The Pros And Cons Of Starting A Bookkeeping Business


There’s little doubt that the world of online bookkeeping jobs offers an exciting and profitable opportunity. For many people, the idea of working on your own terms to your own schedule while helping clients and earning a great income sounds like a dream come true. As with most services, the amount you can charge for your bookkeeping business depends on your level of skill and experience. Although you’ll hear about accounting software like Quickbooks and Sage the most, there are also a few programs designed for more niche uses. QuickBooks is better for invoicing and project management, and offers some features Xero doesn’t, like tax support and lending. On the other hand, Xero lets you add more users to one account for less – an important consideration if you want to have a larger business with employees. But there’s more to bookkeeping than this – most business owners don’t just want to know the numbers, they want to understand them, too.You should invest in a quality bookkeeping course that teaches you the skills you need to be a successful bookkeeper. According to, self-employed bookkeepers charge an average hourly rate of $25—experienced bookkeepers and those serving specific niches can command even higher rates. The Bureau of Labor Statistics shows the median hourly rate for bookkeepers as $21.20. However, this reflects wages for bookkeepers employed by companies rather than those running their own business.

  • The former is primarily for sending invoices, along with the ability to track what clients owe you, whilst the latter also allows you to generate reports, estimates, and cash flow statements.
  • Yet it’s not just about how good you are at your job and how professional you are.
  • As part of the course, you will also have access to a lawyer so you can ask questions you have about starting your bookkeeping business.
  • No matter the reason, running your own bookkeeping practice can be extremely fulfilling.
  • Although you’ll hear about accounting software like Quickbooks and Sage the most, there are also a few programs designed for more niche uses.

To learn more about the ins and outs of setting up your own business, check out our small business guide on how to start a businessand our guide on starting a bookkeeping business. These tools enable you to manage workflows and get your business in order. They come free with some accounting software and are getting smarter all the time. This can be a good option for earning money on the side or scaling to a full-time business. If you already have bookkeeping experience, you can translate your skills to the online world and find business owners who need your expertise.

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Use special skills due to the analytical and complex nature of accounting. Gauge the financial situation of businesses and further communicate the information to the relevant authorities. Characteristics of becoming a bookkeeper include being accurate in your work and having a good understanding of financial topics.You can then report analysis from those numbers and enable your clients to make better informed decisions based on their finances. You have beautifully explained how to start a bookkeeping business from scratch and get success. Attending local events would be fruitful in making new connections and acquiring new clients. By standardizing core processes, you’ll be able to better streamline your operations and ensure quality control when deliveringclient accounting services.

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PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon. Working with similar companies will allow you to become an expert in that niche. Doing the books for a lawyer will be very different than doing them for a mechanic, which will be different than working with a retail store. As you get to know your niche you will be able to more accurately price your services and you can create systems for yourself that will ultimately lead to a higher hourly wage. I asked her what advice she had for someone who is thinking about getting started in this industry. Overall, the Bookkeeper Business Launch course is a solid program if you want to start your own business.In the beginning, you should have enough time on your hands to head to several of these a week to get some word of mouth on the streets and to get to know local businesses in the area. To get to know who’s out there, there’s no better way than attending local networking events to collect some business cards. 2) To get clients, showcase a simple “how it works” process so that visitors know the steps they’ll need to follow to reach the benefits and outcomes that you have listed above. the pros and cons of starting a bookkeeping business Lastly, your blog and contact pages are pretty self-explanatory. To do this, set up a pricing table that breaks down your solutions in terms of what’s included. Why you’re capable of handling your target market’s problems. 1) Outline some benefits that small businesses can expect from your solution. Feel free to add and/or remove pages as you see fit if you think it will help you find clients. For the long term though, there is no better platform than WordPress,especiallyif you plan on blogging.

More Resources For Bookkeepers

A nice one-two punch to help automate bookkeeping and accounting services is to use cloud accounting software coupled with an expense management app. I was able to grow my public accounting firm quickly by hiring certified public accountants and professional bookkeepers thanks to many of the marketing strategies that worked well. Since you are starting a bookkeeping business, I’m sure that you have already given some thought―or made a decision―about which accounting software to use for your business.This is not the time to be cute unless you can also be clear about what it is that you do. Your browser will redirect to your requested content shortly. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. If you’re still unsure of whether bookkeeping is the right choice for you, let’s break down some of the advantages and disadvantages. You’ll also have access to tutorials and webinars to ensure you continuously learn more about your trade. Of course, if you really have no experience or knowledge, doing this would be irresponsible, to say the least. This article includes links which we may receive compensation for if you click, at no cost to you.Of course, bear in mind that, as a business owner, you’ll need to cover your business costs and pay more taxes. A portion of your wages will go toward business expenses, so you should expect to earn more than an employee would. They let you process bills in the cloud for clients and approve them without anyone needing to print or mail checks. These days you can search for a Facebook group about everything from baking cakes to watching Game of Thrones. Searching for a bookkeeping professionals group on any social media – especially Facebook and LinkedIn – can be a great way to find other people working in the same industry.

