Typically, when you talk about starting up a home business the first thing thought that usually pops into your head is, “How much is this going to cost me”? The good news is that bookkeeping is a very low startup cost business!
In addition to that, there are many things that you don’t necessarily have to get until you actually begin to get clients. In other words, you don’t have to eat the price for months until you begin to make money.
When you do begin landing those all-important clients, you simply include the price of the software that you do purchase into the price of your bookkeeping services!
In saying all that, there are certain things that you will need before your bookkeeping business gets to that point. Allow me to give you an in-depth breakdown of the kinds of costs you will be looking at when you first get going that way there are no surprises along the way.
Bookkeeping Business Startup Costs
Makes perfect sense, right? If you are going to start a business you are definitely going to want to get some business cards. You can easily do this by going to Vistaprint.com and you can expect them to run anywhere from $15 to $25, and that includes shipping.
Keep in mind that even if you think your business is only going to be online I promise you that as you get going you will begin getting leads from word of mouth once people begin to find out what you are doing.
Besides that, why limit yourself to simply running your entire business online. Always be prepared to hand out those all-important business cards to gain valuable leads.
As a virtual bookkeeper, most of the things you will be doing will be electronic but there will still be a need for some basic office supplies.
Chances are most of the things you will need you will already have. So depending on what you already do have, let’s say anywhere from $0 to $75 to get you all set up.
Website Domain And Hosting
If you have never started your own website before, don’t worry it is very simple to do. The first thing you are going to have to do is register a domain name.
This is simply the name of your website (ex. bookkeepersparadise.com). This will run you anywhere from $15 to $40 a year depending on the name of your site but typically $15 to $20 is what you can expect.
After you purchase your domain, you are also going to need hosting. In a nutshell, hosting is what keeps your site up and running.
No need to get too technical here, all you really need to know is that you need it. This typically is set up as a monthly charge but depending on where you go you can also pay for it by the year.
For a month of hosting your site, you’re looking at $5 to $15 roughly although you may be able to find cheaper.
Just like everything else in life you are going to want to protect yourself and your business with insurance. In most cases, you will need a down payment of a couple of months. This will run you some in the ballpark of $150- $200 to get you going.
You are also going to need certain software to run your business and do all the number crunching for you right? You are looking at anywhere from $70 to $165.
The cool part is that this is the same software that will be used to work with your clients. This means that your clients will also use it, so you will end up being reimbursed for these expenses as your business grows.
Depending on where you live, you may or may not need a business license. Different states have different standards so this can be anywhere from $0 up to $200. This is for the initial licensing.
After that depending on the town, state, and country you live in you are looking at anywhere from $299- $734 on the high end of things. Do your research to find out what kinds of licensing will be required for you depending on the state where you live.
Setting Up Your LLC
LLC stands for Limited Liability Company and this is something that you are definitely going to want to research. Don’t try to become a lawyer, you’re becoming a bookkeeper.
Do your research on LLCs. This isn’t something that you have to have set up initially, but as you start getting clients you are going to want to have it so know what it’s going to cost you beforehand. This can cost anywhere in the range of $350 to $600.
This is also something that you don’t really need right from the get-go but having a scanner once you get going is probably going to be a good idea.
With technology ever-evolving you can simply use your phone to scan documents but eventually having a real scanner is probably going to be preferred. You can find a good scanner in the $150 to $350 range.
Database Management System
This is to help manage your business by sending emails to help keep up with potential clients. Something like using Aweber is around $20 a month but this isn’t really required.
You can use a simple spreadsheet and accomplish the same thing. It will just require a little more work on your part.
And The Grand Total Is?
If you add up everything to get you going along with the few things that you can put off until you start getting your clients you are looking somewhere in the ballpark of $800 to $1,800 in startup costs.
These are pretty conservative numbers, but the trick is not to go all out from the beginning. Simply get what you have to get and upgrade later.
In other words, if it’s not broken don’t fix it. Don’t go out and buy something new until you NEED something new.
As your business gets going, you will figure out what you need to upgrade to make your business run faster and more efficiently. Until you get to that point, go bare bones.
Remember that this is your business, so treat it as such and don’t break the bank in the very beginning.
Do These Numbers Scare You?
According to the SBA (Small Business Administration), the average startup cost for a new business is somewhere in the ballpark of $30,000! Now, with the high end of starting up your very own bookkeeping business, we are looking at under $2,000, and that’s at the high end of things.
When you put things into perspective you see how cheap it actually is to do. This is one of the reasons why bookkeeping is the #1 most profitable business out there and a low startup cost business for you!
Still Not Sure If Bookkeeping Is For You?
Going into business for yourself, no matter what kind of business it is can be pretty scary. That is one of the purposes of this website, to lay everything out there so that you can make an educated decision on whether bookkeeping is a good fit for you.
Would it ease your mind if I told you that you could recoup 100% of your investment and even come out ahead with your very first client? What if I said that you could have your 1st client within 3 months?
Simply take a 10-week course to learn about bookkeeping as well as marketing your bookkeeping business!
Here is what I want you to do. Check out my review for the #1 bookkeeping course online. After that, you will see the potential in operating your very own bookkeeping business from the comfort of your own home.
You are here because you are doing what you should do when looking to start your own business… and that is research! So take the next logical step in your research and check out this amazing bookkeeping course.
If you have any questions, comments, or concerns please don’t hesitate to drop a comment below and I will be sure to get to you ASAP!