Accounting & Bookkeeping & Small Business Forum

nlsjma · Joined: 23 Jun 2008 Posts: 2

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 · Joined: 17 Aug 2005 Posts: 146

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, in that it is a no-brainer. You should be able to get going quickly and easily. The avg. Small Business will pay $300-$400 per month.

sgbdad23 · Joined: 26 Feb 2008 Posts: 40 Location: Melbourne, FL

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 how 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 · Joined: 06 May 2008 Posts: 51 Location: Kansas City, MO

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 · Joined: 04 Oct 2008 Posts: 4

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 · Joined: 06 May 2008 Posts: 51 Location: Kansas City, MO

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 · Joined: 04 Oct 2008 Posts: 4

Thank you very much. This is very helpful

Huntingtax · Joined: 23 Oct 2008 Posts: 9 Location: Mesa, AZ

I started my own Bookkeeping business a year and a half ago. I have no idea what I was thinking but I quit my tax prep job and started with only a few clients (like 2 monthly accounts no joke). I am not a CPA and I am not a Certified Bookkeeper but I have a bachelors degree in accounting and have used QuickBooks for 8+ years. There is such a need for this business that there is no reason why you shouldn't start it! CPAs don't want to do what we do or charge too much and when people hire office help and pay them $10/hr they usually have minimal accounting qualifications and if they don't screw things up they need to be at least over looked and checked up on (monthly reconciliations by you). I have not paid for hardly any advertising or marketing and I am making a living. I post ads regularly on craigslist (free) and have joined networking groups of local businesses ($120/yr). Go for it and don't look back!

Huntingtax Accounting

klmccartney · Joined: 25 Oct 2008 Posts: 3

Hi All,
I am NEW at this, but all of your stories and words are very encouraging. I just got my training materials and am working on business cards and business set-up. I am anxious to get started and will rely on continued words of encouragement on this forum.
Thanks for being there.
KLM

Huntingtax · Joined: 23 Oct 2008 Posts: 9 Location: Mesa, AZ

Welcome KLM,

If you haven't found it already, vistaprint is a fantastic site to start with for creating your business cards. Their cards and other materials are super inexpensive!

klmccartney · Joined: 25 Oct 2008 Posts: 3

Huntingtax
Thanks for the info, I am on Vista's web site now. It looks great.
KLM

Huntingtax · Joined: 23 Oct 2008 Posts: 9 Location: Mesa, AZ

Oh and sometimes you can even get discount coupons for vistaprint at retailmenot . com Another new site I learned about recently from a client of mine! Best of luck!

awatson4 · Joined: 02 May 2006 Posts: 8 Location: Lewis Center, Ohio

Go to my website at http://growthandprofitexpert.com click on resources tap then click on the Universal Accounting banner then scroll down and click on the Practice Builder banner and purchase the course. This is a great course to take. Tells you exactly how to develop a business plan to marketing your services. Excellent course.

Richard Noot · Joined: 20 Aug 2005 Posts: 878 Location: Minnesota

Huntingtax wrote: Welcome KLM,

If you haven't found it already, vistaprint is a fantastic site to start with for creating your business cards. Their cards and other materials are super inexpensive! Just remember to NOT give one to someone that is in the printing business. I also use vistaprint and all of my clients, friends, and neighbors thought that my card was fantastic. That is except the one client I have who is a graphic designer for a print shop. He showed me all the flaws in the card because of the process that vistaprint uses. He said he wouldn"t hold that against me because I am such a fantastic tax preparer and I do such a fantastic job for him every year.