If you’re looking for a side hustle, or to make some extra money, consider starting a bookkeeping business. It’s not too hard and with the right training, you’ll be able to start your own side gig that will grow into something bigger.
What is a bookkeeping business?
A bookkeeper’s job is to keep the records of an organization and make sure that all transactions are processed correctly, so you can have an up-to-date financial report at any time. The most important part here is accuracy: companies can’t have a financial report that is not correct.
Some of the important elements are: invoicing customers to make sure they pay for goods and services offered, collecting payments from them, issuing receipts, and making bank deposits.
While at the same time tracking payments coming in from customers, updating inventory levels, calculating payroll taxes, keeping track of expenses, and accounting for all these numbers.
If you already have a background in bookkeeping, you will be a shoe end. However, if this is something new to you, then it might be worth your time to take some training courses first.
In any case, the most important thing is becoming familiar with the accounting software you’ll be using, so it’s worth taking the time and plunging into this new world.
RELATED: WHY YOU SHOULD OUTSOURCE BOOKKEEPING TASKS
The benefits of starting a bookkeeping business
As a solopreneur bookkeeper overheads cost are fairly low.
For example, you don’t need a separate location for your office and only need to invest in minimal equipment and accounting practice management software.
Bookkeeping is flexible.
Bookkeeping makes for a great side hustle. You can do it part-time or full-time and you have the option of working from home. Also, bookkeeping is a low-stress job because it doesn’t require direct contact with clients. All communication happens over the phone and through email, so if you’re introverted this might be an ideal business for you!
Until you have larger clients or numerous clients, it should be very easy to juggle.
You can work from your own home which means lots of time saved traveling to and from an office.
You will learn a lot about finances and taxes which can come in handy for your own situation later on. If you’re good at math and have a knack for it, bookkeeping could be a great career for you if you want to make money as an independent contractor
How much does it cost to start and what do you need to know before doing so
You’ll need money for startup costs such as buying computer equipment (whether used or new) and hiring professionals to do the accounting software setup for you. The downside here is that it is an investment, but once you get started and make some profit, you’ll have no expenses other than your monthly bills.
Your clients need to be able to pay their invoices on time and in full which means people should trust you with their finances. If you don’t have an accounting background, it’s best, to begin with, a couple of businesses that can refer you to their friends and colleagues so they will trust your skills.
In order to build trust, you may want to think about starting a social media page and building a website. Websites can be pretty pricey, but you should choose a good developer because the ROI can be great!
If you have experience in this field start collecting testimonials from your previous clients to showcase.
To sum up, starting a bookkeeping business is easy if you’re willing to commit and want to work from home. The fact that you’ll be working from home and the flexibility of your work schedule will also be beneficial. The downsides are that there is money needed for startup costs, and it’s important for you to be trusted with your client’s finances.
Do You Have to Be Certified to be a Bookkeeper?
As a bookkeeper, you do not need any specific education. But like most businesses and careers, it is wise to at least have some kind of training or certification in order to build your resume.
While being educated does not mean that you are guaranteed a job, it can help you land one if you don’t have much experience as a bookkeeper.
However, if you already have experience working as a bookkeeper, especially in small business settings, then you have everything you need to get started with your own bookkeeping business. It may be the perfect
What’s the best bookkeeping software?
You have many great choices when it comes to the best bookkeeping software. Many of them are easy to use and offer a free trial (or you can even still try them for free, if they once offered a free version). Some might be more suited for your business needs than others. So choose one that fits your bill!
Quickbooks, Xero, and Sage are some of the more popular programs you can explore.
Starting a bookkeeping business can be an easy way to supplement your income, and you’ll learn a lot of valuable skills that will come in handy for other aspects of life. It’s not too hard if you’re willing to invest some money upfront on equipment and professional services like accounting software setup – but it is important to note the cons as well! If this sounds overwhelming or something new to you, check out our blog post about how we helped one entrepreneur start their own successful bookkeeping business with no prior experience.
