How to Start a Bookkeeping Business – Selecting Your Rate

If you are thinking about starting a bookkeeping business, at some stage you will ponder what to charge your clients. You might look at a fixed fee for your services or an hourly fee for services. Either way you will need to be sure that it is the right rate for your business.

I have been very fortunate as I have been in the position to talk to hundreds of bookkeepers across the country as part of my one day seminar. Some of those bookkeepers are already in their own business and some are thinking about starting. This has been a very interesting experience and a great opportunity to find out from many bookkeepers how they not only choose their rate but what they are charging per hour, or per hour equivalent.

What I have found fascinating is the difference in rate between established bookkeepers and those new to the industry and the perception of those new to industry to the rate charged. On average, people new to the bookkeeping industry select their hourly rate $15 per hour lower than those in business.

I found this very interested and decided to discuss and analyse this further as it was at every location that this occurred, not just an anomaly. People starting out were consistently charging a much lower rate than those in business, and often it was one third lower than established bookkeepers.

Through discussions, I found out that there were a few common reasons for this difference;

o Some people new to industry were not aware of the rates others were charging and did not know what a reasonable figure to select was;
o Some were lacking in confidence and felt they were not worthy of a higher rate;
o Some felt they did not have the skill set to charge a higher rate

What I found interesting was the common theme of either lacking in skills, experience or confidence and lack of knowledge of rates in general.

If you are setting up a bookkeeping business, when you do start thinking of rates, remember you are running a business and you need to be profitable. As a business owner there will be a number of expenses you need to cover which might have been paid as an employee. Additionally, you are providing a skill set which others do not necessarily have and there is a value on those services.

With a bit of research and thought into your specific expertise and skill set you will be well on your way to selecting a fair rate for service which will assist you in the growth and development of your own bookkeeping business.

How to Find the Best Lawyer

After you have been affected by prescription drug side effects it is very necessary for you to look for a prescription drug lawyer who will help you in processing your case. There are many lawyers available but not all of them will guarantee you quality services hence you need to take your time and asses the suitability of a given lawyer before you decide to hire him. Some of the factors that you need to look in a lawyer before you decide whether to hire one or not, is to read reviews that other people have offered about the lawyer. After you take your time and locate the best lawyer there are many benefits that you will enjoy. Here are some benefits that you will enjoy after you decide to hire the best lawyer:

The best prescription drug lawyer will help you in increasing your possibility of accessing compensation

The best lawyer will be able to advise you appropriately on what you will be required to do so that you will be able to access your compensation. It is unlike a case where you will be trying to prepare your lawyer and you end up making a lot of mistakes which will end up exposing you to different disadvantages while at the court of law. Remember in a court of law even a slight mistake while preparing your prescription drug lawsuit can end up making your case null.

Prescription drug lawyer will enable you save on time while processing your lawsuit

There are different types of papers that you will be required to prepare so that you will be able to present your case before the court of law. With a good prescription drug lawyer, the lawyer will help you in preparing the papers where you will avoid any major errors. This will make the hearing of your case go on smoothly hence saving you time that you may be required to spend in the court of law. It is unlike a scenario whir you will be trying to process the case by yourself which can end up exposing you to different forms of embarrassments due to failure to fulfill certain procedures required before your case can be heard.

When working with the best prescription drug lawyer you will save money while processing your lawsuit

The savings will come in where the lawyer will charge you fairly. This is unlike a case where you will be working with lawyers who will expose you to different forms of exploitation for them to gain more out of the services that they will offer you. The best prescription drug lawyer will also be popular where many people will prefer him for the services. This will end up making the lawyer earn more out of the services that he offers hence you will avoid cases of exploitation in working with the lawyer. It is a great benefit that you will enjoy after you decide to work with the best lawyer in case you end up wining your case. Apart from just wining the lawyer will advocate for you to be compensated the right amount that you deserve hence making it a great success.

How to Start a Bookkeeping Business – Your Business Structure

When you are commencing your bookkeeping business, you will need to decide on the structure you will use to trade. Are you going to be a sole trader or are you registering a Company? Will you go into the business in partnership with another bookkeeper and split the profits?

Although most bookkeepers understand the different business structures, it is import to be reminded of the pros and cons of the most popular choices available.

Sole Trader – This is a very popular business start up method due to the minimal cost involved. It is cheap to set up, administer and maintain. In Australia, a sole trader can apply to the Australian Taxation Office (ATO) for their ABN and they are underway.

