In a recent Entrepreneur.com article entitled “When to Hire a Bookkeeper or Accountant,” author Eileen P. Gunn suggests guidelines for small business owners in determining when to outsource their bookkeeping. While perhaps not the intended audience for this piece, it’s good for freelance accountants to know the most compelling reasons for encouraging small business owners to retain your services!
Gunn begins, “Entrepreneurs thrive on a DIY mentality: Do everything you can yourself and don’t pay for anything new until you absolutely have to.” This probably isn’t news to the freelance accountant who finds this mindset to be the biggest obstacle in securing new clients. Gunn suggests that small business owners examine their financial situation to determine if they need an accountant, bookkeeper or both.
Firstly, Gunn differentiates between bookkeepers and accountants. According to her, accountants analyze the big financial picture and offer strategic advice while bookkeepers are responsible for the day-to-day tasks, like managing invoices and paying bills.
It’s important that business owners determine whether an accountant or bookkeeper’s services are necessary. When the task of managing the business becomes too busy to afford any time for recordkeeping, it’s time to look for help. Gunn also suggests seeking a bookkeeper when a business is stable enough to recognize trends in the income and outflow; without the consistent help of a bookkeeper to track financial data, this analysis becomes impossible.
According to Gunn, a freelance accountant and/or bookkeeper can adequately manage businesses with revenues below one million dollars and fewer than 30 employees. Once that threshold is broken, she suggests looking for a staff accountant or bookkeeper. She say, “It’s time to hire full-time help, though, when you’re calling your accountant often enough that you wish he or she were in the office all the time. Bring in a full-time bookkeeper when your part-timer is spending two or three full days in the office and still falling behind.”
As you meet with prospective clients, consider some of Gunn’s valuable arguments. Small business owners have better things to do than manage their financials—chances are that’s not the reason they went into business the first place anyway. As you work to retain new clients, remind them that your job is to ensure that they are better prepared to make strategic business decisions designed to increase their bottom line; in that, your services more than pay for themselves.
Become a Freelance Accountant!
In two-months’ time, you could be ready to launch a new accounting practice and become your area’s premier freelance accountant. Not only that, but in following UA’s Professional Bookkeeper program, you could determine exactly how much you will earn.
The national average for monthly bookkeeping services is $300 a month (or $400, depending on the area). So the formula is simple. Divide how much you want to earn, X, by $300 to determine how many clients you’ll need to meet your financial goals each month. With 20 clients you could easily earn 6000 per month; that’s 72,000 a year!
In additional to earning a lucrative income and providing a service that’s in-demand, there are many other reasons why an accounting practice makes so much sense:
- It’s an inexpensive business to start (you probably have most of what is required right now)
- No expensive equipment is required
- You can make money doing what you enjoy
- You can work anytime, any place
- Rented office space is not required
- Inventory is not required
With UA’s Professional Bookkeeper Program, becoming a freelance accountant is much easier and more profitable than many have ever imagined. And when you own a private practice, you have the professional freedom to set your own schedule, determine your earnings and call all the shots. Call UAC today, at 1-877-833-7909, to change the forecast of your future!
Resource
Gunn, Eileen P. “When to Hire a Bookkeeper or Accountant.” 29 June 2011 Entrepreneur.com