Inside: Embark on a profitable journey with our guide on starting a bookkeeping business. Find the steps on how to become a bookkeeper and find success.
Starting a bookkeeping business from scratch can be an exciting yet nerve-wracking venture.
For many budding entrepreneurs, the formidable task of setting up a business adds a mix of anxiety and anticipation. The initial trepidation often stems from dealing with the unknowns of a new venture and the pressure of ensuring meticulous financial management of someone else’s finances.
However, with thorough planning and an understanding of the essential steps, such as crafting a solid business plan and obtaining the necessary certifications, these nerves can be managed.
By embracing your entrepreneurial spirit and equipping yourself with the right knowledge, you can lay a strong foundation for a successful bookkeeping business.
Plus it is easier to get started than you thought…
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What is a bookkeeping business?
At its core, a bookkeeping business manages the financial records of other businesses. They ensure accuracy, track receipts and expenses, and prepare financial statements – the financial bedrock upon which enterprises stand.
With an emphasis on accuracy and organization, they are responsible for keeping the financial data up to date and available for strategic decisions.
For many, this is a popular way to make money online.
Earn Extra Income with Bookkeeping
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
Show Me How
First Steps to Starting a Bookkeeping Business
Craft a Comprehensive Business Plan for Success
Your roadmap to success begins with a business plan. This document is crucial—it outlines your vision, goals, unique value proposition, target market, competitive landscape, marketing strategies, and detailed financial forecasts. Think of it as your strategic compass guiding you from startup to growth.
This takes your side hustle to an actual living thriving business.
Remember, your business plan is a living document. You must regularly review and update your business plan will help you stay on track toward your business objectives and adjust course as necessary to meet new challenges or opportunities.
Acquire Essential Certifications and Training
By obtaining the right certifications and training, you not only perfect your craft but also send a message of reliability and professionalism to prospective clients. While this may require an investment of time and resources, the credibility and expertise you gain are invaluable assets for your bookkeeping business.
Select bookkeeping courses that cover crucial topics such as accounting principles, financial statements, tax preparation, and accounting software. This education will deepen your understanding and sharpen your skills.
Stay updated with continuing professional education (CPE) credits to keep your certifications active and your knowledge fresh.
Familiarize yourself with popular bookkeeping software that you’ll use day-to-day. Being proficient in these tools will increase your efficiency and accuracy—qualities clients highly value.
Once certified, don’t forget to prominently display your credentials on your website and marketing materials. This can significantly bolster potential clients’ trust in your abilities and help establish your reputation as a qualified bookkeeping professional.
Bookkeepers.com Online Courses
Learn what you need to start your very own virtual bookkeeping business.
An overview of the bookkeeping business so you can see if it is right for you.
The tools you need to “wow” clients and get paid for your services and
How to create a steady stream of new clients without the need to “sell” yourself.
Learn More
Legal Considerations and Compliance
Setting the legal foundation for your bookkeeping business is not just a formality—it’s about protecting your operations and establishing credibility.
Register Your Business and Secure the Necessary Permits
Let’s look at the essential steps to ensure your business is registered correctly and fully compliant with regulatory requirements.
Choose a Business Structure: Decide whether an LLC, sole proprietorship, partnership, or corporation best suits your needs.
Register Your Business Name: This is a crucial branding element. Check for name availability and register it with the appropriate state agency, ensuring it’s unique and resonates with your target market.
Obtain an EIN: If you’re in the U.S., you’ll need an Employer Identification Number (EIN) for tax purposes, especially if you plan to hire employees. This number is also often required to open a business bank account and apply for business licenses.
Apply for Licenses and Permits: Depending on your location and the structure of your business, you may need various licenses and permits. Check local and state regulations to ensure you meet all legal requirements.
Register for State Taxes: If applicable, register for your state’s tax structure. This may include sales tax, unemployment insurance tax, and other business-related taxes.
Comply with Local Regulations: Ensure you’re familiar with local zoning laws if operating from home, and obtain a Certificate of Occupancy if required. If you’re part of a homeowners’ association, review any stipulations they might have on home-based businesses.
Understand Ongoing Compliance: Be aware of annual filings, renewals for licenses and permits, and other regulatory commitments to maintain compliance.
