Today small businesses need a good bookkeeper more than ever. With increased financial scrutiny, IRS tax implications, and high expectations of accountability, you have an opportunity to start a successful part-time home bookkeeping business.
Many small businesses do not have ample resources to hire a full-time or even part-time bookkeeper. Rather, they contract their bookkeeping out to a service that can handle their limited transactions, write checks, and reconcile their bank statements.
Why not use your accounting skills and expertise to open your own home bookkeeping service? With only a few clients, you can be well on your way to a great part-time income.
Skills Required: Study and experience in accounting practices. Accounting software knowledge.
Starting a home bookkeeping business isn’t for amateurs. Bookkeepers must be familiar with proper bookkeeping procedures and practices and have knowledge of Generally Accepted Accounting Principles (GAAP). Usually, bookkeepers learn their skills from college level accounting courses, and/or years of practice in an accounting office or accounting department of a larger business. This is where they learn the proper procedures and rules for documenting financial transactions, balancing ledgers, and preparing financial statements.
There are reputable bookkeeping certification programs available as well. Becoming certified can help give you and your home bookkeeping business extra credentials.
In addition, it is necessary to be familiar with accounting software. Popular software packages such as Peachtree or QuickBooks make the bookkeeping process simpler, more efficient, and automate many routine accounting functions.
Startup Expenses: $100 -$4,000, depending on the tools you already have
If you are an experienced bookkeeper, you may be ready to jump into business right away. If you have a computer and accounting software you already have most of the tools necessary. You can purchase a good computer for under $1,000, and accounting software packages usually run about $200.
Additional startup expenses might include forming a filing system for your clients, a separate business phone line, a printer, and a fax machine.
Initial marketing costs may be needed to get your first clients. You may need to run ads in newspapers, build a website, and make printed marketing materials. These can cost a few hundred to perhaps a thousand dollars to get your services marketed and build a reasonable client base.
Monthly Revenue: $300 – $6,000 per month
You can determine your fees for a home bookkeeping service. Generally, fees run between $30 and $75 an hour for bookkeeping services. Just one client at $30/hour can earn you $300 a month for just two hours of bookkeeping services a week. Even starting a part-time home bookkeeping service with a few clients can earn you thousands of dollars of regular income each month.
Monthly Expenses: $100 – $200
Your home bookkeeping business is a service business and should be relatively self-sustaining. One important expense you should have is Errors and Omissions and business liability insurance. Your other regular monthly expenses will probably be for paper and office supplies, fuel to make client meetings and obtain paperwork, or you could use the services of a professional courier to make deliveries between your home and your client’s office.
