how much time, energy, and motivation you have to give to your endeavor. Business owners alike know that the more you put in, the more you’ll get out.

Whatever your motivation for starting a business of your own, if you take the steps to create a strong roadmap, build a successful accounting system, and draw in clients through an organized and professional website, soon enough you’ll have your first client and be reaching your business bookkeeping goals.

• Bookkeeping Basics for Freelancers
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Creating your business plan

It’s time to get things down on paper. Your business plan is vital to reality checking all those ideas you have.

What to do on day zero

If you already know what you want to be called, lock down the name and register the URL. Now take some time to see what’s working for other bookkeepers. Find the ones in your area and check out their websites – plus their LinkedIn and Facebook profiles – to see what makes them tick. How do they speak to the market? What services do they offer? How much do they charge? Use this research to help start the plan for your bookkeeping business.

But what if I already know the plan?

It’s great if you already know how you’re going to get started, but it’s still important to write everything down. For one thing, you’ll want to record all your golden ideas before they’re forgotten. Plus the writing process will help you interrogate those ideas.

Putting them on a timeline, costing them out, and fitting them around each other might reveal a thing or two. Perhaps some assumptions will need to be rethought, or some ideas will have to be skipped in favor of others. It’s a great way to organize your thinking.

Start with a working one-pager

The key to a business plan is to start out simple, and build on it as you go. Begin with a few headings and bullet points that map out your vision, goals, milestones and predictions.

Don’t let it get out of hand or bog you down. That’s not what a business plan is for. It’s supposed to help you get started. So set yourself a target of producing a one page plan to start.

Choose your words carefully

Decide how you’re going to talk about your business, and which words you’ll use. It’ll be helpful in settling on a value proposition and relating to clients. You can use your chosen terms in your elevator pitch, on your website, in blurbs about your business – and in your business plan.

Sections for a one-page business plan

1. Value proposition: Explain why clients will be better off with you.

2. The problem you’re solving: Describe the status quo and say why it’s not ideal.

3. Target market and competition: Profile the clients you want, and the bookkeeping solutions they use now.

4. Sales and marketing: Show how you’ll reach your target market, and what you’ll say to them.

5. Budget and sales: Work out your costs and predict how much you can earn over the first couple of years.

6. Milestones: Identify all the things that need to happen and map them against a timeline.

7. The team: Identify the people that will be involved (including consultants) and outline their roles.

8. Funding: Show how you’ll bankroll the business, especially as you wait for fees to start rolling in.

9. Contingency plan: What will you do if your cash flow isn’t what you budgeted?

You may eventually draw up a longer business plan, or you may stick with a short one. It depends on your working style, and the level of risk you’re taking on. Your plan will probably be more detailed if you’re taking on a lot of debt.

You can download a copy of our one-page or multi-page business plan template .

Staying alive

Once you’ve got your plan nailed down, remember you really don’t. You should treat your plan as a living document and keep tweaking it as things evolve. That’s another reason why it’s good to have a short plan, which you’re much more likely to update as you go. Try to be agile and open to change.

The discipline of maintaining your business plan will help you:

• discover and solve problems – putting things in black and white will show up holes in your thinking.
• get feedback from others – you can share your plan to get feedback from trusted advisors.
• go for more finance – an up-to-date business plan (and budget) means you’re always ready to apply for loans.
• guide growth – regular focus on the big picture will help you make strategic decisions rather than instinctive ones.

Have a succession plan

You will also need a succession plan. What will happen when you step away from the business? Will you sell it? Who to? A family member, a staff member, or someone on the open market?

A good succession plan will make sure the business can survive and thrive without you. That it will perform for its clients and its new owners. And it should give you the flexibility to step away from the business at short notice, if required or desired.

Learn more in our guide to succession planning.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Starting a bookkeeping business

Work through the big decisions around accreditation, services to offer, fees to charge, and how to find clients.

You’ll need some training and certification to become a professional bookkeeper. Find out where this is available.

With a foundation of knowledge, skills and experience, take the next steps in setting up as a bookkeeper.

You need to nail down what services you’ll offer, who to, and how. Don’t promise more than you’re able to deliver.

Designing your bookkeeping business around a specific type of client or your strengths can be a successful way to go.

How do you walk the line between profitable for you and affordable for your clients? And help clients budget?

You might deliver an awesome service at a great price, but what if no one knows? Let’s look at marketing your services.

Download the bookkeeping business guide

A guide to help you work through the big decisions around starting a bookkeeping business. Fill out the form to receive the guide as a PDF.

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Free Accounting and Bookkeeping Sample Business Plan PDF

1 min. read

Updated February 26, 2024

Looking for a free, downloadable accounting and bookkeeping sample business plan PDF to help you create a business plan of your own? Bplans has you covered. 

Keep in mind that you don’t need to find a sample business plan that exactly matches your business. Whether you’re launching a larger accounting business in a bustling city or a smaller neighborhood office, the details will be different, but the bones of the plan will be the same. 

Are you writing a business plan for your accounting firm because you’re seeking a loan? Is your primary concern building a clear roadmap for growth? Either way, you’re going to want to edit and customize it so it fits your particular company. 

No two accounting businesses are alike. Your strategy will be different if you’re partnering with other CPAs, rather than working independently, for example. So take the time to create your own financial forecasts and do enough market research so you have a solid plan for success. 

• What should you include in an accounting and bookkeeping business plan?

Your accounting business plan doesn’t need to be hundreds of pages—keep it as short and concise as you can. You’ll probably want to include each of these sections: executive summary, company summary and funding needs, products and services, marketing plan, management team, financial plan, and appendix. 

One of the things that makes an accounting business plan different than some other service-based business plans is that you might decide to only work with businesses and not with individuals.  

You may offer different tiers of service to different types of clients. If that’s the case, make sure you include ideas like up-selling small businesses from hourly consultation to quarter contracts.

Download this accounting and bookkeeping sample business plan PDF for free right now, or visit Bplans’ gallery of more than 550 sample business plans if you want more options.

There are plenty of reasons accounting business owners can benefit from writing a business plan —you’ll need one if you’re seeking a loan or investment.

Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

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Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

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How To Write a Winning Bookkeeping Company Business Plan

Creating a business plan is essential for any business, but it can be especially helpful for bookkeeping businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every bookkeeping business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Bookkeeping Business Plan?

A bookkeeping business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Bookkeeping Business Plan?

A bookkeeping business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Bookkeeping Business Plan

The following are the key components of a successful bookkeeping business plan:

Executive Summary

The executive summary of a bookkeeping business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your bookkeeping company
• For your executive summary you should provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial statements forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your bookkeeping business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your bookkeeping firm, mention this.

Industry Analysis

The industry or market analysis is an important component of a bookkeeping business plan. Conduct thorough market research to determine industry trends and document the size of your market.

Questions to answer include:

• What part of the bookkeeping industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a bookkeeping business may include small businesses, non-profit organizations, and individuals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or bookkeeping services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your bookkeeping business via word-of-mouth or by exhibiting at trade shows.

Operations Plan

This part of your bookkeeping business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for an accounting business include reaching $X in sales. Other examples include obtaining new clients, launching a specialized service, or hiring key personnel.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific bookkeeping business industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Bookkeeping Firm

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Financial Statements and Balance Sheet for a Startup Bookkeeping Firm

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup bookkeeping business.

Sample Cash Flow Statement for a Startup Bookkeeping Firm

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your bookkeeping company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it. A well-crafted business plan is an essential document for any bookkeeping business. It can attract funding and investors and help you secure loans. It can also provide a roadmap for success and help keep your business on track.

Finish Your Business Plan in 1 Day!

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BUSINESS STRATEGIES

How to start a bookkeeping business in 8 steps

• Maddy Osman

Do you enjoy working with numbers, have a sharp eye for detail and find satisfaction in helping businesses thrive financially? If so, starting a bookkeeping business might just be the perfect path for you. 

Consistently high demand for bookkeeping services means it has a strong earning potential. After all, many business owners are confused by IRS regulations and want help tracking their business finances. In fact, Glassdoor  reports that experienced freelance bookkeepers can make up to $65,000 a year. 

Whether you're looking for a part-time hustle to boost your current income or a full-time career change, this comprehensive guide shows you  how to start a business  from scratch.

Let’s dive in.

What are the roles of a bookkeeper?

Accurate and organized record-keeping of an organization's finances is essential to its health and stability. Bookkeepers are the unsung heroes who balance the books and keep the IRS at bay. They handle the day-to-day financial tasks that keep all types of businesses running smoothly. 

Bookkeeper core responsibilities include:

Recording financial transactions:  Bookkeepers are in charge of maintaining records of all financial transactions for the business, including sales, purchases and payments.

Managing accounts receivable and accounts payable:  Bookkeepers also track who owes the business money (accounts receivable) and who the business owes money to (accounts payable). They make sure that appropriate invoices are issued or paid in a timely manner.

Preparing bank reconciliations:  Bookkeepers regularly compare business bank account statements as well as business credit card statements with internal financial records to make sure everything matches up and resolve any discrepancies.

Preparing monthly, quarterly and yearly financial statements: Bookkeepers help prepare important financial statements that summarize a company’s financial status, including profit and loss, balance sheets and cash flow. A certified public accountant (CPA) may finalize these statements based on the information the bookkeeper provides.

Ensuring compliance with current legislation: Bookkeepers monitor changes in tax laws and legislation to ensure the business remains compliant.

Payroll processing:  Bookkeepers often handle payroll tasks, such as calculating employee salaries and deductions, generating paychecks and filing payroll taxes.

Preparing tax returns : In some organizations, bookkeepers are in charge of preparing business tax returns.

To set yourself up for success, follow these steps to start your bookkeeping business:

Develop a business plan

Choose a business entity

Obtain necessary skills and certifications

Set up your office and accounting systems

Define your target market

Set pricing and payment terms

Register your business and launch your brand

Market your bookkeeping business

01. Develop a business plan

Start by turning your initial concept or idea into a written plan of action called a business plan . Think of it as a roadmap or blueprint for your business, detailing your vision and goals and the strategies you’ll use to achieve them. It can also detail how you plan to raise money for your business.

