Starting a Home-Based Bookkeeping and Accounting Business

Every business needs someone to do their bookkeeping. Whether this task is performed by the business owner, an employee, or outsourced to a bookkeeper it must be done and it must be done right. Many business owners hate doing bookkeeping and would prefer to outsource this important task to a qualified bookkeeper. This is particularly true for small businesses that cannot justify hiring a bookkeeper.

The United States Department of Labor Bureau of Labor Statistics (BLS) occupational projections data indicates that slightly over two million people worked as bookkeeping, accounting, and auditing clerks in 2008. This number is expected to increase by 10.3 percent over the decade from 2008 - 2018. Median annual wages are reported to be "high" at $32,510. 6.3 percent of these bookkeeping, accounting and auditing clerks were self-employed in 2008.

Getting Started

A modern computer, accounting software like QuickBooks Pro from Intuit, and a laser printer are the core tools that a home-based, bookkeeping business will need. Additional office equipment may include a scanner and filing cabinets.

Customers can send you receipts and records by e-mail, postal mail, or they can drop them off in person. Reports can then be sent back to the customer by e-mail or postal mail. The limited time that customers may need to be in your office makes this business suitable to operating as a home-based business. Setting up a dedicated office can be helpful though as some bookkeepers report finding many business customers put off by a bookkeeper working at the kitchen table.

Marketing

Setting up a business website is a great way to put your business in front of the world. A site that is optimized for local search will make it easy for potential customers to find your business when they search for local bookkeeping businesses. The website is also a good place to describe what services your business offers, what rates you charge for various services, and to list testimonials from satisfied clients.

Advertisements in area business journals or publications put your business in front of area business owners. Since these publications cater to business people in a certain community they are good places to advertise professional services.

Direct marketing or cold calling to area businesses or businesses in a niche that you wish to specialize in can produce results. Be prepared for the majority of contacts to not lead anywhere, but it only takes a few good contacts to get your business off to a good start.

Direct mailings to all new businesses can pay off quickly. New businesses typically must advertise in the legal section of the newspaper when they register a business name or incorporate. This information can be used to send a brochure, business card, and introductory letter to each new business. Many of these businesses will still be in the process of forming and will not have established relationships with a bookkeeper yet.

Joining the local chamber of commerce or a similar civic group can provide great opportunities to network with other business people. These contacts can result in business opportunities for your new business.

Cautions

Data backups are essential whenever you are working with data - particularly when you are working with a customer's data. Daily backups of your own computer system are also the only way to safeguard against data loss due to a computer failure. Many businesses utilize off-site storage to archive backup discs or tapes. On-site storage of backup discs will allow you to restore lost data following a computer failure, but off-site storage is essential to safeguard against loss due to fire, flood, or theft.

As with any business, it is essential to know your limits in the bookkeeping business. Getting in over your head can cause expensive problems for both you and your customer. It is also important to know exactly what financial services you can legally provide in your state and which services will require additional certification or licensing.

Conclusion

Starting a home-based, bookkeeping business can be a profitable business opportunity for entrepreneurs who like working with numbers and are detail oriented.

SOURCES

United States Department of Labor. Bureau of Labor Statistics. Site accessed on 7 October 2010.

Paul and Sarah Edwards. Starting a Bookkeeping Business. Entrepreneur. Site accessed on 3 December 2010.

Starting Your Own Bookkeeping Business - should it be a home office?. The American Institute of Professional Bookkeepers. Accessed on 3 December 2010.

How to Start a Bookkeeping Business. A Touch of Business. Site accessed on 3 December 2010.