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Do you have a knack for numbers? If so, starting your own Bookkeeping Business today is the perfect opportunity to earn a stable income and take charge of your life.
Would you like to earn a full-time income working part-time hours? Are you craving plenty of work-life balance?
With the right bookkeeping training and business plan, you can quickly get yourself on a money-making, stable career path.
Bookkeepers can work from anywhere at any time, making it one of the most flexible jobs out there. It’s also great for moms who desire to get some early morning or late night work done before young kiddos wake up in the mornings or after they go to sleep at night. You will have complete control over your own schedule
What does a Bookkeeper do?
According to the Bureau of Labor Statistics, the records that Bookkeepers work with include expenses, receipts, bills, invoices, and general financial reports of a company.
Bookkeepers handle tasks such as:
- Entering financial transactions like income and expenses (or debits and credits) into an accounting software such as Quickbooks
- Review bank and credit card statements, and note any differences they find in the records
- Print and email financial reports to their client and/or the client’s Accountant
- Additional services like payroll, inventory, sales & use tax reporting or etc.
Bookkeepers can give support and assist their clients on a weekly, monthly, or quarterly schedule. It all depends on the scope of the work and the size of the business.
Are Bookkeepers In High Demand?
Do you know the reason for small business failure? It’s lack of funds combined with poor planning and bad management – and that’s where a Bookkeeper steps in. The financial health of an organization depends on good bookkeeping practices.
This makes Bookkeeping a highly valued service, and one of the reasons I highly recommend it for anyone looking to start a profitable home business. This article on Investopedia has a detailed analysis on the Outlook for Accounting and Bookkeeping careers.
If you are a certified, trained, professional Bookkeeper (with experience using Quickbooks), you will stand out and shine online!
Bookkeeping is not as saturated as other virtual services. There are over 30 MILLION small businesses in the USA. Above all, they are required by Uncle Sam to keep their finances organized. (So how’s that for a wide-open market?!?)
(Interested in getting certified and trained to be a Bookkeeper? We recommend Bookkeeper Launch!)
How to start your own Bookkeeping Business
Every home bookkeeping business starts with these 3 simple steps:
1) Learn Bookkeeping Basics
Before you get started, it’s essential to understand the bookkeeping basics like the accounting equation, the difference between assets, liabilities, and equity.
You also need to become familiar with the main financial statements that business owners should review on a monthly basis.
This might sound like you have to learn another language, but the right training course will get you started. And if you’ve been managing your personal finances and paying bills at home, you can do this!
2) Learn how to “talk the talk” (the computer will “walk the walk”)
Bookkeepers use computer accounting software and spreadsheets.
The most popular bookkeeping software is Quickbooks. In fact, there are over 7 MILLION businesses that use QuickBooks. Some other accounting programs are Xero, Freshbooks, and Wave.
So, to get started as a Bookkeeper, you should feel comfortable using Quickbooks and have a basic understanding of Microsoft Excel.
Seriously, if you can understand how to type and how to enter data into a computer program, you can get started as a Bookkeeper!
3) Find clients
As a small business owner, you will be responsible for finding your own clients. But, if you’re the kind of person who would rather wait in line at the DMV after eating 3 bags of cold Taco Bell™ than promote your new business, you’ll need top-notch training on how to attract clients to your business.
This is one of the reasons we recommend Bookkeeper Business Launch, they provide plenty of marketing resources and training to help you.
This comprehensive article on The Balance can provide you with more details on the important skills that all Bookkeepers should have.)
How much does it cost to start a Bookkeeping business?
If you have no experience, certification, or potential clients, then launching your own Bookkeeping business will cost roughly $2,000 – $3,000.
I know that for some people, that might seem like a big investment, however, I’m keeping it real here.
First, you have to start with learning the basics. You can’t seriously get started until you have the right training and a game plan.
You have to keep in mind the benefits of a bookkeeping business from home. You will have a reliable source of income and your monthly expenses will be SUPER low. Almost all of your income will be profit!
Another benefit is that numbers don’t change. So unlike other career paths, you won’t have to continually invest in updating your skills.
And unlike many other work-from-home business start-ups, you don’t have to make any space for inventory. (Bookkeeping might not be creative or trendy, but your home will be more organized than all your friend’s selling tie-dye shirts on Etsy!)
