How To Start A Bookkeeping Business

We have helped many bookkeepers “kick start” their bookkeeping business, and have compiled a book that answers many of the questions you have about getting started, finding clients etc

What Rate Should I Charge?

Strangely enough, this question can only be answered once other questions have been asked. Questions like “How good are you?”, “What rate do you feel comfortable charging” and so forth.

What’s surprising is the bookkeepers that randomly pluck a figure out of the sky, and overlook the minor fact that they are running a business!

“I’ve already got a computer and my office is set up, so I suppose my only outgoings are marketing”, one bookkeeper told us.

So what you are saying is that it doesn’t matter how much you charge out your services?

“I think I’d like $30 per hour!” another bookkeeper told us.

Bookkeepers who are serious about moving their business forward have joined our coaching / mentoring program. Here they learn more than just randomly picking their hourly rate, or how to find bookkeeping clients.

Are You Ready To Get Started?

You’ve been working for a large company in the accounts department – does that make you ready to start your own bookkeeping business?

Maybe you’ve used accounting software like Technology one, Oracle 11i, or SAGE, to name a few different options

You’ve got experience in Accounts Payable, Accounts Receivable, Payroll and as Assistant Accountant.

How we help you get started

How can we help you with your own bookkeeping business? – We help bookkeepers source new clients – generally small business owners are looking to outsource their bookkeeping needs – they do not use the more advanced accounting software programs that are found in large companies

You need to have current experience using MYOB or Quickbooks. These are the most common accounting software packages for small business. You can do a short course at TAFE to refresh your MYOB skills qnd / or learn Quickbooks

When you’ve mastered MYOB or Quickbooks you’ll be in a better position to start your own business – and then we can help you.

How Do I Get Bookkeeping Experience?

You think you’re ready to go it alone? You’ve worked for a large company, you know all about bookkeeping! Are you really ready to go out there on your own?

Here’s a true story:
A bookkeeper wanted us to find her some new clients – We were unsure about whether she was ready to go out on her own. To demonstrate the scenario for her, we asked the bookkeeper to help us out with the paperwork for one of our clients.

when you go to your first client as a freelance bookkeeper, you may feel totally overwhelmed

To emulate a “live” situation, we presented her with the paperwork, and told her to go for it. We left her alone for about quarter of an hour while she familiarised herself with the documentation.

There was silence, and then she turned round and said that she couldn’t do this because it was “too overwhelming”.

Remember your first day at a new job? Or the first day at your new school? Everything seems huge and overwhelming. No matter how much experience you have as a bookkeeper, when you go to your first client as a freelance bookkeeper, you will no doubt feel totally overwhelmed.

Why was the situation so overwhelming? Why did this bookkeeper with over twenty years of bookkeeping experience have a panic attack?

Simply this: the client had presented us with an A4 archive box full of suppliers’ invoices, and a couple of bank statements, for the previous financial year, and asked to record all the transactions – we had no idea of the nature of the business, no previous years’ reports – nothing.

We’ve many years experience as bookkeepers, and whilst it proved to be quite a challenge (for a number of reasons) we were able to work through it.

Once we showed her how to tackle the situation she was fine – but who would she have asked if she was at a clients’ premises? What would she do then?

When a small business seeks a bookkeeper, that bookkeeper will be expected to work very quickly, accurately and efficiently- all without supervision. So you will be on your own with no one to help you or answer any bookkeeping questions.

We suggest that you contact some local accountants or larger businesses that may be advertising for junior bookkeepers.

You could, of course, consider spending $20k + on a bookkeeping franchise, but that will still not give you the experience

Can I Use My Overseas Experience?

My husband is thinking of setting me up in a bookkeeping service. I have a BAcc. and have extensive experience in Oracle 11i, whilst my husband has been using MYOB Premier since it 1st came on the market and knows all aspects of MYOB Premier. Whilst I haven’t used MYOB, I’ve got over seven years experience in bookkeeping (but not in Australia)

That’s great – and you may have a good knowledge of bookkeeping. Do you really believe you are ready to start your own bookkeeping business in Australia, without any local experience? Do you have a full understanding of the GST implications in bookkeeping? How are you going to learn MYOB – at the expense of your clients?

Other software – not MYOB or Quickbooks?

Many times bookkeepers will say that because they’ve used other accounting software packages apart from MYOB or Quickbooks, and that they’ll just “pick it up” as they go along.