If you’re not seeking external funding like a business loan, the business plan doesn’t need to be overly detailed. In fact, you can start with a lean plan that covers just a few key elements, such as:

Your business name

Business mission and goals

Target market and customers

Services offered

Primary competitors (including their strengths and weaknesses)

Marketing strategy or plan

Business financial reporting system

Creating a business plan will give your bookkeeping business a clear direction and increase your chances of success in a competitive marketplace.

Never created a business plan before? Don’t fret—numerous websites, including Wix, offer free business plan templates  or samples that you can use to get started. 

If there’s room in your budget, you could also hire a professional to create a business plan for you from scratch. 

Learn more: How to create a bookkeeping business plan

02. Choose a business entity

The next step is to choose your business entity , that is, the legal structure for your business.

There are four main options in the US:

Sole proprietorship

Partnership

Limited liability company (LLC)

Corporation

Sole proprietorships and partnerships are usually the easiest and most affordable entities to set up and run, making them a good starting point for many new businesses. As your bookkeeping firm grows and you add employees, you can think about transitioning to a different type of business entity, like an LLC or corporation.

Keep in mind that your business structure will have a big impact on your day-to-day operations, taxes and personal liability if something goes wrong, so choose wisely. 

03. Obtain necessary skills and certifications

Even if you have formal education or experience in accounting or another related discipline, consider investing in additional bookkeeping courses and certifications such as QuickBooks ProAdvisor  and Certified Bookkeeper  from the American Institute of Professional Bookkeepers (AIPB).

In addition to enhancing your skills and know-how, certifications help you stand out from the competition and attract more customers. Bookkeeping certifications can also make it easier to get licensed and insured.

Protecting yourself and your business for the day things don’t go well is where business insurance comes in. 

First, you’ll want to invest in professional liability insurance. This safeguards your business financially in case someone claims negligence, errors or omissions in your bookkeeping services.

Other types of insurance many businesses find helpful include:

General liability insurance

Workers compensation insurance (if you’re hiring employees)

Business property insurance

Cyber insurance

04. Set up your office and accounting systems

Bookkeeping has come a long way. Gone are the days when almost everything was done manually on paper.

Today, powerful, user-friendly bookkeeping and accounting software like   QuickBooks Online, FreshBooks and Xero simplify and streamline recording and organizing financial data. 

These tools simplify tasks like recording transactions, invoicing, tracking business expenses, bank reconciliation and generating reports. Research their features and pricing to find the best option for your needs.

While bookkeeping is the service you’ll provide, you’ll also need tools beyond bookkeeping and accounting apps and software to manage other parts of your business. Research other tools to streamline your workflow. 

Popular business tools include:

Project management tools like Trello, Asana and Monday.com can help you manage tasks, set deadlines and track progress on clients’ projects.

Time management tools like Toggl and Timely help track the time spent on each project, which is especially important when billing clients by the hour.

05. Define your target market

The next step in starting a bookkeeping business is to define your customers. Honing in on a specific target audience enables you to tailor your services and messaging to their needs, making your business more attractive so you can find that first client and beyond.

Here are some ways to find your target market :

Industry focus:  Consider catering to a specific industry, such as small businesses, startups or freelancers. These groups often lack the time and resources to hire and manage in-house bookkeeping, making them ideal clients. 

Niche markets:  Another option is targeting niche sectors with specialized bookkeeping needs. Doctor’s offices, eCommerce businesses and hospitality businesses like hotels and restaurants are great examples of niche sectors.

Software expertise:  Do you have in-depth knowledge of a particular bookkeeping software? You can leverage that expertise to target businesses already using that software.

Once you've identified a potential target market, take time to create client personas. These detailed profiles outline your ideal clients’ interests, needs, pain points and how your services add value or help them reach their goals. 

These client personas will help guide your marketing strategy so that your messages resonate better with prospective clients.

06. Set pricing and payment terms

Now it’s time to decide how you’ll charge for your bookkeeping services.

When setting your rates, consider your experience, prevailing rates in your industry or niche, the type of services you offer, your startup costs and projected operating expenses  and your desired income level.

The most common pricing models are:

Hourly rate:  This is a straightforward approach where you charge bookkeeping clients an hourly rate for your time. According to Salary.com , the average hourly charge for bookkeepers is $19 – $24 per hour. This pricing model is ideal for clients with fluctuating bookkeeping needs.

Monthly retainer:  This option charges a fixed monthly fee for a predetermined set of bookkeeping services. A monthly retainer provides a predictable income for your business and gives your clients a clear picture of their ongoing bookkeeping costs.

Per-transaction:  Charging a set fee for each transaction you process (e.g., an invoice or bill payment) gives clients a clear picture of costs. A per-transaction model works well if you primarily serve clients with a high volume of simple transactions.

Next, outline your payment terms in a written agreement or contract. This includes your preferred payment method, invoice due dates and late payment penalties where applicable. It's a good idea to have a lawyer look over the contract to make sure it is airtight.

Contracts help ensure you and your clients are on the same page and reduce the likelihood of misunderstandings down the road.

07. Register your business and launch your brand

You’re almost ready to open the doors.

Start by selecting a unique and professional name that reflects your services and is easy to remember.  

If you’re struggling to name your business , the Wix business name generator  can help.

Before making a final decision, search for the name on the United States Patent and Trademark Office (USPTO)  database to confirm another business hasn’t already trademarked it. 

Name in hand, file the necessary paperwork with local, state and federal governments. The specific requirements vary by business entity and state.

For example, as a sole proprietor, you might not need to register officially with your state to start your business. However, other requirements, like obtaining business licenses and permits, might be required. Check the requirements for your specific location to confirm what paperwork and permits are needed.

Secure a matching domain name  once you’ve settled on your perfect business name and then create a website. 

A website is a valuable tool for showcasing your services and expertise, and Wix can help you build a functional and professional website  quickly and easily with hundreds of templates  to choose from. You can even add an appointment scheduler .

Check out these bookkeeping websites  built with Wix for inspiration:

Visual Bookkeeping

Solutions Bookkeeping 

Zen Bookkeeping Services

The Bookkeeping Collective

Abacus Professionals

08. Market your bookkeeping business

Once you’re open for business, you’ll need to spread the word. Marketing your services helps build a steady stream of new clients. 

Common marketing strategies include:

Listing on online directories:  List your bookkeeping business in relevant online directories like Google My Business, Yelp and Bing Places. This increases your online visibility and helps prospective clients find you when searching for bookkeeping services in your area.

Targeted advertising:  If your budget allows it, use online advertising platforms like Google Ads or social media ads to target your ideal clients. These platforms allow you to narrow down your target audience by location, industry and business size, maximizing your ads' effectiveness.

Content marketing:  Establish yourself as an expert or authority figure in the bookkeeping industry by creating and sharing helpful content like blog posts and videos that offer useful tips and advice about bookkeeping.

Networking :  Attend local business events, join professional bookkeeping associations (e.g., the National Association of Certified Public Bookkeepers (NACPB)), and participate in online industry forums. Building relationships with other bookkeeping professionals and businesses strengthens your credibility and opens doors to referrals. Don’t forget to take business cards  with you.

Strategic partnerships:  Seek out and try to connect with similar service providers like accountants, tax advisors or business consultants. Create referral partnerships with them so you can refer clients to each other.

Social media marketing:  Maintain an active presence on social platforms like LinkedIn, Facebook and X. Share informative content, engage with your audience and join relevant groups to increase brand awareness.

Local advertising:  Advertise in local business directories, newspapers and community boards to increase your visibility within your local community. 

Customer referrals:  Encourage satisfied clients to refer your services to others. Offer incentives, like discounts or free services, to motivate clients to spread the word.

Examples of successful bookkeeping businesses to inspire you

These bookkeeping websites built on Wix effectively showcase their expertise, catalog of services, years of experience and more:

Axsom Accounting has more than 20 years of experience in the field. Founder Jennifer Axsom has specialty experience in fraud accounting, reconciliation, auditing and internal controls in addition to general accounting. Her Wix website features a bio, examples of service packages and a simple contact form for customers.

Abacus Professional’s team has more than 40 years of collective experience in accounting, specifically serving business accounting needs. Led by Christine Wilson, Certified Public Accountant (CPA), the firm offers comprehensive packages for its business clients that range from general bookkeeping to more advanced tax filing, credit management and consulting services.

For more inspiration, you can check out these service business examples to help you get your creative juices flowing.

Looking to start a bookkeeping business in a specific state?

You can start a bookkeeping business in any state but licensing and registration requirements can vary from one place to another. As such, it’s important to check with your local or state government for any specific licensing or registration requirements applicable to bookkeeping business in your area.

Here are some useful resources for starting a business in different states:

How to start a business in Connecticut

How to start a business in Texas

How to start a business in New York

How to start a business in Arizona

How to start a business in Virginia

How to start a business in Illinois

How to start a business in North Carolina

How to start a business in Georgia

Other service business ideas you might be interested in

How to start an online business

How to start a consulting business

How to start a fitness business

How to start a service business

How to start a fitness clothing line

How to start a makeup line

How to start a candle business

How to start a clothing business

How to start an online boutique

How to start a T-shirt business

How to start a jewelry business

How to start a subscription box business

How to start a beauty business

How to sell crafts online

How to start a DJ business

How to start a dropshipping business

How to start a car wash business

How to start a baking business

How to start an eyelash business

How to start a frozen food business

How to start a farming business

How to start a pool cleaning business

How to start an eCommerce business

How to start a laundromat business

How to start a bookkeeping business FAQ

How is a bookkeeper different from an accountant.

Bookkeepers focus on the day-to-day aspects of a business's finances like recording income and expenses, compiling basic financial statements and processing accounts payable and receivable. Conversely, an accountant analyzes the financial information recorded by bookkeepers to offer insights and strategies for improving business operations.

Do I need to rent office space?

Can i handle my own bookkeeping, what skills are necessary to start a bookkeeping business, related posts.

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• Sample Business Plans

Bookkeeping Business Plan

Numerous skilled tasks are required for bookkeeping are management of costs, earnings, tax returns, and payroll. Careful planning is required for each of these services as well as others for a bookkeeping business to operate successfully.

How to Write a Bookkeeping Business Plan?

