Bookkeeping Business Plan – How To Develop It?

Starting a bookkeeping business is an extremely financially option. There will always be a great need for professional bookkeeping services specifically for small to medium sized companies. Developing a tight and effective business plan should be one of the first steps you take towards achieving success in your bookkeeping business. By designing this plan you are effectively laying out the strategy and goals you want to achieve within a given time.

The steps in creating a business plan for your bookkeeping business are ideally the same as for any other venture. Firstly market research is key- see what your competitors are doing right, and wrong. Research can be easily performed on the web, or you could call up your competitors feigning interest as a potential client to see what services they offer. Learn from your competitors mistakes so you don’t follow the same pitfalls, and improve on the positive aspects of their business.

Potential clients are the key to establishing any successful business; you need to know what the client wants and how to keep them happy. Further to this you need to know how to attract the client in the first place. For a new small bookkeeping business localized pay per click campaigns could be a great method of turning on-line clicks to off-line sales.

In setting up your business plan, you need to know exactly which clientèle you wish to be targeting. Would your bookkeeping business be best suited to dealing with private individuals, small companies or full on corporations? It is advisable to start small and work up to larger clients.

Many smaller scale bookkeeping businesses begin as ‘home based’ and this should be not seen as a negative in the plan. If you have devised a strong plan, growth of the business will be the key and you can plan to move into an office space when it becomes financially viable and turning a profit. It is worth considering the needs of your potential clientele, and in which location you will be best able to serve them. Further to these needs you should likely decided on the required technology to effectively manage your requirements. Again your needs will most likely develop as your business develops, so starting small is a good idea.

As was touched on earlier in this article, the internet can serve a great deal of use in developing your bookkeeping business plan. Firstly it can provide thorough research on your target market, your competitors, and the needs of your potential clientele. Further to research it will be clear to see the most effective form of internet advertising, which will be more than likely localized pay per click marketing campaigns.

The most important aspect of a successful bookkeeping business plan, is to be thorough in everything you set out to achieve. With proper research, understanding potential clientele, and knowing your competition you will have the best chance of not only developing the strongest plan, but also creating the foundation for a successful bookkeeping business.

Bookkeeping From Home – Start a Bookkeeping Business For Independence and Profits

Have you considered bookkeeping from home as a way to earn money and work on your own schedule? Whether you have experience or not, starting a bookkeeping business is a great way to be independent, work your own schedule and make great money.

With the economy in the worst state it has been in, more and more people are making the decision to work from home. Why? It helps save a lot of money on gas, childcare, fast food lunches, etc. Bookkeeping from home is a wonderful career, especially if you like math and putting things in order.

What do you need in order to start a bookkeeping business from home? First of all, you must be responsible, organized and motivated. You need a good business plan to outline what your expenses will be, what equipment you may need, and what type of marketing methods you will use to advertise your business.

Your first step after getting organized will be to find clientele, which may be the most difficult part of your effort to start bookkeeping from home. Once you have 2 or 3 clients, it will be much easier for you to build your business. Word of mouth is the best form of advertising!

Do you have previous experience in bookkeeping or accounting? This will be an easy home business for you to get involved in. Even if you have no experience, there are many online guides and courses that will give you all the information you need to start bookkeeping from home.

Of course, there are many other things you will need to know before you start a home business in the bookkeeping field. You will need the right software to keep your clientele list in order. You will also have to decide what your rates will be, and make sure you are competitive. These are just a few things you need to know about starting a bookkeeping business.

If you are tired of working to make someone else rich, and weary of the 9 to 5 grind, bookkeeping from home may be the answer. Find out more about how you can start your own profitable home business by visiting the links below.

Bookkeeping Business Tips For Developing Reliable Financial Projections

Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast. But then, the information changes, now it’s raining, and you’re caught without your umbrella!

Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either. It is a combination of:

o knowing your business;
o understanding your marketplace;
o setting goals; and
o using common sense.

