Good With Numbers? Start a Bookkeeping Business!

Do you really want to start a bookkeeping business? Then you better feel really comfortable with numbers and a bit of accounting experience is also called for in this type of business. When you start a book keeping business from home other business owners will be counting on you to keep accurate records of their business transactions and income. You will need to, not only be highly organized, but a sound understanding of business accounting, an understanding of state and federal tax laws, and full knowledge about bookkeeping practices are needed if your book keeping business at home is to prove at all successful.

Do not make the mistake of believing that you can start a bookkeeping business without the necessary knowledge and experience required by all independent bookkeeping professionals. It is not a simple as learning to use a calculator and learning how to use a computer program: there’s a lot more expected of the professional bookkeeper. Businesses will be relying on you to literally track their business actions throughout the year and you might be responsible for preparing important documentation to prepare the business for tax season.

When you decide to start a bookkeeping business, having an understanding of the bookkeeping software applications commonly used to track business transactions is a plus, but you also need to understand every action you are making as you utilize the software applications. Starting a bookkeeping business at home really starts with educating yourself about bookkeeping, account management, and about financial document preparations. You will also have more success starting a bookkeeping business at home after you have managed to get some experience in the field working either for an accountant or a bookkeeping firm.

Your knowledge and experience, as well as your sound understanding and appreciation for numbers will be what make your book keeping business at home a true success. First, you will be far more marketable: businesses often prefer to work with bookkeepers that are trained, skilled, and fully educated. Getting a secondary education from a local school or even enrolling in online courses for accounting can be a good place for you to start. After earning a degree in accounting, you can then pursue some outside work at an accounting firm where you can get the experience you will need to make an at home bookkeeping business successful. Bear in mind that the more experience you have in bookkeeping, the more money you will be able to legitimately charge for any bookkeeping services you offer the moment you start a bookkeeping business at home.

How to Start a Bookkeeping Business – What Services Can You Provide?

When starting a bookkeeping business you may not think about offering anything other than bookkeeping services. This could reduce your revenue in the long run as clients turn more and more to people who can provide multiple areas of value to their business.The more you can offer increases the value you represent to the client.

For example, you may have experience writing processes and procedures. This is valuable not only for the bookkeeping function, but in other areas of the business. Most business owners are looking for improvements in any processes and procedures. If you can identify areas where there are duplicate processes or can fine tune the systems to improve efficiency, your role suddenly becomes an improvement to the bottom line, not just an expense incurred for compliance.

Another area of expertise may be in the area of risk analysis and internal control. Highly experienced bookkeepers understand the importance of financial controls, segregation of duties and best practices. This also allows the bookkeeper to improve the value provided to the client by identifying risks in the organisation and improving ways to minimise the risk to the business. If you can save the business owner from a fine, penalty or even an audit due to lack of compliance with legislation, you are a valuable asset to the business.

Payroll is often a requirement for a bookkeeper to perform. This however can be expanded beyond the payroll generation and compliance with associated items such as work cover, superannuation,payroll tax and tax. You may have deeper experience in human resources or staff management. Depending on the requirements of the client and the business size, there may be opportunities to offer additional HR type services beyond basic payroll and compliance services.

IT skills and experience could form an additional area of expertise. For example as part of the asset register, depreciation or budgeting process you may have the opportunity to look at the infrastructure or software used by the business. If you have the skills and experience, it may be an opportunity for the client to go cloud based, or online with software or even select more appropriate software for the entity.

Many small enterprises need experience in multiple areas but they may not have the budget for specialist services. This is where you can add more value to your service offerings. I am not suggesting you are suddenly a Jack or Jill of all trades, especially if you have not had exposure to these types of tasks. However looking beyond the traditional bookkeeping services may help you not only increase your revenue but the perceived value of your service.

After all, if you can add value to the client’s business the business owner will happily engage you and your bookkeeping business. This point of differentiation in a competitive market could also be the difference between selecting your service instead of a competitor’s.

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.