Bookkeeping is a kind of work that cannot be done by just anyone. For you to be able to do this job, you need to have ability in mathematics. A degree in Accounting can be a plus factor but is not really necessary. So long as you are knowledgeable on how to balance finances and keep financial records in good accord, you can very well execute your job as a bookkeeper. Engaging in a bookkeeping business is a profitable venture. You may set it up in your own home to cut costs in maintaining a rented office. Here are tips to guide you in this endeavor:
- Make sure you are well-versed in all aspects of bookkeeping matters. Hiring a full pledged accountant for this business will only entail a lot of costs on your part. So make sure you know the trade yourself so you can do the job on your own with less assistance from a hired person.
- Know that an experience on bookkeeping jobs will help you a lot if you want to open a home based bookkeeping business. An impressive track record from previous employers will also boost your credibility. Of course, if you have a credible status, you will definitely draw more clients.
- Learn software programs on bookkeeping. Face it – everything now goes through the computer. Enroll in training centers that especially teach bookkeeping with the use of various software.
- Determine how much you will ask from your clients for your service fees. You may decide to charge by the hour or per account or ledger. Find out the standard rates from other bookkeeping companies in your area so you will have an idea on the prevailing rates.
- Decide on the term and manner of payments. Will you charge after every transaction or will you bill your clients by bulk? Will you ask for deposit or advance fees before you execute the job, or will you collect after everything is accomplished? Will you ask for checks, cash or bank remittances as mode of payment? These are the considerations you should put in place in opening a home based bookkeeping business.
- Find out where you can get clients. Working people, professionals and entrepreneurs in your area are your best prospects. It helps a lot if you have many contacts and friends in your town or city as many of these people are sure clients.
- Advertise your home based bookkeeping business. This is one way of promoting your business and opening it to would-be clients. TV ads, print ads, leaflets, handbills and signage will expose your business to the public – which is a sure come-on for a larger clientele.
- Be well versed with your local tax laws. Most bookkeeping work deals with the processing of taxes on behalf of other people.
- Secure a permit for your home based bookkeeping business. Though it is home-based, you still need to comply with legal requirements in order for your business to operate smoothly.
- Set up your business space in your home. Separate it from the other sections of the house. Avoid conducting business right in your dining table. Try to be as professional as possible even if you are the only person manning the business.
- Set the opening date of your business during tax assessment and paying season. For sure, more people will need your services.
When maintained and managed efficiently, a home based bookkeeping business may grow to a full time bookkeeping firm. With this possible development, you should be ready to hire assistants as well as branch out to other areas where you can extend your services.