Bookkeeping is a flexible job option that typically allows you to work flexi-hours or from home. Whether you've previously worked as an accountant or bookkeeper for a private firm, or you simply believe that bookkeeping is the profession for you, bookkeeping is a business that you can run from the comfort of your own home.
The difficulty, of course, is obtaining enough clients to generate the form of benefit you require. Fortunately, many small firms do not have enough work to justify a full-time bookkeeper, therefore there are customers available. If you properly market your services, you will have a wide client base.
What Exactly is the Role of a Bookkeeper?
Bookkeepers are essential in the administration of financial records for businesses. A bookkeeper records financial activities, updates statements, and verifies the accuracy of financial data. A bookkeeper will also keep track of corporate spending and ensure that the company follows tax regulations. If you want to work as a bookkeeper, you must have great accounting and mathematical skills.
Would You Like to Start Your Own Bookkeeping Company?
Working for yourself gives you the freedom to regulate your working day and personal time, as well as to take on as much or as little work as you can handle.
Let's Look At How to Run a Home-Based Bookkeeping Business
1 - Learn How to Be a Bookkeeper
It's a good idea to take an accounting course if you don't already have an education and experience. They are available in most community colleges, but you may also locate them online. To be a bookkeeper, you do not need to be a Certified Professional Accountant (CPA), however, doing so can broaden the range of services you may provide your clients.
2- Make a Business Plan
Strategic planning is something that everyone should do before starting their own company. While a business plan can be utilized to get capital for your company, the true worth is the thought that goes into the writing process.
During the business plan writing process, you should consider every area of your company, including what products and services you will sell, how you will promote those products and services, and who your competitors are. In addition, you will build a financial plan that includes a 12-month profit and loss prediction, expected cash flow, and a projected balance sheet.
The following are the essential elements that should be included in every business plan:
The cover page
Overview of the company
Costs of starting a business
3- Register P.O Box
Register for a P.O. Box at your local post office. Most bookkeepers will have to meet with clients in their home office, but you don't want to publicize your address for everyone to see. When advertising your services, a P.O. Box can assist you to protect your anonymity.
4-Register and Organize Your Business
Laws vary state by state. Contact your local Department of Commerce and Department of Licensing to obtain the forms you'll need to start your firm and to find out if you'll need a license to handle bookkeeping. In Texas, for example, you must register your firm with the Department of State, and you must have a license to be an accountant but not a bookkeeper. By obtaining an Employer Identification Number (EIN), you can notify the federal authorities of your company's existence. You can also register a business name and file a "Doing Business As" or "DBA" notice for yourself.
5- Make Marketing Materials to Promote Your Services
This should contain a business card with your phone number and a basic leaflet listing your bookkeeping services, such as general record keeping, tax preparation, and payroll services. Discuss your experience and what you can do to assist the company.
6- Market Your Business to New Businesses in Your Area
Many new business owners may quickly discover that the finances are a bit too much for them. Join your local Chamber of Commerce or look for DBA listings in the newspaper to find these new businesses.
7- Dedicate a Workspace in Your Home
Keep in mind that you will be dealing with clients, so your work environment should not be merely a laptop on your kitchen table. If feasible, enter the space through a separate entrance. Provide clients with comfortable sitting and set up your computer so that you may show them screens if necessary.
8- Maintain Office Hours
Working from home can be challenging if you have a stay-at-home parent or children in the family. Consider simply arranging office hours to limit disruptions. This is considerably easier to accomplish if you have a separate workplace in your house. If your door is closed, no one can come into the office unless there is an emergency, similar to the restrictions when working in an office with other employees.
"It's important to find an office space in your home that works for you and your family and can be personalized to fit your interests and work needs. Most of my work is online and with clients via Skype or FaceTime. I also homeschool our five children. I chose to make my office in our bedroom because it's near our living room where our children do their schoolwork. I chose a corner desk because it fits best in this space.
I even bought a stop sign that I hang on my door whenever I'm working with a client, so our children know they can't interrupt during the appointment. My office hours work around our homeschooling schedule. That works for us; it's important to figure out what will work for you!"
—Carrie Sharpe, Communication Consultant & Speaker, He Says, She Says
9- Using the Pomodoro Technique to Concentrate
Working from home can be challenging due to distractions such as chores, pets, social media, and food. Consider using The Pomodoro Technique to enhance productivity by maintaining a laser-like focus on tasks. It's a basic method of working for 25 minutes without interruption and then taking a five-minute break. Repeat four times in a row: 25 minutes on (work time), five minutes off (break time). After that, take an extended break of 30 to 60 minutes. Then, repeat the entire procedure.
After working for 25 minutes straight, you are entitled to a five-minute break. The five-minute break revitalizes you and prepares you to resume hard and focused work. You can track your Pomodoro’s using a variety of programs. Set the timer and work steadily until the buzzer sounds. Set a timer for five minutes, take a break, and repeat.
10- Make Use of the Home Office Tax Deduction
Working from home frequently entitles you to deduct home-based expenses on your tax return. Office expenses such as a printer, paper, and writing supplies can be deducted. Furthermore, if you utilize 15% of your house as an office, you can deduct working expenditures including bills, electricity, and insurance. To stay organized throughout the year, use a small company accounting software to log your business purchases.
11- Examine Your Insurance Coverage
If you have employees working from home or get customer visits, you must carry both general liability and property insurance. General liability insurance protects you if someone is injured in your house. Property insurance protects your office equipment from damage, loss, or theft. General liability insurance costs roughly $640 per year for a home-based business.
“Don’t assume your homeowners or renters policy covers your home office. Check your existing policy to learn whether you have liability coverage for accidents that may befall business visitors such as clients, customers, or even delivery people.
You may need to purchase a separate commercial liability insurance policy. Also find out whether you have property coverage for losses to business items, including expensive equipment, and if so, the extent of your coverage.”
—Barbata Weltman, President, BIG IDEAS for Small Business
12- Design Your Workspace with Energizing Colors
Colors in our environment have an impact on our focus, vitality, and productivity. Color psychology is a complex subject; nevertheless, in general, adding blue or green to a room generates a peaceful and pleasant environment that decreases tension and improves harmony. More vibrant colors, such as red, orange, or yellow, generate energy, encourage invention, and build optimism.
You might choose to base your color choices on your personality. For example, if you frequently have a lot of energy, you might want to incorporate blues into your workspace. Consider adding red or orange if you're fatigued and want to feel calmer. Of course, you don't want to overload your desk with colors. Use the previously discussed colors to complement more neutral colors like grey and white.
Working from home may appear to be a fantastic idea; however, if you lack the necessary technology, aesthetically appealing decor, or knowledge of effective productivity practices, you may face significant problems. Set yourself up for success by including features such as a comfortable chair, pleasing lighting, and tried-and-true tactics to help you work more efficiently.
What kind of bookkeeper do you aspire to be? If you are facing any difficulty in running a bookkeeping business from home feel free to contact us!. Our experts are here to help you always!