By being diligent with these legal prerequisites, you’re not just following the rules—you’re also sending a clear message about your professionalism and attention to detail.
Protect Your Endeavors with the Right Insurance
Insurance is the safety net that can save your bookkeeping business from unexpected financial challenges. It’s not about expecting the worst; it’s about being prepared for any situation that could undermine the stability and reputation of your business.
General Liability Insurance: This covers a broad range of issues, including bodily injury or property damage claims made by others.
Cyber Liability Insurance: As a bookkeeper dealing with sensitive data, you’ll want protection against cyber threats and data breaches.
Property Insurance: If you have a physical office or own valuable equipment, property insurance can cover losses from events like fire or theft.
By integrating the right insurance policies into your business strategy, you set up a protective fortress around the hard work and dedication you put into your bookkeeping business. Insurance should not be perceived as an unnecessary expense but rather as a prudent investment in your business’s longevity and reputation.
Setting Up Shop
Establishing a Home Office vs. Renting Space
Choosing the right environment for your bookkeeping business is a balancing act between professionalism, cost-effectiveness, and personal working style. Whether you decide on a home office or opt for a rented space, the decision will significantly impact your operations.
Home Office Advantages
Renting Space Advantages
Cost Savings: Eliminate commuting costs and monthly rent, channeling those savings back into your business.
Professionalism: A commercial office can provide a more professional setting for client meetings and create a clear boundary between work and home life.
Convenience: Enjoy the flexibility of setting your own hours and working in a stress-free environment.
Networking Opportunities: Proximity to other businesses in shared office spaces can foster relationships and potential client referrals.
Tax Deductions: You may be eligible for home office tax deductions, saving you money during tax season.
Amenities: Rented spaces often come with value-added services like receptionists or conference rooms.
Home Office Disadvantages
Renting Space Disadvantages
Distractions: Domestic life can disrupt your work, impacting productivity.
Overhead Costs: Monthly rent and utility bills will add to your business expenses.
Professional Image: Having a dedicated business address and separate workspace can often project a more professional image to clients.
Long-term Commitments: Leases typically require a long-term commitment that may be risky if your business circumstances change.
Ultimately, the decision depends on the nature of your clientele, your personal work preferences, and your budget. Also, this is great for a stay at home mom to make money.
Many bookkeepers find success starting with a home office and transitioning to rented space as the business expands. Others may find that a small rented office fits their needs right from the onset, or that a virtual office setup provides the perfect middle ground.
Selecting State-of-the-Art Bookkeeping Software
With the right bookkeeping software, you can streamline your operations, foster transparency with clients, and confidently tackle complex financial scenarios.
Adopting top-notch software will serve as both a foundation and a catalyst for your bookkeeping business, ensuring you remain competitive and responsive in a rapidly evolving industry.
Look into popular bookkeeping software such as QuickBooks Online, Xero, FreshBooks, and MYOB. Compare them based on features, ease of use, scalability, and customer support.
By taking the time to carefully weigh these factors, you will be better positioned to select bookkeeping software that not only meets your current needs but also supports your business as it expands.
Financial Foundations for Your Firm
Unravel Funding Options and Small Business Loans
Before seeking funding, calculate your startup costs including equipment, software subscriptions, legal fees, marketing, and initial operating expenses. This will help you understand how much capital you need to secure.
Typically, you should be able to start your bookkeeping business with little investment and add additional expenses as you grow.
If needed, there are a variety of funding sources available for new businesses. Research options like traditional bank loans, credit unions, Small Business Administration (SBA) loans, online lenders, and crowdfunding. When applying for loans or pitching to investors, a comprehensive business plan is essential. It should outline your business concept, financial projections, and growth strategy to demonstrate the viability and potential profitability of your bookkeeping business.
Smart Money Management from the Start
Establishing smart money management practices from the very inception is the same as being financially sound with your personal finances.
Open a Dedicated Business Bank Account: Keep your personal and business finances separate. This is fundamental for accurate bookkeeping and simplifies your tax situation come year-end.
Start With a Budget: Even before your first client, create a realistic budget for your business. Know the costs of all aspects, including marketing, equipment, insurance, and any other operational expenses. This will help prevent overspending and ensure your resources are allocated effectively.
