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Monday, October 13, 2008

How To Start Your Own Home Based Accounting Business

A lot of home businesses fail because they lack the necessary financial system to track down the flow of their money. More often than not, home based business owners are not really very keen at keeping their books of accounts, thinking that as long as money keeps coming in, they will be alright. Unfortunately, things are not really that simply when you are engaged in business. If you want to stay in business for a long time, you will need to keep track of your financial flow for your own use and for taxation purposes. Note that if you do not keep track of your income, sooner or later the IRS will be unto you and you will get into big trouble.

Setting up your own simplified bookkeeping system is not really very complicated. If you like to keep your records in your computer, you might want to buy accounting software or just simply use whatever programs that will allow you to make a spreadsheet in your computer to record your daily transactions. However, you have some money to spare for an accounting program, it would be better to have one. There is a number of easy to use accounting software being sold in the market today. The good thing about these accounting programs is that you do not need to worry about balancing your books of accounts. You simply input all your data in one page and the program will run on its own. Most accounting programs will automatically perform the different accounting process and will immediately update your statements of accounts. Retrieving data from an accounting program is also easy. All you need to do is to go to it archives and select which ones you want to see. For instance, if you want to know how much your net income is for the month, you simply pull-out the income statement page and you will see your income instantly. Another advantage of using a computer accounting program is that you get rid of all the papers and ledgers in your workplace.

Now, in case you are not comfortable using your computer to balance your books, then you just have to you things the old-fashioned way. What if you do not know anything about accounting processes? Never mind if you are not good in accounting and balancing statements of accounts, just keep a simplified records of your transactions. A three column worksheet will do nicely. You can easily find this type of worksheet in the bookstore. When dividing your worksheet, you can have one column for all the money you received in connection with the business, another column for all the money that you spend for your business and the third column will be for your running balance.

Are you own of those people who are tired of being confined inside your windowless office cubicle? If you have been feeling claustrophobic in your small cramped cubicle with nothing but the computer filled with accounting files, now is the time for you to get out of there and look for something that will not really drive you crazy. There is really no point of torturing yourself and getting all your nerves worked out even if the job does pay the bills. Always bear in mind that you are not here in this world simply because you need to pay the bills! You have to live your life a little and have some fun.

Now, just because you are miserable with your present job, that doesn't mean you have to dash out of the door right thins very minute and never look back. Much as we hate to think about it, we do need to pay the bills, eat and have a roof over our heads. If you really want to quit your job, you better look for alternative means of income first. Much as you would like to get away from your workplace fast, you will need your day job to keep you afloat while you set up your home business. To inspire you to work hard on your home business, set a target date when you will quit your job. Keep your target in mind and strive hard to build your business.

Since you are an accountant, you might want to start offering your services as bookkeeper or accountant to small business around your community. There are probably a lot of small businesses around your community that needs your services so start calling on people who might be in need of accountants or bookkeepers. If you know some people who are into home based business, give them a call and ask if they need your help. You will be surprised at how many people actually need accounting and bookkeeping services.

Another way for you to advertise your services is to print some brochures of describing your work experience, the services that you are offering and your professional fees. Distribute your brochures together with your business cards to family members and friends and ask them if they know somebody who might be interested in your services. More often than not, someone in the family does know somebody who is in need of accounting services.

It may take you sometime before you can finally build a good accounting and bookkeeping business. If things are not moving as fast as you would want it to be, be patient and don't stop trying. Sooner or later you will be able to get enough clients and generate some good income.

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