How To Start Bookkeeping Business In Nigeria – Bookkeeping and tax preparation services are indispensable to both small businesses and large corporations, but many companies in Nigeria either don’t have the expertise in-house or simply can’t afford to hire full-time accountants.
So, if you’re considering starting your own bookkeeping business, this comprehensive guide will walk you through the steps of how to start a bookkeeping business in Nigeria so that you can begin making money right away!
Step 1: Introduction to bookkeeping
Bookkeeping is the process of recording financial transactions and it’s an important part of running a successful business. This includes all purchases, sales, and costs of goods sold for a company. Other examples include payroll and banking transactions. As a bookkeeper, you are responsible for maintaining accurate records of the company’s financial transactions and making sure taxes and payroll are paid on time after which you get paid for your services.
Step 2: What do you need to start a Bookkeeping business?
To start and run a successful bookkeeping business in Nigeria below are the things you need:
1. Technical skills: You should have knowledge about accounting principles and procedures as well as good IT skills to use accounting software packages like QuickBooks Online or Sage 50 Accounting Plus.
2. You are required to have an operating license or business registration issued by the Corporate Affairs Commission (CAC) before you can start operations.
The CAC will only issue an operating license after it has been satisfied that the following requirements have been met:
• The company’s Memorandum of Incorporation is not in contravention of any existing law or regulations;
• The proposed activities and objectives of the company are not in contravention of any existing law or regulation;
• The company is financially viable; and
• That no criminal record exists against persons signing the Memorandum of Incorporation, Articles of Association, or other documents as required by law.
If these conditions have been fulfilled, then the commission shall grant its approval within two weeks.
3. Qualifications Requirement For Bookkeeping Business Startup In Nigeria?
If you want to start a bookkeeping business in Nigeria, then you will need to have at least:
A university degree in Accountancy or a related field.
A professional qualification from the Institute of Chartered Accountants of Nigeria (ICAN) or it’s equivalent.
At least five years’ experience in accounting practice and finance/audit work; and
Knowledge of Nigerian tax law.
An understanding of how local businesses operate.
Familiarity with QuickBooks and other financial software packages such as Xero, Sage One, and MYOB would also be an advantage but is not essential for those without formal training in accountancy.
Step 3: How Much You Should Charge for Your Bookkeeping Services?
How much you should charge for your bookkeeping services will depend on the industry and how much work is involved. But in general, you can expect to charge anywhere from N50 – N100,000 per month for small businesses and above N100,000 for big businesses.
Also, to stay competitive your price should also be reasonable enough that it would not scare away potential clients from doing business with you.
Step 4: You Need a Business Plan for Your Bookkeeping Business
The best way to get started is by creating a business plan. Your business plan will help guide you through the process of deciding what your bookkeeping business is going to be and how it’s going to make money. It’ll also show potential investors that you’re serious about this whole thing and that they should take you seriously too.
To create your bookkeeping business plan, you can search Google for free bookkeeping business plan templates online.
Step 5: Cost Of Starting A Bookkeeping Business In Nigeria.
The cost of starting a bookkeeping business in Nigeria is relatively low and affordable. You can start your own bookkeeping firm with about N300,000. The only major expense you will incur is the cost of getting the following.
- Get an Office Space or work from home
- Purchase Accounting software
- Laptop Computer
- Business Registration with CAC
- Internet Service
- Copy Printer
- Furniture
- Stationeries
- Insurance
- Mobile phone for communication.
- Photo Copy machine
Other than the cost listed above, the other expenses are just running costs such as transport fares to see clients.
Step 6: Accounting software
Choosing the right accounting software will make your life a lot easier. There are many accounting software packages to choose from, but we recommend QuickBooks because it’s one of the most popular accounting software programs that’s user-friendly and easy to use for both small and large businesses.
It also has intuitive features that make it easy to track income and expenses, which can help you stay on top of the numbers. Plus, QuickBooks offers a variety of different templates so you can always find one that’s perfect for your business. And if you’re starting out with bookkeeping services, they offer a simple starter edition at an affordable price!
Step 7: Finding clients for your Bookkeeping business
Now that you have succeeded in setting up your bookkeeping business in Nigeria, it’s time to find clients. You can start by spreading the word about your bookkeeping business to friends and family.
The best place to start is with people who know you, like you and trust you. If those avenues don’t work out for you, there are other ways to find clients for your new bookkeeping business.
Networking is one of the easiest ways to find new clients. Join a local chamber of commerce or networking organization that offers a variety of opportunities for both personal connections and professional connections in the industry.
After joining this organization, be proactive in contacting people on their list with similar interests as yours. Make sure they know what type of services you offer before asking them if they want your help with their books!
Once you’ve found some potential clients, call them up for an introductory meeting. Have a prepared statement about why you started your bookkeeping business and how it can benefit them.
Share examples from past clients or testimonials from customers. Follow up with a phone call later that day to thank them for taking the time to meet with you, confirm the next steps (if any), and ask for referrals if applicable.
Step 8: Things you should avoid as a newbie bookkeeper.
As a bookkeeper, you need to be aware of the following things that could jeopardize your business. Keep in mind that these are not exhaustive and there are other ways you can go wrong, but they’re some of the most common mistakes:
1) Don’t be too trusting. It’s easy to assume people are telling the truth, but it’s important to do your due diligence and verify all information before entering it into the books.
2) Don’t take shortcuts. Again, it’s tempting to take shortcuts so you can get through more work in less time. But this is what gets people into trouble when they make careless errors or mistakes in their work.
3) Stay on top of tax deadlines. Tax laws change every year, which means accountants must stay up-to-date with any new changes that affect how much money they owe the government.
There are penalties for being late with payments or filling out paperwork incorrectly.
That’s why many newbies fail as accountants because they didn’t know about any new changes and paid their taxes late because they were unaware of what was required. So if you want to start a profitable bookkeeping business in Nigeria, make sure you stay on top of those deadlines!
