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How To Start a Bookkeeping Service
Businesses need to have up to date and
accurate account of their business income and expenses. Many business owners
and professionals either do not like to do their own bookkeeping and/or prefer
to focus their time and energy on other aspects of their business or
This creates an opportunity for bookkeeping
services. A bookkeeper adds and subtracts a business's income and expenses,
makes deposits, reconciles bank statements, handle payroll, do billing and
A home based bookkeeping business
service allows self employed professionals and/or other small or home based
businesses to focus their time and efforts on the aspects of their business
that make them money. The bookkeeper's clients drop off their receipts and
sales slips to be posted to a ledger or computer data bank. The bookkeeper
provides the client monthly statements and information for his yearly taxes and
other any other contracted services.
What to Charge
Bookkeepers normally charge between $20 and $50 per hour for regular services
and more for specialized services such as preparing tax reports or financial
statements. Some bookkeeping service businesses charge a flat monthly fee. This
fee typically ranges from $200 to $800 per month.
The Market for Bookkeeping Services
Many small business and home based business owners can not afford a lawyer of
professional accountant. They simply need someone to keep track of their day to
day operations to be able to tell where they stand financially.
The target market for a home based
bookkeeping service are other home based businesses, small businesses or
professionals that are too busy or prefer not to do the bookkeeping themselves.
Typically, a bookkeeping service will give
each client a report of all of their invoices, check, tickets, etc., that are
brought to the bookkeeping service. These are items that are required by the
IRS. You will also need to provide a monthly statement as well as any other
services that are offered and requested for.
A bookkeeper is legally obligated to
accurately and honestly reflect their client's profits that he is aware of.
Honesty on the part of the bookkeeper is crucial.
What you will need
It is possible to start and operate a bookkeeping service without a computer,
keeping only handwritten records. This however limits the profitability of your
home based business. To make some serious money with a bookkeeping business,
you will need a computer.
You can get a computer and the programs
necessary to operate a bookkeeping business for far less than $1,000. If you
are not buy a computer and programs, you can lease both of these for relatively
How To Charge
Bookkeeping services charge by the hour. The fee usually start at $20 each hour
plus any additional services or information that are required, such as year end
Advertising and Marketing
Have and maintain a professional image with the use of a stationery, business
cards, brochures. Be sure to hand out your business cards to potential clients.
Be visible in the community. Attend business
related events such as fund raisers, charity events, etc.
Place an ad in the service section of your
local paper. Mail brochures to businesses in your area describing the services
Try to get an easy to remember phone number
or convert it to an easy to remember name.
List the telephone number of your business in
the business section of the paper with A to get it listed first in the yellow
If possible, find a professional consultant
such as a CPA, that you can seek out for advice. He or she will probably not
worry with your bookkeeping service taking potential business clients away from
them because most of the accounts that your business takes on could not afford
You need to have some knowledge in bookkeeping. You can obtain this knowledge
through work experience and/or by taking a bookkeeping course.
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Contact your local community college or the
www.aipb.com for information
on bookkeeping courses.
about the author
Jose Valdez is the owner/webmaster of
A Guide To
Starting A Business.com
Based Business Ideas.com