Guide to starting a bookkeeping business
If you’re considering starting a bookkeeping business, look no further. We have all the tips and tricks you need to take your dream from start-up to success. Whatever your reason for wanting to start a bookkeeping business, or however big you wish to grow it, these steps will help you lay the foundation to creating […]

Start with a qualification
When working with people’s finances, they usually prefer that you have a qualification that certifies you as fit to perform that role. If you don’t have any bookkeeping experience or qualifications, now is the time to gain industry knowledge and training. While there are numerous courses available online, you can also look to the following organisations for more formal qualifications:- South African Institute of Chartered Accountants (SAICA)
- Association of Accounting Technicians AT(SA)
- Chartered Institute of Management Accountants (CIMA)
- Association of Chartered Certified Accountants (ACCA)
- Institute of Certified Bookkeepers (ICB)
Know the rules
Once you’re qualified, you need to comply with a series of rules and regulations. This includes registering with the ICB (not registering could result in a fine), applying for a practice licence, and complying with professional conduct regulations. You will also need to comply with anti-money laundering regulations because, as a bookkeeper, you have a legal obligation to limit the risk of your clients laundering money. The professional conduct regulations are set out in the ongoing duties to the ICB, and there is a disciplinary process that is followed, should a member breach the rules.Get insured, be protected
You’ll need business insurance for your bookkeeping firm. This will help you manage your business’s risks and cover you in the event of losses incurred during normal operations as well as any losses within the scope of your policy. You can also take out public liability insurance, which covers you for damages you are legally required to pay due to an incident in your business or on your premises. Your liability also extends to the actions of any employee, director, or partner that represents your business.Get yourself set up
Once you’ve passed your exams, registered with the ICB, arranged insurance, and are compliant with all the policies and regulations, you’re ready to set up shop. You will need to register your business with the Companies and Intellectual Property Commission (CIPC). First, decide if you would like to operate as a sole proprietor or a private company. It is essential to consider which business model suits you best in terms of your goals, but it is advisable to separate your company’s liabilities from your personal ones. You’ll then need to decide whether you’d like to work in an office or from home. Setting up in an office means you’ll have higher operating costs, such as rent, phone or internet lines, parking bays, etc. If you’re setting up at home, be sure to create a designated workspace. You can use a spare room or section off part of another room, as long as your space remains constant. You will also need somewhere to store your clients’ paperwork and data in line with the new Protection of Personal Information Act (POPIA) regulations. Working from home also has additional tax benefits. If you don’t already have one, you will need to buy a laptop or desktop computer and accounting software. You’ll also need business stationery and a business bank account.Create your business plan
When starting any business, it’s critical to do your research and draw up a business plan that you can refer to as your business grows. Here are some questions to ask:- Who will your clients be?
- Where will you find these clients?
- What services will you offer?
- How do you plan to work with clients?
- What does success look like?
Let’s talk money!
How will you charge for your services? This is one of the more challenging questions to answer. You want to be careful not to undercharge and devalue your service, but also not to overcharge and alienate much of your client base. There is, however, no set answer on what you should charge. You’ll either charge an hourly or monthly rate (although we advise against this pricing model), or you can set retainers based on consultation with your clients. When determining your rates, you should consider the services you’re offering, your clients’ needs (and size), and your level of experience.Software for better business
Accounting software can be of great use to you in your bookkeeping business. It can help you calculate VAT returns, balance your books, collaborate with your own accountant and clients, manage and process payroll, and accept multi-currency payments, all while remaining legislatively compliant, on any device, from anywhere. If you’re using a cloud accounting solution, you will be able to work with your clients in real-time, monitoring their numbers and helping them make better decisions based on real-time data. You will also be able to access their numbers and create updated financial reports whenever necessary.That’s a wrap
Building your own bookkeeping business can be rewarding. Setting your own hours is a great lifestyle choice, and being able to choose your clients will have you wondering why you didn’t do this sooner. Give yourself time to learn and grow, and be sure to keep your finger on the bookkeeping pulse so that you are always ahead of the game. Lastly, enjoy the satisfaction of helping others grow their businesses by assisting them to run smooth and efficient operations.The Practice of Now 2020
Discover how accounting is on the brink of positive disruption and what accountants and bookkeepers should do to be successful