Use the Profit First Formula: This simple formula will help you to pay yourself as well as have enough money for operational expenses and to pay your self-employment taxes.
By establishing and maintaining these smart money management practices from the outset, you’re not just safeguarding your bookkeeping business against common financial pitfalls—you’re also building a foundation for a prosperous financial future.
Marketing Your Bookkeeper Business
Digital Presence: Creating a Website That Converts
In today’s digital-first world, your website often makes the first impression for your bookkeeping business. It’s not just an online brochure; it’s a crucial tool engineered to turn visitors into leads and leads into loyal clients.
User-Friendly Design: Your website should be easy to navigate with a clean layout that directs visitors naturally from one section to the next. Prioritize quick load times and mobile responsiveness with Kadence to cater to all potential clients.
Clear Value Proposition: Immediately communicate what you offer and why a potential client should choose your bookkeeping services. Highlight your unique selling points front and center on the homepage.
Strong Call-to-Actions (CTAs): Use compelling CTAs to guide visitors towards taking action, whether that’s contacting you, scheduling a consultation, or signing up for your newsletter. Make it easy for them to engage with you.
Client Testimonials and Case Studies: Social proof can be incredibly persuasive. Showcase positive reviews, client testimonials, and case studies to build trust and credibility with prospective clients.
With a well-crafted website, your bookkeeping business demonstrates its expertise and readiness to cater to client needs, no matter where they are in their financial journey.
Networking and Navigating Social Media Strategies
Building a robust network and mastering social media can turbocharge your bookkeeping business’s growth. It positions you not just as a service provider, but as a thought leader in your field.
Identify the Right Platforms: Choose one or two social media platforms where your target audience is most active. LinkedIn, for instance, is a goldmine for professional networking, while Instagram can showcase your brand’s personality.
Create Valuable Content: Share content that resonates with your audience — tips to manage business finances, tax updates, or insights into bookkeeping trends. This positions you as an expert and invites engagement.
Engage Actively: Don’t just post and disappear; interact with your followers. Answer questions, join discussions, and show appreciation for their engagement. Building relationships is key to networking success.
Leverage Professional Groups and Forums: Beyond your own social channels, be active in online groups or forums related to bookkeeping and your clients’ industries to expand your visibility and establish credibility.
Your network and social media are not just channels for promoting your services; they’re platforms for sharing your expertise, engaging with peers and potential clients, and building a community around your bookkeeping brand.
Bookkeeping Startup Pricing, Clients, and Growth
Determining Competitive Rates for Your Services
Setting competitive, yet fair pricing for your bookkeeping services is a balancing act that ensures value for your clients and viability for your business.
Let’s explore how to establish a rate structure that meets the market demands and supports your financial goals.
Market Research: Begin by understanding what other bookkeepers in your area or within your niche are charging. This insight will help you benchmark your rates competitively. Keep in mind factors like experience, specialization, and location.
Value Your Expertise: Assess your qualifications, experience, and the quality of services you offer. Clients are willing to pay for the value you bring to their business, so price your services accordingly.
Consider Your Costs: Ensure your rates cover your expenses, including software subscriptions, continuing education, insurance, and taxes, while also leaving room for profit.
Pricing Models: Decide whether you’ll charge hourly, offer flat-fee packages, or adopt a value-based pricing model. Each model has its advantages and can be chosen based on the type of service or client preferences.
Communicate Your Pricing Clearly: Be transparent with clients about your rates. Clear communication prevents misunderstandings and builds trust from the outset. [Placeholder for sample pricing page]
Within your pricing strategy, consider the lifetime value of client relationships and the potential for added services down the line.
How will you find clients for your bookkeeping business?
Finding clients is the engine that powers your bookkeeping business and your income. With a strategic combination of diligent networking, tactical marketing, and leveraging existing relationships, you can start building your client base.
Utilize Online Platforms: Websites like Upwork, Fiverr, and LinkedIn can connect you with businesses looking for bookkeeping services.
Local Business Outreach: Approach local businesses directly. Offer to discuss how your bookkeeping services can alleviate their financial stress and add value to their operations.
Referral Program: Encourage word-of-mouth by setting up a referral program. Incentivize your current clients or network to refer others to you.