Writing a bookkeeping business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

Free Business Plan Template

Download our free bookkeeping business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

• Start with a brief introduction: Start your executive summary by introducing your idea behind starting a bookkeeping business and explaining what it does. Give a brief overview of the idea of how your bookkeeping business will be different.
• Market opportunity: Describe the target market in brief, and explain the demographics, geographic location, and psychographic attributes of your customer. Explain how your accounting business meets its needs. Clearly describe the market that your business will serve.
• Mention your services: Describe in detail what all services your bookkeeping firm will provide as tax returns, payroll services, audit preparation, or others.
• Management team: Name all the key members of your management team with their duties, responsibilities, and qualifications.
• Financial highlights: Provide a summary of your financial projections for the company’s initial years of operation. Include any capital or investment requirements, startup costs, projected revenues, and profits.
• Call to action: After giving a brief about your business plan, end your summary with a call to action, for example; inviting potential investors or readers to the next meeting if they are interested in your business.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview, Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

• The name of your bookkeeping firm and what type of firm it is: a simple bookkeeping firm, audit firm, virtual bookkeeping firm, tax firm, forensic accounting firm, or some other.
• Company structure of your accounting firm whether it is LLC, partnership firm, or some other.
• Location of your business and the reason why you selected that place.
• Mission statement: Add a mission statement that sums up the objectives and core principles of your firm. This statement needs to be memorable, clear, and brief.
• Business history: Include an outline of the accounting firm’s history and how it came to be in its current position. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible services.
• Future goals: It’s crucial to convey your aspirations and your vision. Include the vision of where you see your business in the near future and if you have any plans of opening a new franchise of your business in the same city in the future.

This section should provide an in-depth understanding of your accounting business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your bookkeeping business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

• Target market: Identify your target market and define your ideal customer. Know more about your customers and which services they prefer: bookkeeping, auditing, accounting, tax calculation, payroll, or something else.
• Market size and growth potential: Provide an overview of the bookkeeping industry. It will include market size, trends, growth potential, and regulatory considerations. Highlight the competitive edge and how your business is different from the rest of the businesses.
• Competitive analysis: Identify and analyze all other bookkeeping businesses in the local market, including direct and indirect competitors. Evaluate their strengths and weaknesses, and explain how your business can offer qualitative services.
• Market trends: Analyze current and emerging trends in your industry, such as changes in customer preference or tax regime. Explain how your business will cope with all the changes.
• Regulatory environment: Describe any regulations or licensing requirements that affect the bookkeeping business, such as storing data for 5 years, privacy policy for clients’ data, and others.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a virtual bookkeeping business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Create a list of the services: the primary services you provide, such as accounting, payroll, tax preparation, and financial statement production, should be briefly described here.
• Describe each service: For each service, provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide the service. For example, the firm needs to hire a chartered accountant.
• Additional services: Make sure to list these in your product and services section if you provide any services beyond basic bookkeeping, such as tax planning or business advising.

Overall, the product and services section of a business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Develop your unique selling proposition (USP): Determine what makes your bookkeeping services stand out from the crowd – competitive pricing, expert knowledge, or customized service.
• Determine your pricing strategy: Develop a pricing strategy that is competitive and affordable, yet profitable. Consider offering promotions, discounts, or packages for your bookkeeping services to attract new customers.
• Marketing strategies: Develop a marketing strategy that includes a mix of online and offline marketing tactics. Consider social media, email marketing, content marketing, brochures, print marketing, and events.
• Sales strategies: Create a sales plan that explains how you’ll turn leads into paying customers. Offering free consultations, providing references, or creating unique proposals are a few examples of what this could include.
• Customer retention: Describe how your business will retain customers and build loyalty, such as through loyalty programs, special events, or personalized service.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

• Workplace: Make a list of the equipment and physical space you’ll need for your bookkeeping firm. A dedicated workstation, accounting software, and communication tools are a few examples of what this may entail.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your bookkeeping business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the virtual accounting firm. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

• Key managers: Describe the key members of your management team, their roles, and their responsibilities. It should include the owners, senior management, and any other accountants who will be involved in the operation of the business, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Describe the organizational structure of the management team, including reporting lines and how decisions will be made.
• Compensation plan: Describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.
• Board of advisors: If you have a board of advisors for your business, then mention them along with their roles and experience.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

• Profit & loss statement: Create a projected profit & loss statement that describes the expected revenue, cost of products sold, and operational costs. Your firm’s anticipated net profit or loss should be computed and included.
• Cash flow statement: Estimate your cash inflows and outflows for the first few years of operation. It should include cash receipts from clients, payments to vendors, loan payments, and any other cash inflows and outflows.
• Balance sheet: Prepare a projected balance sheet, which shows the accounting firm’s assets, liabilities, and equity.
• Break-even point: Determine the point at which your bookkeeping company will break even, or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.
• Financing needs: Estimate how much financing you will need to start and operate your bookkeeping business. It should include both short-term and long-term financing needs, such as loans or investment capital.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the bookkeeping industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your accounting business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This bookkeeping business plan sample will provide an idea for writing a successful virtual bookkeeping business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our bookkeeping business plan pdf .

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Frequently asked questions, why do you need a bookkeeping business plan.

A business plan is an essential tool for anyone looking to start or run a successful accounting firm. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your bookkeeping success.

How to get funding for your bookkeeping business?

There are several ways to get funding for your business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your bookkeeping firm, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your bookkeeping business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your virtual accounting business plan and outline your vision as you have in your mind.

What is the easiest way to write your bookkeeping business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any bookkeeping business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Small Business Bookkeeping (2024 Guide)

Updated: Apr 17, 2024, 11:50am

Table of Contents

Why bookkeeping is important for small businesses.

• Bookkeeping vs. Accounting

Key Components of Bookkeeping

Accounting methods, bookkeeping tools and software, how to manage bookkeeping in 4 steps, bottom line, frequently asked questions (faqs).

Bookkeeping is the process of tracking income and expenses in your business. It lets you know how you’re doing with cash flow and how your business is doing overall. Staying on top of your bookkeeping is important so that you don’t have unexpected realizations about account balances and expenses. We’ve put together this guide to help you understand the basics of small business bookkeeping.

Bookkeeping is an essential task that you must undergo as a business owner. It’s important because:

• It organizes information: Bookkeeping takes financial data and organizes it for easy understanding and analysis.
• The IRS requires you to track certain information: When you do your taxes, you’ll need accurate information about your gross receipts, purchases, expenses, assets, travel and entertainment expenses and employment taxes.
• It helps in budgeting: Knowing the cash flow allows you to allocate resources to new launches and projects that will help your business grow.
• It provides better decision-making: When the books are in order, you have an accurate account of your business’s health. This allows you to make better decisions about operations and growth.
• It helps you track profit: Of course, you want your business to be as profitable as possible. Bookkeeping helps track your progress and profits.

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Though often confused for each other, there are key differences between bookkeeping and accounting. At its core, bookkeeping is about recording financial data, while accounting is about interpreting financial data. Accounting can’t happen without good bookkeeping. Without bookkeeping, there would be no data to analyze.

Generally speaking, bookkeepers help collect and organize data and may have certain certifications to do so for your business. On the other hand, accountants are generally equipped with an accounting degree and may even be state-certified CPAs. You can expect most bookkeepers to maintain the general ledger and accounts while the accountant is there to create and interpret more complex financial statements.

Whether you do the bookkeeping yourself or hire someone to do it, certain elements are fundamental to properly maintaining the books. Some of these elements are done more regularly than others to ensure that the books are always up to date. Other elements are completed at certain time periods as necessary to complete a business task.

Recording Transactions

Bookkeepers use journal entries to record debits and credits. Every financial transaction should have a line item in the general ledger, which tracks everything in one place. The general ledger notates the account number to which the debit or credit is applied. The best accounting software automates a lot of the process in journal entries for regular debits and credits to help eliminate possible errors in data entry.

Sending Invoices

If not done at the time of the transaction, the bookkeeper will create and send invoices for funds that need to be collected by the company. The bookkeeper enters relevant data such as date, price, quantity and sales tax (if applicable). When this is done in the accounting software, the invoice is created, and a journal entry is made, debiting the cash or accounts receivable account while crediting the sales account.

Preparing Basic Financial Statements

Since the information gathered in bookkeeping is used by accountants and business owners, it is the basis of all the financial statements generated. Most accounting software allows you to automatically run common financial statements such as an income and expense statement, balance sheet and cash flow statement. Business owners or accountants can then use these statements to gain insight into the business’s financial health.

Completing Payroll

At the end of every pay period, the bookkeeper will accumulate employee payroll details that include hours worked and rates. From there, the total pay is determined with the applicable taxes and withholdings. Paychecks are completed and issued. In the accounting software, the primary journal entry for total payroll is a debit to the compensation account and credits cash.

There are two types of accounting methods to choose from: the cash method and the accrual method. You’ll want to select a method that helps you best manage your business’s finances.

Cash-Based Accounting

The first method of accounting is the cash-based accounting method. This method records financial transactions when money is exchanged. This means that you don’t record an invoice until it is actually paid. Similarly, you don’t notate outstanding bills until you actually pay them. This method offers a true snapshot of your assets and debts at any given time.

Accrual-Based Accounting

Another type of accounting method is the accrual-based accounting method. This method records both invoices and bills even if they haven’t been paid yet. This is a highly recommended method because it tells the company’s financial status based on known incoming and outgoing funds. Because the funds are accounted for in the bookkeeping, you use the data to determine growth.

For more information, check out our article on cash vs accrual accounting .

There’s good news for business owners who want to simplify doing their books. Business owners who don’t want the burden of data entry can hire an online bookkeeping service . These services are a cost-effective way to tackle the day-to-day bookkeeping so that business owners can focus on what they do best, operating the business. For business owners who don’t mind doing the data entry, accounting software helps to simplify the process. You no longer need to worry about entering the double-entry data into two accounts. The software does it for you.

When doing the bookkeeping, you’ll generally follow the following four steps to make sure that the books are up to date and accurate. Remember that each transaction is assigned to a specific account that is later posted to the general ledger. Posting debits and credits to the correct accounts makes reporting more accurate. Take a look at the following four steps to manage your bookkeeping.

Assign Transactions to Specific Accounts

Look at the item in question and determine what account it belongs to. For example, when money comes from a sale, it will credit the sales revenue account. Making sure transactions are properly assigned to accounts gives you the best view of your business and helps you extract the most helpful reports from your bookkeeping software.

