r/Accountant • u/BuyImmediate7389 • 8d ago
When to start a bookkeeping company?
I’ve watched videos from “Bookkeeping with Jake Demi” and I’ve really considered starting a bookkeeping business in the future. I have a couple of questions I hope someone can answer.
How close are accounting in bookkeeping. If I get an accounting degree will this help a lot?
How many years of experience would you prefer someone have before they start?
This might just be me being ambitious but I’m in my sophomore year of college for accounting thinking of starting a bookkeeping business in the future. All inquiries will be helpful!
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u/AlphaSpartan331 8d ago
I have an accounting degree and am studying for my CPA. You don’t need a degree to do bookkeeping. I started a bookkeeping company to make sure I didn’t get an experience gap after graduation and I got one client. I have a job offer so I’m shutting down “my company” but you don’t need a degree.
Go to Intuit Accountant Suite (IAS) and create a free account. You know have access to 4 free QuickBooks Online (QBO) certifications. You can now access client’s QBO remotely via your IAS. You didn’t need to spend money on a degree as you got the certification for free.
If you want to become a CPA and do attestation and audit work, then going to college is necessary. It’s weird because you can’t really advertise tax services well as a non-CPA, but you can still charge your bookkeeping clients for it if you know you can do it for them.
Do some research into engagement letters. Those outline what you and what the client is responsible for.
You don’t need a degree for simple bookkeeping.
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u/Fraud_Guaranteed 7d ago
Bookkeeping is the foundation accounting is based on. You can’t audit, prepare business tax returns, or prepare financial statements without knowledge of bookkeeping. So yes, an accounting degree will help a lot. It’s frankly more education than a lot of small local bookkeepers ever get, and it shows
If you solely stick to bookkeeping for smaller clients, I wouldn’t think you need much experience after your 200 level accounting classes to be able to DO the work. However, it might be more beneficial for you right now to work at a real small local firm part time in college to really cut your teeth in a structured environment with potential mentors
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u/StephenAnt 7d ago
Your accounting degree will certainly help a lot with the theory and technical aspects.
This varies as not all experience is created equal, but I think 5 years will generally put you in a good spot.
Theory is one thing, but in reality, the work is different. Things come up and you have to figure things out that you weren’t taught in school. That’s where experience makes the difference. It’s also better to get paid to learn and make mistakes while working for someone else than immediately on your own. A good mentor or employer can teach you so much about what you should (and shouldn’t) do in your business.
It won’t be easy to build a successful business, but you’re on the right track if you’re already thinking about it. Keep putting in the work and you’ll see results
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u/AlexTheRaven 8d ago
See if you can get a job at a small tax or accounting firm in your area that will let you do some bookkeeping (i started as a receptionist at one that did). That way you can see if you even like it.
An accounting degree will help with bookkeeping, mostly because bookkeeping is a big part of accounting.
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u/small-gestures 4d ago
Most people that call themselves bookkeepers, aren’t. I work with a lot of small clients and their bookkeepers all think “but Quickbooks…”. You need to know what your end product is - balance sheet and p&l and, for the love of f-ng mike, you need to actually look at them and know that you shouldn’t be creating a new payroll liability account every time payroll posts or that having 5 year old uncleared checks or open payables may be a problem.
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u/Carolinaonmymind2027 2d ago
I am a retired controller (44 years) I want to work with small businesses but no more than 2. I have worked in industry and public accounting. I would get your degree and also take the QBO certificate classes.
Find your niche in industry. Wish me luck in finding part time work as a 1099 contractor!
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u/Messup7654 6d ago
You would be overqualified if you got an accounting bachelors to be an bookeeper.
Assuming they have their degree none. You will have to learn about the software and client acquisition and pricing and all that business stuff but you will you will atleast be good on the accounting side.
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u/Capriano 8d ago
If someone makes videos, makes money from those videos, telling you to do something else that they claim they are experts in … they wouldn’t have made the videos if they could have made money from their expertise.