Social Media and Content Marketing: Create and share engaging content on your social media profiles to build brand awareness.
Community Involvement: Join local business associations, attend chamber of commerce events, or contribute to community projects. These can lead to connections and opportunities.
Offer Free Workshops or Webinars: By providing value upfront through informative sessions on bookkeeping and financial management, you can attract potential clients who are interested in improving their business finances. Also, you can partner with other professionals.
Professional Partnerships: Build relationships with accountants, lawyers, and business consultants who might not offer bookkeeping services but can refer their clients to you.
With a consistent and strategic approach, you can attract and retain the clients that are the best fit for your business, ultimately building a robust client portfolio. Remember, it’s not just about finding any clients—it’s about finding the right clients who treasure you.
Discovering and Retaining Your Ideal Clientele
Attracting clients is one feat, but discovering and retaining those who are the perfect fit for your bookkeeping business is where the real growth happens.
Offer Customized Solutions: Set yourself apart by tailoring your services to meet the specific needs of your clients. Show that you understand their industry and are invested in their success.
Provide Exceptional Service: Consistently deliver high-quality work, be responsive, and proactively address your clients’ needs. Clients will stay with a bookkeeper who goes above and beyond.
Host Client Appreciation Events: Small gestures of appreciation or exclusive events can strengthen business relationships and foster client loyalty.
Stay on Top of Industry Trends: Being knowledgeable about your clients’ industries can make you indispensable. Offer insights that can help them stay ahead of the curve.
Stay Ahead in the Bookkeeping Scene
Continuous Learning and Leveraging Industry Trends
The bookkeeping industry doesn’t stand still, and neither should you. Continuous learning keeps you at the forefront of evolving practices, ensuring your services remain relevant and your advice sound.
Keep Abreast of Regulatory Changes: Tax laws, financial regulations, and compliance standards can affect your clients; stay updated through webinars, online courses, and industry news.
Embrace Technological Innovations: New software and tools can streamline bookkeeping tasks. Be open to adopting tech that can improve your efficiency and the services you provide.
Participate in Professional Development: Attend workshops, seminars, and conferences geared toward bookkeeping professionals. Networking with peers can also uncover new trends and techniques.
By maintaining a commitment to continuous learning, you not only improve your own skillset but also enhance the overall value of your bookkeeping services.
Join Professional Associations for Peer Support
Being part of a professional association offers more than just credentials; it’s a direct line to a community of peers who can share insights, resources, and support as you build and grow your bookkeeping business.
By joining professional associations such as the American Institute of Professional Bookkeepers (AIPB) or the National Association of Certified Public Bookkeepers (NACPB), you demonstrate a commitment to professionalism and continuous improvement. These affiliations provide a wealth of resources to support you in delivering high-quality services and growing a thriving bookkeeping business.
Plus you can take advantage of seminars, webinars, and certification courses offered by associations to further your education and maintain any required continuing education credits.
Bookkeepers.com Online Courses
Learn what you need to start your very own virtual bookkeeping business.
An overview of the bookkeeping business so you can see if it is right for you.
The tools you need to “wow” clients and get paid for your services and
How to create a steady stream of new clients without the need to “sell” yourself.
Frequently Asked Questions (FAQs)
Yes, a bookkeeping business can certainly be profitable. It offers a low overhead cost model, recurring revenue opportunities through ongoing client relationships, and the potential to scale services.
With diligent financial management and strategic growth, profitability can be substantial.
While a degree is beneficial for deep knowledge, it’s not mandatory. Certification and practical experience can often suffice in starting a successful bookkeeping business.
In fact, this is one of the best low stress jobs without a degree.
Begin by gaining an understanding of bookkeeping principles, getting certified, investing in software, and slowly building up your clientele with strategic marketing and networking.
Ready to Open Bookkeeping Business?
Starting your own bookkeeping business can be a fruitful endeavor with the right preparation and education.
This guide outlines the key steps and provides direction on how to start a bookkeeping business, ensuring you cover all essential elements for a successful launch. With focus and attention to these structured steps, you’ll be well on your way to establishing a thriving bookkeeping business.
Still on the fence? Check out this free bookkeeping webinar to learn more.