Perform Journal Entries to Debit and Credit Accounts

When manually doing the bookkeeping, debits are found on the left side of the ledger, and credits are found on the right side. Debits and credits should always equal each other so that the books are in balance.

Post Entries to Ledger Account

Once the entries are assigned to the correct accounts, you can post them to the general ledger to get a bird’s-eye view of your current cash status. Most accounting software does this for you, so you don’t need to worry about an extra step.

Adjust Entries at the End of Each Accounting Period

At the end of the accounting period, take the time to make adjustments to your entries. Adjustments make your books more accurate. For example, you may have estimated certain invoices that are later solidified with an actual number. Correct the entries to reflect accurate data.

Not sure you’re up for the job? Consider using one of the best bookkeeping services to make managing your books a breeze.

As a business owner, it is important to understand your company’s financial health. This all starts with having updated and accurate books. Bookkeeping puts all the information in so that you can extract the necessary information to make decisions about hiring, marketing and growth.

Can I do my own bookkeeping for my business?

A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.

Do small businesses need bookkeeping?

Bookkeeping is an essential part of running a small business. Even if you aren’t planning on growing any time soon, you need to have a sense of how much money is coming in versus what is going out. On top of that, you need the data used in bookkeeping to file your taxes accurately.

Are bookkeeping and accounting different?

Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions. Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance.

What skills does a bookkeeper need?

Unlike accounting, bookkeeping does not require any certifications. Individuals who are successful bookkeeping professionals are highly organized, can balance ledgers accurately, have an eye for detail and are excellent communicators.

How much is QuickBooks for small businesses?

You can go with the baseline plan, the Simple Start plan, for $30 per month. This allows you to have one user. If you need more users, you need to move up to The Essentials plan for $55 per month. Get the complete breakdown on QuickBooks Online pricing and plans .

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Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a small business writer.

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she is a Columnist at Inc. Magazine.

Bookkeeping Business Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a bookkeeping business can be an exciting venture, but without a solid plan in place, it's easy to get lost in the numbers. ClickUp's Bookkeeping Business Plan Template is here to guide you through every step of the process, from defining your target market to projecting financial growth and outlining operational strategies. This template will help you:

• Create a comprehensive roadmap for your bookkeeping business
• Attract potential investors with clear financial projections and marketing strategies
• Establish a profitable and successful bookkeeping business that stands out in the market

Don't miss out on this opportunity to kickstart your bookkeeping business with confidence and clarity!

Bookkeeping Business Plan Template Benefits

Creating a solid foundation for your bookkeeping business is essential for long-term success. The Bookkeeping Business Plan Template helps you achieve this by:

• Setting clear, achievable goals for your business growth and development
• Defining your target market and tailoring your services to meet their specific needs
• Establishing realistic financial projections to attract potential investors and secure funding
• Outlining effective marketing strategies to reach and attract clients
• Streamlining operational processes for maximum efficiency and profitability

Main Elements of Bookkeeping Business Plan Template

To kickstart your bookkeeping business plan and attract potential investors, ClickUp's Bookkeeping Business Plan Template offers the following key features:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do to ensure every section of your business plan is accounted for
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to input specific data like references, approval status, and categorization for detailed organization
• Custom Views: Access various perspectives including Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate and manage different aspects of your bookkeeping business plan
• Project Management: Benefit from time-saving tools like recurring tasks, Automations, and integrations to streamline workflows and ensure efficient collaboration with team members.

How To Use Bookkeeping Business Plan Template

Starting a bookkeeping business can be a fulfilling venture, but having a solid plan is crucial for success. follow these steps to effectively utilize the bookkeeping business plan template in clickup:, 1. define your business vision and mission.

Begin by outlining your business's vision statement, which describes where you see the company in the future, and the mission statement, which details the purpose and values of your bookkeeping business. Having a clear vision and mission will guide your decisions and keep you focused.

Utilize a Doc in ClickUp to draft your business vision and mission statements.

2. Analyze the market and competition

Research the bookkeeping market to identify your target audience, their needs, and the competitive landscape. Understanding the market trends and your competitors will help you position your business effectively and develop strategies to stand out.

Use the Table view in ClickUp to organize market research data and competitor analysis.

3. Define your services and pricing

Clearly outline the bookkeeping services you will offer, such as tax preparation, payroll management, or financial reporting. Determine your pricing structure based on market rates, your expertise, and the value you provide to clients.

Create custom fields in ClickUp to detail your services and pricing strategy.

4. Develop a marketing and sales strategy

Create a plan to reach potential clients and promote your bookkeeping services. Consider digital marketing tactics, networking events, and partnerships to attract clients. Additionally, establish a sales strategy to convert leads into long-term clients.

Utilize the Calendar view in ClickUp to schedule marketing campaigns and track sales activities.

5. Set financial goals and milestones

Establish realistic financial goals for your bookkeeping business, such as revenue targets, client acquisition numbers, or profitability margins. Break down these goals into achievable milestones to track your progress and make adjustments as needed.

Use Goals in ClickUp to set financial targets and Milestones to monitor your progress towards them.

Get Started with ClickUp’s Bookkeeping Business Plan Template

Entrepreneurs launching a bookkeeping business can utilize the Bookkeeping Business Plan Template in ClickUp to map out their company's vision and strategies for success.

To get started, click on “Add Template” to incorporate the Bookkeeping Business Plan Template into your Workspace. Ensure you specify the Space or location in your Workspace where you want to apply this template.

Next, invite relevant team members or collaborators to your Workspace to kickstart the planning process.

Now, leverage the template's features to craft a comprehensive business plan:

• Utilize the Topics View to outline key areas such as financial projections, marketing strategies, and operational processes
• Track progress by categorizing tasks into four statuses: Complete, In Progress, Needs Revision, To Do
• Incorporate custom fields like Reference, Approved, Section to add specific details and streamline information
• Explore different perspectives with five unique views: Status, Timeline, Business Plan, Getting Started Guide, to gain insights and plan effectively
• Update statuses as tasks progress to keep stakeholders informed and monitor overall productivity

Stay organized and focused as you build the foundation for your successful bookkeeping business.

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8 Best Online Bookkeeping Services of 2024

Rosalie Murphy is a small-business writer at NerdWallet. Since 2021, she has covered business insurance, banking, credit cards and e-commerce software, and her reporting has been featured by The Associated Press, MarketWatch, Entrepreneur and many other publications. Rosalie holds a graduate certificate in Quantitative Business Management from Kent State University and is now pursuing an MBA. She is based in Chicago.

Hillary Crawford is a small-business writer at NerdWallet, with a special focus on business software products. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. Her work has appeared in The Associated Press, The Washington Post, Yahoo Finance and Entrepreneur, in addition to other publications. She is based in Traverse City, Michigan.

Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.

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Small-business bookkeeping is the process of accurately recording your business's financial activity. When bookkeeping tasks become too time-consuming to handle on your own, hiring an online bookkeeping service can be a worthwhile investment. These services are typically staffed by people who have access to your accounting software and help make sure none of your financial data slips through the cracks.

You might choose to outsource some bookkeeping basics and more complex tasks to online bookkeeping services, including:

Recording transactions.

Reconciling bank statements.

Handling accounts receivable.

Running financial reports.

Managing payroll.

Preparing tax forms.

At the very least, you can expect most bookkeeping services to input transactions, reconcile accounts and send you financial statements regularly. Most services touch base monthly, but in some cases, you can pay extra to receive weekly reports. Depending on the company, you can speak with your bookkeeper (or team of bookkeepers) as often as you'd like or at least a few times per month.

The best bookkeeping services handle your target tasks without breaking your business’s budget, integrate with your accounting software and offer a dedicated line of communication with a live bookkeeper. In addition, consider the availability of add-on services like tax planning, payroll and human resources support.

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8 Best Online Bookkeeping Services for Small Businesses

Bookkeeper360: best overall bookkeeping service.

Bookkeeper360

Additional pricing tiers (per month) starting at: $399, $549, $749.  

$49 per month plus hourly cost for support for Pay-As-You-Go plan.

$399 per month for monthly cash basis bookkeeping.

$549 per month for weekly cash basis bookkeeping.

$549 per month for monthly accrual basis bookkeeping.

$749 per month for weekly accrual basis bookkeeping.

Why we picked it: Bookkeeper360 is our top selection for online bookkeeping service because of its scalability, wide range of add-on services and multiple accounting integrations. Some online bookkeeping services either only integrate with QuickBooks or use proprietary accounting software, which makes it difficult to switch accounting services down the road. But Bookkeeper 360 integrates with Xero and QuickBooks. If you’re looking to scale up as your business grows, you can upgrade to weekly (instead of monthly) financial reports and choose from a number of add-on services to receive support for payroll , human resources, invoicing and tax filing. This makes the product a good fit for small businesses of varying complexity.

Integrates with QuickBooks and Xero.

More complex businesses can subscribe to plans with advanced reporting and accrual basis accounting.

Offers add-ons for tax planning, payroll and HR, and back-office tasks like invoicing, bill pay and expense reimbursements.

Prices increase after business exceeds $20,000 in monthly expenses.

Merritt Bookkeeping: Best for businesses on a budget

Merritt Bookkeeping

$190 per month.

Why we picked it: Merritt’s bookkeepers work in QuickBooks to categorize your bank transactions each month and produce simple financial reports for you to work from. During tax season, the team will be in touch with your CPA as needed and will also issue 1099s. As you might expect based on the lower price point, Merritt’s offerings are lighter than some of its competitors: It doesn’t offer payroll or HR support, financial forecasting, accrual basis accounting or tax planning.

Flat rate of $190 per month is more affordable than other bookkeeping services.

Integrates with QuickBooks.

90-day money-back guarantee.

No add-on services, like tax planning or accrual basis accounting, outside of catch-up bookkeeping.

Bench: Best for new businesses

Additional pricing tiers (per month): $499.  

$299 per month for the Essential plan.

$499 per month for the Premium plan.

Why we picked it: Because Bench uses proprietary accounting software, it's best suited to businesses that are fairly new and haven't become too reliant on third-party accounting software yet. Although that lack of integration could make switching accounting software down the road a pain if you outgrow Bench, you can still access your financial data after canceling your subscription. It also offers a plan with unlimited income tax support and annual tax filing services.

