The Pros and Cons of Starting a Bookkeeping Business
Many small business owners look to outsource managing their books, either because it's not something they enjoy or it's something that they 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.
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.
The Pros of Starting a Bookkeeping Business
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 an idea to become certified).
The Cons of Starting a Bookkeeping Business
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.