With a bookkeeping business, you’ll have no shortage of potential clients as so many people dislike bookkeeping and are willing to hire a professional to take care of it for them.
Better yet, bookkeeping services are always in demand, even in a shaky economy, as businesses require additional help managing their finances and evaluating budgets.
Successful bookkeepers need to be reliable, precise, thorough and willing to review their work for accuracy. Your clients will depend on you and so you’ll need to be willing to commit yourself to fulfilling your obligations, and in taking great care to handle their business and personal bookkeeping with the upmost professionalism.
In order to set up a home based bookkeeping service, you will need to be experienced in accounting and utilizing spreadsheet software, so this business is best suited for those who have had previous experience working in financial and accounting departments for companies or employers.
If you don’t have the experience needed, you could consider taking a short-term accounting course through your local community college. You could also take a distance training course from hoe through online colleges and training facilities to gain the knowledge and experience needed to run a successful bookkeeping business.
I recommend purchasing “QuickBooks Pro” (retail $200-$240) which is the most popular accounting software on the market today and also the easiest to use, even if you have no experience bookkeeping.
The overall profits of a bookkeeping service is absolutely phenomenal as your start up costs and business operation costs are minimal once you have the software and management tools that you need. You can expect to earn anywhere between $30-$50 per hour based on the services you offer and the types of clients you accept.
In order to determine your price structure, you will want to evaluate existing bookkeeping services in your area, as well as the level of work you do, ranging from basic book keeping to extensive preparation of financial statements and business accounts.
Bookkeepers often include tax returns in their service listing each year as a way of making extra money on a seasonal basis.
A great way to get started in bookkeeping is by targeting brand new businesses. There are over 500,000 new start-ups each year within the United States alone and many of these people require help in managing and maintaining their business records, because they are new to the world of commerce!
Consider targeting these start-up businesses by offering them an overview of the services you offer, along with your business card.
If you have experience and training, you will want to highlight that on your service sheet by attaching an “Credentials” page to the pamphlet.
A home-based bookkeeping business carries a very low start up cost. In fact, you can build your business for less than $1,000, and if you already own a personal computer and accounting software, your costs are tremendously cut down even more!
In fact, all you will really need is a business registration unless you intend to do business using your own name.
Other benefits of a home-based bookkeeping business include:
– No zoning requirements
Since you will be completing your work from your home office, there is no traffic to and from your home, eliminating the need for business zoning or licensing.
– No Special Equipment Needed
Other than a personal PC, accounting software and a fax machine, there is little involved or needed in starting a home based bookkeeping service.
– Work On The Side
Many bookkeepers start their business to supplement their existing income, and since you can set your own hours and take on only a few clients, this business is something you can do while keeping your full time job.