Idea of the Week: Bookkeeping Home Based Business

Filed in archive business ideas on October 1, 2007

If there's one occupation that you can take to the next century, it's bookkeeping. Someone, somewhere will always need help in figuring out which asset is what and which liability goes where. Plus, there's always the taxes to consider. No wonder why bookkeeping is one of today's most popular and active home-based businesses around. Is this the right business for you?

To start, you'll need to have a background in accounting and bookkeeping. Usually, a certificate degree will suffice. You can also take special courses in business bookkeeping to help you understand what you're supposed to do. Once you have the knowledge, you must begin collecting your tools.

Tools and equipment you need to start your own bookkeeping business
A bookkeeping business is one of those home-based businesses that you can start at a low cost - hence, its popularity. Here are some of the tools and equipment you'll need to have:

A typewriter and a computer
Of course, you can fill out forms using a pen but a typewriter is so much neater. Besides, it's quite difficult to use a printer with a pre-printed form. An old but working typewriter picked up a sale will do.

Use a fast computer for better efficiency, with enough memory to handle additional software and files. You will also need accounting software to handle functions such as bookkeeping, inventory, even payroll if necessary.

A printer
You will be using a printer regularly to provide hard copies of documents so invest in a reliable but cost-effective unit. Some computers can come cheap but their brand of ink cartridges may be too expensive to use.

A business line
If you're just starting, you can use your home phone line, provided you can keep it free most of the time, if only to receive calls from clients. You will appreciate a separate business line if you are living with other people who also need to use the phone. Some states might also require you to have a separate phone line for your bookkeeping home business.

A fax machine
Although you can communicate through e-mail, your clients might also appreciate being able to use your fax machine to send you data and copies of documents. If you need to copy something, a fax machine can also come in handy.

A secure and separate area
No, you cannot use your kitchen table. Remember that you will be handling your client's personal and financial papers. Imagine having coffee and ketchup stains on your client's tax return. Find a suitable area where you can set up a small working table, your computer and a filing cabinet or drawers to store all those forms and documents.