Starting a Bookkeeping Business
If someone runs a business, then they need to keep their books in order for the government. That means, for every small business out there, there is a need for a bookkeeper to keep things in order. This is why having a bookkeeping business is considered to be one of the most profitable businesses a person can have. Bookkeeping is an industry that is perfect for people who like numbers and like working with finances. It is an industry that is always steady no matter how the economy goes. The only certainties in life are death and taxes, and bookkeeping is all about taxes and making sure the books are in order.
What It Involves
Running a bookkeeping business is easier said than done. You need extensive knowledge of bookkeeping and you need experience with it as well. You have to possess the ability to pay attention to detail, and you have to be good with numbers and sometimes tedious math. You do not need an accounting degree or qualification to be a bookkeeper, but it does help to lend credibility to your name. As a bookkeeper, you will ensure that income and expenses are tracked in a company and that all bank statements and payroll costs are managed and processed.
Income and Growth Potential
You should charge by the hour for your business, ranging from $20 to $50 per hour. Some bookkeepers prefer to charge by month though, in a fixed amount to each client that ranges from $200 to $800 per month. The amount you charge will be based on the size of the company you have as a client, and how much work you have to do.
In your first year, you can expect to bring in between $30,000 and $40,000. However, with aggressive marketing and a commitment to improving your client base, you can pull in excess of $100,000 per year quite easily. Many companies need bookkeepers, and you can fill that niche. Even if there are a lot of bookkeepers in an area, there are plenty of companies to offer work to everyone.
Startup Costs and Investment
The startup costs and investment into a bookkeeping business are quite low. All you need is a computer, some bookkeeping software and a printer/fax machine. All of this will cost you between $1,000 and $3,000. Naturally, you can spend more to bring in more business. Having $5,000 for marketing will help, and hiring help will allow you to take on more clients. How much you spend is also dependent on how much you want to make. Buying the best software will cost you a few thousand dollars, and if you want to travel to all client offices, then you will need to spend more as a result. Transportation costs, marketing and high-cost marketing equipment can bring your overall investment to $10,000 to $20,000. If you decide to have an office, rather than your home as the business location, then a few thousand more will be needed.
Resources
Articles and Websites
- How to Start A Bookkeeping Business At Home @ howtoadvice.com
- Starting a Bookkeeping Business @ businesswings.co.uk
- Starting Your Own Bookkeeping Business - Should it be a Home Office? @ aipb.org
- Bean Counter's Free Accounting and Bookkeeping Tutorials @ dwmbeancounter.com
Associations, Courses and Institutes
- American Association of Professional Bookkeepers @ aipb.org
- The Canadian Institute of Bookkeeping (CIB) @ cibcb.com
- Institute of Certified Book-keepers (ICB) @ idealschools.com
- Woodgrove Tutorials - Book-Keeping & Accounts Distance Learning Courses @ woodgrove-tutorials.co.uk
- Bookcert Business Kit - Bookkeeping Manual/Software @ bookcert.com
- Book-Keeping & Accountancy Courses @ homelearningcollege.com