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Starting a Bookkeeping Business – Resources Included

June 23, 2018 434 views

Tips Insights and Resources For Starting a Bookkeeping Business

Bookkeepers are responsible for maintaining records, invoices, and tax information for small businesses and individual clients. While the busiest time of year is always right around tax season (beginning April 15th), work can be year-round. Besides tax information, companies need help organizing payroll and accounts payable.

Business Considerations:

There are a few things to consider before starting your bookkeeping business. An important decision to make is whether to become certified. Certification takes time and money but, can lead to quickly attaining more jobs.

Next, consider where to start. Starting at home means low overhead regarding rent, however, some areas do not allow home-based businesses. You may also want to consider starting a franchise office, such as Sareen and Associates. This will give you more recognition as opposed to starting a home-based business but, will cost more in upfront fees.

Skills:

Here are some of the tasks you may be performing for your clients:

  • Invoicing your clients.
  • Invoicing the clients of your clients.
  • Money management.
  • Giving advice for important financial decisions.
  • Setting up accounts.
  • Setting up the structure of a business.
  • Organizing and maintaining all client records.
  • Staying current with business matters such as licenses, insurance, permits, and tax laws.
  • Using bookkeeping software such as Quick Books.
  • Sending out payments and billing information to vendors and clients.
  • Assisting with tax preparation, end of year reports, and quarterly reports.
  • Data backup and storage.
  • Dealing with tax audits.
  • In addition, you’ll have tasks related to your own business such as promotions, management, and administrative tasks.

Hours of Operation:

General Hours of Operation: – Standard business hours (9-5), although some evening and/or weekend hours may be necessary.

Employees Needed:

During the start-up phase: You can start this business yourself on a part-time or full-time basis. Additional employees may include:

  • bookkeepers
  • Receptionist
  • Office Assistant

Skills:

  • Exemplary math and calculation skills
  • Analytical skills
  • Knowledge of tax laws and regulations in business
  • Organization
  • Professionalism
  • Promptness and dependableness
  • Flexibility with hours to work with clients

Approximate Minimum Start-Up Cost:

Bare Essentials: Bookkeeping startup costs can be minimal. Entrepreneur Magazine estimates between $2000 and $10000 USD. However, if you have a reliable computer and basic office supplies already, start-up costs will be minimized.

Equipment & Supplies:

  • Computers
  • All-In-One Printer
  • Cell phone
  • Bookkeeping software
  • An external hard drive to keep information in a safe location in case your computer crashes
  • Secure online data storage for client files
  • Basic office supplies (paper, folders, staplers, pens, etc.)
  • Filing cabinets

Monthly Expenses To Consider:

Pros and Cons:

Pros:

  • You have the choice to work from home.
  • Flexible hours.
  • Low overhead if working from home.
  • High revenue and profit when you have multiple accounts and employ multiple bookkeepers.

Cons:

  • Stressful (especially around April 15th.)
  • Competitive field.
  • Some clients are very disorganized making your job of keeping their books up to date difficult.
  • Businesses and individuals depend on your expertise if your wrong your reputation can be tarnished.

Type of Customers You Need to Attract:

Small business owners often need bookkeepers the most.

Statistics:

  • 97% of certified bookkeepers recommend certification.
  • 41% of certified bookkeepers have been promoted as a result of becoming certified.
  • 56% of freelance certified bookkeepers say certification brought new clients and 33% used certification to raise their rates.

Revenue:

Your location, services, and clientele will cause your revenue to vary. However, according to an American Institute of Professional Bookkeeper’s (AIPB) article, Steven Hinds of Bookkeeping 2000, charges between $25 and $200 USD/hour for his services.

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