How to Start a Bookkeeping Business – Two Important Things That You Need to Consider Before Starting

There are lot of guides and e-books on teaching us on how to start a bookkeeping business in view of the high demand of bookkeeping services. However, before you decide to start one, you are advised to consider the following factors first.

Do you have the required practical bookkeeping experience?

It is almost sure that when you start approaching your potential bookkeeping clients, 9 out of 10 will ask your practical experience in handling bookkeeping in the past. This is because as a business owner they wouldn’t want their business records are kept by those who don’t have real life experience.

What I would suggest is, go find some part time bookkeeping jobs in a CPA office if you are a stay at home mom. By taking up this part time assignment, you will have opportunity to expose yourself to different business entities and in the meantime enhance your ability to maintaining full sets of books for a business. Practical bookkeeping experience is fundamental if you want to start a bookkeeping business.

Do you have the minimum capital outlays?

Although a lot of so called expert will tell you that you do not need a high start up capital to kick off your bookkeeping business. However, you are always advised to have a minimum of 6 months cash flows in order to sustain your living before you start generating enough income.

In addition, to start a bookkeeping business, you are required to invest in bookkeeping software, payroll software, laptop, printer, stationery and papers. These items might easily cost you few thousand dollars other than your business registration. Therefore, having a capital budget is important because it helps you to figure out what is the minimum capital requirement for your bookkeeping business.

Obviously there are other equally important factors that you have to take into consideration such as how to find your first client, am I proficient in using bookkeeping software and etc before you decide to start a bookkeeping business.

Bookkeeping Business Plan – How To Develop It?

Starting a bookkeeping business is an extremely financially option. There will always be a great need for professional bookkeeping services specifically for small to medium sized companies. Developing a tight and effective business plan should be one of the first steps you take towards achieving success in your bookkeeping business. By designing this plan you are effectively laying out the strategy and goals you want to achieve within a given time.

The steps in creating a business plan for your bookkeeping business are ideally the same as for any other venture. Firstly market research is key- see what your competitors are doing right, and wrong. Research can be easily performed on the web, or you could call up your competitors feigning interest as a potential client to see what services they offer. Learn from your competitors mistakes so you don’t follow the same pitfalls, and improve on the positive aspects of their business.

Potential clients are the key to establishing any successful business; you need to know what the client wants and how to keep them happy. Further to this you need to know how to attract the client in the first place. For a new small bookkeeping business localized pay per click campaigns could be a great method of turning on-line clicks to off-line sales.

In setting up your business plan, you need to know exactly which clientèle you wish to be targeting. Would your bookkeeping business be best suited to dealing with private individuals, small companies or full on corporations? It is advisable to start small and work up to larger clients.

Many smaller scale bookkeeping businesses begin as ‘home based’ and this should be not seen as a negative in the plan. If you have devised a strong plan, growth of the business will be the key and you can plan to move into an office space when it becomes financially viable and turning a profit. It is worth considering the needs of your potential clientele, and in which location you will be best able to serve them. Further to these needs you should likely decided on the required technology to effectively manage your requirements. Again your needs will most likely develop as your business develops, so starting small is a good idea.

As was touched on earlier in this article, the internet can serve a great deal of use in developing your bookkeeping business plan. Firstly it can provide thorough research on your target market, your competitors, and the needs of your potential clientele. Further to research it will be clear to see the most effective form of internet advertising, which will be more than likely localized pay per click marketing campaigns.

The most important aspect of a successful bookkeeping business plan, is to be thorough in everything you set out to achieve. With proper research, understanding potential clientele, and knowing your competition you will have the best chance of not only developing the strongest plan, but also creating the foundation for a successful bookkeeping business.

The Benefits of Starting Your Own Bookkeeping Business

Bookkeeping is a profitable business as every business whether it is big or small need to maintain proper financial records. There are many benefits of starting your own bookkeeping business, the best benefit is that you get to write your own pay check! Check out the following list of benefits of running your own bookkeeping business:

1. You write your own pay check – having your own bookkeeping business means that you decide on your own pay check. For example, if you a bookkeeper currently selling your valuable skills to your boss for a $12-$15 per hour, now you may charge easily more than $30 per hour to your client for same type of assignment. Obviously if you are ambitious enough, you stand a very high chance to make more than what you are getting from your day job.

2. You can start at your home – you can start your bookkeeping business at your home and therefore you don’t need to have a huge start up capital. Furthermore, you are not require to clock in at a certain time everyday and you have the convenience of doing your bookkeeping work at your own hours. This is particularly flexible for those who have children at home as it allows flexibility in terms of time arrangement.

3. The demand for bookkeeping services is huge – as mentioned earlier, every business needs to maintain financial records either for tax filing return or for management purposes. As long as there are business, there are demand for the services of bookkeepers!

If you currently working for your boss as a bookkeeper, you may consider starting your own bookkeeping business on a part time basis before giving up your day job as you have the flexibility to do you bookkeeping at your home.

Tips on Starting a Bookkeeping Business From Home

Being you own boss and not working for somebody is the best thing that can happen to you. If you are exploring the option of starting your own business from home then select the one which has a low entry barrier and requires minimum initial investment.

One such business is the bookkeeping business which meets the basic criteria of low technical know how as well as requires just an investment in desktop computer. That said the low entry barrier means that there will be very tough competition and you will have to use all your marketing skills to drum business.

If you do not know bookkeeping then the first thing that you need to do is to make sure that you have the understanding of the bookkeeping business. The best way to learn the bookkeeping business is to make sure that you get yourself enrolled in the online bookkeeping courses or classes. These are adequate as far as providing you with the expertise on bookkeeping.

The next step is to have the accounting business cards printed and also make sure that you have the business registered with the local chamber of commerce. To gain a few clients you may have to reduce your bookkeeping rates initially. That said there may be some difficulty and it is your persistence that will pay off.

Once you have few clients then the next logical step is to hire freelance bookkeepers to work the business for you and you should concentrate on getting more business. The bookkeeping business is really volume business. The more the volume the more profits you will make.