Unlimited messaging and phone calls with your bookkeeper.

Premium plan covers annual income tax filing for businesses and individuals.

Offers add-ons for catch-up bookkeeping and specialized bookkeeping.

No integration with QuickBooks, Xero or other accounting software. Business owners have to use Bench’s proprietary software, which could make it hard to move to another provider in the future.

No invoicing, bill pay or payroll add-ons.

Pilot: Best for fast-growing startups

Plus onboarding fee equal to one month of bookkeeping. Custom pricing also available.  

$499 per month for the Starter plan (pre-revenue companies).

$699 per month for the Core plan.

Custom pricing for the Plus plan.

Why we picked it: Pilot caters to startup businesses at all stages by offering a lower-cost Starter plan for pre-revenue companies as well as add-on support for R&D tax credit services, stock administration and strategic financial planning support for CFOs. The company also calculates burn rate , an important metric for venture capital-backed companies. And while other services primarily focus on cash basis bookkeeping, Pilot stands out for operating on an accrual basis only.

Designed for startups that have high growth potential and use accrual basis accounting.

Offers separate tax preparation plans and add-ons for R&D tax claims, stock administration and billable expenses.

Integrates with QuickBooks, Shopify, Gusto and more.

Prices increase after business exceeds $30,000 in monthly expenses.

Mandatory onboarding fee equal to one month of bookkeeping.

» MORE: Best accounting software for startups

QuickBooks Live: Best for QuickBooks users

QuickBooks Live

Plus first-month cleanup fee. Price increases as average monthly expenses increase.  

$300 per month if your average monthly expenses are $0 to $10,000.

$500 per month if your average monthly expenses are $10,001 to $50,000.

$700 per month if your average monthly expenses are $50,001 or more.

Why we picked it: QuickBooks Live is a bookkeeping service available to QuickBooks Online users; you can subscribe to it through your account. When matching you with a bookkeeper, the company will try to select someone who has experience in your industry and has similar availability. Bookkeepers can provide monthly financial reports, but they can’t help with tax planning, sending invoices or managing payroll.

Fully integrated with QuickBooks Online.

If you think your bookkeeper has made a mistake, QuickBooks will evaluate the situation and correct errors at no additional cost.

No cap on meetings with your bookkeeper; QuickBooks says small-business owners usually schedule one or two video appointments per month.

No tax prep or accrual basis accounting, even as an add-on service.

Mandatory first-month setup fee to clean up your books.

Prices increase after business exceeds $10,000 in average monthly expenses.

» MORE: Explore QuickBooks pricing

1-800Accountant: Best for tax support

1-800Accountant

$179 per month, billed annually, for the Business plan (accounting support but no bookkeeping).

$239 per month, billed annually, for the Core Accounting plan (accounting and tax support but no bookkeeping).

$399 per month, billed annually, for the Enterprise plan (includes accounting, tax and bookkeeping support).

Why we picked it: Unlike some competitors that offer tax support only as an add-on, 1-800Accountant’s bookkeeping plan (Enterprise) includes it. On average, according to the company, this helps businesses save over $12,000 in taxes per year. The proprietary software also includes built-in accounting features like invoicing, bank connections, receipt storage and mileage tracking.

While 1-800Accountant offers less expensive plans that may be useful for businesses that need only tax advice and quarterly reviews, only its most expensive Enterprise plan comes with bookkeeping services.

Includes business and personal tax preparation, plus year-round tax advice.

Has add-on payroll services and catch-up bookkeeping.

Offers less expensive plans for businesses that need tax support and a dedicated accountant, but not bookkeeping assistance.

Accountant meetings occur quarterly, which is less frequent than some competitors.

Proprietary bookkeeping software could make it difficult to switch to another provider in the future.

Decimal: Best for project-based businesses

Quote-based.  

Quote-based.

Why we picked it: In addition to accounting and bookkeeping services, Decimal has add-ons for job costing and project-based accounting, which is a plus for businesses that need assistance gauging project profitability. Accounting software typically comes with project-tracking features, but analyzing the resulting figures can be time-consuming. Outsourcing the task can help you quickly parse out which types of projects are worth your business’s time and effort.

Add-ons for job costing and project-based accounting may be especially useful for project-based businesses. Other add-ons include inventory management, payroll and 1099 support.

Provides you with tax-ready financials, but recommends its partners for other tax support and CFO services.

inDinero: Best for midsize businesses

Additional pricing tiers (per month): $1,250, custom.  

Starting at $750 per month for the Essential plan.

Starting at $1,250 per month for the Growth plan.

Custom pricing for the Executive plan.

Why we picked it: Whereas multiple bookkeeping services integrate with QuickBooks Online and Xero, inDinero’s Growth plan also accommodates clients that work with NetSuite, a popular enterprise resource system for more complex, growing businesses. Note, however, that the lowest-tier Essential plan uses proprietary software and lacks integrations with QuickBooks Online or NetSuite. Considering the price point and more advanced CFO-level features you can add to your plan, inDinero is best suited for medium-sized and quickly growing businesses.

Integrates with NetSuite, making it a good fit for midsize businesses. It’s also compatible with QuickBooks Online.

Will provide financial reports as often as you’d like.

Customize plans to include other services like accounts receivable processing, inventory reconciliation and payroll support. Higher-tier plans enable accrual accounting.

Plans are expensive compared to competitors.

Custom plans make it difficult to predict exactly how much you’ll pay per month.

» MORE: Bookkeeping best practices for startups and small businesses

How to choose bookkeeping services

Ask yourself the following questions to find the right online bookkeeping service for your business:

Is the bookkeeping service compatible with your accounting method?

There are two accounting methods: cash basis and accrual basis . Cash basis accounting is much simpler, which is why many bookkeeping services offer it at a lower price. But accrual accounting can give you a better understanding of where your business stands. So, choose a service that does the right accounting for your business's size and complexity.

Does it integrate with your accounting software?

Lots of bookkeeping services are built to run on QuickBooks, an industry leader in accounting and bookkeeping software. Some services also support Xero , another popular cloud-based accounting software . If you're comfortable with your current software, ensure your bookkeeping service supports it.

Do you need add-on services outside of basic bookkeeping tasks?

Not all bookkeeping services offer the same add-on features. Some business owners, for example, might want their bookkeeper to handle payroll, HR or other back-office jobs like invoicing, bill pay and inventory management on top of fielding basic bookkeeping tasks. Or, if it isn’t already included, you may be looking for tax support to take some of the pressure off when it's time to file returns. These services can help you claim the correct small-business tax credits and deductions , prepare your returns and file them. Even if a bookkeeping service has all of these add-ons, they can be expensive, so be sure you understand the total cost before choosing a service.

Will you require catch-up bookkeeping services?

If you haven't always been diligent about your financial record-keeping, most bookkeeping services will go through your old receipts, invoices and bank statements to bring your books up to date. This service usually carries an additional fee, so it's important to price out your catch-up bookkeeping costs while searching for a bookkeeping service.

How often do you want to communicate with your bookkeeper?

Online bookkeeping services typically offer a dedicated contact or team — but these are still virtual bookkeepers , available by email or occasionally by phone. If you don't want to communicate virtually, these bookkeeper interview questions can help you find a resource near you.

Online services may offer one-on-one meetings, but you might have to pay more. If you want a higher level of support in the future, such as chief financial officer or CFO-style services, consider choosing a bookkeeping service that will allow you to upgrade later.

What’s your online bookkeeping services budget?

Online bookkeeping services typically range from around $200 per month to well over $500 per month if you opt for more frequent reports or back-office add-ons. Depending on the bookkeeping service, costs also rise when your business’s monthly expenses exceed a particular threshold. The decision comes down to whether the time saved is worth the expense.

When comparing services, ensure you're pricing out all the features you need, including add-on services like tax prep, payroll and HR. If you're considering a bookkeeping service that runs on QuickBooks or Xero, include the cost of that software, too. Take advantage of product demos and introductory calls to find the right service.

» MORE: Best accounting and bookkeeping apps

Frequently asked questions

The best bookkeeping services take care of basic bookkeeping tasks, like reconciling bank statements, inputting transactions and generating financial reports. You should be able to directly call or message your bookkeeper with questions whenever necessary, and some services offer add-ons for tax planning and payroll.

Accounting software makes it possible to handle bookkeeping tasks on your own and automate some of them, such as categorizing and matching transactions. Even with these features, though, you’ll still want to double-check for errors, which takes time. And the more complex your business’s financials, the more likely you’ll want to bring on a dedicated bookkeeping service.

If the hours you spend working with your accounting software could be better spent elsewhere and you’re already using the software as efficiently as possible, it might be time to hire an online bookkeeping service. Ultimately, it can benefit your business by freeing up your time and ensuring your books are up to date. This puts your business in a solid position come tax time and helps you keep a finger on the pulse of its financial state.

Bookkeepers and accountants both play a role in your business’s financial health, but business owners probably chat with their bookkeepers more frequently. Whereas accountants usually file your taxes and advise you on financial decisions, bookkeepers help maintain your books throughout the year by preparing monthly financial statements, recording transactions and reconciling bank statements.

Methodology

To determine the best bookkeeping services, NerdWallet considered the following features:

Affordability. Most of the bookkeeping services included start below $500 per month. 

Accounting software integrations. Ideally, bookkeeping services integrate with popular accounting software, like QuickBooks Online and Xero. Some offer their own proprietary bookkeeping software instead. 

Supported accounting methods. More complex small businesses should select a bookkeeping service that supports accrual basis accounting instead of only cash basis accounting. 

Availability of add-on features. These include tax support, payroll, inventory tracking and catch-up bookkeeping services. 

Bookkeeper communication. Unlimited messaging or phone calls with your dedicated bookkeeper or team of bookkeepers is a plus.

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Do You Need to be Good at Math to Work in Accounting?

• June 24, 2024

A career in accounting offers the prospect of good earning potential, job stability, and plenty of job opportunities because it’s relevant to almost every industry. However, if (like most people) math isn’t exactly your favorite thing, you might think that you don’t have what it takes to succeed in this occupation.

