What I Would Do DIFFERENTLY - Starting My Bookkeeping Business Today

Summary

In this video, CPA and finance expert AJ Stockwell shares insights on starting a bookkeeping business today. He advises signing up for the free QuickBooks Online accounting program, mastering QuickBooks Online, focusing on a specific industry, expanding beyond local clients, charging higher fees, and building a thoughtful, client-focused business.

Takeaways

• 📚 Start with the QuickBooks Online accounting program, which is now free and provides a comprehensive toolkit for bookkeeping businesses.
• 💻 Focus on mastering QuickBooks Online and only work with clients who use this platform to avoid spreading expertise too thin across multiple software.
• 🏢 Choose a specific industry to specialize in and become an expert in that field to provide deeper insights and value to clients.
• 🔍 Stay updated on industry news and trends to maintain a competitive edge and offer informed advice to clients.
• 🌐 Expand your client base beyond your local community by leveraging cloud accounting tools like QuickBooks Online, which allow for remote service.
• 💰 Charge more for your services to reflect the value you provide, overcoming the common undervaluation of professional services by new bookkeepers.
• 📈 Consider increasing your initial service rate by 10-20% to better align with the market and the value clients receive.
• 🧘‍♂️ Build your business thoughtfully and slowly, focusing on quality over quantity, especially if immediate income is not critical.
• 🤝 Identify an ideal client profile and ensure that potential clients are a good fit for your services and that you can meet their needs effectively.
• 🌟 Embrace technology and stay ahead of trends to build a successful accounting business in an industry that is rapidly evolving.

Q & A

What is AJ Stockwell's professional background?

AJ Stockwell is a licensed CPA and an expert in small business accounting and finance. He started a bookkeeping business while in college, serving local small businesses and hiring accounting students for client bookkeeping work.

What was the primary software used by AJ Stockwell when he started his bookkeeping business?

AJ Stockwell used QuickBooks Desktop exclusively when he started his bookkeeping business, as it was before the era of QuickBooks Online.

How has the bookkeeping industry changed since AJ Stockwell started his business?

The bookkeeping industry has rapidly evolved with technology and automation, changing the roles that accountants and bookkeepers play in businesses, making it an exciting time to start a bookkeeping business.

What is the QuickBooks Online Accounting program and why is it beneficial for starting a bookkeeping business today?

The QuickBooks Online Accounting program is a free service that provides a copy of QuickBooks Online for a bookkeeping business's own books, a work center for clients, accountant tools, and access to specific training and certifications. It's beneficial because it was previously costly, and now it's free, offering more resources without initial investment.

Why does AJ Stockwell suggest focusing on QuickBooks Online instead of learning multiple software programs?

Focusing on one platform like QuickBooks Online allows a bookkeeper to become highly proficient and master the system, rather than being just good at many. This specialization can lead to better service and expertise for clients.

What are the advantages of using cloud-based QuickBooks Online according to the script?

The advantages of using QuickBooks Online, a cloud-based system, include the ability to access clients' books from anywhere, which provides flexibility and a significant advantage in serving clients remotely.

Why is it important for a bookkeeper to choose and master a specific industry?

Mastering a specific industry allows a bookkeeper to understand trends, common practices, and setup standards within that industry. This deep understanding compounds knowledge and adds value to both the bookkeeper's expertise and the clients' business operations.

How does specializing in an industry help a bookkeeper stand out from the competition?

Specializing in an industry and becoming a master in that field allows a bookkeeper to position themselves as an expert, which can attract clients looking for industry-specific knowledge and advice, setting them apart from general bookkeepers or accountants.

What is AJ Stockwell's advice on expanding the client base beyond the local community?

AJ Stockwell suggests leveraging cloud accounting tools like QuickBooks Online and video conferencing platforms to serve clients worldwide, increasing the potential client base and offering flexibility to work from anywhere.

Why does AJ Stockwell recommend charging more for bookkeeping services?

Charging more reflects the value and expertise provided to clients. It's important for professionals to recognize the worth of their services and to ensure that clients are willing to pay a price that matches the value they receive.

