Forums: Discussions for entrepreneurs and small business.

I have a question for all of you that may seem to be a simple one for some. A few months ago, I had a lot more questions, but I have overcome and met most of them. I have a service related business specializing in tax work, (this year was my second one here), providing bus. advice for start-up`s to indiv. interested in it, billing/bookkeeping as well, and computer designing of advertising materials and other things. (These are all things I am really interested in too).

I have just graduated college with an Accounting/Bus. Admin. degree, and have only training in that one area, which is also my concern. With jobs being slow, and bookkeeping advertising seeming to be not much openly done, I am trying to figure how to approach it.

I also would like to gain more experience in the bookkeeping area by landing any kind of work in this new field, but am having trouble finding that first job of any type. Even though I demonstated my knowledge with a "With Honors, 3.6 degree", that does not mean much to others. This is one of the reasons I have wanted to start my own business, to be able to show experience to others, as well as wanting to be able to do this kind of work on my own. But I am now wondering if stating I work on my own is not such a good thing to do for those small firms who only want a part time bookkeeper. Any thoughts on this?   Thanks, HenryR

You have to see how companies in your area find a bookkeeper now. Is there a need for this service? Call around - you might find companies willing to talk to you for a minute if you`re doing research instead of soliciting them.

Bookkeeping is also a field that requires a high level of trust. Is there a certification you can get? Can you work for a larger company for a while to gain experience? Is there anyone you can get a review or testimonial?

I would not trust my business` financial records to someone fresh out of college, and I think a lot of other small business owners would feel the same. I would recommend working for a larger company or through a referral to someone you know before trying to bring in outside clients.

Are you willing to work toward a CPA license? My brother is involved with book-keeping, as a fourth career, and he`s about 50 now. He too has had a harder time getting even part-time work. It seems with the abundance of skilled people looking for work, the "minimum" or floor-level, entry-level has changed.

It used to be that if you had a high-school degree, you got a basic job. Then it changed to having a college degree for an entry level job. It moved up toward a post-graduate degree ending up in an entry level position, more often that you`d think.

As for not seeing people advertise as book-keepers, so what? Maybe you just haven`t seen their ads, or they advertise in some mysterious trade magazine, or by word of mouth. But there`s no legal reason why you can`t advertise that you offer book-keeping services.

Put up a business-card type of thing on a domain. Nikole had some examples of these that she`s done for folks, and they really look spectacular. If you refer someone to the URL with your business card, you can then put a bit more on the Web page, and include a click-to-email.

Sadly, with so many people believing that online advertising for jobs or employees is FannnnTAStic, we`ll have to deal with more years of this nonsense. But you could keep an eye on direct mail, Yellow Pages, and other "old fashioned" forms of letting people know you`re available for hire. You also might try some of the temp companies.

Here in the Midwest we have "Accountemps" who specialize in accounting and book-keeping short-term assignments.

Craig,

Thanks for your post. I have personally found much of what you say to be true, sadly enough. I did like some of the insights you had as well. What you have said is much of the same reason I felt the need to start my own firm. And as to the Accountemp`s position, I talked with them about their needs for workers, and they told me 1-2 previous years of service BEFORE I can talk with them.

As to the other poster, thanks for your thots, but most of those thoughts were questions I had already posed, and the other were thots I have already found out. But I really do thank you for responding so quickly though.  Henry

One idea I had for my brother is a sort of Accountant who makes House Calls.

I can`t imagine the number of people just like me, who HATE accounting! Yes, I understand it, and Yes, I can do it....but mann....it`s just not my thing! What I really want is someone who`s coming to my door at 4pm each Wednesday, for example. I hand them an envelope with all the receipts I saved up, and they go away.

They call me when there`s a problem, or let me know they`ve filed my quarterly estimates or that I`m ready to go and can sign something and be done with it. I would be happy to pay them a monthly sum, if it wasn`t a painful number, just so I don`t have to look at numbers.