The truth is that there’s more to working in accounting than math. You won’t need to do complex calculus, and software tools mean that there’s little manual number crunching. In this article, we’ll look at the skills you actually need to work in the modern accounting field and how studying at ICT will prepare you for an accounting career.

Is There More to Accounting Than Math?

While numbers play an integral part in accounting jobs, the work extends beyond mere calculations. A regular day often involves tasks like examining records, reviewing financial statements, and ensuring compliance with regulations.

The work also often involves interpreting, explaining, and simplifying complex financial data for clients and the public. While having competent math skills is important, it’s far from the only thing that matters.

Must-Have Skills for a Successful Accounting Career

Most accounting jobs focus on making financial data clearly make sense for clients and to the public. This means accountants need a set of skills beyond just working with numbers in an abstract way. Some of the important skills for a modern accounting professional include:

• Time management
• Critical thinking
• Data analysis
• Attention to detail
• Understanding tax law

Mastering these skills paves a path to rewarding accounting jobs. They work together to help accountants offer a high level of service. The good news is that programs exist to teach these skills thoroughly. Interactive College of Technology (ICT) is one such institution where you can prepare to enter the accounting field. ICT offers a shorter-term diploma program in accounting or a more comprehensive, 2-year Associate of Science Degree program. 

Different Types of Accounting Jobs

Getting an education in accounting can open up a wide variety of opportunities. Some of the specific roles you may fill in an account career include:

• Financial analysts – Involve deciphering financial data and forecasting the economic future of businesses.
• Financial advisors – Work with people to plan for their financial future, including investments, estate planning, and taxes.
• Budget analysts – Have a critical eye for managing organizational spending and help keep finances on track according to plans and goals.
• Auditors – Are tasked with examining financial statements. Auditors ensure accuracy and compliance with laws.
• Consultants – offer their expertise on specific financial matters, often providing strategic advice for business improvement.
• Internal auditors – Work tirelessly to prevent fraud and inefficiency, by carrying out a thorough review of an organization’s internal financial processes.

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Business.govt.nz, in association with, becoming a sole trader.

Being a sole trader is an easy way to start a business, work for yourself or work as a contractor for someone else, but isn’t for everybody. If you want to become a sole trader or you’re already one but aren’t sure what it involves, here’s where you can find tips and information to help.

Starting out

It’s relatively easy to start a business as a sole trader — you don’t need to go through a legal process or to register yourself or your business with a government agency.

Going it alone means you control your business, and get to keep all the profits. You get some of the same benefits employees get, for example paid parental leave. But you will miss out on other things, for example paid sick leave or bouncing ideas off teammates.

Being a sole trader appeals to a wide range of people, including:

• tradespeople, for example plumbers, house painters and electricians
• contractors who work for other organisations, for example IT consultants and builders 
• small business owners, for example hairdressers and landscape gardeners
• people who turn a hobby into a business, for example artists and furniture makers. 

Talk to people in the industry you want to work in to find out if it’s for you.

If you want to sell your business or get investors at some stage, it’s best to have a company structure from the start. Use our Choose Business Structure tool to help you decide.

Business structure overview

Is contracting right for you?

Choose your business structure

Is sole trader the best structure for your business? Use our Choose Business Structure tool to check that it’s right for your business’s needs. Just three quick questions and you’re on your way.

Before you start

Make sure you have a clear idea of why you want to be a sole trader and what you want from it. Being a sole trader can be a flexible way to work. You’re your own boss. But you may also be your entire staff, too. Use our tips and tools to test your business idea or work out what you want to earn contracting.

Talk to people who have chosen the structure you’re considering. Think about getting an advisor, for example a lawyer or accountant who specialises in your industry.

Questions to ask before you start

Types of advice you’ll need

Government help for sole traders

What you need to do

To become a sole trader you must have:

• a personal IRD number for paying income tax and GST
• government licences and permits that your business needs
• qualifications or registrations for your trade or profession.

You’ll need to tell Inland Revenue you’ve become a sole trader and you’ll need to register for GST if you think you will earn over $60,000 a year.

You can also get a New Zealand Business Number (NZBN), a unique identifier, which any business in New Zealand can have. Using it will speed up your interactions with government, suppliers and customers, and other businesses, for example when sharing invoicing details.

Get an NZBN (external link) — New Zealand Business Number

Follow our easy checklist when setting up as a sole trader.

Sole trader checklist

Intellectual property.

It’s never too early to think about intellectual property (IP), which includes your logos, trade marks and inventions. When you protect IP you’re safeguarding the time, money and effort you put into building a business.

Sole traders can’t advertise using their personal name if someone has already registered it as a trade mark in the same industry.

IP will be important throughout your business’ lifespan. Make sure you understand what it is and why it’s important.

Check whether your name has been registered as a business name, trade mark, web domain or social media username with our ONECheck tool.

Why IP is important

Simple steps to protect your IP

Anti-money laundering rules

You might need to meet rules, designed to detect and prevent money laundering and the financing of terrorism if you’ll be doing one or more of these tasks:

• managing money or assets for clients
• providing trust or company services
• selling real estate
• providing conveyancing services
• handling large amounts of cash.

These rules affect the records you need to keep and how you must identify customers.

People often become sole traders because they have certain skills that they want to make a living from. However, you can’t be an expert in all areas of business, for example day-to-day finances or business planning, as well as your specialist area — and you shouldn’t have to try to be. Think about getting advisors, such as accountants, mentors and lawyers, to help you from an early stage.

How business advisors can help

Don’t be surprised if your accountant or lawyer asks to check your ID.

It’s to comply with anti-money laundering rules.

When you start out as a sole trader, you automatically get ACC personal injury cover from day one. It’s called CoverPlus. What you pay will be based on the type of work you do and your liable earnings.

You can choose to change to CoverPlus Extra which gives you more control over how much of your income you want ACC to cover, and means you can lower the levies you pay.

Your first levy invoice will arrive after the end of your first year in business. After that, you’ll be invoiced once a year, usually in July or August.

Types of cover for self employed (external link) — ACC

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Tax 101 for sole traders.

We’ve create a guide explaining different taxes and levies, and how they’re calculated.

Compliance Matters

Use this tool to find out which laws apply to you and your business – and save valuable time.

Use the easy-to-follow checklist to help with business operations as a sole trader.

Employment Agreement Builder

Our DIY tool helps you create contracts tailored to your business and to each person you employ.

Art of Accounting: Where are you going?

"If you do not know where you are going, you'll end up someplace else," said that great sage Yogi Berra. 

column , but now I want to emphasize planning in setting a framework for the growth of your practice and your staff's careers. There are two distinctly different concerns and stages of life, but with similar methods of achieving goals.

Neither a business like an accounting practice nor a career grows by accident, haphazardness or chance. Both need determination, resourcefulness, deliberate goals and a plan to achieve those goals.

• Goal : The practice's goal should be to grow, add services, clients and staff. The staff person's goals should be to advance up the ranks, acquire talent and services they could perform, develop specialties, and train and mentor lower-level staff. These goals are not counterproductive but can be attained by joint, though separately directed, efforts.
• Profits : The practice's plan should be to generate added revenues and profits. The staff person's plan should be to earn a higher salary. Neither can be accomplished without providing added value to clients, creating new services to offer clients and growth in their skill levels. The firm's growth will come from the collective growth of its team members. The staff can only grow if they want to make the effort and are creative enough to choose an area that clients need that is not already covered by others in the practice. Firm leaders need to participate in the staff growth by encouraging it, providing support and opportunities. Both need to grow, and that growth will support each other.
• Systems : Procedures and systems need to be established that will make it easy to perform many repetitive processes in a uniform manner by the lowest-level people in the practice. A procedure cannot be retaught every time someone new gets to work on that process. Checklists are a big help. However, firm management must be dedicated to having the systems followed, monitored and improved as necessary, with complete buy-in by the entire management team. Staff members must follow the systems and cannot be permitted to shortcut any steps or become a lone ranger in what they do.
• Training : Firms need to become learning organizations. Training must be deliberate, uniform, relevant and focused. The firm needs to set up the learning curriculum and sessions, set aside the time and make sure staff avail themselves of the opportunities. The staff not only must seek these out within the firm but also outside on their own during nonbusiness hours. The firm should encourage staff to volunteer to teach some sessions, while the staff should grab any such openings for themselves.
• Specialties: The firm should develop niche specialties and build its expertise. The "firm" is not a thing but a configuration of everyone in the organization. Each person needs to contribute with their own efforts gently but firmly coordinated and managed by a practice owner or leader. This goes hand in hand with the section above on profits.
• Client service: Clients do not have to use any specific accounting practice and have many choices. Today's choice or a legacy relationship is not permanent unless there is a high level of continued great service. Meeting due dates and deadlines, promptly returning calls, emails, texts and however else the client chooses to communicate, being available, anticipating problems and client concerns are not just options; they're critical to the maintenance and continuance of the relationship. Everybody in the firm needs to hold themselves accountable for exceptional client service every time and all the time. It is not someone else's job. It is everyone's job. 
• Technology : Technology is driving rapid change and affects everything we now do. For effective viability and growth, firms and all their individuals need to embrace the most current technology. Every day this is avoided is another day you will fall behind. Previously it was a gradual process, but that's not so anymore. The acceleration of applications and adoption of technology has made it necessary to grab as much you can as quickly as you can. This means being trained properly. The owners and staff have to approach this as a life-saving measure and its adoption as a triage situation. The critical nature of this will depend on where the practice and each team member places themselves on their life-cycle curve. But it cannot be ignored … unless you are at the stage where you are counting the days until you can just clip coupons and spend your time streaming entertainment programing.
• Administration : Administrative services are not just background activities but client-facing services that are essential to firm function and client value. While admins cannot create deliverables, they make sure they are delivered at the right time in the right manner. Partners and staff need to coordinate with the admin staff, who are professionals just as much as the accountants are in what they do. This partnership can only work if everyone recognizes the collaborative relationship. 
• Culture : Every business and individual in that business has a brand and culture. The firm's culture and brand must be supported 24/7/365 in every endeavor or it will not be a positive brand and culture. The culture refers to the people in the practice. The brand refers to how the public sees the practice. But it is much more than that. A low-level staff person running a stop sign creates a negative blot on the firm's brand at that moment to any client, stakeholder or friend of the firm who sees that happening. This is not picayune nonsense but serious stuff. The firm's culture must be recognized, managed and supported by everyone.
• Planning : Planning works. Not planning also works. You can decide which you want. My suggestion is to write out your plan. Regardless of your position, write it out for the entire practice. Be imaginative. Be bold. Be innovative. Put it down and read, review and vet it. Let it percolate for a few days and rereview and vet it. Edit it if necessary and then discuss it with the firm leader. Simultaneously write out your individual plan and goals. Try to do this independently of the practice but then compare the similarities and where there is a divergence. Try to reconcile the two. Then set it aside for a few days and reapproach it. If necessary, use it to make a decision. If it is appropriate and you think it would be productive and helpful, discuss your personal plans with firm management. 