Additionally if you wish to trade as a sole trader under something other than your own personal name, you can register a business name with the State you operate in. As business names are administered on a State basis if you want to trade in more than one state you will need to register your business name in each state. Being a bookkeeper, this probably will not apply as you will most likely operate in one state only.

Once you have your business name registered, you can then take your certificate of registration and open any accounts you require such as bank accounts and post office box accounts in your business name.

Some of the benefits of being a sole trader include access to personal income tax rates from the profit of your business endeavors, the cheap set up costs and minimal reporting requirements.

One of the biggest downsides to being a sole trader is the lack of asset protection. If anything goes wrong ion the business you are liable and if you are sued you do not have any asset protection. Anything in your name personally is fair game.

Another aspect which you may need to be aware of if ustilising a sole trader structure is the alientation of personal services income legislation. As a sole trader you will need to meet certain requirements to deem yourself a business. As a bookkeeper you may already be aware of this, but it is important to look at the legislation so you can be sure you will be classified as a true business to maximize your deductablilty of expenses in your business.

Company – This is more expensive to set up and administer as there are registration of the company fee payable to the Australian Securities and Investments Commission (ASIC) currently $400 for a Company registration. Then there is an annual filing fee of $65. There are also administrative requirements to run a company as well as the standard ATO reporting.

The main issue for people when choosing a Company set up is the cost and the ongoing administrative requirements. The positive aspect of choosing a company however is the limited liability protection available. This way if anything goes wrong, it is the Company which gets sued and generally not the owner of the business and your personal assets are protected as you are not personally liable for Company debt.

Additionally the taxation rate of a Company can be of influence. Since Companies are taxed at a flat rate of 30%, for some people this is better than their personal taxation rates and it is a positive factor. For others this tax rate may be much higher than their personal tax rates and it is a negative. It just depends on your personal circumstances.

Partnership – Sometimes people want to split the risk of a business venture and going into partnership with others. Predominantly most bookkeepers start out by themselves, but if you are interested in starting your bookkeeping business with someone else you might investigate the partnership opportunities.

Basically the partnership records all the applicable income and expenses and the ending profit is split between the partners and included as income on their personal tax returns. Partnership income is then taxed at your own personal tax rate which for some people is advantageous.

A draw back of a partnership is having to consider the other partners in business decisions. Additionally the partners are jointly and severably liable for any debts of the partnership. This means if you owe money to some one, even if you and your partner split things 50/50, if your partner can’t pay their 50% you are liable for it.

Think about your structure before you start your bookkeeping business and it will serve you well for many years to come.

Small Business Marketing Strategies

Small business marketing strategies identify and implement the goals of the company. A sound marketing strategy is inevitable for the success of any business. The strategy helps to focus the marketing on the business target. Small business marketing strategies include market research, identification of customer groups and target competitors and efforts to tailor the product pricing. The success of the strategy relies on the proper implementation of the formulated methods. It also judges the effectiveness of the marketing plan. Small businesses have unique marketing strategies to meet customer needs, while offering maximum profitability with minimum investment. Attractive marketing materials and ambient after sales support are also a part of small business marketing strategy.

Small business marketing strategies consist of three basic steps. They are increase the number of customers, increase the average transaction amount and increase the frequency of repurchase. They start with client problems and demonstrate methods to rectify it. This will help to build a network of clients. Consistent after sales support also enhances the popularity and credibility of the product. Marketing strategies also assess the profitability of an approach before actual promotion, to avoid the pitfalls.

Small business marketing strategies include various options to increase business revenue. They try to acquire more customers, sell more expensive products, come up with more profitable products and persuade each customer to buy more. The marketing strategy is developed according to the nature of the product or service. The business concern will tailor the product option according to the target group. Thus there are premier versions for those who choose expensive goods, comprehensive plans for profit seeking customers and a few basic products. The quality and reliability of products ultimately determine customer satisfaction.

Small businesses also introduce unique marketing strategies to differentiate a company from its competitors. Cause-related marketing is an attractive strategy that helps to gain customer loyalty and media coverage. The association with an organization helps to profit from the situation without much financial burden. Referral marketing is the most powerful, cost-effective marketing strategy. Promotions and offers intimated to the existing database through regular newsletters or mail alerts will help.

Small business marketing strategies are a summary of the goals of marketing plans. They provide guidelines and motivate companies to achieve a competent sales record.