- 1). Obtain training in the basic principles and techniques of bookkeeping. This can be as simple as taking a single course from your local community college or small business center. If you already have academic training or on-the-job experience as a bookkeeper, it is not necessary to receive additional training.
- 2). Determine where you will operate your business from, such as a home office or a rented space. If you are thinking of running your business out of your home, consider carefully whether you and your clients will feel comfortable meeting in your home, as well as what the work environment in your home will be like. Take into consideration things like children, pets, noise and clutter. Additionally, check zoning and home owners' association restrictions regarding having a home office, signage, etc., if you are considering operating from your home.
- 3). Select a name for your business and register a Fictitious Business Name or DBA with your local county government.
- 4). Apply for a business license with your county, and city if applicable. Also apply for any needed permits. Unless your bookkeeping business is operating as a sole proprietorship, you will also need to register it with the Internal Revenue Service for tax purposes. If you are hiring employees, you will need to obtain a Federal Employer Identification Number (FEIN) from the IRS as well.
- 5). Develop a basic business plan that defines exactly what services you will offer, rate structures and how you will manage your own bookkeeping. Include plans for handling employees, if applicable, client complaints or clients who wish you to engage in unethical practices and advertising.
- 6). Purchase bookkeeping software, and a computer and printer, if necessary. Consider also obtaining an external hard drive to store backup files in case of a computer malfunction, and set up a basic security system on both your computer and the hard drive so that client information is secure and confidential.
- 7). Begin advertising your business by printing and distributing fliers and business cards, setting up a website, taking out ads in local newspapers or phone books and simply networking and telling people about your business.
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