The Freelance Bookkeeper

As you might expect, different bookkeepers answer this question differently.

Your answer will likely depend on your budget and the ultimate goals you have for your business.

There are actually more than three choices, when you are talking the working space of a freelance bookkeeper. You could set up your business in your home (a spare bedroom or finished basement can be ideal). You could rent commercial office space. Or you could even work at your clients’ locations.

What’s most important in making the decision about where you will work (at the risk of sounding like a broken record), is that you should be very clear on how it will affect your ultimate business goals. What will your business be like when it is running exactly the way you want it to be?

• Will you want to be home for the kids?
• Will clients be meeting you in your office?
• Will you hire employees?
• Are you self-disciplined with your time?

Questions like these will help you to determine where your working space should untimately be located. Even if you want to, but can’t afford moving into a commercial office right now, it is important to stay focused on where your final business destination will be (whether commercial space or not) so you can keep your operations progressing forward consistently toward your goals.

In my own business history, I’ve worked from a home office. I’ve also worked at my clients’ offices. And yes, I’ve even had a rented Main Street commercial office space complete with employees. Reality is, nothing is perfect. Each situation has its own set of advantages and disadvantages.

For my current business goals, I prefer to work in a home office. But to help you make the best decision for your own freelance bookkeeping business, I’ve outlined some of the most obvious advantages and disadvantages of each working situation below.

Home-based Office

• Advantages:
  • No commute
  • Flexible hours / available for family
  • Low overhead
• Disadvantages: 
  • Clients may not perceive you as professional / expect lower rates
  • Clients will call and/or show up at your home 24/7
  • Family may not respect your work space, privacy or hours
  • You must be self-disciplined to use your time effectively
  • You may feel lonely working isolated from others
  • Laws may prevent you from hiring employees to work in your home
             

Commercial Office

• Advantages:
  • Clients immediately perceive you as a “real” business / professional
  • You work normal business hours
  • You can hire employees
  • Better visibility and credibility in the business community
• Disadvantages:
  • Substantial overhead
  • Walk-in clients, salesmen, and/or people looking for a job
              

Working On-Site in Your Clients’ Offices

• Advantages:
  • Very low overhead
  • Keeps you on a schedule
• Disadvantages:
  • Clients may expect to pay you the same hourly rate as an employee
    (without the benefits)
  • Always working on others’ computers not your own
  • Client may ask you to do extra work on the spot, free of charge
  • Travel may reduce your productive / billable time
             

Visualize each working environment ”package deal” of pros and cons, as it relates to your business situation, and then make your choice. Your wants and needs are unique to you. Advantages to one person may turn out to be disadvantages to another person. Go with what will fit best with your specific goals and ultimately manifest the “ideal business situation” for your bookkeeping service. Remember, you’re the boss!

As Stephen Covey recommends in his classic book, The 7 Habits of Highly Effective People, “Begin with the end in mind” and you will be well on your way to moving your business in the direction of your dreams.

After you’ve made your decision, I’d love to hear about it! 

What advantages and disadvantages can you see that will affect whether you work in a home based, office based or clients’ office working situation? 

By comparing notes we can all benefit from the experience and resulting synergy! Add your comments below.

Happy freelancing!

~Gabrielle

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Did you know that right now we are in the middle of the absolute best time of the year to find new clients for your freelance bookkeeping business?

Yep, it’s tax season! Many small businesses are still scrambling to get their 2007 books in order so they can have their tax returns prepared on time. Those who have not been keeping up with their bookkeeping records know time is quickly running out.

Most corporate tax returns are due on March 17th, and sole proprietorships (Schedule C filers) are due with the personal tax returns on April 15th.

The crunch is here and many small businesses owners realize they are in desperate need of help, and they need it fast.

Small CPA firms are also feeling the pain. They are loaded down with clients who show up at their doorsteps with shopping bags full of a year’s worth of receipts. These need to be tediously sorted out and assembled into some kind of decipherable records. There’s just no other way to get the taxes done. They hate the pressure of doing that kind of time-consuming work, especially now. That’s why CPAs generally charge their clients through the nose for the aggravation.

Enter freelance bookkeeper.

Even bookkeepers with only basic skills can suddenly seem like a god-send to both small business owners and CPA firms this time of year. You simply need to let them know you are available to help.

So how do you find these hungry clients who need your services? Two ways. First, be where they can easily find you, and second, use the direct approach to get their attention.

Let’s take the second approach first. One of the most effective ways to quickly get all the work you can handle with minimum effort is to contact all the small and solo CPA firms in your area.

Because of the season, do not attempt to make your first contact with a phone call. They are so busy that if you are out of sight, you will be out of mind as soon as the phone call ends. Better to go by their office in person, preferably first thing in the morning when it is the quietest, and drop off your business card.

If one of the CPAs is available to speak with you, get right to the point and focus on how you can help him or her with their overload bookkeeping work. Do not take more than 10 minutes of their time! You will know very quickly if they want your help or not.

A word of caution here. If you also have tax experience, do not mention it unless that would be helpful to the situation. You do not want the CPA to feel vulnerable, worried that you will steal his/her tax clients away. Instead, let them know you are on their side, ready to support them and make this crazy time of year easier on them.

On the other hand, if no one is available to speak with you when you arrive, simply leave your business card, along with a pre-written, professional letter explaining the reason why you dropped by – what you would have said in person. You can then follow that up with a phone call the next day. Again, try to call at a time when it is most likely quiet, either first thing in the morning or shortly after normal business hours.

Building alliances with CPAs will be one of the best ways you can grow your business quickly and get top-rate experience. And of course, if they are pleased with your work, you will likely continue getting work from them after the primary tax season has ended. Remember, many, many businesses go on extension and won’t actually file their tax returns until September or October. CPAs are also a great source of referrals, once a relationship has been established.

Additionally, if you want to work with your own clients individually, they are also very easy to find this time of year. Some no-cost ways to get them to contact you is to post your services at the public bulletin board at the supermarket, coffee shop or library.

If you are a member of your local Chamber of Commerce or other business organization, give the executive director a call and let her know you are available to help the members of the organization to get their books in order. Offer to drop off a short stack of your business cards that she can use to make referrals.

And of course, be sure to post a free add for your services online at Craig’s List. You’ll also want to keep an eye on the ads for those who are seeking a part-time bookkeeper. It’s amazing the amount of local business you can get immediately from this well-known, free resource.

The clock is ticking! There’s really no better time to jump in and get your feet wet with your first few clients than right now. Take at least one of the above suggested actions this week. Because as they say, timing is everything!

~Gabrielle

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