Firm leaders and all team members have a stake in the future of the practice, especially as it impacts the future of each person in the practice. The practice and team members need to work in tandem to accomplish the future. The practice and team members have different roles and concerns, but the issues are the same, even though they are looked at with a different lens and lines of sight.  You have a choice to get to where you just happen to end up or to get toward where you want to be. 

[email protected] with your practice management questions or about engagements you might not be able to perform.

Sen. Bernie Sanders and Ed Markey are introducing legislation to impose a 95% windfall tax on the excess profits of large corporations that are overcharging for products.

The Internal Revenue Service switched over from focusing its audits on taxpayers earning $10 million or more to those earning $400,000 or more after passage of the Inflation Reduction Act.

Many plan participants told the U.S. Government Accountability Office they didn't understand their four main options — or the potential tax consequences.

Test your accounting knowledge on state by state tax burdens, M&A, and more. No. 2 pencil not required!

After 500 internal penetration tests conducted from 2021-2023, RSM professionals found only 1.6% of organizations had no vulnerabilities at all. Most had around eight.

The Treasury Department provided formal notification to Russian authorities that it's partially suspending a tax treaty as relations worsen over the war in Ukraine.

Breadcrumbs

Strategic tax planning for contractors in 2024.

A s 2023 financial statements and tax returns are finalized, it’s time for contractors to shift their focus to the current tax year of 2024 and beyond. In a competitive industry like construction, it’s crucial to adapt continuously to ensure your company is in the best possible position for current and future success. By having the right software and technology for accurate data interpretation, implementing a solid succession plan and strategizing income tax planning to reduce taxes, you’ll build a solid foundation for your company’s success and take charge of your financial future.

Tax Planning & Credits

Accounting for long-term contracts.

When considering year-to-date company profits for quarterly tax projections, it’s essential to discuss your current accounting method with your tax accountant to better understand the potential methods or exceptions that can better help your tax position. The construction industry is unique, and the tax code allows very specific treatment of certain long-term contracts, with many exceptions to the primary percentage of completion (POC) reporting method. Many contractors are unaware that some of these tax options may be available. By maximizing the tax position of contracts, you can help improve cash flow and keep cash on hand for better use within the company. It is imperative that your accountant has experience with the construction industry, as the tax code has many intricacies in this area. Experienced accountants will understand that the code allows for the filing of a request for an accounting method change with the IRS and the potential impact of the alternative minimum tax (AMT).

179D Deduction

179D is a deduction for energy-efficient construction or building improvements to commercial buildings. As of Jan. 1, 2023, the maximum deduction is $1.8 per square foot, but it can now be a maximum of $5 per square foot if prevailing wage and apprenticeship requirements are met. This is a significant opportunity for many contractors. For example, a 100,000-square-foot project may yield a contractor an additional $500,000 deduction.

Understanding this and knowing how to obtain this credit is critical. For contractors that can address energy efficiency on their projects, 179D likely represents a significant advantage.

R&D Tax Credit

Construction companies may be eligible for research and development-related credits if they perform design-build contracts or continuously experiment to improve processes and techniques. Under current law, the IRS requires capitalizing research and development (R&D) expenses over five years. Still, if the Tax Relief for American Families and Workers Act of 2024 passes, those R&D expenses will no longer need to be capitalized through Dec. 31, 2025. This is a tax credit on items the contractor has already paid for, and provided the contractor qualifies, they can use this credit to apply to taxes owed on the company’s profit.

Bonus Depreciation vs. Section 179 Expense

The phase-out of bonus depreciation, which started at 100% depreciation deduction after the Tax Cuts and Jobs Act (TCJA) of 2017, dropped to 80% in 2023. Any fixed assets placed in service from Jan. 1, 2024, through Dec. 31, 2024, will now only be eligible for 60% bonus depreciation. As this bonus phase-out continues, it is even more important to determine if the section 179 expense should be used as an alternative to the bonus. The section 179 expense for eligible assets remains at 100%. However, there are limitations on how much is allowed in 2024 ($1,220,000 with a capital purchase limit of $3,050,000), and the 179 expense can only be utilized to the extent of taxable income. Because bonus depreciation is not subject to these limitations, it may make sense in specific scenarios to still use the bonus. Before making any assumptions, an analysis should be done to consider all state tax implications of each option.

Also, remember that an extension of the 100% bonus depreciation has not been completely ruled out, and is another item included in the Tax Relief for American Families and Workers Act of 2024.

Estate & Succession Planning

Most companies have formal business plans, but few have an equally important succession plan, especially if a retirement-age leader is at the helm and a successor has yet to be identified. Determining a succession plan, how to implement it and when to start the transition are all decisions that must be made in advance. If the current leader plans to sell, there are several approaches to structure a sale that best fits the new and old leadership alike.

Buy-sell agreements, private annuities and self-canceling installment notes are just a few ways to structure sales. Sometimes, family-owned businesses may want to transition leadership to the next generation. Even if the next generation does not have the skills required to take over the company immediately, there are ways to gift or sell that hand over the reins gradually as the new appointee becomes more comfortable managing the business independently. With the lifetime estate exemption still high ($13,610,000 for a single individual) in 2024, gifting business interest outright or using trusts could be one way to maximize the value from an estate planning and succession perspective. The 2024 exemption of $13,610,000 is set to expire at the end of 2025, so it is crucial to take advantage of the current exemption. The intent and goals of every business owner are unique for each company.

Business owners should seek assistance from their accountant or other professional advisors to determine the best fit for their situation.

Assess Technology & Software

It is no secret that technology is constantly improving; most technologies or software programs that were brand-new to the market just a few years ago are getting leapfrogged by the next latest and greatest versions. Whether these technologies are used by your internal accounting team or in the field, they can significantly impact decision-making and analysis compared to outdated technologies or processes. The most important software for internal operations is an enterprise resource planning (ERP) solution. ERPs should integrate all aspects of your business processes and applications, from accounting and inventory/equipment tracking to supply chain operations and performance management. In the field, project management software exists for time tracking, equipment utilization and live reporting of crucial information to make on-site decisions. These scratch the surface of the options available to construction companies in today’s market.

It is hard to know what you could benefit from if you are unaware of the available tech. As you read this, you may be thinking of a report or data you lack today that you wish you had available for decision-making and analysis; there is a good chance that it can be done with the right tools. Speaking with someone who understands your business and the available technologies is a great way to assess your current position and what could help your competitive outlook.

These strategies serve as critical pieces of a comprehensive approach to proactive tax planning for contractors. Each element, though distinct, contributes to a construction company’s overall financial well-being and operational efficiency. While it is still early in the year, addressing these issues will leave enough time to design and implement any changes by year-end.

Brian Marron, CPA, is a director in Marcum LLP’s Tax & Business Services division and is a member of the firm’s Mid-Atlantic Construction Industry Group. His practice focuses on serving the needs of clients in the construction and real estate sectors. Marron leverages extensive knowledge of tax laws, including emergent legislation, to help clients understand and manage the tax implications of business and personal transactions. He can be contacted at [email protected] . Visit marcumllp.com/construction .

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Accounting Documents Library

Audit planning memorandum, understanding and writing the audit planning memorandum (audit plan memo).

An essential tool in the auditor ’s arsenal is the Audit Planning Memorandum, often referred to as the Audit Plan Memo. This comprehensive blueprint is fundamental to the success of an audit , ensuring that the process is structured, thorough, and results-focused. In this guide, we will walk through the purpose of an audit planning memorandum, its key components, and provide clear steps to write an effective memo that facilitates high-quality audits.

The importance of the audit planning memorandum

Before we launch into the intricacies, it’s vital to underline the significance of the audit planning memo. In the realm of accounting and audit, meticulous planning is not a luxury but a necessity. The memo serves as the fundamental framework upon which the entire audit is built. It's the precursor to detailed procedures, guiding the auditor's actions , laying down timelines, and ensuring that the audit addresses the most pressing risks.

Section 1: Understanding the basics of an audit planning memorandum

Definition and purpose.

An audit planning memorandum is a formal document prepared by the lead auditor at the onset of the audit or preceding the fieldwork. It outlines the planned approach and strategy for conducting the audit. This includes the identification of material audit areas, estimation of resources required, and the intended audit procedures .

Objectives and benefits

The principal aim of the audit planning memo is to encapsulate the audit plan in a single document, ensuring all team members are aligned regarding the direction of the audit. Key benefits of a well-crafted memo include:

• Ensures that the audit complies with professional standards and regulations .
• Provides a structured format for risk assessment and determination of audit objectives.
• Outlines the methodologies to be used in the audit, providing a consistent framework for all audit team members.

Section 2: Components of an effective audit planning memorandum

The audit planning memorandum is composed of several critical sections. Each serves a unique purpose in ensuring the thoroughness and success of the audit.

Risk assessment

The risk assessment section is arguably the most critical component of the memo. It identifies potential areas where financial statements might hold significant errors and the factors contributing to these risks. The depth of the analysis in this section informs the overall focus of the audit.

Materiality considerations

Materiality is a foundational concept in auditing, determining the significance of an error or misstatement in the financials. The audit planning memo includes the auditor's plan for establishing a materiality threshold, which in turn influences the audit's scope and procedures.

Scope of the audit

Defining the scope is about setting boundaries for the audit. Considerations such as the client's industry, past audit findings, or changes in the business landscape are part of this crucial part of the memo. It ensures that the audit remains comprehensive but also targets the right areas.

