How To Start A Bookkeeping Business - Buying A Business

Occasionally you may find people wanting to sell their bookkeeping practices. This can be one way of starting your own bookkeeping business without a lot of marketing for client generation.

This way of starting a business may be something to consider however it is not necessarily something you should enter into lightly. Unless it is a large bookkeeping firm which has goodwill in the business which is not necessarily attached to the main principal, the smaller ones may not be a good deal.

It is important to analyze the circumstances of each potential business for sale and do your due diligence before taking the plunge. This option is often costly, but is nevertheless an option for a bookkeeper who wants their own business. If you are in the position to be able to buy a bookkeeping business make sure you carefully review the purchase contract and check that all components of the business are transferred to you.

Components of the purchase contract are, but not limited to:

Premises information

Any restriction covenants

Goodwill

Licenses

Supplies

Employees

Work In Progress

Debtors

Charges and Mortgages

It is also important to arrange an extensive hand over period of clients to maximize client retention. It is easy to buy fees and then find the clients all quickly disappear when the new owner walks in the door. It is vial for you to protect your income stream and having a lengthy hand over period will ensure your new clients have had contact with you frequently during the hand over stage. This will assist building a rapport with the new clients and they will be more likely to continue on in your new bookkeeping business.

Another way of starting a bookkeeping business is to consider a franchise instead of an established business. This would mean you are not taking on the clients of another person, but you are buying the goodwill already established by someone elses brand in the form of a franchise.

If you do consider a bookkeeping franchise, you will need to research exactly what you will receive for your franchise fee. Additionally it is important to understand all on going fees that will be applicable. These can become incredibly costly and are in addition to the purchase fee. It is crucial to understand how much the fees are and what they are for such as marketing or advertising.

If you want to start a bookkeeping business and are thinking about either buying an established business or buying into a franchise they key to turning it into a successful business will be thorough research prior to making any decision.