"Learn select certifications and organizations to help you successfully start a bookkeeping business."
Starting a Bookkeeping Business
Keeping the books ... what a way to make a great living.
It's a perfect business model for a stay-at-home business, in my opinion.
Starting a bookkeeping, accounting, or tax service requires time and dedication, like any business. Yet, the promise of such a business is perfect for that person who wishes to operate a small operation that doesn't require an exhaustive schedule ... or top dollar to get started. Like many stay-at-home businesses, starting a bookkeeping business can be started, operated, and promoted with a little ingenuity and savvy.
So, what's next? What should you do to prepare for your upcoming venture? The answer is easy ...
... start by reviewing the many resources that were uncovered and listed below, and take the time to read the interview we conducted with Suzette Flemming, owner of Flemming Business Services.
Once finished there, begin the start-up process by applying for a business license and scoping out office space (if that's the route you plan to take). If you plan to be home-based, will clients come to your home? What area of your home will be appropriate to receive clients? What area will be the most professional for clients, yet offer quick accessibility should you need to reach a computer quick for some last-minute reporting or file changes.
ORGANIZATIONS
American Accounting Association
The American Institute of Professional Bookkeepers
Canadian Bookkeepers Association
Are bookkeeping certifications necessary?
CERTIFICATIONS/EDUCATION
Certified Bookkeeper, The American Institute of Professional Bookkeepers
National Certified Bookkeeper
Certified Professional Bookkeeper
ACCOUNTING/FINANCIAL CURRICULA
Accounting curricula, whether offered as part of a college program or industry certification, oftentimes cover accounting principals and practices to analysis and tools. Expect to cover a broad array of accounting facets to also include specifics such as profit & loss, budgeting, tax filing, balance sheets, payroll, accounts receivable, accounts payable, and overall reporting.
BOOKKEEPING & ACCOUNTING SOFTWARE
Top accounting software used includes Peachtree, QuickBooks, NetSuite, and Office Accounting Professional (Microsoft product). Some companies possess customized accounting systems available over a company-wide Intranet, but many of the concepts are similar, making it only necessary to learn navigation and the overall infrastructure of the systems.
EXAMPLE OF BOOKKEEPING JOBS/RELATED JOB TITLES
Bookkeeping Controller/Comptroller*
Bookkeeping Assistant
Accounting Manager
Bookkeeping Clerk
Staff Accountant
Financial Officer
Senior Accountant
Full Charge Bookkeeper
Tax Accountant/Senior Tax Accountant
Audit Clerk/Manager
* Note that comptroller and controller are oftentimes used synonymously, however, comptroller is typically used for accounting professionals who deal with government affairs.
Do you need a sample flyer for your business? Click here for a "Sample Flyer for Bookkeeping Business"
Interview with Suzette Flemming, Owner of Flemming Business Services
Learn how starting a bookkeeping business worked for her.
Q: Describe the scope of your business.
A. I work with small business owners with their accounting, tax and incorporation needs. I work with businesses throughout the US that gross less than $2 million a year.
I incorporate businesses with State and Federal agencies in all 50 states. I also recommend the proper structure for a business based upon the owner's goals and objectives.
I set-up custom accounting systems with a variety of off-the-self software packages. I train clients to use the software if they do not wish to have me maintain their books. I provide daily bookkeeping services and reports for clients. I also prepare payroll and all the associated tax returns.
From a tax standpoint, I prepare federal and state income tax returns as well as sales tax returns. I assist clients in planning for taxes and mitigating what they have to pay.
Suggested topics to research: bookkeeping courses and training
Q: What made you choose this type of business?
A. I have a degree in accounting and several years experience working for public, private and non-profit companies in HR, purchasing and management. I have an innate understanding of numbers that lets me see the bottom line and how a set of circumstances with affect a business in the short term and the long term.
I enjoy helping a company grow and become widely successful.
Q: How much did it cost to start? Did you obtain a loan, grant, or use personal finances?
A. I started with my home computer and a few hundred dollars from savings to buy the necessary software. Three years ago I secured an SBA backed loan to purchase more computers and office furniture. My business has fairly low overhead.
Q: During the start-up phase, what did you find particularly challenging?
A. My biggest challenge was learning how to market my business. I wasted money on advertising and flyers that weren't effective. I had to learn to network and market in a way that built trust and relationships. The trust and the relationships grew into clients.
Q: Did you create a business plan for your business, or did you utilize the help of a business plan writer?
A. I didn't start with a business plan. I knew what I wanted to offer (or rather what I could offer) but I didn't put it on paper. I finally sat down about five years ago and created a business plan (who, what, when, how and why). My business took off after that.
Q: Did you work part-time, or have another income stream, during the initial stages of your new business?
A. Fortunately, I had my husband's income to rely on. I worked my business full-time from the beginning. It was tight.
Q: How do your clients contact you?
A. My clients find me in a variety of ways:
(1) Referral from current and former clients. My local Chamber of Commerce has sent many clients my way.
(2) Networking online and offline. It's part of building relationships.
(3) Articles and Forums - I have several clients that have called because they read an article or piece of advice I gave on a forum.
Q: Have you reached the revenue level you expected?
A. I have exceeded the level I expected. There is an ebb and flow to my business (as in all others). Some years are a bit leaner than others. I no longer judge my success by the amount of revenue I generate but by the success of my clients.
Q: What advice do you have for anyone interested in starting your type of business?
A. You can't be all things to all clients. Decide what services you are going to offer. You can expand your offerings later but have a clear picture of what you can do and what you are willing to do. The next step is to price your services. I recommend packaging your services and charging a flat fee. Charging by the hour takes time and, in most cases, you need to prove to the client that you worth that hourly fee.
Q: What credentials and education do you possess? Do you feel your background has been pivotal to your success?
A. I have a Bachelor's degree in Business Education with a focus on Accounting. I continually study and keep up-to-date on tax changes and accounting standards. My background has helped me become successful. Prior to opening my doors, I worked for a variety of companies in several industries. I worked for non-profit organizations. Each has its own set of guidelines and operational standards. That enables me to understand and handle my clients with their unique situations.Other Businesses to Consider ...
Start a House/Office Cleaning (Janitorial) Business * Start a Gift Basket Business * Start a Secretarial/Administrative Business * Start a Resume Business * How to Start a Home Inspection Service * How to Start a T-Shirt BusinessHere, you will learn how to start a bookkeeping business, where to go for help writing a business plan for your bookkeeping business, and a sampling of bookkeeping jobs
Copyright 2008 Teena Rose, All Rights Reserved