What is AJ Stockwell's approach to building a bookkeeping business thoughtfully?

AJ Stockwell advises slowing down and being thoughtful about business growth, identifying an ideal client profile, choosing an industry to work with, and ensuring a good fit between the bookkeeper and the client. This approach helps to build a solid foundation and offer higher value to clients.

Outlines

00:00

📚 Starting a Bookkeeping Business in the Modern Era

In this video, AJ Stockwell, a CPA and finance expert, shares insights on how he would approach starting a bookkeeping business today compared to when he was in college. Back then, he used QuickBooks desktop and visited client offices, but now he emphasizes the importance of using QuickBooks Online due to its cloud-based accessibility and the free QuickBooks Online Accounting program for accountants. He also stresses the value of mastering one platform rather than trying to learn multiple software programs. AJ advises focusing on a specific industry to gain a deeper understanding and provide more value to clients, setting oneself apart as an expert in that field.

05:01

🌐 Expanding Beyond Local Borders with Cloud Accounting

AJ Stockwell continues his discussion on modern bookkeeping by highlighting the benefits of cloud accounting, which allows for serving clients from anywhere in the world. He advises charging more for services, as professionals often undervalue their work initially. AJ suggests that new bookkeepers should be confident in the value they provide and charge accordingly. He also recommends taking a thoughtful approach to building the business, focusing on identifying an ideal client profile and ensuring a good fit with clients. AJ emphasizes the importance of working with clients who are willing to use the tools he prefers and are open to his rates, which might be higher than average, but reflect the value he offers.

Keywords

💡QuickBooks Online

QuickBooks Online is a cloud-based accounting software. In the video, AJ Stockwell emphasizes its importance for modern bookkeeping businesses due to its accessibility and integration with various accountant tools. He contrasts it with the older QuickBooks Desktop, highlighting the advantages of cloud accounting.

💡Technology and Automation

Technology and automation refer to the use of advanced software and automated processes in bookkeeping. AJ discusses how these advancements are revolutionizing the industry, making it easier and more efficient to manage client books and serve clients remotely.

💡Cloud Accounting

Cloud accounting is the practice of managing accounting tasks over the internet using cloud-based software. AJ praises cloud accounting for its security and the flexibility it offers, allowing bookkeepers to work from anywhere and expand their client base beyond their local community.

💡Industry Specialization

Industry specialization involves focusing on a specific sector to gain deep expertise. AJ suggests that new bookkeepers should choose one industry to master, as this allows for better understanding of industry-specific trends and needs, leading to more effective service for clients.

💡Client Profile

A client profile is a detailed description of the ideal client for a business. AJ recommends creating an ideal client profile to ensure that the clients are a good fit for the services offered. This includes considerations like the client's industry, willingness to use specific tools, and the nature of the client relationship.

💡Pricing Strategy

Pricing strategy refers to the method of setting prices for services. AJ advises bookkeepers to charge more confidently, suggesting that they should recognize the value they provide and adjust their rates accordingly. He also recommends adding a percentage to their initial pricing to better reflect their worth.

💡Mastery

Mastery in this context means becoming highly skilled in one specific area. AJ argues that trying to learn multiple software programs can dilute a bookkeeper's expertise. Instead, he suggests focusing on mastering QuickBooks Online to provide exceptional service.

💡Remote Work

Remote work involves working from a location other than a traditional office. AJ highlights how tools like QuickBooks Online and video conferencing software allow bookkeepers to serve clients from anywhere, broadening their potential client base and offering greater flexibility.

💡Client Relationship

Client relationship refers to the ongoing interactions and rapport between a service provider and their clients. AJ emphasizes the importance of establishing clear and beneficial relationships with clients, ensuring that both parties are a good fit and can work together effectively.

💡Business Foundations

Business foundations are the basic principles and practices that support the growth and stability of a business. AJ advises new bookkeepers to build a solid foundation by being thoughtful and deliberate about their business decisions, such as choosing the right clients and tools.

