Bill Von Fumetti is the CEO of Booming Bookkeeping Business and the Wall Street Journal bestselling author of Keyboard Rich.
As any entrepreneur can tell you, there are plenty of “well-meaning” friends and family who will worry about your choices. They’ll quote statistics about failed businesses and tell you how much safer it is to just get a corporate job. But recent layoffs and market conditions have left a lot of people considering starting something of their own.
Bookkeeping, as it turns out, is one of the best online businesses you can start. As a CPA who has started a successful bookkeeping business (and helped others to do the same), I’ve found it’s one of the cheapest and most flexible business opportunities, giving you the ability to replace your 9–5 while maintaining time and location freedom. Let’s take a closer look.
What is bookkeeping?
When you hear the term “bookkeeping,” you might think of someone hunched over a calculator and a pile of receipts. Or maybe you bristle at the thought of all that math. The truth is a lot more interesting and a lot less complicated than it may seem at first. So, let’s define bookkeeping.
Bookkeeping involves recording and organizing financial transactions like income and expenses, accounts payable and receivable and bank reconciliations. It’s a critical part of any business, and many small business owners struggle to keep up with it on their own. That’s where bookkeepers come in.
What’s required to start a bookkeeping business?
First of all, just about anyone can start a bookkeeping business. You don’t have to be an accountant or a financial whiz, you just need to follow the process. With the right software, it’s very simple to learn, and day-to-day work doesn’t require any heavy math. Not only can anyone become a bookkeeper, but every business needs a bookkeeper, which means there’s no shortage of customers out there.
While most businesses require an investment to buy equipment, rent space, stock up on inventory, etc., you can start a bookkeeping business for next to nothing. Many cloud-based tools are free for bookkeepers and allow you to work from anywhere with an internet connection. And since the software runs in the cloud and not on your machine, you can run your business from an inexpensive laptop if that’s all you have to start with (a big bonus if you’re working and traveling, too!).
How much does it cost to start, and what can you expect to make?
With free software and no overhead, bookkeepers can have a nearly 100% profit margin. Expenses include your salary, possibly a business license in your city or state and marketing (although you can actually have great success marketing for free—we’ll talk about that in a minute).
As for how much you can actually make? According to the latest rate survey published by Intuit, bookkeepers average $75 per hour (up from $69 an hour in 2019)—not bad for a business you can start for about $100.
What’s the first step?
At this point, you may be thinking, “That all sounds nice, but how hard is it to actually start a bookkeeping business?” There are two parts to that answer, and they’re actually both surprisingly simple.
The first step in getting started is getting yourself set up with the tools and know-how. I know plenty of people with big home office setups, but you can easily start your bookkeeping business with a humble laptop. Take that laptop and go online to set up a free account with a cloud provider.
Personally, I recommend QuickBooks Online. There are different payment levels for QBO, but bookkeepers and accountants can set up a free account to run their business, access their clients’ books and track their own finances. Inside QBO, you’ll find tons of training materials that walk you through how to use the software. I recommend starting with simple businesses and working your way up to more complex ones as you gain experience. Again, you don’t have to be a CPA or an experienced bookkeeper to learn how to do this.
Bookkeeping software was designed to make it simple for small business owners to do their own bookkeeping. But many owners don’t have the time or desire to do that, and that’s where you can step in and provide a ton of value for them (and be well compensated in return).
How do you land clients?
Now that you’re set up, it’s time to find your first few clients. There are two simple, free options you can use to attract clients, and neither requires you to go on a networking tour: LinkedIn and QuickBooks ProAdvisor.
LinkedIn is a social platform that allows professionals to connect with potential clients and showcase their skills and experience. You can join industry-related groups, participate in discussions and share relevant content to establish yourself as an expert in your field. It also allows you to reach out directly to businesses in any industry you want to serve. With a well-written profile and a few simple messages, I’ve found that you can get great results from LinkedIn.
QuickBooks’ ProAdvisor program, on the other hand, is designed specifically for bookkeepers and accountants. By becoming a QuickBooks ProAdvisor, you’ll have access to a directory of potential clients who are searching for bookkeepers in their area. I’ve seen many thriving bookkeepers use this profile as their only source of new clients, and it’s great because they come to you.
In conclusion, whether you’re looking for a career change, starting your first business or trying to add a second revenue stream, bookkeeping could be an easy and profitable option. You can get set up and start training today, and within just a few weeks, you can be ready for your first client. In as little as 3–6 months, you could work yourself out of your 9–5 for good!
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