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!

Gabrielle

RESOURCES

Successful QuickBooks Consulting

QuickBooks Solution Guide

QuickBooks Certified User Program

QuickBooks ProAdvisor Program

NACPB QuickBooks Certification

Universal Accounting QuickBooks Specialist Designation

The Sleeter Group

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One of the most common questions I hear about becoming a freelance bookkeeper is, ‘What credentials do I need?’

The real answer to that question has more to do with the type of freelance business you want to build. But for the purposes of this article, we will assume that you are focusing on handling the month-to-month bookkeeping of your clients as their sole bookkeeper.

You’ve Got Choices

I’ve found that most freelance bookkeepers are concerned with the technical skills needed to provide quality service. Of course, that is a good place to start.

So, if you’re starting from zero, the first step is to learn the ropes academically. Here are a few choices to consider:

the basics you need may be available locally in a classroom setting. Check a nearby community college or continuing education programs to see if there are any live classes offered for bookkeeping certificate programs.

If that is not available in your area, or you can’t fit classroom training into your schedule, you may want to consider self-study training courses available online. Penn Foster Career School offers a couple of choices for self-paced training that are good quality.  You can either get a Certificate in Accounting or take their Bookkeeping program.

Universal Accounting’s Professional Bookkeeper training is another option.
This training is a self-study program that takes the traditional paper-and-pencil approach. It is a course that centers on small business bookkeeping, designed and taught by a CPA. It also includes a module on practical steps for starting your freelance business.

Are You Certifiable?

If you already have a good understanding of bookkeeping principles, but want the credibility (and confidence) that comes with a few letters you can add after your name…

AIPB’s Certified Bookkeeper training which provides the CB (Certified Bookkeeper) certification is probably your most economical and recognized option for a professional bookkeeping designation. This is a thorough self-study, traditional debits-and-credits approach from the oldest industry association for our profession. I suggest that you pursue this after you already have a good, basic understanding of bookkeeping under your belt. You will also need some on-the-job experience in order to qualify for the certification.

NACPB’s Certified Professional Bookkeeper training provides the CPB (Certified Public Bookkeeper) designation. This is another self-study training option geared toward those who wish to start their own bookkeeping business, created by a CPA.

Of course, the best training, after you have the academics down, is real-world experience. But you can only get that kind of “training” by actually doing client work.

There are a variety of ways to get that hands-on experience, which range from offering to do the books for a friend or two who own businesses, to subcontracting from an established freelance bookkeeper, to working directly for an accounting firm. Working as an accounting temp may also give you the opportunity for varied experience, if you can land gigs with small businesses. (Experience with large corporations will be of little help in running your freelance bookkeeping business.)

Of course, it goes without saying (though I’m saying it here), you will also want to set up your own set of books and keep good records to apply what you’ve been learning AND see how it feels to be a business owner!

Finally, when you’ve got the bookkeeping principles and practices firmly ingrained, there will be one other major learning curve to tackle in the freelance bookkeeping puzzle. You must learn to use QuickBooks. The vast majority of small businesses use this software, and you will need to learn to use it correctly and well. Just knowing accounting principles does not mean you know how to use this “user-friendly” software accurately.

There are many bookkeepers (as well as CPAs!) who think they can just “fake it” with QuickBooks. That is certainly not the case, and those who do, often cause their clients frustrating problems rather than providing quality services.

So in my next article we’ll tackle this topic – Which QuickBooks credentials and training do freelance bookkeepers REALLY need?

In the meantime, if you need to brush up on your bookkeeping know-how, or start pursuing a certification program, for credibility and confidence before starting your business (or to enhance your existing services), then check out the options above and take action this week. Then let us hear about your success!

Remember, in tough economic times, small business need to have clean books more than they do in fat economic times. Opportunities abound in any economy for qualified freelance bookkeepers.

Of course, if you have questions or experiences you want to discuss about bookkeeper credentials, go ahead and click on the Comment link on the right side below my name below! I’d love to hear your thoughts on this (sometimes controversial) topic as well!

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Gabrielle

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If you haven’t heard, Intuit, the makers of QuickBooks software, is putting on a virtual trade show / conference for accounting professionals this coming week.

As part of its “Power to Get More Done” campaign, Intuit understands that professionals, now more than ever, are in need of affordable resources. With this in mind, Intuit Academy Virtual Conference attendees will benefit by saving time and travel costs with 24-hour access to the virtual tradeshow and self-study training resources.

In addition to many other courses, attendees will to learn about:

• Products for Accounting Practices – QuickBooks Premier: Accountant Edition, Intuit Statement Writer & Client Data Review, and QuickBooks Enterprise Solutions.
• Products for Tax Practices – Lacerte & ProSeries
• Products for Clients – QuickBooks Pro and Premier, QuickBooks Point of Sale 8.0
• Partner & Networking Programs – QuickBooks ProAdvisor Program & QuickBooks Setup and Training
• Certification – QuickBooks ProAdvisor Certification Preparation
• Less Paper Solution Series – Lacerte Document Management System and Intuit Document eSort

This is the first annual Intuit Academy Virtual Conference designed as an educational event especially for tax and accounting professionals. You can learn from the comfort of your homes or offices. Similar to an in-person trade show, you can log-on and interact with Intuit product experts at the virtual booths, talk to peers as well as a panel of industry experts, and participate in informational webinars. You can also access Intuit’s Live Community and Intuit Academy’s training services to get your questions answered throughout the two-day event.

It all happens on Wednesday and Thursday, January 21 & 22, from 11:00 a.m. to 5:30 p.m. EST, with on-demand access to self-study courses and other resources

Like most trade shows and conferences, you must Register before you will be able to participate in the event

The best part is the whole thing is free.