You won’t win many clients like that! You need to go and do a training course in MYOB or Quickbooks, then go and get some experience working for someone else before you “go it alone”

Where Do I Start?

Kellie writes:
I have 14 years in Accounts/ Administration type work, and 2 years ago did my Diploma in Accounting

I have huge dreams of starting my own bookkeeping business, even have a name made up etc

But I have no idea how to start.

My main problem is how to tell a potential client what I can and want to do for him, and how it will help him.

I am prepared to do all the hard yakka first, i.e setting up my office, laptop, MYOB, flyers etc

I just don’t know whether I should actually advertise myself as a bookkeeper who will only do accs rec and payable, bank recs, debtor control, etc, but maybe not payroll or super etc as I don’t have experience yet in that area

Is it unrealistic to advertise that I will take clients who have never had a bookkeeper before, who keep their paperwork in boxes etc ??

Is it unrealistic to advertise my services are for tradespeople only etc ???

How we can help you

Kellie, you’ll find many of those questions answered in our EBook “How to Find Bookkeeping Clients”

There’s a couple of interesting comments that Kellie makes here. They are challenges that many bookkeepers have, and the solutions are quite simple once you know how – that’s why we’ve put them in our book

Speaking to New Clients

I would like to know what to tell a client in an initial conversation -Something that could be printed and run through whilst on the phone to the client or even ticked off in a face-to-face interview – I think that is where I am more hesitant, the idea of selling myself

We’ve found many bookkeepers around the country that have had similar experiences to you in getting started. We have coached them in how to speak to clients and convert enquiries to contracts

At a recent MYOB seminar the speaker asked what percentage of cold calls / prospects are converted to clients. He suggested that the answer was 10% – We would say that the figure (for us) is more like 95%

Our marketing program is designed to help you source regular clients and give you the confidence to then find more. The investment that bookkepers make to join the program is really minimal in terms of the overall potential of your business.

We picked up a client 8 years ago (two hours a week). That client is now 20 hours per week, and has returned us in excess of $200k – imagine being the other bookkeepers who missed out on that client because of their initial client meeting!!

Join our marketing program and you’ll learn some valuable tips to expand your business, as other bookkeepers have before you, and be heading towards an income in excess of $50k pa (part time)

We find that over 70% of the bookkeepers involved in our program have had so much benefit that they’ve asked to renew their contract with us.

How Do We Find New Clients?

Oh, for a dollar every time we’re asked that question!! Here’s a clue: We’ve created an Ebook entitled “How To Find Bookkeeping Clients”

Do we give away all the secrets? Read the book and find out.

So why do bookkeepers that have read our EBook still want us to help them find bookkeeping clients? Because it’s an easier option than following the methods outlined in our EBook.

When we get an enquiry for a bookkeeper in your area, who do you think we refer that client to? Bookkeepers not involved in our marketing program, or those bookkeepers that have engaged our services?

Which Cert IV for BAS Agents

I am looking for advice on what training course and an accredited provider of that training for bookkeepers. I believe that by 2010 you will need to have a Cert 4 – Financial Services – Bookkeeping to lodge BAS for any clients.

Our book “How To Find Bookkeeping Clients” was written for bookkeepers looking to start a bookeeping business – it is not a book about learning how to become a book keeper.

There are many organisations that provide training for bookkeepers – there’s a great deal of confusion and rumours flying around about the definition of the new legislation regarding BAS agents.

Have a look at the Federal Treasury website and also the ATO website – and good luck with that – they don’t seem to explain what will be required

We are neither lawyers nor educators – we are bookkeepers that understand how to market bookkeeping businesses – what training course you should undertake depends on what knowledge you already have

Every RTO is fighting for your business, and costs vary considerably from around $1000 – $4000. As far as we are aware, there is still some confusion as to what CertIV qualifaication is required – it seems that any training organisation can throw together a certIV course and seem to have little understanding of what bookkeepers need

The definite answers will “evolve” once the Tax Agents Board commences – and who knows what they will decide!! It’ll probably take three or four years for everything to settle down and be clarified

How do you help me starting my bookkeeping business?

We’ve helped many bookkeepers “kick start” their bookkeeping business, and compiled a book answering many of the questions you have about getting your bookkeeping business started, finding clients etc

There’s also answers to questions that you haven’t even thought of yet

To save you and ourselves time, we suggest that you read the book, and once you have an understanding of what’s involved, we can start to help you with your bookkeeping business

It’s all in the book – that’s why we wrote it