How to Start a Bookkeeping Business, Your Professional Development

Being in business for yourself can sometimes be lonely and solitary. If you are setting up a bookkeeping business, there may be days on end when you are working in your home office on client work and do not have contact with anyone else. This is fine for some people, others may suddenly find they miss working in a busy office environment.

If you find yourself in this position, you can look at ways of having contact with others, such as calling a client and seeing how they are going. You could look at your diary in advance and slot in a meeting with a client or potential client in the middle of your solitary periods to feel like you have contact with the outside world.

Professional development and staying up to date with the bookkeeping industry is also important. All of a sudden instead of having a boss to sign you up for courses (and pay for them) you are responsible for your own career and education. You may also find, as a member of a professional organization that you will be required to undergo professional development hours as a requirement of membership.

It is important to undertake professional development to stay on top of changes in legislation and the industry but it also provides a great networking opportunity to mix with others in similar situations as yourself. You never know who you might meet and you may find an accountant who needs a bookkeeper for a client, or a business person who is trying to do the bookkeeping and you can promote your services. You may be able to offer advice and information to other bookkeepers just starting out and share your knowledge.

You could also look at joining your local Chamber of Commerce and getting involved in business breakfasts or networking. Although these seem to take away valuable client time, they provide good socialization and networking opportunities and you never know who you might meet at these meetings or who people have connections with. Also your valuable business knowledge from a bookkeeping point of view can be invaluable for others.

It is important to connect with others in the industry and maintain your professional development at the same time. your bookkeeping business will only be as good as you are and if you maintain your skills, you will be able to service a diverse range of clients for many years to come.

Benefits of Starting Bookkeeping Business From Home

Every business whether big or small has to maintain their financial records. Therefore, almost everyone with sufficient bookkeeping experience,skills and interest can start their own bookkeeping business from home. Check out the following benefits and see whether the business is for you:

i) Low start up capital – the cost of opening your own bookkeeping business can be very low. You need only a personal computer, a printer and a user friendly bookkeeping software. These items may cost you from $1,000 – $3,000 depending on your budget.

ii) Work at your own hours – you can work at your own hours especially if you are a stay at home mom. If you start your business from home, you can choose as long as you want because you are building your own business. In addition, working from home means you don’t need to spend time traveling to and from your office and hence saving time and money.

iii) Make more than working for others – if you were to provide bookkeeping services to small business owners, you will be easily earning more than $25 per hour compared to perhaps $15 per hour if you were to working for other bookkeeping or accounting firm. So starting bookkeeping business from home gives you the opportunity to earn more than what you are getting from working 9 to 5.

iv) Demand of bookkeeping services – the demand for your bookkeeping services is huge as every business whether it is big or small has to maintain proper financial records either for tax filing purpose or for management purposes. Hence, if you were to start bookkeeping business from home, it will be easier to get clients compared to other types of business whether getting enough clients can be hardest part of the business.

If you are an experienced bookkeeper and thinking of starting bookkeeping business from home, you should give it a try as the it is considered on of the most profitable business on account of the low start up capital.

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.