Starting a Home Bookkeeping Business

Starting a bookkeeping business from home requires bookkeeping experience and knowledge of accepted bookkeeping practices. Developing a well written business plan will enable you to organize your criteria, budget for your expenses and outline your goals. The Small Business Association's Website offers guidance for your business plan, advice on financing and local resources to help you succeed.

Features

Home bookkeeping businesses offer a variety of services to individuals and other small businesses. Determine the types of bookkeeping services you plan to offer and create a presentation for prospective clients. This can be as simple as a list of services or as detailed as a brochure. Payroll and payroll taxes, collections, paying bills, issuing invoices, and month-end reports are common bookkeeping practices. If you are proficient at preparing income taxes, add this to your list. Running a home office entails having the right equipment for your success. An up-to-date computer complete with bookkeeping software is a must. QuickBooks is commonly used software that will translate easily to a variety of bookkeeping practices for small businesses. Purchasing software that will integrate with Microsoft Works is a feature that will help you streamline your business. A calculator and miscellaneous office supplies complete your home office setup.

Considerations

Becoming QuickBooks certified will add credibility to your home bookkeeping business. The course is available online. Printing business cards and local advertising for your home business is crucial and should include any certifications that you have earned. A Website is not a necessity, but you may find it helpful for advertising purposes. Word-of-mouth advertising should never be underestimated. People appreciate strong references for anyone keeping track of their money. Trust is a must in the bookkeeping world, and satisfied clients will be your number one advertising tool.

Types

Operating a home business works best when you have a professional structure in place. You can set up an LLC, Limited Liability Corporation, work as a Sub S corporation, or designate your status as a sole proprietorship. This is primarily for tax purposes and your protection. Consider your options carefully. The type of legal structure you choose is relevant to the type of books you keep. Bookkeepers often work with individuals as tax preparers. This would be more of a seasonal business. Keeping books for small businesses is a year round assignment. Full service bookkeeping for small businesses would include, paying bills, issuing invoices, running payroll, and balancing the bank accounts along with reports.

Function

A dedicated home office space is instrumental to your success. Functioning in an environment that is well lit, quiet and organized indicates professionalism and is conducive to productivity. Dedicating a specific room for your home office with the ability to close the doors and block distractions will allow you to operate your business most efficiently. Aside from helping the job flow, most seasonal bookkeepers have clients come to their home office. Full time bookkeepers generally go to their clients' home or office to pick up and deliver materials, but clients may also visit your office periodically. If you don't have a separate entrance for your home office, you should set it up as close to an entry.

Benefits

There are quite a few benefits to running your business from home. Setting your own schedule, choosing your clients and being accessible to your family are some of the main reasons for starting a home bookkeeping business. Once you taste the freedom working for yourself can bring, you will wonder why it took you this long to start.

Resources

• About Bookkeeping with QuickBooks
• Small Business Association