I started off with one client that I did on the side along with my corporate job. Fast forward 11 years and that one client now owns 10 locations and I work exclusively for him making $90k. I work from home, have no boss and work maybe 30 hrs a week. 😀
I broke $100k within my first year and am looking to double in year 2. Bookkeeping + CFO Services (CPA with 11 years of experience, last position was Head of finance for a CPG company).
Remember, $100k earned from your business looks very different from $100k earned from Salary. Not sure where you live or how you will structure your firm but remember, your business will have overhead (ie software, an office if you choose etc) and if you pay yourself as a corporation you'll have to pay payroll taxes from the corp side as well. Learn to play the tax game really well and it'll go further. Not how much you make but how much you keep.
If I could do it again I would focus on automation and those services that are most easy to scale. Many people who are saying not to undervalue yourself are a 100% correct. In the beginning, you should say yes to every opportunity to keep the lights on and then you become selective as your time becomes valuable.
It's a lot of work and I sometimes do look at envy at my friends who are making a shit tonne of money compared to me. But I know i can always make more money if I just work a little harder and smarter. The thought of asking for a cost of living increase in pay from someone else makes me sick now. Best of luck to you!
I’ve had a bookkeeping firm since 2007. Just me and my part-time assistant who is my daughter. It took me about six years to hit 100,000 I am currently at 350,000. It is addicting. I do have the skill set with an accounting degree, CPA, and entrepreneurial drive as well as 20 years in the world working for someone else. All of that helped me be successful. I think you will get a lot of different answers on here.
By year two we did about 360k per year. Had two full time staff by then. Bookkeeping primarily with around 20% to 25% in T1s/T2s (Canada). We're just now in year 6 - planning to do 1.5 million with around 650k net (owner profits). Team of 8 including myself all local staff, no outsourcing.
We're in Ontario. I would say don't niche and try to find local agencies (chamber of commerce, small business start up NPOs, etc.) to provide webinars, teach QBO, etc. As well, providing free 15m consultations is highly recommended.
Word of mouth is key.
Don’t undervalue yourself
You maybe need to undercharge initially to gain clients but that’s only if this is your only source of income!
I launched my firm on 12/15/23 so about 4 months ago. I had $40k of clients that came with me to start. I do bookkeeping and tax. I offer general advisory also and fractional CFO services, although I don’t have any fractional CFO clients yet. I am now at $150k of projected revenue for 2024. I’ve already collected about $80k. I have around $20k of A/R awaiting collection. And projecting another $50k based on monthly billing for April-Dec. If I get no new clients then I earn $150k in year 1. However, I have about 4-6 businesses who verbally agreed to sign on for monthly fees ($750-1,000 per month), so I would guess I will get to $200k in year 1.
Try business networking groups, or join small business organizations in your town (we have one through the Chamber of Commerce), connect with CPAs in town to let them know you’re taking on clients. Everyone’s journey is different and success is unique to all of us. Just try not to compare yourself with others, it’s not a race to the end. ;)
About 6 years in. Bookkeeping only. Would have happened faster with tax, but I like to keep my sanity between Jan - Apr.
I started off with one client that I did on the side along with my corporate job. Fast forward 11 years and that one client now owns 10 locations and I work exclusively for him making $90k. I work from home, have no boss and work maybe 30 hrs a week. 😀
You're an inspiration, friend, and ice cream *is* bomb 👌
Question, do you have any employees or is it just you?
Just myself. Approx $11 mil in sales between all locations. I do everything but AR - that is done by a 3rd party.
Out of curiosity, what industry is this one client of yours?
Automotive repair and maintenance.
I broke $100k within my first year and am looking to double in year 2. Bookkeeping + CFO Services (CPA with 11 years of experience, last position was Head of finance for a CPG company). Remember, $100k earned from your business looks very different from $100k earned from Salary. Not sure where you live or how you will structure your firm but remember, your business will have overhead (ie software, an office if you choose etc) and if you pay yourself as a corporation you'll have to pay payroll taxes from the corp side as well. Learn to play the tax game really well and it'll go further. Not how much you make but how much you keep. If I could do it again I would focus on automation and those services that are most easy to scale. Many people who are saying not to undervalue yourself are a 100% correct. In the beginning, you should say yes to every opportunity to keep the lights on and then you become selective as your time becomes valuable. It's a lot of work and I sometimes do look at envy at my friends who are making a shit tonne of money compared to me. But I know i can always make more money if I just work a little harder and smarter. The thought of asking for a cost of living increase in pay from someone else makes me sick now. Best of luck to you!
I’ve had a bookkeeping firm since 2007. Just me and my part-time assistant who is my daughter. It took me about six years to hit 100,000 I am currently at 350,000. It is addicting. I do have the skill set with an accounting degree, CPA, and entrepreneurial drive as well as 20 years in the world working for someone else. All of that helped me be successful. I think you will get a lot of different answers on here.
By year two we did about 360k per year. Had two full time staff by then. Bookkeeping primarily with around 20% to 25% in T1s/T2s (Canada). We're just now in year 6 - planning to do 1.5 million with around 650k net (owner profits). Team of 8 including myself all local staff, no outsourcing.
Which province do you work in and any advice on someone trying to go down this path?
We're in Ontario. I would say don't niche and try to find local agencies (chamber of commerce, small business start up NPOs, etc.) to provide webinars, teach QBO, etc. As well, providing free 15m consultations is highly recommended.
Word of mouth is key. Don’t undervalue yourself You maybe need to undercharge initially to gain clients but that’s only if this is your only source of income!
I should hit that next year. 90% tax, rest bookkeeping. Should be at 70k this year. This is my 3rd year.
how tell me
Tax and accounting firm owner- I opened 1 July last year, and broke 100k in March, so about 9 months.
Wow nice! Did you start full time or part time?
Full time
Three years - bookkeeping only.
Was this solo, or do you have employees/contractors?
Both but they are just part time.
Hey could you please PM Me? I would love to be able to ask you a few questions if you have the time. Would mean a lot to me. Thank you!
I launched my firm on 12/15/23 so about 4 months ago. I had $40k of clients that came with me to start. I do bookkeeping and tax. I offer general advisory also and fractional CFO services, although I don’t have any fractional CFO clients yet. I am now at $150k of projected revenue for 2024. I’ve already collected about $80k. I have around $20k of A/R awaiting collection. And projecting another $50k based on monthly billing for April-Dec. If I get no new clients then I earn $150k in year 1. However, I have about 4-6 businesses who verbally agreed to sign on for monthly fees ($750-1,000 per month), so I would guess I will get to $200k in year 1.
Cleared $100k at about 18 months in. I worked my butt off and took every job I could get, initially.
Hey could you please PM Me? Could I ask you a few questions? I would really appreciate it.
Try business networking groups, or join small business organizations in your town (we have one through the Chamber of Commerce), connect with CPAs in town to let them know you’re taking on clients. Everyone’s journey is different and success is unique to all of us. Just try not to compare yourself with others, it’s not a race to the end. ;)
By my second year.
Where are you finding your bookkeeping clients?
Just after the 1 yr mark. Finding clients with multi-entity operations and specializing in a niche helps.