You have landed on this post because you are giving some thought about potentially starting up your own bookkeeping business from home. So I thought I would create this article explaining the 4 things you need for your start up bookkeeping business.
Of course there are a lot of different aspects and variations of exactly what you will be doing, but we can sum up your new SUCCESSFUL business venture with the following 4 categories:
1. Gathering Facts
The first thing you will be doing is simply gathering facts. When doing this for your bookkeeping business, you need to act like you are a reporter or a detective. The only difference being, these are financial facts that you will be dealing with. Then you will simply record all the financial transactions as they come in from that particular business client.
You’re going to record and classify these transactions. By this I mean putting them in the right categories: utilities, house payment, groceries… the only difference is that you will be doing it for a business. And then, finally, you’re going to be reconciling that data.
When I talk about reconciling, you are simply going to make sure that everything is perfect. You need to make sure that the numbers are right! If your client wrote a check for $100, you need to double check that it didn’t clear for a $1,000… make sense?
So after you have done all of your fact gathering, the next step is to do the reporting. This is simply putting all the data into financial statements.
There are three different types of financial statements:
- Balance Sheets– These show what the business owner owes (liabilities), what they own (assets) and what is left over (equity).
- Income Statements– These simply show the income coming into the business followed by the expenses. So when all is said and done, you end up with your clients net profit.
- Statement of Cash Flow– This basically shows the business owner where all the cash has gone.
3. Analyze Information
Understanding how the three above financial statements work is where you are going to separate yourself from your competition and add tons and tons of value as a bookkeeper. You are able to analyze these documents, then you are going to be on the fast track to running a very successful bookkeeping business.
This is where business owners fall off the wagon. They simply don’t understand financial statements. Put your focus on learning the ins and out of them and you will be set.
What you will want to do then is to teach your client exactly how they work as well. After all, don’t you think that it is important for your clients to truly understand how they are spending their own money? In return, they will truly appreciate you as their bookkeeper and the trust and respect for you will grow by leaps and bounds
You can bet that you will then see new opportunities and leads coming in simply from word of mouth directly from your clients.
4. Be There For Your Client
I kind of hinted it what the fourth one is all about but allow me to elaborate a bit. It is very important to be there for your client. This doesn’t mean that you have to know everything, and if there was something that you were not sure about you need to let them know that you can find the answer by reaching out to others.
All you really need to do is listen. Many times, business owners want to know that they are being heard. Just take a vested interest in their business and you will have already won.
Show them that you have all the character traits needed as a reliable bookkeeper.
There You Have It… Bookkeeping In A Nutshell
Let me elaborate in the above statement. SUCCESSFUL bookkeeping in a nutshell! Any bookkeeper can easily learn the first two simply by studying. The last two will be what separates you from other bookkeepers out there and will give you a thriving bookkeeping business.
Also, by being a pro with analyzing information and simply being there for them, you tend to be paid very well for your extra efforts. The value that you will be providing will pay you back ten fold!
So What Now? How Do You Become A Bookkeeper?
I have searched and searched for ways to become a bookkeeper online. Sure, you can do the typical and numerous colleges that provide online classes but I can assure you that your not going to get everything you need unless you obtain both an Accounting and Business degree. Even then, you are going to be lacking hands on experience.
On top of that, you are probably looking at least a year of classes along with classes that you don’t even need to take but are forced to as part of the curriculum. If this is the way you choose to go about learning bookkeeping and marketing there is absolutely nothing wrong with that.
But, in my humble opinion, there is now a better way! Do yourself a favor and check out my #1 recommended bookkeeping course online to see a much better option. Not only are you going to learn everything about bookkeeping including effectively analyzing information and being there for your client, but you are also going to learn how to market your services online!
In addition, there is no need to take classes for a year. Instead, this course is designed to be gone through in approximately 10 weeks!
I hope this article provides you with a little insight on was it takes to run a successful bookkeeping business. Please don’t hesitate to drop any questions, comments or concerns in the comments below and I will get back to you ASAP!