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Have you ever thought about starting a bookkeeping business in the Philippines? If so, you’re in luck because today, we will be going through a beginner’s guide on how to start a bookkeeping business in the Philippines.
Bookkeeping is a growing trend, and this is very closely linked to outsourcing which has also been one of the fastest-growing industries in the Philippines over the last few years.
Some new business owners have seen success from opening an outsourcing center but specializing in bookkeeping services, so let’s take a look at the process of a bookkeeping business in more detail.
Table of Contents
How To Start A Bookkeeping Business In The Philippines
1. Choose Your Specialization
Bookkeepers can work in various industries since all businesses need to monitor and improve their finances. Therefore, aspiring bookkeepers can consider specializing in the industry to set them apart from their competitors.
Knowing how to build credibility in a specific industry can help beginner bookkeepers on how to start a bookkeeping business in the Philippines. Aside from helping them hone their skills, they can determine their target market.
One tip to determine this is to research your target audience to have an idea of what bookkeeping services are available and the industries they focus on.
2. Create A Bookkeeping Business Plan
All kinds of businesses need a business plan. Therefore, a bookkeeping business is not an exemption to this. Writing a business plan means outlining and detailing the plans for the business. It is comprehensive because it explains your bookkeeping services, market, and the edge you will have.
Moreover, aspiring bookkeeping entrepreneurs can create projections and expansion plans for their businesses. Though it can be long, it is crucial. This business plan template can help you get started.
But, Filipino Wealth also has a free business plan template and financial guide, which can be downloaded on the hyperlink above!
3. Obtain The Right Certification
Aspiring bookkeepers can have more edge when they attend a certified bookkeeping program. ICPAR’s Certified Bookkeeper program offers a review of accounting basics, including the accounting cycle and creating financial statements. They also offer test and certification preparation for TESDA’s national bookkeeping certificate.
When candidates pass, they will be part of the Registry of Certified workers by TESDA. Moreover, the certification is recognized for Filipinos working abroad.
4. Register Your Bookkeeping Business In The Philippines
The next step in starting a bookkeeping business in the Philippines is to make your business official by registering it. The exact steps on how to do this depend on the business structure and the location of the business.
Therefore, it is best to learn the specific steps to register the business to your local government office.
Here are some of the offices aspirants need to visit:
- Department Of Trade And Industry (To Secure The Business’ Name)
- Baranggay And Mayor’s Office (For Permits And Licenses)
- Bureau Of Internal Revenue (To Get A Tax Identification Number)
For the business structure, starting bookkeeping business owners can consider a sole proprietorship. That is because they are likely to work on their own at first. However, an LLC can be a good choice if they consider having people to help them with the business operations.
5. Obtain Insurance
This is not a mandatory step on how to start a bookkeeping business in the Philippines, but it is recommended to look into it. This can help aspiring bookkeepers protect themselves from expensive liabilities if they make an error in their clients’ books.
This can be damaging to their personal and business finances without Insurance. Examples of insurance policies they can consider are general liability and professional liability insurance.
6. Pick Your Software
The foundation of a bookkeeping business is its software. However, since there are many choices, those interested in starting this business need to choose their software.
Quickbooks is a good software option because of its many features. Therefore, many small and large businesses utilize this software. Xero is another popular choice. If possible, aspiring bookkeeping business entrepreneurs can certify these programs to market their services better.
7. Prepare the Business Framework
Most clients will look for your website if they want to learn about your background in the industry. A website is more important if the business is completely online to show your bookkeeping expertise. There are many website builders available to help you make your website easily. Some of these are also free such as WordPress.
A client database management tool such as a CRM and project management tool helps set up your workflow. It also helps to track your clients as your business grows effectively. File-sharing software such as Dropbox is practical when clients send you statements or receipts.
Aspiring bookkeeping entrepreneurs have to ensure that they have their business bank account to help separate business and personal finances and file taxes. A business checking account is recommended. Once the business grows, it can be changed to a savings account to earn interest from excessive funds.
