3. Education
While there are no specific education requirements to work as a
bookkeeper, you will likely not attract many clients without at least a
four-year degree from an accredited college or trade school. CPA
certification, if qualified, can also add to your credibility as an
accounting professional, but can be very expensive to obtain.
4. Certification
In addition to education is obtaining specific bookkeeping
certification. There are two main organizations that certify
bookkeepers:
● The American Institute of Professional Bookkeepers
● The National Association of Certified Public Bookkeepers
Both sites offer training programs and certification exams that will
allow you to present yourself as a Certified Professional
Bookkeeper
5. Experience
As an entry-level bookkeeper, experience may be gained by working
for another company. Once you have a few years of professional
experience and are completely familiar with all cycles of the
bookkeeping process, you should be ready to strike out on your
own.
It is not likely that an entry-level bookkeeper would be successful in
immediately starting on on your own, as clients want to feel
assured that you have an excellent understanding of the process
before they will trust you with the company books.
6. Business Plan
When considering any business venture, it is important to create a
business plan. This plan should have enough information to be able
to understand the market for your business, and should include a
reasonably accurate financial forecast. The plan will be imperative
in guiding your business activities, and can be helpful in gauging the
effectiveness (and profitability) of your business activities.
7. Leadership
Clients expect financial experts to also have leadership qualities.
This is also a requirement if you intend to hire employees in your
business. Leadership training and workshops are available to
business and community members, and taking an active role in
accounting organizations and other professional programs might
also add credibility to your business.
8. Work Space
An important decision will be whether you will choose to work from
home or outside of the home. If you have room in your home for an
office that is quiet, it might be more cost effective to set up an
office in your home. If this is your choice then you would likely
consult with your clients at their place of business, as it might not
be feasible to invite clients into your home unless the office is
separate from the rest of your home.
9. Cost of Doing Business
It is not always possible to work at home, so renting office space
may be the next best option. This can be very expensive, as rent
would be required on a monthly basis, so this needs careful
consideration and planning to make sure that your income will be
adequate to cover the expense. It likely makes more sense to work
from home and visit clients when starting out until your income is
such that these expenses will be covered.
10. Time Management
Being self-employed means that it is necessary to understand how
to manage your time effectively. You are no longer working the
regular hours you may have worked while employed with another
company, and it is easy to lose track of your day if you do not learn
to schedule your time wisely.
11. Selling Yourself
When starting a new business, it is not likely that clients will be
chasing after you for your services, so it will be necessary to market
your business. There are several strategies for marketing your
services, and some trial and error will be needed to see what types
of advertising will work best for your business. Advertising can be
very expensive, so experimenting with low-cost options will be
important when first starting out.