Starting your own bookkeeping business is one of the most profitable home based business. Not only that, you have the opportunity to turn your passion about bookkeeping into a full time business! However, before venturing into bookkeeping business, you need to consider the following factors:
1. Bookkeeping skills and experience – you should have the basic experience of handling bookkeeping jobs as well as proficient in bookkeeping procedures. Although it is not mandatory that you should possess qualification in accounting or bookkeeping, it is an added advantage if you have some form of formal training in this field.
2. Target market – although the demand for bookkeeping services is huge as virtually all business need to maintain proper financial records, however, the competition of bookkeeping services is keen as the barrier of entry into the business is low. Therefore, it is important for you to determine what sort of business that you would like to focus on. For example, you may consider providing your bookkeeping services to small business owners who are providing cleaning services.
3. Business plan – like other business, having a business plan is fundamental to the success of your bookkeeping business. If you are planning to start your services from home, then your start up cost should not be your major concern as it will cost you probably $2,000 to $3,000. Your plan should also cover your advertising and marketing of your services. If you were to target small business owner, then advertising in your local classified ad could a better option as the cost is low and yet effective.
4. Basic tools – a personal computer, user friendly bookkeeping software and a printer is a must. These 3 items are considered the basic tools required for your business.
Other things that need to be taken into consideration before you start your own bookkeeping business including when and where to find an accounting mentor when the need for consultation arises.