As a business coach, I know that every small business needs to make reliable financial projections at one time or another. Forecasting is critical during the following stages of a company’s life span:

o when seeking financing
o gauging the profitability of a new product or service
o determining the impact of staff expansion or cutback
o assessing other business decisions

The many components of forecasting boil down to the following five bookkeeping business tips that for years I’ve shared with business coaching clients:

Bookkeeping Business Tip #1: Review Actual Year-To-Date Results

Start by looking at where you’ve been. If you use an accounting program like QuickBooks you can print out a Profit & Loss statement showing year-to-date results. Check the statement for all financial transactions that occurred up to the date of the report. Reconcile the report to your bank statements. (If you don’t use an accounting program or bookkeeping service, then take the difference of the total year-to-date cash receipts and total expenditures. This should equal your profit or loss.) Examine each line item to make sure that it makes sense – is your year-to-date revenue figure where you anticipated, or has it fallen short? Are expenses higher than expected?

Bookkeeping Business Tip #2: Establish Goals and Incorporate into Your Forecast

What do you wish to accomplish by year’s end? Do you want to introduce a new product or service, increase revenue on existing products or services, decrease spending, hire a new employee, outsource a bookkeeping service, or launch a marketing campaign that will position the company for the beginning of next year?

Write out your objectives and then choose three to five which are the most important to accomplish by the end of the year. Determine the needed steps to achieve the objectives. Which Profit & Loss line items will be impacted? Adjust your forecast accordingly. For example, your goal may be to increase revenue 10% by year’s end or to launch a marketing campaign now so its benefits will be felt in the first quarter of 2009.

Bookkeeping Business Tip #3: Forecast Variable Costs

Variable costs are costs that change in step with revenue change. For example, you are selling more widgets; therefore, your labor costs and materials costs will increase in relation to the revenue increase.

Using the concept that Forecast = Projections + Predictions, combined with the knowledge that variable costs change in step with revenues, forecast each month’s variable costs. Forecast each line item separately. Look for opportunities to reduce costs, and be aware of likely future influences on each cost.

Bookkeeping Business Tip #4: Forecast Fixed Expenses

Fixed costs are relatively stable costs that recur every month. Examples of fixed costs are rent, telephone and bookkeeping service fees. Forecast the month’s fixed expenses by using the same concept used to forecast variable costs (Forecast = Projections + Predictions) and the knowledge that fixed expenses tend to be relatively stable and do not change in step with revenues. Again, forecast each line item separately, looking for opportunities to reduce costs, while keeping in mind any likely future influences.

Bookkeeping Business Tip #5: Forecast Net Profit

The final step is to evaluate your forecast for net profit. Is the profit forecast is reasonable and acceptable? If not, re-evaluate each line item including revenues and make appropriate adjustments. Also, anticipate non-operating income and expense items, and include them in your forecast.

Your financial projections may not be perfect at first, but we didn’t learn to walk without falling down. As a business coach I’ve seen others get a few bumps along the way. But I guarantee that if you follow these bookkeeping business tips, set your financial projections on paper and revisit them frequently, you will achieve your goals faster.

Tips on Starting a Bookkeeping Business From Home

Being you own boss and not working for somebody is the best thing that can happen to you. If you are exploring the option of starting your own business from home then select the one which has a low entry barrier and requires minimum initial investment.

One such business is the bookkeeping business which meets the basic criteria of low technical know how as well as requires just an investment in desktop computer. That said the low entry barrier means that there will be very tough competition and you will have to use all your marketing skills to drum business.

If you do not know bookkeeping then the first thing that you need to do is to make sure that you have the understanding of the bookkeeping business. The best way to learn the bookkeeping business is to make sure that you get yourself enrolled in the online bookkeeping courses or classes. These are adequate as far as providing you with the expertise on bookkeeping.

The next step is to have the accounting business cards printed and also make sure that you have the business registered with the local chamber of commerce. To gain a few clients you may have to reduce your bookkeeping rates initially. That said there may be some difficulty and it is your persistence that will pay off.

Once you have few clients then the next logical step is to hire freelance bookkeepers to work the business for you and you should concentrate on getting more business. The bookkeeping business is really volume business. The more the volume the more profits you will make.