A bookkeeping business is one that involves the management and handling of financial records.
It engages the distinctive skills of handling the details of financial records, despite the numerous accounting software available for record keeping.
As a result of the complexities of businesses, the need has emerged for a detailed investment in financial bookkeeping for a sustainable business year.
However, you need to examine the focus and reason for starting a bookkeeping business.
Is it because of the need for flexibility of work schedule?
Or the need to create and render valuable services to clients?
Or the personal desires to build a business empire in this field?
Irrespective of the motive for the decision, a business plan and detailed knowledge of the operation of this service delivery is essential for the success and profitability.
WHY BOOKKEEPING BUSINESS?
The process of start a bookkeeping business is relatively inexpensive and engages a low risk investment that ensures the continuous profitability of the business.
The enormous task of location setting as consistent with business is ruled out in bookkeeping business as you can start up and continue to work from home, get a mobile office or subsequently acquire an office.
WHAT YOU NEED TO START BOOKKEEPING BUSINESS
First and foremost you will need a business plan to illustrate how you intend to start and run your business.
A business plan will help you ascertain the focus of your business and help you plan accordingly.
You will also have to register your business legally and legitimately.
Find out about all necessary licences and permits if there are any pertaining to your metropolis.
This is essential before you get started.
In starting Bookkeeping business no special infrastructure or equipment is needed for start-up.
As simple as a personal PC, fax machine and accountings software is the needed requirement for start-up.
You may also need items such as:
- business forms,
- calculators etc.
The crux of this preparation is for the professional outlook of the business at larger.
The great professional setting is needed to achieve an excellent business branding.
BENEFITS OF STARTING A BOOKKEEPING BUSINESS
Furthermore, engagement in bookkeeping business is enormously profitable as the business can be a one person business without the involvement of other employees thereby increasing profit maximization of the business.
Also, there is no need to purchase or maintain inventory thereby reducing the overhead cost of the bookkeeping business.
Nonetheless the minimal cost of start up and operation of the business, the need for viable bookkeeping skills is a necessity for productivity of this business.
The overall profit of a bookkeeping business is totally exceptional because your start up and business operation costs are minimal once you have the management and software tools that you need.
You can anticipate earning about $30-$50 per hour based on the services you offer and the category of clients you accept.
In order to determine your price structure, you will want to evaluate existing bookkeeping businesses 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.
STEPS TO MANAGING A BOOKKEEPING BUSINESS
LEARN YOUR BUSINESS
Leaders are learners.
For you to be an adept leader in this business, develop your accounting skills if necessary.
Take out time to familiarize with accountings software if need be in order to develop a wider knowledge base of the services.
Similarly, take an in-depth study of larger bookkeeping organisations and establish a cross analysis of their strengths, adopt them and offer these services to your clients.
Furthermore, some certifications may create an added advantage with some other clients, so get one if possible.
TAKE A STUDY OF YOUR CUSTOMER BASE
You might want to develop a strategy for advertisement and marketing of your services in order to boost your customer base.
The development of strategies to attract and maintain clients is necessary for a bookkeeping business.
As such, the engagement of referrals as a tool for client attraction is essential.
Also, you need to look out for prospective client and inform them of services offered.
Similarly, offer incentives such as discounts and promos to clients that contribute to the increase of your customer base.
Consistently, reward customer loyalty through incentives, price reduction and gift certificates.
It is possible to build a viable customer base without running of ads, which could increase business cost.
ENSURE ALL NECESSARY DOCUMENTATION ARE OBTAINED FROM THE GOVERNMENT
A business license can be obtained to practice as a bookkeeper.
Also, consideration of a professional membership might add value to your bookkeeping business by reducing some cost of operation.
Further still, networking through membership of professional organisations could add advantages of annual conferences and opportunities for individual and business development.
PROFIT OPPORTUNITIES IN BOOKKEEPING BUSINESS
There is a large profit opportunity in bookkeeping business which makes it viable for businesses.
Many small businesses and individuals outsource their financial and accounting responsibilities to others for management.
As such, a large customer base appears available for this venture.
Similarly, the flexibility and nature of bookkeeping business displays viability for the individual, rather than rigid work hours.
This is reflected in the fact that clients will pay for the value of services rendered.
Hence, a work pattern that is consistent with value creation is needed for the continuous profitability of this business.
As such, bookkeepers are able to maintain a full time job while operating a bookkeeping business thereby supplementing existing income of business operators.
Furthermore, the demand for independent bookkeepers appears to be on the increase, even in the crux of economic meltdown as some businesses realize the need for more stringent and unswerving management of money.
Hence, the opportunities for profit creation and continuous client base seem enormous.
ADDITIONAL TIP FOR YOUR BOOKKEEPING BUSINESS
There are financial supports scheme and grants available from the government which could be accessed in a bid for your bookkeeping business expansion and for the use of more IT facilities for operation procedures.