8. Decide on Your Bookkeeping Rates
It can be challenging to determine how to charge for any startup business. Entrepreneurs will not be fairly compensated if they charge too little. But, on the other hand, it won’t be easy to compete with other bookkeeping services if they charge too much.
PayScale is a website that tracks the rates and salaries of different jobs. For example, you can check the site to see the average rate bookkeepers earn. You can also check freelance platforms such as Fiverr or Upwork.
Sellers list their rates here, so you can check bookkeepers who have the same experience and skills as you to help assess how much you can charge.
People who are starting a bookkeeping business need to remember that the amount should depend on their experience, specialization, certification, and location. They can always make changes to their prices if they feel that they are incorrect.
9. Finance Your Business
In this stage on how to start a bookkeeping business in the Philippines, you likely have an idea of the estimated costs of the business. If you plan to have a home office, the startup expenses can be lower compared to renting an office. It is always best to have at least six months’ expenses saved in your bank.
The initial financing many startup bookkeeping businesses can qualify for is a business credit card. This can be a great way for them to have assistance in the cash flow or cover the needed expenses of the business.
Moreover, it can be a good way to monitor expenses. They will also likely use their startup credit card to earn rewards and manage people. You can refer to this article to learn more about the best credit cards for businesses in the Philippines.
10. Market Your Services
Regardless of the type of business, marketing is vital. Those who want to succeed in marketing their bookkeeping business should know their target market and directly market them.
It is important to figure out a unique business selling plan. For example, they can market their experience or their specialized industry or concentrate on local businesses. Once they determine this, it will be easier to think of effective methods to market.
This can be done through running social media ads, networking through online communities, or creating partnerships with professionals. Referrals through word-of-mouth can also be effective, so it will help to ask for them.
How To Start A Bookkeeping Business From Home Philippines
There are only a few things needed to start a bookkeeping business from home.
Many aspiring bookkeeping business owners are eager to launch their businesses. However, it is better to take things slow. You can start with their business by being an independent bookkeeper while keeping your full-time job.
The transition to starting a bookkeeping business at home in the Philippines is easier because more and more businesses opt to outsource services from people who can remotely work. This is because of automation, the Internet, and other advancements in technology.
Another way on how to start a bookkeeping business from home is to register on freelance market platforms such as Fiverr. There are different bookkeeping tasks posted on these websites. Some jobs are temporary while others are long-term. It is also possible to network with other freelance bookkeepers on Facebook and LinkedIn groups.
One way to succeed as a freelance bookkeeper is by choosing a niche and being consistent with it. For instance, a freelancer can be a bookkeeper working with care owners or a virtual bookkeeper for law firms. In addition, they can focus on other niches in the future. However, for starters, it is best to focus on a client type and organically grow there.
The 3 main things freelance bookkeepers need are a computer, a phone, and an Internet connection. Having the right software and applications, they can work and outsource their services from clients across the globe.
Since aspiring freelance bookkeepers will be working from home, they must have a separate work area in their homes. In addition, meetings with clients will likely be done through video calls, so they need to do more than work on a dining table.
Is A Bookkeeping Business Profitable In The Philippines?
Yes, a bookkeeping business can be profitable since this kind of service is in-demand for many businesses. A bookkeeping business also provides an opportunity to expand as an outsourcing business.
For new bookkeeping businesses, it is crucial to be clear about their procedures to make the business profitable. That means they have to be accurate, detailed, and knowledgeable about the numbers they deal with.
Not only will you be aware of your client’s business but also your own. The charges for the bookkeeping services should be enough to support the business and allow you to reinvest profits to grow.
Is a bookkeeping business profitable? According to PayScale, a bookkeeper in the Philippines has an average rate of Php 100 per hour. The range can be Php 40 to Php 395 per hour.
To summarise, if business costs remain low and you can find long-term clients or international customers, then a bookkeeping business in the Philippines can be profitable. However, the amount of money a business owner can earn would depend on the business scale and their overall business model.
