March 5, 2016
How to start a Bookkeeping Business – Two Important Things That You Need to Consider Before Starting
If you are a bookkeeper or have financial qualifications why not think about managing a bookkeeping business for yourself?
You may need more background in the field of finance if you are thinking to start with a bookkeeping business. If you don’t have even one, then you can hire qualified bookkeepers from the institute of bookkeepers or from any other agencies you may know.
As with most businesses, you will need a customer base and a marketing plan. It is normally smaller business firms that require the services of a bookkeeper and their job will be more diverse as you will hire sole traders like electricians and plumbers.
Normally, work is required to update sales and purchase ledgers with all invoices from clients and suppliers and to reconcile this with bank statements regularly, maybe on a monthly basis.
As your business starts to grow, and so with it the number of employees, this is the time for you to find someone you can trust to keep you records, computing for taxes and many other things.
However, before you hire a bookkeeper, take a look at the questions below as a guide for you to consider before you decide. You may think that you are capable of doing it yourself:
1. Are you an expert in everyday bookkeeping?
This is important, and usually the first question for all of the small business owners when they are thinking of hiring somebody to handle their records. Of course, you will not allow a bookkeeper to manage your book of record without any experience. Read more http://www.tpb.gov.au/TPB/Subsidiary_content/Reg_info_sheets/0296_Code_of_professional_conduct_information_sheet.aspx
Because of this, may I suggest that you should you have a little experience in this field, try out as a part-time bookkeeper at the CPA offices, where even full-time moms that stay at home and are working successfully. In this way, you can spend your time looking at other business opportunities while you still manage and maintain your books’ sets for your business. Prior experience as a bookkeeper is necessary if you would wish to start working in the bookkeeping world.
2. Do you have a minimum capital cost?
Sometimes you would hear from the experts that there is no need to spend high capital for starting a business, but the reality is, it is a need – much needed. Of course you have to invest in the latest software to be used for your bookkeeper, all the required technology, printers and other equipment required for the job. These will cost you thousands of dollars, aside from your registration for your business. Budgeting your capital is massively important since it will be the basis of how much the minimum capital you need for your business.
Nonetheless, there are still other necessary factors that you should take into consideration, like how you will find your first ever client; do you have the capability on using the bookkeeping software; are your bookkeeper skills enough for the services needed, etc. You need to consider all this and more before deciding whether or not you are going to start a bookkeeping business for yourself.