Businesses need to have up to date and accurate account of their business income and expenses. Many business owners and professionals either do not like to do their own bookkeeping and/or prefer to focus their time and energy on other aspects of their business or profession.
This creates an opportunity for bookkeeping services. A bookkeeper adds and subtracts a business's income and expenses, makes deposits, reconciles bank statements, handle payroll, do billing and prepare reports.
A home based bookkeeping business service allows self employed professionals and/or other small or home based businesses to focus their time and efforts on
aspects of their business that make them money. The bookkeeper's clients drop off their receipts and sales slips to be posted to a ledger or computer data bank. The bookkeeper provides client monthly statements and information for his yearly taxes and other any other contracted services.
What to Charge
Bookkeepers normally charge between $20 and $50 per hour for regular services and more for specialized services such as preparing tax reports or financial statements. Some bookkeeping service businesses charge a flat monthly fee. This fee typically ranges from $200 to $800 per month.
The Market for Bookkeeping Services
Many small business and home based business owners can not afford a lawyer of professional accountant. They simply need someone to keep track of their day to day operations to be able to tell where they stand financially.
The target market for a home based bookkeeping service are other home based businesses, small businesses or professionals that are too busy or prefer not to do bookkeeping themselves.
Typically, a bookkeeping service will give each client a report of all of their invoices, check, tickets, etc., that are brought to bookkeeping service. These are items that are required by IRS. You will also need to provide a monthly statement as well as any other services that are offered and requested for.
A bookkeeper is legally obligated to accurately and honestly reflect their client's profits that he is aware of. Honesty on part of bookkeeper is crucial.
What you will need
It is possible to start and operate a bookkeeping service without a computer, keeping only handwritten records. This however limits profitability of your home based business. To make some serious money with a bookkeeping business, you will need a computer.
You can get a computer and programs necessary to operate a bookkeeping business for far less than $1,000. If you are not buy a computer and programs, you can lease both of these for relatively low rates.
