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A bookkeeping career is a great fit for those who like numbers and are well-organized. Bookkeepers are responsible for maintaining accurate financial records by recording income and expenses, verifying receipts, and depositing cash checks and other payment types. They also handle payroll, prepare invoices, maintain an annual budget, and keep track of any overdue accounts.
Bookkeeping is a great job because there’s always a demand as every business is possibly your target market. It’s a respectable profession that offers you the opportunity to control your work schedule, work with whom you want, and set your own competitive pricing. According to reports, in 2021, there were about 281,300 employees in Australia that belonged in the category of bookkeeping and accounting.
However, there are many common challenges that you’re most likely to encounter when starting a bookkeeping business. Being aware of the obstacles will help you move forward more easily and efficiently. Continue reading to learn what kind of issues you may face when launching your bookkeeping business and how to tackle them.
Drafting a Bookkeeping Business Plan
For many bookkeepers, the term “business plan” seems overwhelming. But it doesn’t necessarily have to be difficult or too formal. If you truly want to start and build a successful bookkeeping business, a business plan is a must. It will help you organize your thoughts and then put them on paper. You’ll have a plan for your future venture that you can use to inform your decisions about your company.
A formal business plan is also required if you want to raise funding, get a loan from a bank, and plan out the growth of your bookkeeping business. Even though it might feel difficult in the beginning, you must take the time to think about all the steps you will need to succeed and then write them down in an outline that you can use as a guide when you set out to start a bookkeeping business.
Lack of Experience
The next obstacle you might encounter is your lack of experience. Even if you hold an accounting degree, and have worked in the corporate world for a while, it’s very different to run your own bookkeeping business.
Consider volunteering for a non-profit. Many non-profits need your help with books. To gain experience, volunteer to be a bookkeeper or treasurer for a nonprofit organization in your locality. Let your family and friends know that you are doing this. You might be able to help some of their businesses too. Remember that you are getting valuable experience by helping them.
Technology is now a part of every aspect of our lives, and it’s especially noticeable in the business world. Every business function is dependent on an algorithm, and every decision is made using machine-processed data.
You need to ask yourself if you’re ready to embrace technology to stay competitive and grow your bookkeeping. You can simplify your accounting process, save money and get a significant advantage over your competitors using cutting-edge technology. It’s now that the future is here and it’s up to you to take advantage of it.
Many bookkeepers feel they lack technical knowledge in bookkeeping. For this reason, a smart idea would be to sign up for bookkeeping courses to get good training.
No Marketing Experience
One other obstacle you’ll face is realizing you aren’t a salesperson. Perhaps you aren’t a marketer and maybe you don’t feel comfortable speaking to people you don’t know. If you want to get more clients but aren’t a marketing-savvy bookkeeper wiz, it’s high time to build an effective marketing plan to grow your business.
In today’s saturated marketplace, the most important part of developing a solid marketing strategy for your business is identifying your value proposition. Once you have a clear understanding of your value proposition, identify your core message and your niche, and then start building your bookkeeping business. Establish a professional website that will engage both prospects and existing clients, be active on social media, and implement a referral policy that encourages your existing clients to recommend your services.
Fear and Insecurity
Fear and insecurity are two of the biggest obstacles that many aspiring bookkeepers face. This is completely normal as building a bookkeeping business is a new experience. You simply don’t know whether your plan will work or not. Fear is normal.
One of the things that can help you greatly overcome these emotions is to go online and join communities of bookkeepers to share ideas and get advice from them. You will find and connect with other bookkeeping professionals who have been through the same things as you can they can offer their help and guidance.
Although bookkeeping is a reputable and rewarding business, you might still face obstacles when starting. This is just part of being a successful business owner. By knowing and overcoming these obstacles, you’ll get your bookkeeping business off to a good start.