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A home-based bookkeeping business is a service to small business owners who have neither the time nor the expertise to keep sufficient records for themselves. A plumber or piano tuner can make more money plumbing or tuning than doing their book work -- if they're good at plumbing and tuning!

The home bookkeeper's clients drop off their receipts and sales slips for posting to a computer-based ledger. The client is provided monthly statements and information for their yearly taxes, plus any other contracted services.

Although it would be nice to have a full capacity computer operation and an MBA in accounting, there is room and a real need for less than expert (at a much lower price) bookkeeping services. Not all small businesses can afford or even need a lawyer or professional accountant; many simply need someone to keep track of their day to day operations so they can tell where they are financially and stay out of trouble with the IRS.

Although it is quite possible to start a bookkeeping service with hand kept records (especially the single entry), a really profitable operation requires a computer and good software.

Computers are becoming less expensive as time goes on and often come pre-loaded with the software you would need to run a bookkeeping business. If not, it's a simple matter of adding it on.

The client's product will usually be an orderly report of all of their invoices, checks, payments etc. (the things the IRS requires), that they brought to you, plus a monthly statement and any other requested options that you offer and the customer orders.

Clients are charged for your time for daily posting, for reports they receive, plus any additional services or information they may require, such as yearly totals for tax computation.

Fees for these are usually based on operator time, computer time (different rates), plus the number and type of reports. Hourly charges average about $20, depending on the locality, account size, and the degree of your expertise.

A bookkeeping service is similar to a word processing service in that accuracy is extremely important and business connections are especially beneficial. Join the Chamber of Commerce, Rotary, etc. That is where to find potential customers.