What Businesses Need Bookkeeping the Most? (2024)

FAQs

What Businesses Need Bookkeeping the Most? ›

Retail businesses, such as clothing stores, grocery stores, and restaurants, need bookkeeping services to keep track of inventory, sales, and expenses. Accurate bookkeeping helps these businesses manage their cash flow, identify trends in customer buying habits, and make informed pricing decisions.

Bookkeeping can be incredibly lucrative – there's always a demand since every business needs someone to track its money. Still, there are benefits and drawbacks to consider before launching your business.

Employment of bookkeeping, accounting, and auditing clerks is projected to decline 6 percent from 2022 to 2032. Despite declining employment, about 183,900 openings for bookkeeping, accounting, and auditing clerks are projected each year, on average, over the decade.

Bookkeeping is an essential part of running a small business. Even if you aren't planning on growing any time soon, you need to have a sense of how much money is coming in versus what is going out.

According to the Bureau of Labor Statistics (BLS), the average bookkeeper makes about 40,000 USD per year. However, the most successful bookkeeping businesses can make their owners 100,000 USD per year or even more.

The Income. It is absolutely doable to hire a team, keep your hours low, keep your presence high, and still have your bookkeeping business be wildly profitable…as in, five-figure months and six-figure salary years profitable.

There is a growing opportunity for bookkeepers to offer consultative services. This transition from transactional to advisory roles can be a significant value addition to clients. Bookkeepers need to understand economic trends and market fluctuations to provide more informed advice and services.

As a result of machines, technology, and the overwhelming software options, many have speculated that the art of people managing the financials may become lost. Luckily, despite the myriad of modern-day advancements, very little about actual bookkeeping is out of fashion.

Will bookkeepers be replaced by AI? ›

While AI is reshaping the accounting profession by enabling software to automate some tasks and provide better insights into patterns and inaccuracies, AI is not poised to replace bookkeepers and accountants.

The average age of male Bookkeeping, accounting, & auditing clerks in the workforce is 42.3 and of female Bookkeeping, accounting, & auditing clerks is 49.4, and the most common race/ethnicity for Bookkeeping, accounting, & auditing clerks is White.

Generally, small to medium-sized businesses expect to pay between $500-$2,500 USD monthly for their outsourced bookkeeping—an dauntingly large range to deal with.

As an entrepreneur, it is difficult for you to understand the tax obligations and financial regulations. If you try to deal with this stuffy structure, you may put your data at risk. So, it is better to hire an expert in dealing with the risk of financial mismanagement. Like bookkeeper.

Depending on the size of the business and the scope of work, a small business could benefit from a bookkeeper's services for 3-4 hours per month to organize all bank activity and reconcile the bank account. If bookkeeping needs are more advanced, a small business can have enough work for 10-15 hours per week.

Bookkeeping is the score board for business performance. This means that business owners need to know how well (or poor) they're performing each month. Highly profitable. According to Inc Magazine, bookkeeping is the #1 most profitable side-hustle / business.