It’s worth it to drop by and see what Intuit has to offer. Remember, they realize that it is in their own best interests to work with us who are in the trenches, since if we are excited about QuickBooks and well educated, that only helps them to hold onto their #1 position for small business accounting software. Everyone wins.

In particular, if you’re part of the QuickBooks ProAdvisor program but have yet to get certified, there is a training class available on preparing for the Certification exam that you may want to check out.

Be sure to register as soon as possible, since on their website it seems there may be a significant delay (3 business days?!) between the time of registration and the time you will give your log-on information. (Looks like Intuit is learning how to navigate this virtual routine too! )

I’m going to drop by and check it out myself.  Won’t you join me?

Register Here

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When you decided to start your own business, did you realize that you’d chosen something that ultimately only about 5% of the general population ever accomplishes?

If you succeed and prosper with your business, you are part of a very exclusive club indeed. That’s because far and away the majority of all small businesses fail. We’ve all heard the bleak statistics.

But why do so many fail so miserably?

Often it’s because when success isn’t realized as quickly and as easily as expected, most would-be entrepreneurs just throw in the towel and give up. They conclude that they just can’t do it.

But is there a secret key to running a successful small business that most everyone is missing? And do you need that key to start a profitable freelance bookkeeping business as well? Yes, there is, and yes, you do.

Since I started writing articles like this one, more than a few people have approached me for advice on going freelance. In fact, just this week I was chatting with a CPA who has been working closely with many small businesses for over 10 years. He’s seen firsthand those that have succeeded and those that have failed. A few weeks ago he resigned from his job. He’s decided to start his own accounting practice.

But there’s a problem.

He confided that now he is quite worried about his plan. In fact, he told me that if a high-paying offer from another employer should happen to fall into his lap, he’ll immediately abandon his entrepreneurial aspirations.

I have serious doubts about whether he’s got what it takes to make it in his own business.

And then there’s the case of a young woman who has a good business sense who used to call me periodically for advice on setting up her freelance bookkeeping service. Not long ago, she missed our telephone appointment. I haven’t heard from her since. On that call she was supposed to have come up with her own version of a client contract that she would use in her new business, based on some guidance I had given her.

It seems that she may be missing the key as well.

I could go on with many more real life examples, but I bet you’d rather know exactly what this key is, and more importantly, figure out whether you’ve got it or not!

The key is positive, proactive persistence.

Back in 2005, an article in Psychology Today stated, “Psychologists have found that the ability to persist in the face of obstacles is at least as important a factor in success as is talent.” 

Chew on that for a minute.

Habit #1 in Stephen Covey’s The 7 Habits of Highly Effective People is, “Be Proactive.”

And the power of positive expectations has been studied and documented in medicine as well as education, time and time again. They are known as the Pygmalion effect and the Placebo effect.

Is it any wonder that the combination of a positive, proactive persistence in the building of your business just might make a significant difference when it comes to your success?

Persistence is extremely important when you work for yourself. You must take the initiative to keep the billable work coming in to pay the expenses. The ability to persist with positive expectations in the face of obstacles when the going suddenly gets bumpy will serve you far better than an alphabet of academic designations strung after your name ever will.

Calvin Coolidge really hit the nail on the head when he said…

“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.”

So what does all this mean for you and your freelance bookkeeping service?

It doesn’t take any special genius or talent to succeed. You might want to learn the technical skills involved in doing the bookkeeping work. But then again, that’s not absolutely necessary. You could instead, hire someone else who’s far more skilled than you are at doing the billable work, if you want. It’s really not the technical skills of bookkeeping that will make your business prosper.

It’s your determination to use the true key to success: Positive, proactive persistence. If you do, sooner or later you will reach your goals.

It’s “sooner or later” because you will also make mistakes along the way. There’s no doubt about that. You’ll face many problems too. You may even need to work much longer and harder than you ever imagined necessary. But if you refuse to give up, if you proactively keep paying attention to what’s working and expect success, you WILL make it.

Be determined to do it and don’t give up!

A line from the song that has become the theme for my own business success is from ”Icarus Ascending” by Dan Fogelberg. The line is…

“There is a gamble in each proud act of flight,
but the losses pale before the winnings.”

I truly believe this, when it comes to taking your business to the next level. If you do too, then be determined to always use the key to success to reach your goals–positive, proactive persistence–and it will unlock the door to winnings for you as a freelance bookkeeper.

Now you know the secret.  So the next question is, what are you going to DO about it?

 

***Special Resource***

This neat little video (created by my favorite business mentor, Jim Edwards) reminds me why I went into business in the first place. It’s truly inspiring. You will also see the tool I now use to put positive, proactive persistence into action in my business every day. Enjoy!—->Watch Video Now

 

WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the following author’s bio and link:

Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Certified QuickBooks ProAdvisor. She also publishes an interactive blog especially for bookkeepers who are ready to break free and run their own home-based bookkeeping service. Get more information at http://TheFreelanceBookkeeper.com

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That’s a question we all get asked at least occassionally. But how you choose to answer it can have a significant effect on your bottom line.

I’m very pleased to announce that that’s why I’ll be hosting a brand new teleseminar, “Effective Networking Made Easy” next week on January 8th with my special guest, Networking Expert Karen Frank.

I’m making this live training class available to you at no charge because I know that having a simple yet effective way to introduce yourself and master the art of networking will help you jump into 2008 with one of the most powerful marketing tools known to man – word of mouth.

To register for this special event, or to learn more about the class, go to: www.bookkeepingdirect.com/networking/

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