Many small business owners look to outsource managing their books, either because it's not something they enjoy, or it's something that have no desire to learn. This is why starting a business as a bookkeeper for other small business owners can be an excellent business idea.
Small business bookkeepers can provide a range of services from managing accounts receivable, accounts payable, reconciliation, payroll, reporting, income tax preparation and more.
In general, you need experience with bookkeeping and/or accounting on a professional level, plus experience with various accounting software, such as QuickBooks. It's also necessary to be extremely accurate, reliable and work with a high level of integrity when you're managing the books for another company.
If you have those characteristics under your belt, here are some of the benefits of starting a bookkeeping business:
- Startup costs for a bookkeeping business are minimal.
- You can become a specialist in one accounting application for increased marketability.
- It's consistent work that typically takes place on a regular schedule.
- You can work virtually and broaden your target market.
- There isn't formal certifications or training necessary (although, it's never a bad a idea to become certified).
Some of the potential challenges you may face if you start a bookkeeping business include:
- There could be significant liability issues.
- You need to take measures to ensure all client data is kept secure.
- It could be expensive to purchase and update various accounting software.
- You need to comfortable with technology so you can access a client's computer, if necessary.