Creating your bookkeeping business plan

Want to start a bookkeeping business? Launching a small business is an entirely achievable goal for anyone with the education and dedication. Whether you plan on working from home, opening a brick-and-mortar business, or exploring some virtual bookkeeping services as a side hustle, you’re going to need to plan it out.

There’s no use jumping straight in without a business plan – you’re going to miss a lot. But planning doesn’t mean you have to have everything thought out from the very beginning, your ideas will evolve. However, before getting ahead of yourself, you should at least flesh out the bones of your plan.

What should be included in your business plan?

In simple terms, your business plan will lay out what type of business you are, what services you’ll offer, how it will be structured, how you’ll fund it and how you’ll handle financial matters including growth. It will essentially spell out your business model.

Many financial institutions will request to see your business plan before they give you a loan, so be sure you also include plenty of financial details and projections if that’s something you’re seeking.

The key elements that should be included in any business plan

• Business or company overview
• Executive summary
• Team and management
• Product and services
• Operations
• Market analysis
• Competitor analysis
• Marketing and promotions
• Financial analysis
• Future and goals

Let’s unpack these elements a little further…

1.      Business overview: your cover page

Your business overview is essentially a cover page. It includes things like your trading name, ABN, website, address, contact details, and what type of business it is (sole trader or partnership et cetera).

2.      Executive summary: who you are

Your executive summary is usually no more than a page. In a sense, it is like a cover letter that summarises who you are; what you’ll be doing; the problems your bookkeeping business solves; and how you’ll operate.

It’s sometimes useful to write this last…that is after you’ve figured out the other sections of your bookkeeping business plan.

3.      Team and management: who’s working for you and how?

In this section of your business plan, you should lay out the team structure and identify roles. If you’re going it alone this is extremely simple, but if you plan to run a larger bookkeeping business, you should create a team structure tree to identify what employees you’ll have, what they’ll be doing, and who they report to.

4.      Products and services: define your business offering

At this juncture, it’s time to crystalise what services you will and won’t offer. Perhaps you’ll be doing:

• Basic bookkeeping.
• Invoicing.
• Bill payment.
• Tax returns.
• BAS statements.
• Online accounting software advice.

5.      Operations: how will you do the work?

Your operations will be how and where you’ll operate. Will your business be bookkeeping from home? Will you need to lease an office? What equipment and practice management software will you require? Will you be an in-person bookkeeper or offer remote services? Map it all out in this section.

6.      Market analysis: identify your target market

Your market analysis will be a deep dive into your target market and prospective clients. Figure out which type of business you’ll target, what their needs are and how you’ll meet them. This section also maps out the size of your market and things like reasonable price points an ideal client might pay for your services.

7.      Competitor analysis: who will be vying for your customers?

Your competitor analysis will involve researching the competing bookkeeping businesses in your space. If you’re geographically fixed this will involve your local area, and if you’re remote, then look to the broader country. Research to find out their price point, service style, marketing efforts, website setup and what they specialise in. Use the findings to differentiate yourself, become more competitive or to simply gather some ideas.

8.      Marketing plan: how will people find you?

Lay down a basic bookkeeping marketing strategy and plan with an associated budget and content calendar. Think about how you’ll promote yourself, such as a Facebook business page and other social media, online ads, solid website, SEO, and email marketing.

9.      Financial analysis: crunch your numbers

Luckily, as a bookkeeper, you’ll be well versed in financial analysis. This is where you calculate the costs of starting a bookkeeping business, figure out running expenses, ascertain your potential cash flow and profitability, set up a budget, and plan things like financing options if required.

10. Future and Goals: outline your business projections

Now you need to do some projections on where you want to be in a few years. Be specific yet flexible. Do you want to grow your client base by 20% a year? Do you plan on broadening your services or getting more niche? Where do you project your profits will be in 2 years? Will you look to take on some staff? You can use your accounting software to assist here.

Bookkeeping business plan template

Luckily, you don’t need to start this important plan from a blank Word Document. We’ve done the work to gift you a free business plan template that’s designed for any new enterprise to get off the ground.

Business plan tips

So, what else should you know about writing a business plan for your bookkeeping business? Here are a few tips to keep in mind.

• Do your research – the more you understand about competitors, profitability and marketing, the better.
• Keep it tight – you don’t have to write a book. Keep it snappy and to the point.
• Update it regularly – this should be a living, evolving document, so may sure you keep it current and review it often.
• Tailor it to your audience – have a version for banks if you need a loan, or for investors. Have another copy for business advisors or yourself.