White labeling is a great way to offer bookkeeping services without having to invest in an expensive full service solution like QuickBooks or Xero. There are many different ways you can go about this. You could sell it as part of a larger package that includes other bookkeeping related services such as payroll processing, taxes, invoicing, etc., or you could create a custom product tailored towards your client base. Either way, there will be some level of customization involved which means that you'll have to know how to properly code your system so that it looks just like what's offered by the "big guys". In order for customers to see the value in using your new product they need to feel comfortable enough with your branding. The best way to accomplish this is through good customer support and training.
There are several advantages to selling bookkeeping as a white labeled version. For one thing, you don't have to spend time building up relationships with existing clients. Instead, you're able to focus on acquiring new ones and growing your business from within. Secondly, since you won't be going head-to-head against competitors who already have established reputations, you can charge lower prices than them. While it might not seem fair right now, once you've worked out the kinks with your first few clients you'll find that you actually make quite a bit more money per hour because of these factors alone.
The biggest drawback is probably that people may question whether the service being provided is really worth it at all. After all, it doesn't take much effort to open a free account with any of the big players and start offering their services directly yourself. And if that isn't appealing then why would anyone pay extra when you could simply use those same services for free? Well, you still have plenty of reasons to consider doing it. First off, you get to keep 100% of the profits generated from each transaction. That means that every dollar earned goes straight into your pocket rather than splitting it between two entities (your company and theirs). Second, you aren't limited to dealing only with paying customers. This gives you access to potential prospects who might otherwise never give you a chance. And lastly, if you want to expand beyond the scope of providing bookkeeping services, you can easily switch over to becoming an accountant too! All of the skills required to provide bookkeeping services are also useful for running your own small business, especially if you plan on expanding it further down the road.
In addition to learning about the benefits of starting your own bookkeeping franchise, here are four things you should always remember before jumping into this endeavor:
1) If you decide to sell your bookkeeping services as a white labeled version, you must understand exactly what each step entails. Once you figure out what needs to happen during the process, make sure that everyone involved knows what steps they need to complete. It's very easy to miss something along the way and end up losing business unnecessarily.
2) Get everything written down. Make sure that all parties involved know the exact requirements for each step of the process. Keep track of where you stand at all times, even if it seems trivial. Otherwise, it's likely that someone else will forget something crucial later on and the whole project will fall apart.
3) Be prepared to answer questions. No matter how well you think you know everything, sometimes people ask strange questions that leave you scratching your head wondering what they're talking about. Having answers ready ahead of time helps tremendously. Don't hesitate to reach out for assistance.
4) Never try anything unless you fully understand it. Even though it sounds simple, making mistakes can cost a lot of time and money. Learn from others' experiences instead of trying to reinvent the wheel.
With all of that said, let's look at what the various parts of the bookkeeping process entail and why most businesses choose to hire professional bookkeepers to handle it all for them.
Bookkeeping has become somewhat of a buzzword lately. Everyone wants to hear about it, but nobody ever explains what exactly it is. So let me clear that up for you. Bookkeeping refers to tracking income and expenses for both personal and corporate accounts. Let's say you run a bakery shop and you'd like to record sales of breads, cookies, pies, muffins, and cupcakes throughout the month. To do this correctly, you'll have to enter transactions manually into your ledger books. These entries include daily sales receipts, weekly cash deposits, inventory counts, purchase orders, vendor payments, and so forth. This information allows you to calculate profit margins, determine taxable income, and identify any discrepancies between actual costs and estimated expenditures. As a result of having accurate records, you can better manage your finances, stay aware of trends, and avoid costly errors.
Standard bookkeeping services involve entering data into your bookkeeping program on a regular basis. Some tasks require manual input while others are automated. Here are some common actions performed by bookkeepers:
Monthly bank reconciliation – Checking your balance sheet against statements from your financial institution provides insight into your net position for the period in question.
Sales/purchase journal entry – Recording all purchases made by your organization. This ensures that you accurately reflect all assets and liabilities associated with the items purchased.
Client billing & payment collection – Collecting debts owed to you and recording the details of each transaction. This keeps tabs on outstanding bills and makes sure that you receive timely repayment for all goods sold.
