Interested in small home based bookkeeping business ideas? If YES, here is how to start your own successful bookkeeping with no money and no experience. How much does it cost to start up?
Starting a Bookkeeping Business – Sample Business Plan Template
Are you that knowledgeable in the art of bookkeeping and would love to start a bookkeeping business? Bookkeeping is a profitable business as every business whether it is big or small need to maintain proper financial records.
With a bookkeeping business, you’ll have no shortage of potential clients as so many people dislike bookkeeping and are willing to hire a professional to take care of it for them.
Your clients will depend on you and so you’ll need to be willing to commit yourself to fulfilling your obligations, and in taking great care to handle their business and personal bookkeeping with the upmost professionalism.
Benefits of Starting a Bookkeeping Business
There are so many benefits of starting a bookkeeping business and here is a run-down of just 3 of them.
- You write your own paycheck.
- The demand for bookkeeping is high.
- You can start your bookkeeping business from home and don’t need to rent an office.
If you currently working for your boss as a bookkeeper, you may want to 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.
What You Need to Consider Before Starting Your Bookkeeping Business
Before you make the decision to starting a bookkeeping business of yours, you need to consider these important two factors:
- Do I have the required bookkeeping experience?
- Do I have the minimum capital outlays?
- Do I know how to use bookkeeping software?
Obviously there are other important factors that you have to take into consideration such as how to find your first client before you decide to start a bookkeeping business.
How to Start a Bookkeeping Business
Now, that you have known the benefits of starting a bookkeeping business and factors to consider before starting a bookkeeping business, it is now time to take you through the various necessary steps.
Be a Member of the Institute of Bookkeepers
While it is not necessary to be a certified bookkeeper to open your bookkeeping business, it is definitely more advantages to be a member of the institute of bookkeepers than those who are not.
By joining the institute of bookkeepers, it gives you the opportunity to network with other freelance bookkeepers just like you and possibly secure bookkeeping jobs by supporting business of other members.
Besides, it gives your potential clients the impression that you are competent in your work as the institute of bookkeepers require some important criteria to be met before admitting you as a member.
A Business Plan is a Must
Many people run for cover when your start talking about creating a business plan for their business, but it really is a wonderful tool to make your business grow to the next level. A bookkeeping business plan gives you all the information you need at your fingertips.
Your business plan then becomes a reference tool and can help guide you in the choices you make in your business life.
You can pin point what your market is, who you market is and how you will capture your market when you have a business plan. You will be able to understand your own weakness and strengths with a business plan.
It will give you a road map of where you are going and how to have a successful bookkeeping business.
Picking your Rate
If you are thinking about starting a bookkeeping business, at some stage you will ponder what to charge your clients. You might look at a fixed fee for your services or an hourly fee for services. Either way you will need to be sure that it is the right rate for your business.
You need to really sit down and state your fee according to who you want to target as your ideal clients or customers. Just remember, you are running a business and you need to be profitable.
As a business owner there will be a number of expenses you will need to cover which might have been paid as an employee. Additionally, you are providing a skill set which others do not necessarily have and there is a value on those services.
With a bit of research and thought into your specific expertise and skill set you will be well on your way to selecting a fair rate for service which will assist you in the growth and development of your own bookkeeping business.
Tools Required for your Bookkeeping Business
Before starting a bookkeeping business of your own, you are required to invest in things like bookkeeping software, payroll software, a laptop with internet connection and other supporting equipment such as fax machine and printers.
Work out what is the preliminary capital required for your bookkeeping business and figure out the likely sources of finance.
Marketing your Services
Lastly, marketing your services will take time and you will learn some new skills. Marketing, advertising and sourcing clients will be important. Don’t discount the opportunities when you are talking with people to mention what you do. Many bookkeepers agree that word of mouth is their best source of clients.
You should also plan to have some business cards made up, and try to figure out ways to advertise that won’t break the bank. You might also want to invest in creating a website for your business.
While this also might take several months for you to notice an increase in the amount of interest in your business, it may be well worth the effort in the long run.