5 “Must Ask Questions” for Starting a Bookkeeping Business
One of the biggest problems that you will face in starting a bookkeeping
business is overcoming all the objections that pop up in your head. The
“what if’s…” and “yeah, buts…” can be debilitating and stop progress
completely in its tracks.
So here are answers to some of your top questions about starting a bookkeeping business.
1. How much will it cost to get started?
Your one-time start up costs will involve setting up your office and workspace. As most people already have a computer and desk, this cost is minimal. You’ll obviously need an accounting program which will cost about a couple hundred dollars (check out eBay for older, unused accounting software). Most bookkeepers use either QuickBooks or Simply Accounting. You’ll also need to buy a business license.
Most of your ongoing costs will involve advertising. This can vary depending on if you’re sending out sales letters or placing classified ads in newspapers. Word of mouth goes a long way (and it’s free!) so tell everyone you know that you’re starting a bookkeeping business.
2. When should I quit my job?
This will depend on how quickly you line up clients. If you work evenings and weekends and slowly start to subsidize your income from your job, you can transition from being employed to self-employed. See how I did it in less than a year in this article.
3. Do I need a separate phone line?
Some bookkeepers prefer to have a separate phone line, but I’ve never seen the benefit in this. It depends on how much volume your personal phone line gets and whether it’s disruptive to your family by having them use it less.
I use my personal phone line, but have a “smart ring” feature so I can tell if the phone is a business call. The total monthly cost? $2.00.
See this article for more information on opening a bookkeeping business for less.
4. How do I find clients?
As mentioned above, word of mouth works very well. Most people know of somebody who has a business and is looking for a bookkeeper. Good bookkeepers are hard to find (or so I’m told) so you have the upper hand.
Call accountants and bookkeepers in your local area. Many of them can refer you to clients who are looking for a bookkeeper. Some of them may offer you overflow work, which is great when you’re starting out.
See this article for more ways to advertise your bookkeeping business.
5. How much experience should I have?
It’s normal to feel uncertain about your skills when you’re starting a bookkeeping business. But if you are competently handling the bookkeeping for your job and have a minimum of several years experience, there’s no reason why you shouldn’t be able to handle the bookkeeping for small businesses.
If you run into questions that you don’t have answers to, you can always ask the accountant for the company you are doing books for (or another qualified bookkeeper.)
So don’t let those “what if’s…” stop you from starting your bookkeeping business. You’re now armed with information, so get going.
If you have any other bookkeeping questions you’d like to see answered on this site, contact us here.