Account receivable aging report – Tracking overdue balances due to vendors and creditors. Aged receivables represent uncollected funds that could potentially affect future earnings.
Cash flow statement – Calculating your current status based on the amount of incoming money versus outgoing obligations. Cash flow reports help you assess your liquidity and predict future spending patterns.
Balance sheets – Preparing annual financial reports that show your net worth at a specific point in time. Balance sheets contain detailed information regarding your assets, liabilities, equity, and total debt. They allow you to measure profitability and stability over long periods of time.
Tax reporting – Providing proof of your tax liability to relevant authorities. Tax returns typically come in forms such as 1040EZ, 1099, W-2G, and K-1 G.
Financial projections – Making predictions about future earnings based on past performance. Financial projections inform decision makers about expected growth rates and future plans.
While basic bookkeeping services are usually sufficient for smaller organizations, bigger companies often opt to employ professional bookkeepers. When choosing a qualified individual, ensure that he or she holds either CPA certification or is enrolled in college courses. Also, make certain that they have experience working with multiple accounting systems including QuickBooks. Lastly, double check that they hold insurance coverage, malpractice protection, and worker compensation in case of accidents.
Basic bookkeeping services refer to the type of services that are necessary to maintain your books and prepare your tax documents. Common tasks include reviewing financial reports, preparing financial forecasts, reconciling bank statements, and performing general accounting duties. Most individuals don't perform any of these tasks themselves. Rather, they delegate responsibility to outside professionals.
To learn more about the ins and outs of bookkeeping franchises, visit our dedicated page.
There are three main types of bookkeeping available. Each offers its unique set of features and capabilities. Depending on the size of your operation, you may prefer to utilize one method over another. Whether you decide to pursue a paid bookkeeper or DIY approach, you'll benefit greatly from knowing the options available to you.
The first option involves outsourcing bookkeeping entirely. Companies can contract with freelancers who specialize in managing their finances. Freelance bookkeepers generally charge hourly fees depending on the number of hours spent completing assignments. Another popular choice is to hire a team made up of certified public accountants (CPAs). CPAs typically charge higher hourly rates than freelance specialists and tend to work with more complex situations.
Another viable solution involves hiring a private bookkeeper to assist with day-to-day operations. Private bookkeepers generally charge a flat fee for each assignment completed. Because they work closely with internal staff members, private bookkeepers can quickly adapt to changes and address unforeseen circumstances. However, they cannot guarantee accuracy.
Lastly, you can self-manage your bookkeeping department. Smaller companies can save significant amounts of money by handling all aspects of bookkeeping internally. Employees can train and mentor each other to reduce workloads and increase productivity levels. Self-managed teams also enjoy greater flexibility and control over their budgets.
It's no secret that bookkeeping is a complicated task. But thanks to modern technology, the industry continues to evolve at breakneck speeds. With the right tools and proper guidance, anyone can master bookkeeping regardless of prior knowledge or skill level. Just keep in mind that bookkeeping requires constant attention. Without careful monitoring, inaccuracies can arise and cause serious problems down the line. By investing in quality bookkeeping solutions, you'll gain peace of mind and maximize your bottom line.
The number one reason small business owners don't hire a professional bookkeeper or accountant is that they're afraid of being on top of their books. They want to be able to know what's going on without having to spend time digging through spreadsheets and paperwork.
But if you have the right tools at hand for keeping track of your finances, how much money you've made each month, where it went, and whether those numbers make sense, then you can focus on growing your business instead of spending every minute looking over your shoulder. You'll also get peace of mind knowing that any errors will be caught before they become major problems down the road.
If this sounds like something you'd benefit from, here's everything you need to know about hiring a bookkeeper.
There are two main categories of bookkeeping services available: "full" bookkeeping services and "whitelabel" bookkeeping services. In both cases, the goal is to provide accurate financial information so that you can manage your company better. But when it comes to choosing which type of bookkeeping service you should use, remember these differences:
Full bookkeeping - This includes providing accounts payable (bills), accounts receivable (invoices paid) and payroll processing (payroll taxes). It may include other tasks such as general ledger management, tracking cash flow, sales analysis, inventory control, etc. For example, in order to set up an invoicing system using QuickBooks Online Premier Plus, you would require support for Accounts Payable, Accounts Receivable, Inventory Management, Sales Analysis & Reporting, Customer Service Center, Expenses Tracking, Payroll Processing, General Ledger, Tax Management, Vendor Relationship Management, and many others. You will pay a fee per transaction processed. The cost depends on the level of functionality offered, but can range anywhere between $100-$250/transaction depending on the features needed.
