{"id":269521,"date":"2024-07-08T15:49:19","date_gmt":"2024-07-08T03:49:19","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=269521"},"modified":"2024-09-13T16:00:21","modified_gmt":"2024-09-13T04:00:21","slug":"offering-bookkeeping-services-to-small-businesses","status":"publish","type":"anb","link":"https:\/\/www.reckon.com\/au\/accountant-bookkeeper-resources\/starting-a-bookkeeping-business\/offering-bookkeeping-services-to-small-businesses\/","title":{"rendered":"Offering bookkeeping services to small businesses"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” locked=”off” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Copy paste body text here” _builder_version=”4.27.0″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

If you\u2019re starting up a new business offering bookkeeping as a service, you need to come to grips with the range of bookkeeping offerings you can provide, and how to go about filling the needs of your clients.<\/p>\n

Businesses of all sizes across every industry are potential bookkeeping clients. While each of your clients will have specific needs, there will also be significant cross-over in terms of common requirements. For example, probably all your clients will be seeking to grow.<\/p>\n

So now, it\u2019s over to you to create a bookkeeping services business<\/a> that fits both your desired style of working and the needs of your potential customers.<\/p>\n

What services do bookkeepers provide?<\/h2>\n

First things first, what bookkeeping services do you want to offer?<\/p>\n

While a well-rounded suite of offerings is no doubt advantageous, it can also pay to focus on the needs of specific industries<\/a> or bookkeeping tasks. Let\u2019s take a wide view of your basic choices.<\/p>\n

1. Invoicing<\/h3>\n

Sending and managing invoicing processes<\/a> and chasing accounts receivable (unpaid invoices<\/a>) are major pain points for service-based businesses. By focusing on invoicing as a bookkeeper, you may find a highly motivated customer base who want to enlist a professional to attend to all such matters.<\/p>\n

2. Bank reconciliation (reconciling financial statements and bank statements)<\/h3>\n

Bank reconciliation is a cornerstone of bookkeeping. Ensuring that your client\u2019s reported income and expenses are reflected perfectly in their actual bank accounts lies at the heart of sound financial management and compliance.<\/p>\n

3. Cash flow analysis<\/h3>\n

Cash flow is often touted as one of, if not the<\/em> most, crucial concerns of small businesses. If a business has done work that\u2019s unpaid or bought stock yet to yield revenue, it may have serious cash flow<\/a> issues.<\/p>\n

Until a business has adequate cash on hand, they run the risk of being unable to pay necessities like overheads and wages. This puts strain on available finances. Providing cash flow reports<\/a> and cash flow analysis<\/a> are crucial and attractive bookkeeping services.<\/p>\n

4. Budget analysis<\/h3>\n

Many business owners fail or underperform, not because they weren\u2019t viable, but because they didn\u2019t budget properly.<\/p>\n

There are a lot of businesses out there that spend impulsively without properly constructing and following a budget. Offering budgeting advice<\/a> can be a lucrative and useful bookkeeping service.<\/p>\n

5. Monthly reports<\/h3>\n

When business owners are so focused on day-to-day operations, monthly reporting and analysis often fall by the wayside. In many cases, they may not have the skills or time to undertake professional financial reporting.<\/p>\n

This means they can be flying blind and unaware of threats or opportunities to run a more stable and profitable venture ready for growth. Managing a client\u2019s reporting process, combined with sage analysis and advice, is a standard bookkeeping offering.<\/p>\n

6. Balance sheet<\/h3>\n

Another mainstay of bookkeeping is producing balance sheets. A balance sheet shows all liabilities and assets for a given time. As such, producing balance sheets is a basic yet crucial service that underpins the role of a bookkeeper.<\/p>\n

7. Profit and loss<\/h3>\n

A profit and loss statement (P&L) is another primary financial report<\/a> which depicts a business\u2019s profit and loss for a given time. Creating and understanding a P&L is crucial for compliance, growth, and sound financial management.<\/p>\n

8. Accounts payable<\/h3>\n

Accounts payable is a ledger of unpaid invoices or debts. These liabilities can impinge on a business\u2019s ability to free up cash for other vital areas. Being able to report and consult upon accounts payable<\/a> is elemental to a well-run business.<\/p>\n

9. Accounts receivable<\/h3>\n

Similarly, accounts receivable is a ledger of those who owe a business money, usually through unpaid invoices. A high accounts receivable<\/a> ledger indicates underwhelming invoicing and debt collection practices and represents one of the biggest problems many businesses face.<\/p>\n

Accounts receivable dovetails directly into cashflow concerns, as a business may have revenue as an asset on their books but can\u2019t utilise it.<\/p>\n

10. Data entry<\/h3>\n

The once fundamental task of data entry<\/a> has now largely been superseded by software automation. Nevertheless, an understanding of the theory and practice of data entry is essential to bookkeeping.<\/p>\n

11. Payroll<\/h3>\n

Any business that has employees on the payroll needs to abide by strict practices. Maintaining payroll compliance and understanding concepts like Single Touch Payroll (STP)<\/a> are key to being an employer. That\u2019s where a bookkeeper can step in. Services can include:<\/p>\n