Bookkeeping Office
Sub-division of the market
The services customarily provided by bookkeeping offices include:
1. Single-entry or double-entry bookkeeping services
2. Wage accounting, payment of wages and deductions
3. VAT reporting and payment
4. Income tax advances and National Insurance payments
5. Generating reports sent to the accountant for approval
6. Monitoring customer billing
7. Help in business planning and ongoing auditing
Market characteristics
The market is very competitive, with many offices operating, some independent and some in the framework of accounting firms or tax consultant firms. The contractual arrangement between the customer and bookkeeping office is generally a long-range one. Offices are replaced only if one is dissatisfied with its services.
Customers
Every business owner and company needs bookkeeping services. There are two options in terms of retaining a bookkeeper as a salaried employee within the business or working with an independent contractor.
Competitors
Independent offices that provide bookkeeping services only, accounting firms or tax consultant firms and service bureaus that provide automation services.
Suppliers
These include office equipment suppliers and computer equipment suppliers (hardware and software). Additional suppliers provide maintenance and support services, primarily for computer equipment.
Marketing methods
Bookkeeping offices, unlike accounting offices, are legally permitted to advertise. The recommended marketing methods are as follows:
1. A large portion of customers comes through word of mouth.
2. Referrals from accounting firms that don’t engage in bookkeeping services
3. Advertising in the Yellow Pages and the local press
4. Direct mailing
Factors affecting success
Building a regular clientele within the shortest possible time frame. Customers can be direct customers or by means of a long term contractual arrangement with accounting firms or tax consulting firms, as a sub-contractor.
Equipment required
Office furniture and equipment, computerization equipment and professional bookkeeping software
Risk level
The risk level in setting up a bookkeeping office is not great, the risk lies in the alternative price that it pays for the learning process and for the initial stages of acquiring a clientele.
Licences and certification
1. A professional classification certificate issued by the Ministry of Labour and Social Affairs, which is granted to those who pass a certification stage in accordance with the classification (Grades 1-2, 3 and diplomaed)
2. For a business operating out of a residential flat – a permit for irregular use from the local authority is required.
Insurance
Building and content insurance, third party insurance, employer’s liability insurance, loss of profit insurance and professional liability insurance.
In addition to the above, consulting with an insurance agent regarding the insurance required is advisable.
| Bookkeeping Office
The services customarily provided by bookkeeping offices include:
1. Single-entry or double-entry bookkeeping services
2. Wage accounting, payment of wages and deductions
3. VAT reporting and payment
4. Income tax advances and National Insurance payments
5. Generating reports sent to the accountant for approval
6. Monitoring customer billing
7. Help in business planning and ongoing auditing
Market characteristics
The market is very competitive, with many offices operating, some independent and some in the framework of accounting firms or tax consultant firms. The contractual arrangement between the customer and bookkeeping office is generally a long-range one. Offices are replaced only if one is dissatisfied with its services.
Customers
Every business owner and company needs bookkeeping services. There are two options in terms of retaining a bookkeeper as a salaried employee within the business or working with an independent contractor.
Competitors
Independent offices that provide bookkeeping services only, accounting firms or tax consultant firms and service bureaus that provide automation services.
Suppliers
These include office equipment suppliers and computer equipment suppliers (hardware and software). Additional suppliers provide maintenance and support services, primarily for computer equipment.
Marketing methods
Bookkeeping offices, unlike accounting offices, are legally permitted to advertise. The recommended marketing methods are as follows:
1. A large portion of customers comes through word of mouth.
2. Referrals from accounting firms that don’t engage in bookkeeping services
3. Advertising in the Yellow Pages and the local press
4. Direct mailing
Factors affecting success
Building a regular clientele within the shortest possible time frame. Customers can be direct customers or by means of a long term contractual arrangement with accounting firms or tax consulting firms, as a sub-contractor.
Equipment required
Office furniture and equipment, computerization equipment and professional bookkeeping software
Risk level
The risk level in setting up a bookkeeping office is not great, the risk lies in the alternative price that it pays for the learning process and for the initial stages of acquiring a clientele.
Licences and certification
1. A professional classification certificate issued by the Ministry of Labour and Social Affairs, which is granted to those who pass a certification stage in accordance with the classification (Grades 1-2, 3 and diplomaed)
2. For a business operating out of a residential flat – a permit for irregular use from the local authority is required.
Insurance
Building and content insurance, third party insurance, employer’s liability insurance, loss of profit insurance and professional liability insurance.
In addition to the above, consulting with an insurance agent regarding the insurance required is advisable.
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