Wholesale bookkeeping - Also known as wholesale bookkeeping, this method allows customers who purchase your product to take advantage of the same accounting software used by you. Your customer purchases a license key for your software and installs it onto his own computer. Then he enters transactions into the program just like you would, and reports back to you. While this might seem pretty straightforward, there are some important things to keep in mind. When you sell products online, you typically ship them directly to the customer. If you send him a paper invoice, he has no way of paying electronically unless you offer electronic payment options. And while most merchants accept credit cards now, not everyone does yet. So you won't always receive payments immediately after sending out the invoice. That means you'll have to wait until the end of the billing cycle to process the payment -- usually 30 days later. With this model, your customer pays only once during the calendar year. Once that goes through, he doesn't have to worry about getting charged again because you haven't sent another bill. He simply sends you a check for whatever amount was due during the previous period.
Whitelabel bookkeeping - This option lets you create a custom package that provides exactly what you need. Customers choose either hourly rates or flat fees based on the packages listed. Their accountants enter transactions manually via email or phone calls. There is no integration with your accounting software. Instead, they maintain separate files containing copies of the data entered into your accounting software. These files must be uploaded to a third party server periodically to ensure accuracy. Whitelabeling eliminates the possibility of fraud since all entries go through someone else first. However, this makes it difficult to perform certain functions, such as reconciling bank statements. Most people find themselves working closely with the client to resolve issues whenever possible. Because the client doesn't deal exclusively with our team, communication can sometimes be challenging.
Bookkeeping offers a variety of services, including:
General ledgers - Keeping track of the day-to-day operations of your business is crucial to making sure your financial records are correct. A good bookkeeper keeps detailed notes of all the transactions happening throughout the course of the month, including deposits and withdrawals, checks written, expenses incurred, receipts received, sales generated, etc.
Accounts receivable - Bookkeeprs keep tabs on outstanding bills owed to vendors, which helps reduce late fees (and penalties) for late payments. They also help avoid bounced checks and lost paperwork.
Inventory - Bookkeepers keep track of everything purchased, sold, and held in storage. Not only does this help prevent missing items from showing up on the next balance sheet, but it also prevents shortages and excesses.
Payroll - Accounting for employee wages ensures that the proper deductions are taken out of employees' paychecks. Some companies even allow their bookkeepers to prepare W2 forms and issue 1099s for contractors.
Cashflow - Cash coming in and cash going out is critical to running a successful business. A good bookkeeper keeps close watch on incoming funds and outgoing payments to make sure that enough money is left over to cover daily operating costs.
Bank reconciliation - Reconciliation refers to comparing bank statements with actual balances found within the company's banking software. For instance, if your checking account shows that you had $1,000 cash last week, but your bank statement says that you actually deposited $800, you would call your bookkeeper to figure out why the discrepancy exists.
Tax returns - Preparing and filing federal, state, and local income tax returns takes a lot of time and effort. An experienced bookkeeper knows where to look for errors and omissions, plus she can fill out the necessary forms correctly.
Other services - Many bookkeepers specialize in specific areas, such as HR, finance, marketing, legal, IT, and human resources. Others handle multiple departments. Whatever your needs, chances are there's a qualified bookkeeper out there who can meet them.
Some companies charge extra for additional services, such as preparing quarterly and annual profit and loss summaries, creating projections, calculating depreciation schedules, and providing advice regarding various tax strategies. Other businesses add on charges for specialized software, such as QuickBooks Enterprise Solutions.
For example, let's say you decide to buy QuickBooks Online Premier Plus to replace your current desktop version. Although you could still use Excel to calculate net profits, QuickBooks is far easier to use than Microsoft Office, especially for non-accountant users. You'll save countless hours of spreadsheet entry and calculations. Plus, you'll never run into compatibility errors again.