I`ll bet you could get 20 or 30 clients, charge something like $20/week for each one, and a special fee for estimates and annual tax times. Maybe? The key here would be two things:

1. All I do is hand over receipts
2. You make house calls.

Craig ~

I make "house calls" all the time.  I don`t do the work there, generally, but I "make my rounds" at least once a month to each of my clients ~ it`s a good way to get to know them better and answer questions they might not think to ask over the phone.

My bookkeeping service is relatively virtual but my clients and I enjoy the "human experience" so much better.

Eventually, I will begin meeting my out-of-state clients, too.

 

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Hah! Y`see? There IS a viable idea in this stuff. :-D Now if we could just get a "Cross Country Bookeeping" rep in the Batavia area..........um....you thinkin` franchise? 

Cross Country,

I have already started my tax service and am looking to start the rest of my business as well. Your comments are exactly what I have in mind. I also like the ideas Craig has thot of as well.

If you don`t mind, how did you land your first account? I have been to your website and enjoyed exploring it. I even bookmarked it. So, I know you have been doing this for a few years. I have recently found a formula for prices for a service related firms, and implimented it. But I was wondering about those firms you do work for on a continual basis. Do you just charge a flat fee, or a percentage of their total monthly totals given you, (like 10% up to a certain point). These are for those very small businesses, like a lawn service firm I send bills out for and keep the books on. It is really a hobby business, there are only three customers the client has. I have a set up fee to start a Quick Books account for them, and just bill, record account info, reconcile records and such like thru-out the year. How would you handle that kind of thing?

Thanks for anything you can provide on this public forum. Between you and Craig, I have gotten or seen some good ideas, and also seen I am not that off base with what I have been thinking. HenryR

Hi, Henry ~

Thanks for taking the time to explore my website and I`m glad it helped.  Feel free to visit, use the resource links [I have a bunch more to add as soon as I can find the time], and join in the forum discussions anytime you like.

First, I advertise on Craigslist and a few local online directories.  But I get most of my clients by word of mouth, which is the best way.

Second, because I have no clue how long it will take to get the new client established in the software with regard to setting them up, sorting out paperwork and preparing it for entry, entering transactions, and printing a trial balance and/or financial statement for review, I charge an hourly rate. 

Third, while I`m getting to know exactly what my client wants and needs and how long it`s taking me to get everything into the system and double-checking to make sure it`s all  falling into place the way it should, I begin to get a rough estimate in my head of what I`ll offer them in the way of a monthly maintenance rate. 

I usually offer the new client an estimate that includes a list of the accounts to be reconciled  and any other options such as bill pay, invoicing customers, etc., on a routine basis.  But I don`t do this until after I`ve worked with them for a couple of months so I get a better feel for what their requirements and expectations are.  [I don`t like surprises!]

Typically, the maintenance rate is lower, but not always.  If the client is growing at a break-neck speed I take into account that it`s going to take more time to get the work done as opposed to the initial start up and adjust the estimate so that it mutually beneficial.  If the client adds onto the workload, renegotiate a new rate.

I keep my rate low so that businesses just starting out can afford it.  I`m a HUGE advocate of the entrepreneurial spirit but alot of people lack the time or the skills to do what I do and it can get them into trouble in SO many ways.

Take your time, build your reputation, and sharpen your skills enough to work in any industry and you`ll do fine.  If you rush things, you`re liable to get a few clients who could undermine your whole operation.  I started my business in 1999 and have had to remove a few from my client list for a variety of reasons.

I hope I`ve been able to answer your questions.  Go ahead and shoot me an e-mail if you like and we can discuss it further.  I don`t have a problem working with the "competition".

 

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If you are researching the net branch or are looking into opening your own mortgage net branch, we have an alternative to net branch opportunities. Ask us about mortgage branch opportunities, we love to talk and write about this.

My advice is to specialize. I know first hand that home improvement contractors(painters, roofers,landscapers, etc) need your services. Most (from my own experience) are lousy at keeping records . If you can offer them something that saves them time and makes tax time easier, you can probably make a go at it.

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