Home Business – Bookkeeping or accounting service

Home Business – Bookkeeping or accounting service

This article shows how to do a bookkeeping or accounting service for small business owners. You can use this home business as a part-time or full-time job to earn money. If you already have the required qualifications and the necessary equipment and computer programs, you can start this business idea as soon as you meet all the regulatory and insurance requirements.

Qualifications

You must be proficient in using an accounting program on a computer. We must know what adjustments or corrections are needed to client data in order to prepare proper monthly and/or annual financial statements. You must be able to communicate with people and reach an agreement.

They may want to go to Amazon.com or another online or local bookstore to purchase some reference books on Accounting Bookkeeping Service.

Requirements when starting a business

The following is a list of typical requirements for this business idea:

  • Having your own vehicle for client appointments and transporting accounting documents.
  • Ownership or purchase of a computer and laser copier/fax/printer.
  • Ownership or purchase of an accounting program, a spreadsheet program, and a word processing program
  • A landline telephone that is available to you most of the time
  • Determine and meet all regulatory and insurance requirements for this home business.
  • Set up a home office with basic office equipment and supplies.
  • Set up your own accounting system on your computer.

Attract customers

Place classified ads for this home business in your local newspaper or on the craigslist.org website. Briefly describe your services and include a phone number or email address where you can be reached. You can also place ads in the newsletters of local business owners.

If you do a good job for your clients, they will likely give you free word-of-mouth referrals. You could even ask them for referrals for potential clients.

After initially contacting potential clients by phone or email, you will usually go to their home or office for a face-to-face meeting.

At this meeting, you will need to do the following:

  • Review accounting records and procedures.
  • Determine if you and the potential client can work together
  • Agree on the specific services and financial reports desired
  • Determine when the services will be provided.
  • Agree on an hourly or fixed fee that you will receive for setup, monthly and year-end services.

Note: You should prepare in advance several types of financial reports to use in this conversation.

You should probably put this agreement about your services and their limits in a letter of engagement that can be signed by both you and the client.

Providing your services

The following are the services you may provide during the setup process:

  • Set up an appropriate chart of accounts on your computer using your accounting program.
  • Prepare the appropriate financial reports for the client.
  • Arrange for the initial collection of the client’s accounting transactions.

Here are the monthly services you could provide:

  • Answering the client’s questions on the phone.
  • Visiting the client’s office to pick up their accounting transactions and discuss any issues that may arise
  • Posting the client’s journals and other transactions.
  • Preparing monthly accruals and adjustments.
  • Preparation of monthly financial reports
  • Reviewing monthly financial reports with clients.

You could perform the following year-end services:

  • Prepare year-end accruals and adjustments.
  • Preparation of year-end financial reports
  • Review year-end financial reports with the client.
  • Close year-end revenue and expense account balances in the asset account (do this immediately before posting accounting transactions for the new year)

Also Check: Accounting Consulting Firms in Australia

Collect your fee

If you provide monthly services, you will likely send your clients an invoice each month. If you only provide year-end services, only invoice once a year. It’s important not to let your invoices go unpaid for several months. High or late invoices are difficult to collect.

If your customers complain, get rid of them immediately. Satisfied customers are important to promote your business. Also, satisfied customers are more likely to pay their bills on time.

Final Thoughts

I hope you enjoyed reading this business idea for providing accounting or bookkeeping services. It can be a satisfying way to make money while providing a rewarding service to local business owners.