Home based bookkeeping business plan

Home based bookkeeping business plan

Author: nikitafrolov Date: 19.07.2017

Allen Bostrom, CPA, president and CEO of Universal Accountingreveals his advice about starting an accounting business. He talks about choosing the right tax preparation software, where to find the right accounting courses, becoming an Enrolled Agent, which professional organizations to join, and more.

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Play Now Play in Popup Can you start off by giving us kind of an overview of the accounting business. What kind of services does a bookkeeper usually provide? In other words, a lot of people just freely intermingle those two different titles, and so technically the difference is a bookkeeper does mainly the data entry work, the day-to-day recording of transactions, and then the accountant prepares and analyzes the financial statements. So there are a lot of misunderstandings as to what the definitions are.

Certainly, a bookkeeper can do a lot more than just data entry. If they just know a little bit more about the software, they can prepare the financial statements.

Well, it can be started very inexpensively.

People get to work out of their home if they prefer. To the folks who really work at this kind of business, what kind of income potential is possible? A lot depends upon what services a person wants to offer. But if you include consulting on those financial statements, you have them comfortable enough that you can help businesses understand them and give them some ideas of what to do, or if you add taxes, and do tax returns, your income potential really increases substantially.

The tax business really runs from the beginning of February to April 15th, so during that time, you could make some very good income. How much does it cost to start an accounting business preparing taxes and providing general bookkeeping?

The equipment that you need today, most people already have. The tax business, most people choose to start out on a pay-per-return basis. What are some of the popular software packages out there that are used in bookkeeping and tax preparation. Can you name some?

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ProSeries is probably one of the most popular professional packages. Besides that, they just take longer. So there are professional packages that you would buy online, and there are demos and so forth that you can purchase, and ProSeries is one of those. Can you open a bookkeeping business right in your home, or do you need to find some sort of commercial space? At some point in the growth, this will be a natural process, or a natural decision. When they get to that point, and its different for different people — they will choose to go rent a space.

In most cases, I recommend that you look at a professional office type space, it just works better. It just works out better and they usually have a better hookup system for you with the Internet. What are some of the different ways people can learn the bookkeeping business? Do you have to take college classes, for example? I call it the shoebox — can I pick up the shoebox from a small business and start from scratch and do the books, and you will find that the training was not suited for that, as far as the colleges go.

You hear the term Enrolled Agent a lot lately.

home based bookkeeping business plan

When is it necessary to become an Enrolled Agent? Now the EA is a license endorsed by the IRS specifically to give the EA the same get free credits xbox live to represent a client as a CPA has, which a CPA gets by their license.

So years ago, the IRS created a test and a designation and license called the Enrolled Agent. So I first recommend that they just start doing taxes.

Of course, the client can sign a power of attorney and give you the right to go in and be them in almost any event without the EA. Allen, how do you find bookkeeping and tax preparation clients? Most people start with their friends and neighbors.

My first five clients came from that group. Home based bookkeeping business plan that is one place, Matt, where that free newsletter, if you go to our website, comes in real handy, because home based bookkeeping business plan week it comes in with new strategies and tips and ideas on how to market your business. It seems like across so many industries, specialization is the buzzword that you hear a forex 360 system by james de wet. Should you focus on just bookkeeping or just preparing taxes and try to maximize that business, or does it really make sense to offer both, and what other services should you offer for additional pengertian swap dalam forex, maybe in the off-season?

And a lot depends upon the season of the year and what you want to accomplish. But let me just give you some general guidelines for your listeners. First, I usually recommend that you start with the bookkeeping.

home based bookkeeping business plan

Now the reason for that is because moneycontrol currency trading is income all year round. Bookkeeping first, taxes second.

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What professional organizations do you recommend belonging to, and in addition to your newsletter, which sounds like a great resource, what other resources are available, such as web forums and accounting magazines, that sort of thing?

For the small business practitioner, there are two organizations that are terrific to join. The National Society of Accountantsor NSA, has some terrific resources that you can access.

home based bookkeeping business plan

And for taxes, there is a number of different organizations, but the one that I am closest to and that I appreciate the most is the National Association of Tax Professionalsor NATP. They probably have the largest following and largest organization.

They have some terrific publications that you receive as a member, and they have tax support and help, so you have that type of organization backing you up. So the NSA and the NATP. So many people saw somebody else do it, they see them excited and successful and they think, oh they can do it, I can do it, and so they might put an ad in the yellow pages, or put an ad in the newspaper, or they might just send out a quick flier, and then they just sit by their telephone and wait for calls.

We have training in different types of marketing techniques.

Accounting is a relationship business, in essence. Business owners do not look for their accountant by looking in the yellow pages. And they think that their accounting is being done by their tax preparer. So most people do not have accounting done, which is a tool they can use to run their business more effectively and more profitably. All it takes is some education and getting that word out. Allen Bostrom, CPA, is the president and CEO of Universal Accounting in Salt Lake City, UT.

Universal offers many products including accounting, bookkeeping, and tax preparation courses. Allen is also the author of several books including In the Black: Nine Principles to Make Your Business Profitable and Red to Black in 30 Days. I have a diploma in financial accounting. You need an Associates degree as a minimum to fully understand what is asked of you to start a bookkeeping company from home. I would also recommend takes the courses required to become a tax preparer 15 credits from places like Jackson Hewitt and a few business classes would help tremendously.

In order to do taxes for profit you legally have to have the tax credits completed and have a PTIN with the IRS to be fully legal to do so as far as I know. I am an accountant and tax preparer. I just need to retake the refresher course and get my 15 credits for next tax time. People look to hire tax preparers in October through April 18th sometimes later for late entries. I am interested in opening a bookkeeping and taxes business.

I have been a general ledger accountant for over 3 years now. Do I need an special licenses to be able to do corporate taxes and or personal taxes using Turbo Tax or Intuit.

I was under the impression that I had to be a certified tax preparer in order to prepare someones income taxes for profit. Is that true even if I use Turbo Tax or any other software? Where do I find the training for to start this type of business from home and how long will it take to get the training and get started? I have listened to 2 podcast and found them both very helpful.

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