Get The Right Accounting Software

He brings his expertise to Fit Small Business’s accounting content. The former is primarily for sending invoices, along with the ability to track what clients owe you, whilst the latter also allows you to generate reports, estimates, and cash flow statements. Finally, the ‘Bookkeeper Elite’ is for those who are already running a successful business but want it to be self-sustaining enough to run without them. This membership includes regular meetups and entry to a mastermind, as well as the most advanced strategies available. First, we want to make it clear that there are no laws or regulations requiring that bookkeepers hold a specific license or certification to operate. the pros and cons of starting a bookkeeping business The key to time management is creating an effortless bookkeeping accounting system. Small business bookkeepers can provide a range of services from managing accounts receivable, accounts payable, reconciliation, payroll, reporting, income tax preparation, and more. Bookkeepers are always in demand, and if you are good at organizing financial information, it might be the right business idea for you. If you’re good at organizing financial information for business owners, you might want to consider starting a bookkeeping business. Bookkeepers build a business’ financial foundation, helping entrepreneurs make decisions about the future success of their business. I have a dream to help several number of other companies having bookkeeping challeges. I started my journey to this dream by drafting some 2 paged idea plan of bookkeeping business however my plan was sketchy and was missing alot.Sabuhi Gard Sabuhi has almost 20 years’ experience as a UK national newspaper business journalist. Sage Fixed Assets Track and manage your business assets at every stage. Sage CRM Deliver a better customer experience with CRM software. Plus, you’ll get my weekly Top 5 email curating helpful, innovative content for your modern firm. The alternative would be to focus on a specific niche instead, for instance, bookkeeping for the automotive industry. Amazing blog, It was very informative and easy to understand. In pandemic time this is the best way to start a Bookkeeping Business in 2020.

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It’s been a leader in the industry for a while, and with good reason – it has a huge number of features available. There are a few pieces of great software available for bookkeeping purposes. If you’re not sure which to use, you’ll be pleased to know that most of these services offer a free trial for at least a month. Likewise, Xero offers a Xero Advisor certification, which teaches you how to use Xero and find clients. There are a few different levels you can go through, depending on how many clients you have, so there’s something there for everyone to learn.

How much do Quickbooks bookkeepers make?

While ZipRecruiter is seeing annual salaries as high as $95,000 and as low as $29,000, the majority of Part Time Quickbooks Bookkeeper salaries currently range between $36,000 (25th percentile) to $58,500 (75th percentile) with top earners (90th percentile) making $93,500 annually across the United States.Business Know-How Browse hundreds of helpful articles on everything business. Take the first steps toward turning your idea into a business.Are you ready to get started with your own bookkeeping business? This is where having the right tools and training can propel you to success and teach you the ins and out of running a profitable bookkeeping business. Starting your own bookkeeping business does require a set of skills beyond what you might think.Take advantage of courses and training to learn new skills and expand your service offering. Don’t be afraid to increase fees as your capabilities grow. Present the packages in person or on a call, so you can walk your clients through them. Once you’ve agreed on a package of services, set the fees upfront. Don’t advertise fees on your website – remember it’s about pricing the client and not the service. It’s tempting to offer everything in an attempt to attract prospective clients. But if you aren’t able to deliver on what you promise, you could get yourself into trouble.The good news is that there aren’t many costs involved in starting a bookkeeping business. Assuming you already have a good laptop, you won’t need to buy much – you can do the work straight from your computer. When the financial year ends, and it’s time to submit taxes, all businesses need accurate records of their income and outgoings. When you dial in your business structure, accounting system, brand, and target audience, you’re ready to showcase it on a professional bookkeeping website.The idea of a closet in shambles or a stack of bills and bank statements that need to be addressed may be your idea of a great time. If that’s true, you would probably love being a bookkeeper. Sometimes the best business ideas are simply finding something that people could do but don’t have the time, the education, or the personality type to do well. Combine relevant services into packages and offer them to your client that way. This allows them to choose the general service level they want.These days most businesses work with some form of accounting software, so being familiar with these programs is a must. It’s tempting to learn how to use every single piece of accounting software out there, but in reality, quality is often better than quantity. Yet it’s not just about how good you are at your job and how professional you are. As a result, a bookkeeping business offers the chance to help your clients grow their businesses by offering them advice as well as getting nerdy with the numbers.