Highlights

AJ Stockwell, a licensed CPA and small business accounting and finance expert, discusses what he would do differently if starting a bookkeeping business today.

In the past, AJ used QuickBooks Desktop and visited client offices for work, but now QuickBooks Online and cloud technology have revolutionized the industry.

The QuickBooks Online accounting program is now free, a stark contrast to the $500 cost for the desktop Pro Advisor program when AJ started.

AJ emphasizes the importance of mastering QuickBooks Online to provide specialized service rather than spreading expertise across multiple platforms.

Advocates for focusing on a single industry to master it and provide deeper insights to clients, unlike his early days of serving various industries without specialization.

Mastering an industry can set a bookkeeper apart from general peers and become a trusted advisor to clients.

With cloud accounting, the geographical limitations of serving clients are removed, allowing for global reach.

AJ suggests that professionals should charge more for their services, overcoming the undervaluation and imposter syndrome often felt by newcomers.

Recommends increasing initial service rates by 10-20% to reflect the true value provided to clients.

Advises a thoughtful approach to building the business, focusing on ideal client profiles and industry preferences.

Suggests identifying the tools and rates that fit both the bookkeeper and the client for a mutually beneficial relationship.

Emphasizes the importance of not rushing and building a solid foundation for long-term business success.

The current technological advancements make it an exciting time to start a bookkeeping business, with opportunities to stay ahead of trends.

Encourages viewers to subscribe for more insights and to share feedback or topics for future videos.

AJ's video provides a comprehensive guide for aspiring bookkeepers on leveraging modern technology and focusing on specialization.

