Accounting & Bookkeeping & Small Business Forum

[nlsjma]

I need some help.

I've spent the last 25+ years developing and supporting retail and financial systems. I'm a licensed CPA (inactive status) in Maryland. I'm knowledgeable in QuickBooks and have recently become a Certified QuickBooks ProAdvisor. Most importantly, I'm tired of working for someone else and managing software development projects. I want to change directions and use my financial skills and knowledge to start a small, part-time bookkeeping service in Northwest Florida. I emphasize a SMALL practice. I want to work at least 10 hours a week but not more than 25 hours a week.

Question 1

I project that I will need between 5 and 10 clients to support my 10-25 hour/week objective. I know this depends on the type of services each client requires. I plan to offer full bookkeeping services – but not income tax preparation. Is my estimate of 5 to 10 clients reasonable?

Question 2

My research shows that there are between 800 and 1,200 sole proprietorships with revenue of $1 million or less having under 20 employees within a 10 mile radius of where I plan to start my practice. If I expand that to a 15 mile radius, it increases to 6,000. I know that the marketing and networking approach used has a tremendous impact but . . . does it seem reasonable that I can obtain the needed number of clients (5-10 if my above assumption is correct) over a 6 – 12 month period?

Question 3

If anyone from the Northwest Florida area reads this, can you give me some idea of the rates that are typical in the region?

I actually talked to some advisors at the Small Business Development Center in the area and I think they thought I was crazy. Given that the investment required to get into this business is minimal and that I only need a few clients, they thought it was “almost a no-brainer”. Well, I'm a bit cautious and prefer to hear opinions from people already in this business. Any comments would be very welcome.

Thanks.

[Ken]

Question 1
These numbers are reasonable
Question 2
With out much work you could have that in 2-3 months
Question 3
I agree with the SBDC

[sgbdad23]

I have a few suggestions!
1- Have you considered taking the Universal Accounting Universal Practice Builder? I did it and in 45 days I had 4 new clients with an increase in monthly repeatable revenue of $1237.00, not to mention over $3000.00 in back work fees. The back work fee is a 1 time per client. The marketing material and information in this class will teach you haw to package and market your service to any market. It will also give you the confidence. It will cost about $2000.00, but you can finance it through them, and with some effort on your part you will more than make that money back, and you can do it in 2 months or less, just like I did.

2- get involved in the local chamber of commerce, This will get your face and business known. People do business with people they know! when I got involved in the chamber it took 6 months before I got my first client. Because people wanted to get to know me before they would place their business in my hands.

3-Get some business cards, not the kind you print at home! Talk to you family and friends, and any small business that you are currently a customer. Look at where you do business, and see where you can change from large companies to individually owned companies. Remember people do business with people they know.

[QBConsultant]

What are you waiting for? You've done your research, have the skills and experience, and there is little or no risk! There are a LOT of small businesses that could use your help! 85-90% of the small business that use an accounting program use QuickBooks and many of them need help and/or training to use it properly. So, have faith in yourself and get started--you won't regret it! I went out on my own 17 years ago and I'm sooooo glad that I did!

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting
Advanced Certified QuickBooks ProAdvisor
National Trainer for Intuit Accountant Trainer/Writer Network
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-starting/dp/1434810690

[merlinda]

I'm in the same position as nlsjma except that I'm not a quickbooks Proadvisor but I'm a CPA and although my job is paying well I would like to start my own business. I'm in Georgia and I'm not sure how much to charge clients and what have been new business owner's reactions. Any suggestions/comments will be very much appreciated. Thanks

[QBConsultant]

Intuit does an Annual Rates Survey every year and gives average billing rates based on credentials, type of service, georgraphic area, etc. Go to accountant.intuit.com and search for 'annual rates survey'. There is so great, helpful info in it!

Also, if you can make it to the Intuit 2009 Accountant Update seminars in Atlanta, you should try to go! It is free, you'll get CPE and learn a lot!

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting
Advanced Certified QuickBooks ProAdvisor
National Trainer for Intuit Accountant Trainer/Writer Network
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-starting/dp/1434810690

[merlinda]

Thank you very much. This is very helpful