Timeline and resource allocation

This section is where the rubber meets the road. The timeline and allocation of resources must be detailed and realistic, outlining who will be doing what and when. It also considers any dependencies the audit has on client-provided information or other external factors beyond the auditor’s control.

Documentation plans

In this part, you will lay out the plans for documenting the audit process. This includes what documentation will be maintained, how and where it will be stored, and ensures compliance with all relevant standards.

Section 3: Steps to write an audit planning memorandum

Understand the client's business and industry.

Before penning a single word, it is imperative to develop a profound understanding of the client’s business and the industry in which it operates. Familiarity with industry best practices, common risks, and regulations is foundational in creating a tailored audit plan.

Conduct risk assessment

Utilize available data from various sources within the client's firm, industry benchmarking, and discussions with management to assess where potential risks lie. Consider both internal and external factors that could impact the financial statements.

Determine materiality thresholds

While auditing is a meticulous examination, it is neither possible nor practical to scrutinize every aspect of a client's financials. Determining what is material is crucial, and this decision is rooted in not only quantitative but also qualitative aspects.

Plan audit procedures

This step involves translating the general risk assessment and materiality thresholds into specific audit procedures. These are the tests and tasks that the audit team will perform to gather evidence.

Document the audit plan memo

Finally, compile the findings, analyses, and plans into a structured audit planning memorandum. Think of it as the narrative that tells the story of how the audit will unfold. Ensure that it is clear, comprehensive, and capable of being executed by any competent audit professional.

The audit planning memorandum is more than a checklist; it's a living document that evolves as the audit progresses. By following the template laid out in this guide, you set the stage for a rigorous, focused, and successful audit. Remember that the success of the plan lies not only in its creation but also in its execution. Regularly review and revise the audit plan memo as new information emerges to maintain the flexibility necessary in the dynamic field of auditing. A well-prepared memorandum not only safeguards the integrity of financial reporting but is also the hallmark of a professional audit.

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With real-time financial data automation, you’ll have the data at your fingertips when it’s time to check your company’s financial health. Aside from general financial reporting, including the reports mentioned above, Ramp gives you instant access to these:

• Expense reports : Automated expense reports track each penny your company spends on a granular level and make it easy to find and fix inefficiencies.
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• Variance reports : Variance reports give you more control by showing how much project income and expenses typically deviate from expectations in your business.

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Fredrikson Adds Travis Logghe as Business, Tax Planning Officer

By Bloomberg Tax Automation

Travis Logghe has joined Fredrikson & Byron as an officer in its business & tax planning, private equity, and mergers & acquisitions groups, the firm said Thursday .

Logghe’s practice focuses on the federal income tax aspects of mergers and acquisitions, the formation and taxation of joint ventures and partnerships, debt and equity offerings, and restructurings of corporations and partnerships, according to the announcement.

He advises clients in a broad range of transactions, including private and public and taxable and tax-free, the firm said.

This story was produced by Bloomberg Tax Automation.

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Harsh Patel: Pioneering Global Accounting and Legal Expertise

Harsh patel, founder of water and shark, is a globally renowned expert in corporate law, international tax, family office and succession, mergers, acquisitions, tax planning, and regulatory compliance. with a background in international corporate law and chartered accounting, patel has earned accolades, including uae's most influential financial and legal professional. water & shark is a go-to firm for advisory, audit, taxation, and strategy in the middle east. harsh patel and his esteemed firm water & shark are the go-to professionals for top-tier advisory, audit and assurance, taxation, and strategic expertise in the middle east..

• Updated Jun 24, 2024, 3:07 PM IST

Harsh, congratulations on your remarkable achievements as the Founder of Water and Shark! Founding a global accounting and Legal Firm at 19 is truly impressive. Could you share the story behind how you embarked on this entrepreneurial journey?

My journey began over a decade ago during my Chartered Accountancy internship. While on this path, I discovered my affinity for legal terms, eventually leading me to become a practising lawyer. I often say that I started on my journey as a CA but accidentally became a lawyer. I remember my professor asked the class where they wanted to go after completing their course. Almost everyone in the room answered “Big 4," referring to the four major accounting conglomerates globally. That was when I realised I wanted to go in a different direction than everyone else. Rather than settling on the existing path, I wanted to stand out and pave my way. I dreamed big and aimed to create something that could compete with the ‘Big 4'; that is how I had already established my firm ‘Water and Shark’ before qualifying as a Chartered Accountant. Today, it is a global accounting and legal firm. Fast forward five years from our foundation in 2012, on Chartered Accountants Day, Prime Minister Narendra Modi urged Indians to excel and establish a global presence. In response, I penned a letter expressing my resonance with his vision and our commitment to creating a global footprint. His congratulations were a meaningful validation of our pursuit to establish our presence worldwide.

As an advocate and professionally qualified Chartered Accountant, you bring a unique blend of skills to your role. How do you integrate legal and financial perspectives to provide comprehensive solutions for your clients?

Having started as a Chartered Accountant and later transitioning into a practising corporate and International tax lawyer, I recognised the critical need for a blended solution in today's global business landscape. Integrating legal and financial perspectives is at the core of our approach. When finance and legal aspects are harmoniously integrated, it transforms solutions into services, broadens perspectives, and offers pragmatic realism. Almost every business has financial or legal intricacies, and we provide a dual view.

A lawyer who understands finances ensures that every service, agreement, or advice covers all essential aspects. Similarly, a Chartered Accountant with legal expertise can give reliable financial guidance. In today's startup-focused world, where resources are carefully managed, clients often wonder why they should engage separate professionals for legal and financial matters. Recognising this shift, particularly within the startup ecosystem, we established an integrated firm where a legal and Chartered Accountancy practice coexist synergistically. This holistic approach provides clients a singular destination for diverse needs, seamlessly merging legal and financial expertise. This ensures that every facet is addressed in any transaction or advisory, offering a comprehensive solution under one roof.

Forbes India has recognised you as a "Top 100 People Manager and Leader by Example." What leadership principles do you prioritise in your role at Water and Shark, and how do they contribute to the success and growth of your firm?

At Water and Shark, our success is a collective effort. We believe in the power of 'we' - encompassing team members, partners, senior management, well-wishers, and mentors. This collaborative principle is fundamental to our growth. In terms of leadership, empathy is paramount in my approach. While being bold and assertive in the business world is crucial to accomplishing our goals, empathy is equally vital. We view everyone at Water & Shark as family, not just team members. Providing the support our employees need is paramount - treating their challenges as our own and doing our best to assist them.

From the very beginning, I have always believed in cultivating an entrepreneurial spirit among our team members. It's a mindset that I strive to instil in our leaders. This approach goes beyond simply focusing on the tasks at hand; it's about considering how each action translates into a practical solution for our clients. It's about thinking as if you were running the business yourself. Every decision must be commercially sound, ultimately benefiting the firm. This is our blueprint for nurturing future leaders. We're not just here to succeed in the present but to leave a lasting legacy. Providing ample opportunities to our team members, offering them exposure and the chance to grow, is how we shape them into the leaders of tomorrow. It's a commitment we hold dear to our mission.

Your company has expanded its footprint across the UAE, U.S., Singapore, Hong Kong and India, with a recent focus on GCC nations. What strategies have been instrumental in this global expansion, and what market insights have you gained from this diverse presence?

I firmly believe that there are other paths to success than waiting for an opportunity to come to you. If a particular region isn't presenting immediate opportunities, it's essential to take proactive steps in creating them. For instance, if I envision Water & Shark having a presence in twenty countries within the next decade, it's crucial to break down this vision into tangible, actionable goals and then set forth to achieve them. To materialise this expansion, I took a hands-on approach. I visited all the countries on my list, immersing myself as a tourist for 15 days in each location. This allowed me to gain valuable insights, learn about local business cultures, and identify growth opportunities. This proactive approach has consistently defined my way of operating. By taking decisive action and putting plans into motion, you set the stage for success and position yourself to draw in additional opportunities rather than waiting for them to knock at your door.

Having a global presence goes far beyond having an address in different countries. It provides us with a diverse narrative and a broader perspective. We engage with individuals from various nationalities through travel and expansion, gaining insights into how business operates beyond our home country. This firsthand experience is invaluable. Expansion not only allows us to build new opportunities but it also enables us to diversify our operations. By focusing on a single region or being overly concentrated, a business becomes more vulnerable to risks. On the contrary, having a diversified and well-balanced presence significantly increases our resilience during challenging times. This approach to business strategy has consistently proven its worth.

As a young entrepreneur who has achieved remarkable success, what advice would you offer to aspiring business leaders, particularly those looking to enter the accounting and legal advisory industry?

First and foremost, it's crucial to be mindful of your limits, but remember, don't be hesitant to push beyond what you initially envisioned. Never allow others to set the boundaries for you; have steadfast faith in your abilities. Strive for excellence not only within your home country but on a global scale as well. Have a clear vision and a well-defined goal, then take decisive action to turn them into tangible results. Remember, without a clear destination in mind, you'll never reach your desired endpoint. Even if your vision or goal seems audacious, remember that circumstances can change unexpectedly.

At the age of 19, I confidently stated in my book that my global accounting firm would be renowned worldwide and I would be CEO. Some may have found it amusing at the time, but now, those same individuals are sending me their CVs in hopes of joining the team. It's a testament to the fact that those who scoff today might applaud your achievements tomorrow. Don't lend an ear to things that don't contribute to your growth. Instead, be receptive to constructive criticism, as it guides you in correcting and rectifying your mistakes. 

I'd like to address legal and CA professionals particularly. In my interactions with thousands of CAs, I've observed a certain degree of conservatism. Despite being the gatekeepers and bookkeepers of businesses worldwide, CAs often need to pay more attention to run them with the same business acumen when it comes to their own ventures. Having a clear vision supported by a strong human resource base integrated with the latest technology is crucial. Leverage the tools available today, such as AI and practice management software, to position your firm and manage it comprehensively.I firmly believe that strategic positioning is paramount. From the very inception of your venture, cultivate the mindset of not just establishing a business, but of striving for greatness. Prioritise innovation and foster collaboration; this transformative approach will push your enterprise into an entirely new horizon. Remember, don't settle for being merely a compliance practice. Instead, aspire to be a firm that offers value-added services, irrespective of your field of practice. This shift in perspective can make all the difference in propelling your firm towards extraordinary   

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