To ensure that journal entries have been recorded and posted correctly, small businesses use the trial balance accounting method to double-check account balances for a given time period. A trial balance ensures that the debit and credit balances in the ledger accounts match. Another popular option is Xero, but there are plenty of bookkeeping apps to choose from. You can get certified in each of these programs, which can not only help you become a power user but can also help you market yourself as an expert. It’s not compulsory, but you might want to look into insurance for your bookkeeping business.

Set up a bill payment system.

Venture Capitalists do not typically want to invest in LLCs and S Corps. So if you are raising money, especially from professional or experienced investors, you’ll need to choose a Delaware C Corp as your entity type. Btw — LLC and S corp structures are great if it’s a family owned business and you will not be raising VC capital. Many companies raise their next round of venture capital based on their revenue growth. Many early-stage CEOs use a variety of dashboards to visualize their revenue. Solid financials help de-risk your startup’s next venture capital round.

• We set startups up for fundrising success, and know how to work with the top VCs.
• In the event you are selected for an audit, we will represent you at NO ADDITIONAL FEE on any business income tax return we prepare.
• VC due diligence is getting harder, so be prepared by working with an experienced pro.
• For instance, you’ll want to check out one of the best small business insurance companies.
• If you’re ever not completely sure how to do something, consult with someone who does.
• Although bookkeeping is an investment, it’s generally much more affordable than attempting to correct costly mistakes down the road.
• FreshBooks makes it easier than ever for clients to pay their invoices, so you don’t have to waste time chasing down checks.

Set up a Limited Liability Company or corporation for your business quickly and accurately.

• FreshBooks stays in sync from desktop to the app, so you can use any device you like and always have access to the latest data.
• Membership comes in three tiers, and a longer membership plan has added benefits compared to a shorter membership plan.
• If you maintain a GPA of 2.5 or higher in each course, you’ll receive a certificate upon completion.
• While bookkeeping provides oversight into each individual transaction (in order to catch discrepancies and correct mistakes), accounting provides a thorough analysis of these numbers.
• Bookkeeping can be time-consuming, and outsourcing your financial activities allows you to focus on developing your startup.
• Businesses might not want to keep all cash in the bank, as having an excessive amount of cash in the bank could mean missed opportunities in investment income.

When you have your vendors labeled, you can actually run reports by vendor and see exactly what you’re spending. But, low quality bookkeepers are trying to get the transactions into QuickBooks as quickly https://www.bookstime.com/articles/opening-balance-equity-what-is-it-and-how-to-fix-it as possible to save time, and they don’t really care if they’re labeled or if they’re in the right categories. If you are going to raise real Angel and VC capital, then incorporate as a Delaware C Corp.

Market Your Business

The first step in getting started is getting yourself set up with the tools and know-how. I know plenty of people with big home office setups, but you can easily start your bookkeeping business with a humble laptop. Take that laptop and go online to set up a free account with a cloud provider.

Do your research and create a business plan

You may be ready to be your own boss, work virtually,  make your own hours, and build your own accounting software program. 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. Ultimately, it’s simply not necessary to pay extra for in-house accounting services for most startups. Outsourcing is cheaper and usually more than sufficient for your needs. Third parties may or may not require your cash flow statement, but it’s essential for informing management decisions.

That includes choosing when to send invoices, how quickly you expect them to be paid, and which payment methods you’ll accept. Late payments can create startup bookkeeping cash flow woes, especially for young startups. FreshBooks lets you build in late fees to encourage clients to pay every dollar you’re owed on time.

Financial Records to Maintain

You should decide what services your bookkeeping business will initially offer. You might add more later, but knowing your initial offerings is important so that you can choose the right certifications and software. QuickBooks’ ProAdvisor program, on the other hand, is designed specifically for bookkeepers and accountants.

How does accounting software support budgeting for startups?

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. 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.

• Not only can anyone become a bookkeeper, but every business needs a bookkeeper, which means there’s no shortage of customers out there.
• Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.
• A company hires a bookkeeper to manage and organize its finances, including detailing and categorizing all transactions.
• 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.
• Our suite of products works together to offer a streamlined accounting solution that keeps your finances in order, even when you’re occupied with planning your next big idea.