Would you like to know how to start, run and grow your own bookkeeping business?
Are you trying to;
Start your bookkeeping business?
Choose a name or structure?
Calculate your hourly rate?
Buy a bookkeeping business?
Get information about the important things to investigate when looking into a bookkeeping franchise?
Expand your client base?
Market your services?
Grow your business?
Work from home in your bookkeeping business?
Write a business plan tailored to a bookkeeping business?
Do you know;
What is the MOST important thing to have in your bookkeeping business which can save you from disaster?
What ALL bookkeeper need, but very few actually have in their business?
How to create an endless client base?
The 5 top ways to get clients for free?
How to create value in your business by choosing the right business name?
How to get FREE advertising for your business?
We have the answers to these questions and more in My Bookkeeping Business.
For a short time you can also receive a free e-course which covers all of the above topics and more!
Information direct to your inbox to help you start, run and grow your bookkeeping business.
Subscribe today!
Friday, August 28, 2009
Tuesday, August 25, 2009
Free Advertising Ideas For Your Bookkeeping Business
Advertising and marketing your bookkeeping business can sometimes be difficult. People don't know where to start apart from paid advertising ideas. This is fine if you have the budge for it but most people starting out are on small budgets and you want to make every dollar count.
A great idea for marketing your bookkeeping business is through Press Releases!
Don't think that this will cost an arm and a leg or that it will be hard to write a press release. You can learn how to do it effectively and you can release them to free sites in the first instance. If you have the money and have tested a press release first to the free sites, you can then consider sending one to a paid targeted release in your area.
Remember the media are looking for stories to fill their pages and news articles every day. You might no think your story is worthy of news time, but you can come up with an angle and get some attention, your web site, email or phone could be going constantly.
Have a look at how easy it is to write a press release and find an interesting angle with this example I did on the new My Bookkeeping Business book.
Sunday, August 23, 2009
Start a Bookkeeping Business - 2 Key Things
Did you know that when you start your own bookkeeping business there are actually two things which can save you from ruin?
You can set your business up, plan and have a great business, with lots of good clients who all pay well and without 2 key ingredients, it could all disappear.
Don't expose your business to a potential downfall! Many self employed bookkeepers are not aware of these things or how important they are to their business.
Join the e-course and learn more about how to start, run and grow your own bookkeeping business.
You can set your business up, plan and have a great business, with lots of good clients who all pay well and without 2 key ingredients, it could all disappear.
Don't expose your business to a potential downfall! Many self employed bookkeepers are not aware of these things or how important they are to their business.
Join the e-course and learn more about how to start, run and grow your own bookkeeping business.
Friday, August 21, 2009
What is Double Entry Bookkeeping
I have had a great response to my site and people are getting benefits from the free e-course on how to set up your bookkeeping business. I am also please to be getting questions in my email about some bookkeeping basics from people who are new to bookkeeping.
To help them out, here is a very basic analagy about P&Ls and balance sheets, debits and credits without getting too complex.
What is Double Entry Bookkeeping?
For every action there is an opposite reaction. The same can be said for double entry bookkeeping. For every debit there must be a credit. In bookkeeping, you can not have a one sided entry, that is, if you have a debit somewhere, a corresponding credit for that transaction must also exist.
If you think about a chart of accounts as a filing system, this is the easiest way of understanding what a chart of accounts is and what you will do to it with the debits and credits.
Think of two filing cabinets, one is called profit and loss and the other one is called balance sheet. Inside each filing cabinet are lots of folders with different labels like income, expenses in the profit and loss cabinet and assets and liabilities in the balance sheet cabinet.
If you have a debit there must be a corresponding credit, so lets say you have a telephone bill for your business and it is $100 and you have just paid for it. You would file the telephone bill in the profit and loss cabinet in the telephone section. There is your debit. Since you know double entry bookkeeping means there must be a matching credit somewhere, the credit will be filed in the balance sheet cabinet in your bank account folder.
As you can see there was a debit (in the telephone expenses) and a corresponding credit in the bank account Double entry bookkeeping is really that simple, a debit must have a credit. The most challenging thing is to know when to use a credit in an account or a debit.
Going back to our filing system analogy, the balance sheet and the profit and loss have special rules. Depending on the type of account will depend on if you use a debit or credit. Sometimes people get very confused about this, but it is quite simple.
An income account is a credit, so if you increase your income account, you use a credit. If you decrease it you use a debit. The expense account is therefore opposite to this. The expense accounts are debit accounts, so if you increase your expenses, you debit the account, if you decrease them you use a credit.
Looking at the balance sheet we can see the similar patter. An asset account, such as your bank account is a debit account, which means to increase your bank account, you debit the account. To decrease the account, you credit it.
Liabilities on the balance sheet are kept in a credit account, so if you increase your liabilities you credit the account, decrease the account you debit it.
Of course this has been explained as simply as possible, but if you remember the basic rules, it is quite easy to grasp double entry bookkeeping.
To help them out, here is a very basic analagy about P&Ls and balance sheets, debits and credits without getting too complex.
What is Double Entry Bookkeeping?