However, you will incur a higher price tag for doing so. Depending on the size of your business and how complex its accounting processes are, Premier Plus starts around $200 per user annually.
Yes! Each individual bookkeeper specializes in a particular field, meaning that you'll likely see specialists handling different aspects of your business. Here are three common job titles:
Financial manager - Responsible for managing the entire organization, including finances, personnel matters, and overall growth strategy.
Business analyst - Works with outside agencies to evaluate and recommend solutions to business challenges.
Accountant - Typically handles basic, everyday tasks such as balancing the books and generating tax filings.
It really depends on what kind of bookkeeping experience you already have. If you're new to accounting altogether, you might consider finding a bookkeeper specializing in bookkeeping franchises. Or perhaps you'd prefer to start off with a part-time bookkeeper who can teach you the basics gradually. Whichever route you choose, be sure to ask questions along the way. The more open you are, the faster you'll learn.
Once you feel comfortable with the basics, you can begin searching for bookkeepers who specialize in areas such as payroll processing, vendor relationships, and strategic planning.
Finally, if you're ready to move forward with an expert bookkeeper, try asking for references from former clients. Ask them specifically about the quality of work performed, the speed at which projects were completed, as well as their overall satisfaction with the results.
Remember that there's nothing wrong with calling around yourself. After all, you're the boss, so you know best. Just make sure that whoever answers the phone is trustworthy.
White labeling services allows you to sell bookkeeping packages that have been built from scratch by an experienced bookkeeper who has put together a package based on their experience in other industries or businesses. The benefits for you as a bookkeeper start out pretty simple - no need for marketing, sales, customer relations, etc., just get paid! But there's also some really cool stuff going on behind the scenes that can help increase your income even further. If you're looking to earn extra money through side gigs or selling your own products online, this could be perfect for you.
But what exactly is "whitelabel" bookkeeping? Why should I care about it? And how much will it cost me? Let's dive into each question one at a time.
The first thing you'll want to know before jumping into any new venture like this is what kind of services they provide. Just because someone calls themselves a bookkeeper doesn't mean they've got all the skills necessary to run a business. If you don't understand something basic about bookkeeping (like how to create invoices), then you might end up wasting money trying to teach yourself.
By providing white labeled bookkeeping services, you'll essentially be outsourcing those responsibilities so you can focus on making sure everything runs smoothly. You won't have to worry about getting customers and collecting payments, handling taxes, keeping track of expenses, tracking inventory, and many more important things that go along with running your own business. That means you can spend more time focusing on growing your client base, doing freelance projects, building relationships, and creating content for your blog or website.
You'll also free up valuable space in your office or home where you can set up shop for your bookkeeping business. It's not uncommon for bookkeepers to rent entire offices instead of working out of their homes. This isn't always ideal for personal reasons but if you're serious about starting a business, renting an actual storefront may make sense. Otherwise, you'll probably find yourself spending most of your time driving around town searching for available spaces.
It gets better though... When people sign up for these types of services, they typically pay upfront for several months worth of bookkeeping services. Once they're done paying off their account, the bookkeeper still works for them until they decide to cancel. So, if you choose to take advantage of this opportunity, you'll likely never have to deal with an unhappy client again. Plus, since you aren't actually billing anyone directly, you'll save hundreds of dollars every year compared to hiring freelancers to handle the same job.
Once you've decided whether or not you'd rather work for yourself or contract out your bookkeeping needs, you'll need to figure out which specific areas of bookkeeping you'll be responsible for. In order to do that, let's look at some common tasks that bookkeepers perform:
Track billable hours spent on a project
Calculate tax deductions
Keep records of employee payroll information
Evaluate credit card statements
File paperwork related to insurance policies
Handle bank reconciliations
Manage financial reports
Make deposits to various accounts
Collect outstanding bills/checks
Answer questions regarding finances
Provide general advice
These are only a few of the tasks involved when it comes to managing books. There are plenty more to consider depending on how detailed or complex your bookkeeping needs are. Some companies require more than one person working on the task while others simply use spreadsheets and word documents. Regardless of how you manage it, once you hire a professional to complete the task, it becomes easier and faster.
