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Setting Up Your Own Books

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There are many different ways you can set up the books for your bookkeeping practice. You may not have given this much thought, because primarily you help others with their bookkeeping. However, as a bookkeeping practice, you will need to keep the following goals and objectives in mind when considering what type of system to use:

You will need to track your time spent on each client. Even if you don’t do your billings based on time spent (more on this in chapter 3), you will still need to assess what your recovery rate is so that you can understand your efficiency. The system you choose should be able to track time by client in a clear, concise way.

You will need to track separately the revenues from each of the services you offer. When you analyze your financial statements, you will need to know which of your areas of practice (such as monthly business bookkeeping, taxes, and investment tracking) are growing and which are the most profitable.

You will need a system that can be updated quickly and easily. You don’t want your own set of books to be onerous and take up time that could be spent on client work.

Start & Run a Bookkeeping Business

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