For every action there is an opposite reaction. The same can be said for double entry bookkeeping. For every debit there must be a credit. In bookkeeping, you can not have a one sided entry, that is, if you have a debit somewhere, a corresponding credit for that transaction must also exist.
If you think about a chart of accounts as a filing system, this is the easiest way of understanding what a chart of accounts is and what you will do to it with the debits and credits.
Think of two filing cabinets, one is called profit and loss and the other one is called balance sheet. Inside each filing cabinet are lots of folders with different labels like income, expenses in the profit and loss cabinet and assets and liabilities in the balance sheet cabinet.
If you have a debit there must be a corresponding credit, so lets say you have a telephone bill for your business and it is $100 and you have just paid for it. You would file the telephone bill in the profit and loss cabinet in the telephone section. There is your debit. Since you know double entry bookkeeping means there must be a matching credit somewhere, the credit will be filed in the balance sheet cabinet in your bank account folder.
As you can see there was a debit (in the telephone expenses) and a corresponding credit in the bank account Double entry bookkeeping is really that simple, a debit must have a credit. The most challenging thing is to know when to use a credit in an account or a debit.
Going back to our filing system analogy, the balance sheet and the profit and loss have special rules. Depending on the type of account will depend on if you use a debit or credit. Sometimes people get very confused about this, but it is quite simple.
An income account is a credit, so if you increase your income account, you use a credit. If you decrease it you use a debit. The expense account is therefore opposite to this. The expense accounts are debit accounts, so if you increase your expenses, you debit the account, if you decrease them you use a credit.
Looking at the balance sheet we can see the similar patter. An asset account, such as your bank account is a debit account, which means to increase your bank account, you debit the account. To decrease the account, you credit it.
Liabilities on the balance sheet are kept in a credit account, so if you increase your liabilities you credit the account, decrease the account you debit it.
Of course this has been explained as simply as possible, but if you remember the basic rules, it is quite easy to grasp double entry bookkeeping.
Bookkeeping Franchises
Is a bookkeeping franchise for you?
If you have started to think about setting up your own bookkeeping business, you may have thought about your structure, your qualifications and experience and may have thought about what services you can provide. If you not sure about your ability to start your own business, you may be thinking about buying a bookkeeping franchise.
Franchises can be a good introduction into business if you are not confident about the whole package which is required to be a business owner/operator. They can be however quite costly to but into and a bookkeeping business is often the type of business that people start on a shoestring budget. If this applies to you paying upwards of $20,000 can be a big dent in your finances, especially if there are large ongoing fees.
If you are looking at buying a bookkeeping franchise to start your own business, do your due diligence, another words, do your homework, look at EVERYTHING.
What is included in the franchise fee?
What payments are required on an ongoing basis and how much are they?
What do you get for your money?
What support do you get?
What training do they provide?
Do you have a specific area or territory you can market in?
Do they give you clients?
What is the projected return on investment?
How long is the franchise agreement for?
Does the agreement give you enough time to recover your costs, make a profit and experience capital growth?
Are there any legal issues with other franchisees which are not yet evident?
These are certainly not all the important point, but it just gives you an idea of what to look for in a franchise opportunity and how to assess the merits of the different franchise models available. You need to know exactly what you are getting for your money and if it is of value to you. Can you do what the franchise is giving you?
Overall a franchise might be suitable for you and your personality, but like all business decisions, evaluate your options, do your research, get professional advice from your accountant and lawyer and then select the option that is right for you personally.
If you have started to think about setting up your own bookkeeping business, you may have thought about your structure, your qualifications and experience and may have thought about what services you can provide. If you not sure about your ability to start your own business, you may be thinking about buying a bookkeeping franchise.
Franchises can be a good introduction into business if you are not confident about the whole package which is required to be a business owner/operator. They can be however quite costly to but into and a bookkeeping business is often the type of business that people start on a shoestring budget. If this applies to you paying upwards of $20,000 can be a big dent in your finances, especially if there are large ongoing fees.
If you are looking at buying a bookkeeping franchise to start your own business, do your due diligence, another words, do your homework, look at EVERYTHING.
What is included in the franchise fee?
What payments are required on an ongoing basis and how much are they?
What do you get for your money?
What support do you get?
What training do they provide?
Do you have a specific area or territory you can market in?
Do they give you clients?
What is the projected return on investment?
How long is the franchise agreement for?
Does the agreement give you enough time to recover your costs, make a profit and experience capital growth?
Are there any legal issues with other franchisees which are not yet evident?
These are certainly not all the important point, but it just gives you an idea of what to look for in a franchise opportunity and how to assess the merits of the different franchise models available. You need to know exactly what you are getting for your money and if it is of value to you. Can you do what the franchise is giving you?
Overall a franchise might be suitable for you and your personality, but like all business decisions, evaluate your options, do your research, get professional advice from your accountant and lawyer and then select the option that is right for you personally.
Thursday, August 20, 2009
Start a Bookkeeping Business - Licensing
If you are thinking about starting your own Bookkeeping Business, you will need to think about your qualifications and experience and if there are any services you can not offer to clients.