And now that you're armed with knowledge about what bookkeeping entails, you'll be able to pick out the right services for your unique situation. For example, if you're interested in offering hourly rates to potential clients, you should definitely check out my article about the best ways to market your bookkeeping practice.
Now that you've learned about what a bookkeeper offers, you can finally determine what type of bookkeeping services you want to purchase. Most bookkeeping practices come in two varieties: full service and part time. Full service bookkeepers tend to charge $30-$50 per hour whereas part timers usually range between $10-$20 per hour. Either way, the fee depends largely on how much training and support you receive.
Full service bookkeepers generally offer higher quality services including:
Monthly bookkeeping reports
Tax returns filed on behalf of clients
Business management plans
Accounting assistance for small businesses
In addition, full service bookkeepers often recommend certain software programs to keep track of finances and record data such as receipts, invoices, payment history, sales, budgets, and more. On top of all that, they'll also train you on how to use the program effectively. They'll walk you through step by step processes for entering data, reconciling transactions, generating reports, and filing forms appropriately.
As far as part time bookkeepers go, they usually offer lower prices ($15-$25) but you'll lose access to their expertise and resources. You'll also miss out on personalized attention and guidance during the initial setup process. However, if you already know how to use software applications such as Microsoft Excel, QuickBooks Online, Xero, etc., you can easily learn how to enter data without needing additional instruction. Also, if you're good with numbers, you can generate your own reports using templates provided within the application itself.
A lot of people mistakenly assume that you'll have to give away your earnings in exchange for cheaper services. While it's true that you'll need to invest some capital initially in order to build up a strong reputation among clients, the majority of bookkeepers operate on commission. Meaning, they'll continue earning money after deducting their costs and fees from your profits. As long as you're willing to commit to consistent efforts towards increasing your clientele and establishing a solid foundation, you can expect to see steady growth over time.
With that said, here are five factors to consider whenever weighing the pros and cons of purchasing a particular bookkeeper:
How easy is it to contact them via phone? Email? Social media platforms like Facebook or Twitter? How quickly can they respond to inquiries or requests? Do they offer 24-hour emergency coverage? What kinds of guarantees do they offer? Are they licensed professionals or amateurs looking to cash in on your hard earned dollars?
Which bookkeeping apps do they use? Will they guide you through setting up similar tools on your computer? Do they suggest alternatives for situations where their preferred app fails to meet your expectations? Do they offer customized solutions tailored specifically to your industry?
Do they accept direct deposit? Is it possible to transfer funds to their checking account? Can they send invoices electronically? Do they offer paperless invoice options? Does the software they utilize allow you to customize report styles and formats?
Are they knowledgeable about current regulations and laws governing taxation? Have they ever been audited by the IRS or another government agency? Has either party had a negative experience with a previous bookkeeper? These are just a couple of items to think about when deciding whether or not to trust a provider.
While you'll obviously benefit from having a dedicated bookkeeper helping you grow your business, there's nothing wrong with delegating individual tasks to trusted friends and family members. Many of us enjoy working with our hands, especially when it involves creativity and problem solving. By assigning these jobs to fellow entrepreneurs, you'll both feel accomplished knowing you helped a stranger achieve success.
On the flipside, it's perfectly acceptable to ask employees to assist you with routine tasks such as calculating gross profit margins, preparing tax documentation, and entering data into software programs. Even if you don't delegate anything too difficult, it's crucial to remember that everyone's busy schedule is different. Your staff will undoubtedly appreciate being given clear instructions and receiving regular feedback throughout the assignment process. Not only will they become familiarized with the details associated with completing a particular task, but you'll also gain insight into how well they can execute on future assignments.
When choosing a bookkeeper, try to avoid providers who claim to be experts in multiple fields. Instead, stick with individuals who specialize solely in bookkeeping. You can tell whether or not they truly possess bookkeeping knowledge by asking open ended questions about specific topics. Try to gauge whether or not they have sufficient experience performing the exact procedures you plan to assign them next. Finally, do your homework and compare reviews left by former clients. Take note of the number of years they've worked in the field and the overall response rate.
Become CEO of your own lead generation software company, just follow our battle-tested guidelines and rake in the profits.