With the right preparation, tools, and mindset, you can launch a thriving venture that supports businesses in their financial journey while growing your own entrepreneurial dreams.
Embrace the adventure—your future in finance awaits!
Just remember if you are looking for ways to make money fast, this one comes with patience and perseverance to make things happen.
Earn Extra Income with Bookkeeping
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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The best bank accounts for freelancers, side hustlers, and independent professionals are designed to grow with their users. While most freelancers never turn their enterprises into full-fledged businesses with dozens or hundreds of employees, some do. And they’d prefer not to switch business banks multiple times as they grow.
Lili hears this loud and clear. It’s a flexible financial app designed for sole proprietors and larger businesses alike (though not the very largest). It’s mobile-first and user-friendly. And it has a free version that many users won’t ever grow out of.
Lili has some imperfections, not least that its more comprehensive plans are expensive. But it’s definitely worth considering if you’re in the market for a new business banking partner or seeking one out for the first time.
What Is Lili?
Lili is a financial technology app that offers business banking services through its FDIC-insured banking partner, Choice Financial Group. It has four account plans:
Lili Basic, which provides basic banking functions for sole proprietors
Lili Pro, which adds debit card rewards, interest on eligible balances, and some other useful features
Lili Smart, which adds bookkeeping, invoicing, tax reporting, and other business functions
Lili Premium, which adds a dedicated account manager and priority support
Lili Basic is always free. The other plans have monthly fees ranging from $9 to $35. The minimum deposit and ongoing balance requirement is always $0, and Lili never charges overdraft fees.
What Sets Lili Apart?
Lili stands out from similar business financial apps in several ways:
More plans to choose from. Lili has four plan options, from bare-bones Lili Basic to feature-rich Lili Premium. Most competitors have one or at most two plans to choose from.
Lots of features in higher-priced plans. Lili Smart and Lili Premium pack in a lot of features, including some (like custom financial reporting and tax reporting) that most competitors don’t offer.
Potential to earn interest on balances and rewards on purchases. All Lili plans except Basic pay interest on eligible balances and rewards on purchases with participating merchants. The rewards program isn’t amazing, but the interest rate (currently 2.00% APY) is among the best of any business checking account.
Lili Plans & Pricing
Lili has four plans, one free and three paid. The paid plans build on Lili Basic’s core banking functions.
Lili Basic (Free)
Lili Basic is Lili’s base plan. It’s always free to use. It has a simple set of basic banking and money management features:
Checking account with a Visa debit card
Fee-free ATM withdrawals at about 40,000 locations
Direct deposits arrive up to two days early
Domestic wire transfers
Automated savings
Lili Pro ($9 per month)
Lili Pro has all the features of Lili Basic, plus:
Cash-back rewards on eligible debit card purchases with specific participating merchants
2.00% APY on balances set aside for savings
Automatic tax savings in separate buckets (for estimated and annual tax payments)
Fee-free overdraft protection up to $200
Expense management tools that allow you to organize your expenses into categories for budgeting and tax purposes
Receipt uploading and tagging
Lili Smart ($20 per month)
Lili Smart has all the features of Lili Pro, plus:
Automated expense management, which Lili calls “smart bookkeeping”
On-demand financial reporting, including cash flow and profit-and-loss statements
Create, send, and track invoices
Online payments through the invoicing feature
Prefilled business tax forms for annual tax filing
Lili Premium ($35 per month)
Lili Premium has all the features of Lili Smart, plus a dedicated account manager and priority customer support. It’s appropriate for higher-revenue businesses with complex and potentially urgent financial needs, but otherwise it doesn’t add much value.
Key Features of Lili
Before you choose a Lili plan, take a closer look at what you actually get from each of its key features.
Account Fees & Minimums
Lili Basic has no monthly or annual fee. Fees for paid Lili plans range from $9 per month for Lili Pro to $35 per month for Lili Premium.
Lili has no minimum opening deposit or ongoing balance requirements.
Visa Debit Card & Cash-Back Rewards
All Lili accounts come with a free Visa debit card accepted at millions of merchants worldwide. Paid plan users earn variable cash-back rewards on purchases with eligible partner merchants, but earning potential is limited.
Account Yield
Lili pays no interest on Basic accounts. For the three paid plans, all balances earn 2.00% APY.
