Is Starting a Bookkeeping Business
|
| Pros | Cons |
|---|---|
| You are your own boss. | You are accountable for everything, good and bad. |
| You make your own hours. | You put in a lot of hours before you see results. |
| You can make more money. | You have to find your own clients. |
| You don't need a degree. | You need knowledge and experience. |
| You have the satisfaction of knowing this is your company and you can do with it what you like and reap all the rewards of your hard work. | It's all up to you to stay ahead of the competition, keep yourself up to date on your bookkeeping skills, and create a successful company. |
| Bookkeeping business doesn't cost a lot to start. | All the start-up costs come out of your own pocket. |
Being Your Own Boss
When starting your own bookkeeping business, you don't have a boss riding your back all the time, instead you have your clients to ride your back. And you can't blame your boss when something goes wrong.
You call the shots, but you are the only one to blame when your clients are unhappy.
Making Your Own Hours
When you create your own company, you get to make your own hours. You don't have a boss yelling at you if you don't show up to work on time and you don't have to put in a request to take a day off to go to your child's school play or take a much-needed vacation.
However, you often work long hours, especially in the beginning just to get the company started and you are not compensated for all your time. For example, if you are paid by the hour, you're not paid for billing your clients or marketing and managing your business.
You need to take this into consideration when determining your bookkeeping rates.
In addition, at a job, you might be required to work 9-5, but the rest of your time is your own. With your own business, you have to be very disciplined and organized with your time so that you don't end up feeling like your bookkeeping business is a non-stop job that you never get to take a break from.
How much money can you make?
You can make more money starting a bookkeeping business than if you work a bookkeeping job because you're not splitting the fee with your employer.
In addition, you can charge more by the hour for several part time clients than you can make at a full time job.
However you don't receive benefits such as insurance or paid vacation and it is up to you to find your own clients, invest in any marketing and advertising fees in order to find those clients and collect the money from your clients.
How do you qualify to be a bookkeeper?
Although it is not necessary to have a bookkeeping degree, your clients are relying on you to be knowledgeable in your field. That's why they pay you the big bucks.
In addition, if you think it's hard to find work without experience, it's even harder to find clients that will rely on you to manage their finances unless you are very experienced.
Running Your Business
Unlike a bookkeeping job where you may work long, thankless hours and you have to do everything your boss's way, you get to run your own business however you like.
But you will have to make sure you stay ahead of your competition, are knowledgeable on all the guidelines, laws and latest technology regarding your bookkeeping field and if your business is not successful, you only have yourself to blame.
Start Up Cost
Unlike a job where you are paid immediately either a flat salary or depending on how many hours you work, in order to start you own business, you actually have to first lay out money.
The good news is that starting a bookkeeping business does not require a huge budget. Here's what you need to get started.
What Else Should You Consider To Be Sure you Are Right for This Business?
The First Two Years are Critical
It usually takes two years to plant a business and find out whether it is going to grow into a fruit-bearing tree or whether it will wither and die.
Your Reputation
These first years are very important because you are building your reputation. Always remember, your reputation is your number one asset. Once it is tarnished, it is very hard to rebuild it. So guard it at all costs.
You always want to go that extra mile to make sure the job is well done, even if it hurts you sometimes. In the long run, it will be worth it and you will put yourself ahead of your competition who may take the easy way out.
Make Sure You Have the Right Personality for Starting a Bookkeeping Business
If you are lacking in experience, knowledge or even finances, all those things can be acquired. However, you want to make sure you have the right personality for the job.
Click here
to read more about the qualities you will need to posses in order to run a successful bookkeeping
business.
Still Feel You Are Ready for Starting a Bookkeeping Business?
Good for you! That kind of determination will take you a long way in this business. Here's what you need to start a bookkeeping business.
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