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.

Good With Numbers? Start a Bookkeeping Business!

Do you really want to start a bookkeeping business? Then you better feel really comfortable with numbers and a bit of accounting experience is also called for in this type of business. When you start a book keeping business from home other business owners will be counting on you to keep accurate records of their business transactions and income. You will need to, not only be highly organized, but a sound understanding of business accounting, an understanding of state and federal tax laws, and full knowledge about bookkeeping practices are needed if your book keeping business at home is to prove at all successful.

Do not make the mistake of believing that you can start a bookkeeping business without the necessary knowledge and experience required by all independent bookkeeping professionals. It is not a simple as learning to use a calculator and learning how to use a computer program: there’s a lot more expected of the professional bookkeeper. Businesses will be relying on you to literally track their business actions throughout the year and you might be responsible for preparing important documentation to prepare the business for tax season.

When you decide to start a bookkeeping business, having an understanding of the bookkeeping software applications commonly used to track business transactions is a plus, but you also need to understand every action you are making as you utilize the software applications. Starting a bookkeeping business at home really starts with educating yourself about bookkeeping, account management, and about financial document preparations. You will also have more success starting a bookkeeping business at home after you have managed to get some experience in the field working either for an accountant or a bookkeeping firm.

Your knowledge and experience, as well as your sound understanding and appreciation for numbers will be what make your book keeping business at home a true success. First, you will be far more marketable: businesses often prefer to work with bookkeepers that are trained, skilled, and fully educated. Getting a secondary education from a local school or even enrolling in online courses for accounting can be a good place for you to start. After earning a degree in accounting, you can then pursue some outside work at an accounting firm where you can get the experience you will need to make an at home bookkeeping business successful. Bear in mind that the more experience you have in bookkeeping, the more money you will be able to legitimately charge for any bookkeeping services you offer the moment you start a bookkeeping business at home.