Early Direct Deposit
If the payer qualifies, and most do, Lili delivers direct deposit payments up to two days early. This covers not just W-2 income (if you earn any) but also 1099 payments paid by clients you serve in an independent contractor capacity and payouts from payment processors like Square.
ATM Access
All Lili users get fee-free access to about 40,000 ATMs. Out-of-network ATMs may charge withdrawal fees and other surcharges that Lili can’t control.
Automated Savings
Lili has an automated savings feature that you can set to transfer a specific dollar value or percentage at regular intervals or whenever an inbound payment hits your account. The saved amount sits in a separate bucket that Lili won’t pull from to pay scheduled bills or debit card transactions.
Overdraft Protection
All three of Lili’s paid plans come with fee-free overdraft protection up to $200. The free version doesn’t have this benefit; Lili may simply deny negative-balance transactions on the Basic plan.
Expense Management & Financial Reporting
All three Lili paid plans have built-in expense management tools that let you categorize individual purchases and upload receipts with custom notes. Lili Smart and Lili Premium allow you to automate this process, saving time and busy work, and add custom financial reporting to the mix.
Invoicing & Customer Payments
Lili Smart and Lili Premium have built-in invoicing software that allows you to create and send unlimited custom invoices. You can track each invoice within the app and manually or automatically send payment reminders. You can also accept payments directly within the app, though payment processing fees may apply.
Tax Support
Lili Smart and Premium provide prefilled tax forms (Form 1120, Form 1065, and Schedule C) for convenience at tax time. Lili doesn’t prepare or file taxes on your behalf, but this feature does a lot of the legwork to help you stay on top of your annual tax obligations.
Pros & Cons
Lili is a comprehensive business financial app with plenty of advantages and a few important downsides to note.
Excellent yield on eligible balances in paid plans
No minimum
Direct deposit up to two days early
Lots of extra nonbanking features in paid plans
Potential for high monthly fees and questionable value
No interest on Basic plan balances
Limited debit card rewards
Pros
Lili’s higher-priced plans pack in a lot of features and benefits, to the point that they can plausibly replace some third-party business software that you’d normally need to pay separately for.
Excellent yield on eligible balances. If you have one of Lili’s three paid plans, you can earn 2.00% APY on saved balances. That’s enough to offset the monthly fee if you have a significant cash cushion.
No minimums. There’s no minimum balance required to open or maintain a Lili account. That’s very good news for cash-strapped freelancers and cost-conscious larger businesses too.
Early direct deposit with all plans. Lili delivers direct deposit payments up to two days ahead of schedule, which can make a big difference for businesses that routinely face cash crunches.
Big fee-free ATM network. Lili has about 40,000 fee-free ATMs in its network. They’re scattered across the United States, so you’re never far from one.
Lots of extra features on the paid plans. Lili’s paid plans have tons of potentially valuable features, including custom expense tracking and financial reporting and unlimited invoices. For many freelancers and owners of relatively simple businesses, these features are powerful enough to replace third-party software subscriptions.
Cons
Lili’s free plan has fewer features than comparable freelancer-friendly platforms, and the app’s rewards program leaves something to be desired.
High monthly fee (and questionable value) for Lili Premium. Lili Premium costs $35 per month, $15 more than Lili Smart. Its only added benefits are a dedicated account manager and priority customer support, which many users won’t find necessary.
No interest on Lili Basic balances. Lili Basic balances earn no interest. If you want to earn 2.00% APY with Lili, you need to pay at least $9 per month.
No cash-back rewards for Lili Basic users. Lili Basic has no cash-back rewards program. That’s a drawback relative to other free or very cheap freelancer-friendly bank accounts with legitimate rewards programs.
Limited cash-back rewards for higher-priced plans. Even at higher price points, Lili’s rewards program is subpar. It applies to purchases with a limited number of participating merchants rather than category-wide spending.
How Lili Stacks Up
Before you sign up for Lili, see how it compares to another popular business financial app that goes beyond basic banking functions: the NorthOne Deposit Account. See how the two compare.