Transcripts

hi everybody I'm AJ Stockwell a licensed

CPA and small business accounting and

finance expert and in today's video I'm

really excited to talk to you about what

I would do differently if I were

starting my bookkeeping business today

so in a previous video I mentioned that

when I was in college I started a

bookkeeping business serving a few local

small businesses in the area I even

hired a couple of other accounting

students to do some client bookkeeping

work this was in the days before

QuickBooks Online got to be where it is

today so I was exclusively using

QuickBooks desktop and I was actually

going to client offices to do most of

the work now a lot has changed since

then and right now is the most exciting

time to be starting a bookkeeping

business technology and automation are

rapidly changing the industry and the

roles that accountants and bookkeepers

serve in a business so in this video I'm

excited to tell you about what I would

do if I were starting my business today

instead of back then when I was in

college so the very first thing that I

would do is I would sign up for the

QuickBooks Online accounting program

it's free it gives you a free copy of

QuickBooks Online to use for your

bookkeeping businesses books and it

gives you a really nice work center to

serve your clients it gives you a lot of

accountant tools it gives you access to

specific accountant training and

certifications and all that kind of

thing when I was starting my business

the QuickBooks desktop pro advisor

program cost around five hundred dollars

to get all the way up to the enterprise

level this was a big investment for a

college student but today you don't have

to spend anything because the quickbooks

online accountant program is free so

that is the first thing that i would do

differently the second thing that i

would do is i would learn quickbooks

online and i would only work with

clients who were willing to use

quickbooks online and you're going to

start to see a theme in this video where

maybe it sounds like i'm being a little

bit stubborn or setting up rigid

parameters around serving clients but i

think that it's really important to

identify exactly how you want to be

serving your clients and to be come

really good at

one platform too many new bookkeepers or

accountants will try to learn every

different software program and the

problem with that is if you get pretty

good at all of them you can't really get

great at any of them you can't master

one of them if you're focused on

learning all of them so I would really

suggest learning QuickBooks Online and

sticking with that the huge advantage of

QuickBooks Online is that its

cloud-based and I made a previous video

about if cloud accounting is secure and

I believe that it is very safe so the

advantages of being able to access your

clients books from anywhere is a huge

advantage and the reason that I would

suggest using QuickBooks Online the

third thing that I would do differently

is I would choose an industry and I

would master that industry and stick

with that so when I was in college I

would pretty much take any client who

was willing to work with me so I worked

with a manufacturer retailer a real

estate company and a bunch of different

industries and I found that I never

really mastered any one industry during

that time since I usually only had one

client in each industry I didn't get an

idea of the trends or of how books

usually look from business to business

within the same industry so if you can

really get to this deeper level of

understanding in your industry because

you are serving multiple clients within

the same industry then it really is like

one in one adds up to three or four not

just two because that knowledge really

compounds and adds additional value both

to yourself and to your clients it gives

you the opportunity to know how things

should be set up you can start getting

checklists in place and routines and you

know exactly what you need to do when

you bring on a new client in that

industry because you've mastered it

choosing and mastering a specific

industry will also set you ahead of the

competition if you say that you are the

master of real estate accounting then

you're really going to stand out from

people who are just general bookkeepers

or accountants because you're going to

be showing potential clients that you

know their industry inside and out so if

you can learn a specific industry keep

up to date on its news and trends make

sure that you're reading about the

industry and

constantly staying ahead of the game and

you'll become one of your clients most

important advisors which is really what

the accountant should be the next thing

that I would do differently is I would

expand out of my local community so

since I was using QuickBooks desktop and

I was working at client offices it was

pretty difficult to have clients outside

of my local community but that has

really changed today with cloud

accounting and QuickBooks Online now

there's really no reason that you can't

serve clients all over the world if

you'd really like to tools like

QuickBooks Online and video conferencing

like Skype or zoom have really made it

possible to serve your clients from

anywhere this will not only give you the

flexibility to work from anywhere but it

will also really increase the number of

potential clients that you can serve

this next thing that I would do

differently is probably one of the most

important and that is that I would

charge more many professionals end up

under valuing their services early on

but it's important to be confident that

you are offering a very valuable service

and advising for your clients and it's

something that you should be willing to

ask for and that they should be willing

to pay for otherwise it might not be a

good fit to work with a specific client

now this is really a difficult step when

people are starting a new business

because new bookkeepers our Countians

often feel this imposter syndrome where

they feel like I shouldn't be charging

too much I'm new to this that kind of

thing

but the thing is if you're charging at

all and you're offering a service for

money then you should be offering it at

a correct price and you should be

getting value commensurate to the value

that you're giving your clients one easy

step that I would suggest here is to

take the rate that you're thinking about

charging and just add ten or twenty

percent because frankly if you are

finding clients who are willing to pay

you X and you think that your services

are worth X then they'd probably be

willing to pay and maybe should be

paying you ten or twenty percent more

than that at least so try that when

you're pricing your services and then

the final thing that I would do

differently is I would really slow down

and be more thoughtful about how I build

my business if you have the luxury of

having another job or you don't need

this income right

away if it's not important for paying

your rent or buying your groceries right

the second then it would be really smart

to take a step back slow down and build

your business thoughtfully doing some of

the things that I've talked about in

this video I was a college student and I

had another part-time job I didn't

really need the income but I wanted to

try and make as much money as I could as

fast as possible and I really went about

it the wrong way because I was willing

to take on pretty much any client that

was willing to work with me if I were

starting my bookkeeping business today I

would take a step back and I would

identify what my ideal client profile is

I would identify the industry that I

want to work with I would identify how I

want the relationship to look with the

client and the dynamic that I have with

that client I would want to make sure

that they are really a good fit for

working with me and that I'm a good fit

for working with them and then the big

three things for me are that I would

work with clients who are willing to use

the tools that I use because it doesn't

make sense for me to try and learn a

whole new set of tools like I was saying

earlier if you try to learn and get good

at everything you can't really master a

specific set of tools and then the other

two big things are I would work with

clients who didn't require me to be at

their office and who were willing to pay

my rates even if they are a little bit

higher than most people are asking for

because these are all kind of things

that I've identified that make me and a

client a good fit if you're able to slow

down and build a really solid foundation

for your business you'll make sure that

you are able to offer all of your

clients higher value and have a better

relationship with all of them so like I

said at the beginning of the video

there's never been a more exciting time

to be starting a bookkeeping business

technology is really changing things

quickly and if you can stay ahead of

that and stay on top of the new trends

then you can really build a great

accounting business if you like this

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