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.