Читать книгу Start & Run a Bookkeeping Business - Angie Mohr - Страница 22

There are many considerations to keep in mind when trying to assess how much money you’ll need to start up your bookkeeping practice. From a financing perspective, it’s a benefit that your business is service-based, which means that you won’t require substantial up-front financing for inventory or warehouse space. You will, however, need funding over the course of your business for some or all of the following groups of expenses:

• Start-up costs. Your initial investment in your bookkeeping practice may involve rent deposits, legal and accounting fees, and purchases of equipment such as computers, printers, and telephone systems.

• Shortfalls of revenue over expenses. You will still need to pay your suppliers and pay the fixed costs of running the business, such as rent, salaries to your employees, and the phone bill, even before you become profitable.

• War chest. This is simply a fund of money (or short-term investments) set aside for a rainy day or for taking advantage of sudden opportunities.

• Capital equipment replacement. Eventually, your software and computer hardware will become obsolete and need replacement, as will other equipment you may have invested in.

• Growth. Expansion of your current operations may mean additional costs related to advertising, payroll, or the purchase price of another bookkeeping practice. You will likely incur these costs before you generate the revenue as a result of the expansion.

Let’s start by looking at the two major categories of expenses for which you will need adequate financing in the start-up phase of your bookkeeping practice: start-up costs and providing liquidity to the business.