Blueprint for a bookkeeping or accounting business

Blueprint for a bookkeeping or accounting business

Thinking about providing financial services as a business? This is one of the fields that requires you to have a qualification. Of course, this is to be expected since you are dealing with peoples’ money and if you get it wrong, you could ruin their lives.

All businesses need to be careful when dealing with their finances. That’s why their owners are happy to pay handsomely for exceptional financial management services.

To start a financial services business, follow this blueprint:

• What it entails: When handling the financial management of a company, you will be required to fulfil the following services:
  • Prepare financial statements, business activity reports, and forecasts
  • Monitor financial details to ensure that legal requirements are met
  • Supervise employees who do financial reporting and budgeting
  • Review company financial reports and seek ways to reduce costs
  • Analyse market trends and find opportunities for expansion
  • Help management make financial decisions
  • Managing your employees to deliver the best service possible

• Your target market:

All businesses need solid financial management services. That’s why when starting your bookkeeping or accounting services business, it is important to highlight your area of expertise before you try to identify your target market.

• Controllers help companies prepare their financial reports to help the company plan for the future. This includes income statements, balance sheets and analysing future earnings and expenses.
• Treasurers and financial officers organise the company’s budgets to meet its financial goals. You’ll be in charge of the investment funds. This includes strategies to raise capital and support the firm’s expansion.
• Credit managers take care of a company’s credit ratings and managing the collection of outstanding debt from overdue accounts.
• Insurance managers limit a company’s exposure to risk to limit the company’s losses in the event of theft, fire damage and even employee disability.

The services you offer to your target market would have to be structured around the specific needs that the company will require under these specific circumstances.

• Start-up costs: Starting a business like this is relatively low cost. You’ll need a reliable computer, bookkeeping software and office space for your business. You’ll spend most of your money on desks, furniture and filing cabinets. The total start-up costs for this business should not exceed R30,000.

However, you will find that you need to hire an employee to help you schedule meetings, handle incoming calls and help with administration of the business. You can pay this employee between R5,000 an R10,000 a month depending on experience.

• What you can earn: How much money you make from bookkeeping depends on the level of business you offer your services to. If you are offering your services to a small or micro enterprise, they probably won’t be able to pay you as much as a medium to large company. So structure your fees according to the level of business you are helping.

• For micro enterprises, you can charge a retainer of R2,000 to R3,000 a month.
• For larger companies you could charge between R5,000 and R10,000 a month.
• That means that if you manage your time and clients well, you could make between R25,000 and R30,000 a month.

Remember that you can also offer once-off services to your clients, like completing and submitting tax returns. Of course, you would have to quote the client for the services you offer before you go ahead and actually do the work. While these once-off jobs are a great way to further boost your income, make sure that they don’t get in the way of your regular income responsibilities.

• Location: You can run this business from your home office or you could rent an office space. However, to reduce the cost of the business it is a good idea to start this business from home. You will be required to travel to your clients’ offices from time to time.

• Marketing: You won’t have to spend too much money on marketing your services to the public. Since you’re in a specialised field, your customers will come to you. You’ll still need a marketing plan in place which should include the following attributes.

• Write advertisements for your local newspaper and notice boards
• Print business cards and short brochures and hand them out at business networking events
• Ask your existing clients to refer your business to their peers – Word of mouth advertising is perfect for these type of services.
• It is also important to retain your existing clients by changing up the services you offer and let them know about it.
• Build solid relationships to deliver exceptional service

Starting your own financial services business could result in you isolating yourself working on clients’ accounts. This is a major mistake that could cause your business to stagnate. Join professional organisations like the Institute of Certified Bookkeepers and Accountants (ICBA). You’ll have the opportunity to meet with likeminded people and share your ideas and insights with them.