Looking to start a bookkeeping business? Here at A Passion 2 Profit we show you how to take what you already do and turn it into a business. Take your passion and scale it up to create a legacy!
Have you ever wondered how to transform your passion for numbers or turn your talents at your job into a business? It’s possible.
Let’s talk about how you can turn your passion into a highly profitable bookkeeping business.
What is a bookkeeping business really?
Bookkeeping consists of managing income and expenses, processing payroll, preparing tax returns, etc for your business clients. It can be done from an office or from your home. With today’s technology, creating a virtual bookkeeping business is easy.
How much can you expect to make with a bookkeeping business
If you currently work in the field, think about your current salary. Would you want anything less?
Let’s calculate based on that. Say you currently make $40k a year. Divide that by 2080 which is the number of work hours a year. That equals approximately $19.23 an hour. Next let’s include your taxes. Employment FICA tax is 7.65%. Multiply your hourly rate by 1.0765 which will now equal $20.70.
Further lets equate in the profit margin you’d like to achieve. If its 15% than we would multiply the $20.70 rate by 1.15 which will equal $23.81. Thus at a minimum your hourly rate should be at least $24-25 an hour. But this is just an example.
Studies have shown that starting out, the hourly rate for bookkeepers is $20-30 an hour. With experience, you can command $60 an hour and up and that my friends is about $124,800 a year. Now that is a good side hustle!
Sounds good right?
That’s why I turned my passion for numbers and bookkeeping into my side business! I started with an hourly rate and from there I moved on to add more services and packages. As I did, my business continued to grow and I scaled up.
So, how do you create a highly profitable bookkeeping business?
First, it starts with confidence in you, your ability to provide top notch service, your commitment, and belief in your talents. That confidence transforms into a clients trust.
But how do you create it?
- You design services where you can sell the client information to increase their business
- You sell your bookkeeping service but upsell to a higher price point service
- You over deliver and under promise
- You find 4-5 strategies that can save them time, money or taxes and offer one for free.
Ultimate goal is create such satisfaction in your services that clients come to you first with everything and recommends you to everyone they know. The power of referral cannot be underestimated.
What other services can yo offer in a bookkeeping business?
- Entity formation
- tax planning
- software consulting, selection, and implementation
- Expense reduction specialization
The opportunities are truly endless.
Always remember that the size of the client doesn’t matter, over deliver and ensure satisfaction each and every contact.