In order to determine if a bookkeeping business is the right move for you, one of the most burning questions you probably have is how much do bookkeepers make?
After all, you probably wouldn’t accept any new job without first finding out how much money you would be making, so this isn’t going to be any different.
More importantly, there is a way to demand a premium wage as a bookkeeper but I will get into more of that in a minute, but let’s get started.
How Much Do Bookkeepers Make?
How To Get Paid As A Bookkeeper
Before I get into how much you can make as a bookkeeper, I thought it would be important to touch on real quick how you will truly be a success in the field of bookkeeping.
After all, what good is knowing how much you can make if nobody wants to take you on as their bookkeeper?
To provide value to your clients you simply need to be personable. Care about your clients’ business.
Find ways to improve their finances. Simply listen to them. By doing these simple things, you are going to guarantee your success as a bookkeeper.
Don’t simply be someone that simply organizes their books. There are a million other bookkeepers that can do that.
You need to be the one that takes a vested interest. Do these things, and you can bet that the clients and the money will begin to flow in.
Now that that is out of the way lets get back into how much you can make as a work from home bookkeeper.
A Hypothetical Breakdown
Okay, let’s do a little number crunching to give you a general idea of what you can expect in terms of cash flow for your business.
For this example, let’s say that you are going to charge your client $300 a month for your bookkeeping services. This is a pretty good number to expect when obtaining clients, but I should also mention that I have seen bookkeepers earn far more a month per client.
It really just depends on what all is involved with the business, but $300 a month is a pretty good number to expect.
So, the first thing that we have to do is add in expenses that you will incur to do the bookkeeping for each client that you obtain. It would be misleading for me not to mention this part of it.
So, we are going to subtract $50 a month from the $300 to go towards your expenses. That leaves you $250 profit per month per client.
Multiply that times twelve and you get a profit of $3,000 per client per year. Getting five clients will approximately bring you $15,000, ten clients $30,000, twenty clients is going to bring in $60,000 a year.
How Much Time Per Client?
You may be saying to yourself, that’s all fine and dandy Nate (that’s my name in case you didn’t know… geez here is my About page) but how much time will I be putting in towards each one of my clients per month? That is also an important piece of the puzzle.
After all, what good is it making $250 a month per client if you are spending 40 hours a month doing their books?
You should expect, on average, to spend about 3-4 hours per month per client. Keep in mind that this may be a little longer when you are first beginning since it will take a little time to familiarize yourself with your client’s situation.
Also, in many cases, you may have to clean up your clients’ books from back before they hired you. I should mention that you WILL charge extra for that as well.
But, back to the time. So, you’re spending 3-4 hours per month per client. In this example, we will just say 4 hours per month.
So, if you have 5 clients, that is 20 hours per month or 5 hours a week. 10 clients come out to 40 hours a month and with 20 clients you should expect to spend about 80 hours a month doing their books, or 20 hours a week if you talking a normal 5 day work week.
Let’s say that your goal is to work 40 hours per week (Monday through Friday) just like you would in an average full-time job. After doing the math we know that you would need 40 clients.
How much monthly positive cash flow will that bring you? How does $120,000 a year pure profit sound to you (remember this is after we took away your expenses) not to shabby if you ask me.
Let’s Keep It Real
Please keep in mind that this is a rough example as to the potential that you can earn a bookkeeper. There are many factors that go into the above examples but generally speaking that is a pretty good expectation.
You should be able to see how you are able to turn this into a full-time income. You also have to keep in mind that you’re not going to have 40 different small businesses knocking on your door the second you start your business.
Building up your clients is a step by step process. The better you get at marketing your business the quicker they will come knocking on your door asking for your services.
I am not here to exaggerate things. Starting any legitimate business takes a lot of hard work and bookkeeping is no different.
But, with the right attitude combined with the right characteristics that make up a great bookkeeper, this can lead to a pretty lucrative business for you.
Quick side note, did you know that bookkeeping has the highest profit margins out of any other business? Along with this is the fact that it also has one of the lowest start-up costs out of any business! It’s win-win for you!
Are You Ready To Learn Bookkeeping Online?
Great! If your answer is yes then I have to say that I think you have made a very wise decision, but where do you go from here.
Now that I have answered that all-important question, how much do bookkeepers make it’s time to take that next step.
How do you learn everything you need to know about bookkeeping and how to market your business? Allow me to show you my review on the top bookkeeping course available online.
Even if your not sure if this is the right move for you, check out the review for a detailed explanation of EVERYTHING that you will learn on the inside.
Don’t cheat yourself by thinking you cannot do this without looking into it a little further. I simply ask that you make an educated decision before you move along to something else.
Whatever you decide, best of luck to you in whatever you do. So, if you would like to learn more check out my #1 recommended bookkeeping course online.
If you have any questions, comments or concerns please don’t hesitate to drop a comment below and I will be sure to get back to you ASAP!