The Freelance Bookkeeper

In my previous article, The Freelance Bookkeeper’s Credentials, we discussed the training and certifications most often recommended for bookkeepers who gear their business toward straight month-to-month write-up work (aka typical bookkeeping services) for their clients.

If you remain as a one-person business (and you don’t plan to grow your company in the traditional way by hiring employees and/or subcontractors), however, there is a downside.

Your earning capacity is very finite. As a solo bookkeeper, you generally cannot actively handle more than 10 or 20 clients at any given time. Of course, the number of clients you are able to serve is also affected by their business volume. But once you reach your capacity, you will likely need to turn away any new clients that come your way. And then the only way you can make more money is to raise your rates.

That is not a bad thing, just a limitation to be aware of.

Working alone as a solo freelancer may also severely limit your schedule flexibility, since you will have a good deal of labor-intensive work to deliver every single month.

However, viewed from a more positive angle, if your income goals are quite modest and you prefer the relative income security of doing month-to-month bookkeeping, this business model might be the perfect fit for you. And these days there’s something to be said for stable cash flow and a predictable workload.

So what’s my point? It’s this: Doing monthly bookkeeping work is just one option; it’s not your only option as a freelance bookkeeper. Not by a long shot.

Bigger Goals and More Adventure

If you already have substantial bookkeeping experience and have a firm handle on accounting mechanics, AND you’re the type who would feel tied down or bored working for the same clients doing the same work month in and month out, then maybe positioning yourself as a consultant is a better fit for you.

As a consultant, you can charge much higher fees than a bookkeeper generally can. So it is easier to build your business to the six-figure level, without the need to hire employees.

Additionally, there are different types of consulting service you could provide. In my own experience, there are many business owners who are starved for someone to fill the role of their business consultant. Because bookkeepers have an intimate view of the numbers, you are in a unique position to fill the gap left by many accountants who see their clients only at tax time. If you have the experience and inclination to work with your clients from a big picture perspective, consider this type of consulting.

Other consulting specialties might have to do with cash flow or credit management, or dealing with employment issues, or even tax planning, if you have those types of qualifications.

But no matter which consulting needs you fulfill for your clients, you will be working with QuickBooks. No doubt about that. Transitioning or building your consulting services around QuickBooks is a natural – and lucrative – option all by itself.

The two main areas I’ve seen that work well are QuickBooks training and troubleshooting. There is also a high demand for set up of new QuickBooks installations.

QuickBooks Credentials

As with bookkeeping credentials, you have several choices. And whenever new freelancers ask, I have a definite opinion about which certification(s) I recommend.

Intuit, the makers of QuickBooks, provides two certification programs for their software – one for users and one for accounting professionals who want to become what they call ProAdvisors. If you want a professional credential that you can highlight to your clients, being a Certified QuickBooks ProAdvisor gets my highest recommendation. One of the big reasons I recommend it (besides the fact that the ProAdvisor program provides you with many, many excellent tools to build your QuickBooks consulting practice), is because of the credibility you get with being certified by the company that makes the program!

Among others, there are also certification programs available through NACPB and Universal Accounting. Now to be fair, I have not thoroughly evaluated the content of these programs, so I cannot make a recommendation either way. They are likely to be helpful for expanding your knowledge of QuickBooks as a service provider, to be sure. But as a certification for credibility with your clients, they will not carry as much weight as the one provided by Intuit.

If you are not so concerned about having a certification for marketing purposes, but more focused on a deeper working knowledge of QuickBooks itself, my best recommendation for learning the program inside out is the training (and they also have a certification program) provided by the Sleeter Group. The depth of their training information is second to none. They also have an in-depth QuickBooks Consultant’s guide that will be your best friend when working in the trenches.

It’s Always a Package Deal

As with most businesses models, being a consultant is a package deal too. Yes, you can make more money and have greater flexibility over your schedule. But you may be exposed to a possible roller coaster income ride too. When you work on a project basis, you are more likely to have many gigs all at once, and then suddenly nothing.

There are ways to even out the cash flow to make it more steady as a consultant. But that is a topic for a future article. I just want to let you know that you may have to watch your step if you decide to move up to the world of consulting. Though I personally prefer it.

If you want to explore the world of QuickBooks consulting, I’ve included a couple of excellent books on the topic in the Resource list below that you should look into before you make the leap.

Bottom line: Both business models have their advantages and disadvantages, and you may even decide on a mix of both typical monthly bookkeeping services and consulting projects. Just always remember, you are the boss and that’s why they call it FREElancing!

Tell us about your plans, or if you’ve had experience with any of the QuickBooks certification programs, how have they worked for you? Comment below and let’s tawk!