Lili
NorthOne
Monthly Fee
$0 to $35, depending on plan
$10
Minimum Balance
$0
$0
Yield
2.00% APY
None
ATM Fees
Free at 40,000+ ATMs
None
Invoicing
Built in
External integration
Accounting
Built in
External integration
Tax Management
Built in
External integration
Rewards
Limited
None
Lili is a more comprehensive app overall, with more built-in features beyond its core banking capabilities. It’s also the clear choice for users looking to earn interest. But many of its best features are only available on paid plans that can exceed NorthOne’s monthly cost.
Final Word
Liliis one of the more flexible business banking solutions on the market right now. Its free version is adequate for freelancers and independent professionals with straightforward finances, while its higher-priced plans can accommodate bigger businesses’ more complex financial needs. Those plans have some useful nonbanking features that can replace paid third-party software subscriptions, reducing overhead costs.
Lili has some important downsides though, especially at the highest and lowest plan levels. The free version is very basic, to the point that its value is questionable even with no monthly fee, while the highest-priced plan is expensive even for well-capitalized business users. There’s certainly a lot to like about Lili, but definitely shop around before opening an account.
The Verdict
Our rating
Lili is a feature-rich financial app for small businesses and independent professionals. It’s designed to scale as your business grows, and its higher-priced plans could potentially replace your existing invoicing and accounting software. But those plans are pricey for freelancers and budget-conscious businesses, and the free version is bare-bones.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
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Via local Bulletin Board Systems, I started reading USENET newsgroups — mostly Star Trek and comic book and computer game stuff — during college in the late 1980s. I got sucked into the world of MUDs. Soon after graduating, I heard about this new thing called the World Wide Web, so I installed Mosaic on my Macintosh SE.
Before long, I taught myself HTML and built my first website. Eventually, in 1997, I started my first blog — back before blog was even a word!
I was drawn to the web (and the internet) in part because it seemed so egalitarian. Anyone could start a website about anything, and as long as they produced great stuff and shared it, people would read. I also liked the fact that almost everything was free. It didn’t cost anything (besides your $19.95 monthly dial-up service) to access any of this information. The early web was a de facto sharing economy.
Best of all? The web was a wide open space, a blank slate, a platform free from dominance by mainstream media. Little people like me could have a voice.
None of this lasted long.
The Monetization of the Web
Soon, banner ads came along. I hated banner ads when they first appeared. “My site will never have banner ads,” I told my friends. (This was my first real lesson that you should never say never. My friends have been giving me grief about this for more than fifteen years!)
In 1998, Google arrived and changed everything. Until that point, web search was a miserable experience. It wasn’t very good and it was overly monetized. Google was the opposite. It was amazing and had no monetization at all.
Hahahahahahahaha. How things have changed. Today, Google is all about ads. And using it is more and more a miserable experience. Look at this mess:
How long until Google has transformed itself into AltaVista?
In time, the mainstream media realized that the web wasn’t going anywhere. By the early 2000s, they were treating it as an important part of their operations. By the early 2010s, the web had become the most important part of most media companies’ platforms. And if it hadn’t, those companies would soon be dead.
Meanwhile, two parallel (but related) trends developed.
First, there was the rise of “software as a service” (Saas). In the olden days — 1995, say — when you wanted a computer program, you went down to Circuit City and bought it. You paid for it once and you owned it forever. As “web apps” became a thing, companies shifted from one-time payments to a subscription model. Today, even big companies like Microsoft and Adobe have adopted the practice of continually charging for their products. (And if they don’t use a subscription model, they often “sunset” their software, which is essentially the same damn thing.)
Second, forward-thinking sites and companies learned there was money to be made by disrupting existing business models. Netflix is a great example. Founded in 1997, this company has single-handedly destroyed multiple industries, most notably retail video. And, eventually, Netflix began to disrupt the monolithic television industry itself! Initially, this was beneficial to consumers. Now, in 2019, it’s become apparent that oops, nope it’s not. (See also.)
Twenty-five years ago, when the web was young, it was all about free. Anyone who could afford a computer and a $19.95/month dial-up connection was free to create and publish whatever they wanted — and free to consume what other people had created. It was like some sort of digital utopia.
Death by a Thousand Cuts
Today, the web is most decidedly not free. And it’s getting less free with every passing month. Let’s be honest: More and more, life online is expensive. It’s like death by a thousand cuts.