Do you have excellent accounting skills? Are you interested in starting a bookkeeping business from home? Do you need a sample bookkeeping company business plan template? If you answered YES to any of the questions above, then I advice you read on.
Bookkeeping involves keeping records of financial transactions, analyzing those records and interpreting them to your clients. Bookkeeping is very important because it helps people keep record of their financial transactions and make appropriate tax returns.
Financial records may be used by business owners to make decisions, the government use it for evaluating tax payments and potential investors or lenders use it to make critical decisions.
A lot of people do not like doing their own bookkeeping and would rather contract the service out to a third party. Despite the influx of bookkeeping software which now makes it possible for people to do their own bookkeeping by themselves, a lot of people still consider it a very complex and time consuming job.
So many business owners who were affected by the economic recession had to lay off their full-time accountants and resorted to hiring freelance bookkeepers to help them with their financial records.
This is a good thing for people who are interested in starting their own bookkeeping business as there is a lot of demand for bookkeeping services from both individuals, business owners and online. Bookkeeping is a good source of extra income especially for retirees that majored in accounting and auditing.
Bookkeeping is a business that requires little start-up capital compared to other businesses and the most interesting part of it is that you can offer work from home bookkeeping services; meaning you don’t need to rent an office space. Secondly, you can start a bookkeeping business without experience.
However, before you go into your bookkeeping business, it is necessary to know some of your duties and responsibilities as a bookkeeper. Your main duty would be to maintain financial records of your clients as well as the following-:
10 Duties of a Bookkeeper
- Keep track of income and expenditure.
- Bank account reconciliation
- Keep records of all accounts receivable and payable.
- Sometimes, you will be required to handle payroll services especially if you are handling business accounts.
- Keep track of when payments are due to avoid charges and penalties.
- Take stock of inventory.
- Know when loan repayments are due to avoid penalties.
- Provide financial advice to your clients.
- Prepare and file tax returns.
- Prepare financial statements periodically-Yearly, Quarterly or monthly.
Now that you know what exactly you are going into in terms of your duties and responsibilities, below are a few tips to get you started in your bookkeeping business even if you have no initial experience.
Starting a Bookkeeping Business from Home – Sample Business Plan Template
1. Get trained
To become an independent bookkeeper, you will need some accounting skills and knowledge. This could be acquired by enrolling for accounting courses online or at a local community college in your area.
While it is not necessary to take professional courses and become a chartered accountant before you can start, having such a degree would boost your profile and encourage business owners to hire you because they would be convinced that you are a skilled professional whom they can trust with their business.
2. Register your business
This step is also optional but advisable. Bookkeeping involves people revealing their financial details to you and a lot of people would find it easier to trust you if your business is duly registered with the government.
3. Create your office space
If you have enough money, you can go all out and rent an office space but if you do not have that much to spare, you can create a space in your home for your business. But make sure your working space is quiet, neat and free from intrusion. You must also ensure that you keep details of your client’s finances from unauthorized persons.
4. Create a website
If you are targeting online clients, you will do well to create a business website for your business so that people who need bookkeeping services can search on the internet and find you through your website.
5. Set up social media accounts-: Social media helps you reach out to more clients. Set up a Facebook page for your bookkeeping business and discuss interesting and engaging accounting topics on your page.
6. Register on Freelance websites-: When you register on freelance websites, you will have access to hundreds of clients who are looking for freelancers to handle their bookkeeping services.
Equipments You Need to Start your Bookkeeping Business
Here is a list of tools and equipment you will need to start your bookkeeping business-:
- A computer
- Bookkeeping Software
- Business Cards
- Internet Subscription
- Photocopier, Fax machine and Scanner.
- A business Telephone
- Paper, pens and other office supplies
8 Skills You Need to Succeed in your Bookkeeping Business
Bookkeeping goes beyond tracking income and expenses or keeping records of liabilities and assets. You would be saddled with a whole lot of other responsibilities such as tracking debtors and creditors or filing tax returns in some cases. Due to the technicalities involved in the business, you are expected to possess some skills-:
- Accuracy-: Your duty would involve recording financial data which would be used to generate further information. Therefore, you must be accurate with your records and avoid mistakes as much as possible.
- You Must Pay attention to details-: You must be someone who pays great attention to details and would easily detect any errors or misrepresentations.
- Mathematical skills-: You must be very good with figures to succeed as a bookkeeper. You must be able to handle arithmetic calculations without software.
- Computer Skills-: You must know how to operate a computer. You must also know how to use accounting software packages such as PeachTree, QuickBooks, etc.
- Analytical skills– Part of your duty as a bookkeeper is to give financial advice to your clients on the performance of their business based on financial records. You must be able to notice and quickly alert your client when you notice an unusual pattern that may hurt their business in the future
- You Must Be a Fast learner-: You will be required to work with different people and different business structures and you must be able to quickly learn how each business operates.
- You Must Have Knowledge of Accounting Principles-: You must understand accounting principles and know how to apply them.
- Conclusively, a bookkeeper must know how to use a spreadsheet as most clients would require that you know how to use it.