With a laptop and a stable internet connection, you could run your business for years from the kitchen table!
How much can you make owning a bookkeeping business?
As a bookkeeper, you can make a good living while having the flexibility to work from home. But how much can you make owning a bookkeeping business? That depends on several factors, including how well you market your services and how many clients you land.
The first thing you need to consider when starting a bookkeeping business is how much time you can devote to it. If you want your business to be successful, then make sure that there’s enough demand for the services offered by your company before committing yourself full-time or part-time hours per week on this venture!
If you have already have a full-time job when you launch your business, then this can be challenging because there isn’t room to take on many bookkeeping clients your regular work schedule. In this case, you’ll have to carefully consider how many hours per week you can realistically spend on your business.
Working as a solopreneur bookkeeper, on a part-time basis, you have the opportunity to earn $1400 to $2000 by landing 4 or 5 clients.
How much can Bookkeepers charge per hour?
On average, Bookkeepers charge anywhere from $55 to $110 per hour. Your hourly rate will depend on:
- the industry you serve
- the services you provide
- the experience you have
- your region, or location
Are you taking over the Accounts Payable function – meaning, are you reviewing invoices for your client, printing the check, and then going to the Post Office to mail it? Does your client have on average 20 invoices a month or 40 invoices a month? Or, are you going to help your client automate this process and go paperless?
What about payroll? If you’re assisting your client with payroll processing, then fantastic! That’s a great money-maker. But how many employees? Are they hourly or salary? How frequently do they need to be paid?
Many factors will affect the rate of your services.
Most savvy Bookkeepers will work with their clients to define a scope of work and then charge a flat monthly retainer. That range could be anywhere from $500 to $1500 per month.
How much could you earn with just 5 to 7 clients?
(Pro Tip: Network with other Bookkeepers and learn how they package their services. And that’s why it’s great that Bookkeeper Business Launch has a robust Facebook group with over 7,000 members! Read my review of Bookkeeper Business Launch here.)
Small business owners will happily pay someone they know, like, and trust to manage their books. They save time, headaches and their payment to you is a tax-deductible business expense. It’s a win-win relationship!
Tips for Bookkeepers to earn more money
Today’s Bookkeeper can earn even more money with very little effort by offering “extra” services. In fact, if you’re NOT offering other services, you’re leaving cash money on the table.
One way to earn more money is to become a tax preparer. After you launch your business, you should work for a year and gain confidence in your skillset.
Then you should continue your education with an online course and become familiar with various tax forms and schedules. If you decide to branch out and offer tax preparation to your list of services, you could easily be on your way to earning a six-figure annual salary.
If filing tax forms isn’t your cup of tea, you consider if you could branch out and offer marketing services.
71% of small business owners hope to attract new business through the use of social media. Of the social media networks, Facebook is the most commonly used by small businesses.
A savvy Bookkeeper could earn an extra $250 to $350 per month for Facebook management services. And if you like to write emails, how does an additional $75 to $100 per month sound for managing a client’s monthly newsletter?
By offering additional services, you could even turn your business into a family affair. With a little patience, you could teach your teenager or spouse what you need to get done.
As an entrepreneur, your annual earnings will depend on the skills you develop and how many hours per month you’re able to work. Once you fully grasp what’s possible, the sky’s the limit!
Best Bookkeeping Courses
Starting your own Bookkeeping Business today is easier than ever thanks to courses that can serve as your step-by-step guide.
The best way to learn bookkeeping at home is with Ben Robinson’s Bookkeeper Business Launch Course.
Bookkeeper launch is the most comprehensive online course that anyone can take!
If you’ve been wondering how to start a bookkeeping business with no experience then this is the course that covers EVERYTHING!
At first glance, it’s a bit expensive. However, it does set you up for success. It even includes detailed training for Quickbooks Online!
I hope this post helped you decide if Bookkeeping in the right home business for you and what steps to take on your journey towards work-life There are a lot of things to consider when you start your own bookkeeping business, but with careful planning and determination, you truly can make a substantial income from home!
Hello there! I’m Jill, thanks for visiting my blog. I help women create work-life flexibility and financial stability by building a profitable online business they love. Feel free to send me a message and let me know how I can help YOU!