At this stage Bookkeeping is not regulated and anyone can set up shop as a bookkeeper. The only exception to this is if a bookkeeper wants to perform BAS and BAS related services to clients. The reason for this is that the provision of the BAS is caught up in the taxation legislation, which is very specific about who is eligible to perform BAS services for a fee.
Due to this if you want to provide BAS services for a fee, you will need to satisfy certain criteria so you do not get into trouble with the ATO.
If you perform all other bookkeeping functions for a business and just give the client the reports for them to complete to BAS form and you do not complete it, you do not need any special qualifications or professional memberships.
I often get asked if Bookkeeping itself might become more regulated and it is possible as it rises in popularity and is now looked at as a quasi profession. Since the provision of BAS services is wrapped up in taxation legislation, the provision of BAS services for a fee will become more regulated as with the proposed introduction of the BAS Agent Registration legislation and bookkeepers will need tp incerase their skills and knowledge to continue being competitive in their own businesses.
At this stage Bookkeeping is not regulated and anyone can set up shop as a bookkeeper. The only exception to this is if a bookkeeper wants to perform BAS and BAS related services to clients. The reason for this is that the provision of the BAS is caught up in the taxation legislation, which is very specific about who is eligible to perform BAS services for a fee.
Due to this if you want to provide BAS services for a fee, you will need to satisfy certain criteria so you do not get into trouble with the ATO.
If you perform all other bookkeeping functions for a business and just give the client the reports for them to complete to BAS form and you do not complete it, you do not need any special qualifications or professional memberships.
I often get asked if Bookkeeping itself might become more regulated and it is possible as it rises in popularity and is now looked at as a quasi profession. Since the provision of BAS services is wrapped up in taxation legislation, the provision of BAS services for a fee will become more regulated as with the proposed introduction of the BAS Agent Registration legislation and bookkeepers will need tp incerase their skills and knowledge to continue being competitive in their own businesses.
Wednesday, August 19, 2009
BAS Agent Registration & Your Bookkeeping Business
The introduction of BAS Agents has had an impact on the Australian Bookkeeping industry. The ATO is making the profession more educated and accountable with the introduction of registration. Ultimately this will benefit the bookkeeping profession by making bookkeepers who want BAS Agent status to have formal qualifications and have extensive experience.
For bookkeepers in the their own business, or those who are starting, it will be a great benefit to obtain registration and use it on marketing materials and correspondence.
If you are wanting to gain BAS agent status, the minimum qualification in a certificate IV in Financial Services (Bookkeeping) or (Accounting).
If you do not have the formal qualifications, you can always get qualified using Recognition of Prior Learning. This system assesses your experience against the outcomes of the qualification and if you meet the standard you receive the recognised qualification. If you meet some of the outcomes but not all, the assessors will let you know which areas need additional attention and you can obtain the skills in the applicable areas and then receive the qualification.
Realistically, most experienced bookkeepers will meet the outcomes in the level 4 certificates, so if you don't have any formal qualifications, look at the RPL options and get started soon so you can meet the education requirements when the legislation is introduced.
Additionally, you can investigate other options such as joining a body which will comply with the supervision ruling such as the Australian Bookkeepers Network. They have a BAS wizard program specifically for Bookkeepers wishing to charge a fee for BAS services who do not meet the qualification requirements. Of course there are also a number of professional bookkeeping associations now as well which can assist with further information such as the Institute of Certified Bookkeepers and The Association of Accounting Technicians just to name a few.
Remember for information on how to start, run and grow your bookkeeping business, subscribe to the e-course.
Of course detailed information and strategies to start, run and grow your bookkeeping business can be found in the book, "My Bookkeeping Business, How to Start, Run and Grow your Bookkeeping Business"
For bookkeepers in the their own business, or those who are starting, it will be a great benefit to obtain registration and use it on marketing materials and correspondence.
If you are wanting to gain BAS agent status, the minimum qualification in a certificate IV in Financial Services (Bookkeeping) or (Accounting).
If you do not have the formal qualifications, you can always get qualified using Recognition of Prior Learning. This system assesses your experience against the outcomes of the qualification and if you meet the standard you receive the recognised qualification. If you meet some of the outcomes but not all, the assessors will let you know which areas need additional attention and you can obtain the skills in the applicable areas and then receive the qualification.
Realistically, most experienced bookkeepers will meet the outcomes in the level 4 certificates, so if you don't have any formal qualifications, look at the RPL options and get started soon so you can meet the education requirements when the legislation is introduced.
Additionally, you can investigate other options such as joining a body which will comply with the supervision ruling such as the Australian Bookkeepers Network. They have a BAS wizard program specifically for Bookkeepers wishing to charge a fee for BAS services who do not meet the qualification requirements. Of course there are also a number of professional bookkeeping associations now as well which can assist with further information such as the Institute of Certified Bookkeepers and The Association of Accounting Technicians just to name a few.
Remember for information on how to start, run and grow your bookkeeping business, subscribe to the e-course.
Of course detailed information and strategies to start, run and grow your bookkeeping business can be found in the book, "My Bookkeeping Business, How to Start, Run and Grow your Bookkeeping Business"
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