Tips from an Accounting and Home Based Business Expert

About Lyn Collins

Lyn Collins spent 20 plus years working with small businesses as an office manager for Mechanical Contractors. After all those years of managing the office and supervising a staff of five, she decided to return to college. She was forty-three at the time and graduated after four years with a Bachelor's Degree in Business Administration (with her major in accounting). Self employment worked well for her. She had the support of family and enjoyed having the freedom to work when she wanted to. "If I played all day, I worked all night, but it was my choice." Lyn's second passion is her writing. On her blog Simply Living she shares her thoughts, articles, and short stories about the things that interest her away from accounting.

What kind of business did you start after obtaining your degree?

After graduating college, I started an accounting business. While working as an office manager, I was approached by the CPA for the business. He wanted me to work with his clients by answering their accounting questions which would free him up to do taxes and financial planning. I didn't take the job, but I realized there was a need for this type of business. When I graduated from college, I asked him if he would be interested in allowing me to fill that need as a contractor instead of an employee. I started an Accounting Service Business.

Which do you think influenced the development of your business most, education or experience?

That's hard to say. The education qualified me in the eyes of the customer. The experience gave me confidence and knowledge that you don't get in a classroom.

What was the nature of your business?

My accounting business was a home based business. My home office is where I did month end closings, financial statements, balanced bank accounts, and answered question about payroll, payables, receivables, and asset purchases. I also went to the clients' businesses to pick up and deliver work. I had monthly meetings with clients to address problems, and I went with the clients to most meetings with the CPA. I enjoyed the working relationship with the clients and the CPAs. It is a great home business for anyone with the qualifications.

I sold my business to a CPA. She had worked with a group of CPAs and had recently gone out on her own. She hoped by purchasing my business that she would be able to build a clientele.

After you sold your business and moved, people in your new area learned you were an accountant. Did you start a business?

Yes, I did. But, my husband had retired and my parents needed my assistance, therefore I could only work part time. I contracted with two clients to do their accounting. Living back home where all of my relatives are, I was always being asked questions about money management from relatives, friends, and neighbors.

From all of these questions, I learned that a lot of young adults do not know how to manage money, and that is the reason I started my blog Money Management. I have always enjoyed writing and I decided to write articles about money management to help individuals, families, and small business. I am also working on an e-book for small business.

Do you have any tips for others considering going into an accounting or home-based business?

Yes.

1. Learn everything you can about the business you are going into.
2. If you decide to operate your business from home, you will need to manage your time well.
3. Be confident in yourself and your abilities to make your business a success.
4. Treat it like a business. Do not mix your business financially with your personal business. One of the biggest mistakes, I have seen in small business, is when the owner starts writing business checks for personal or home expenses. Keep the business and your personal finances separate.
5. Be prepared to work long hours and to be called 24 hours a day. I had a client call me at 12:30 on Sunday night, because he needed financial statements to take to the bank Monday morning. Yes, I got out of bed and prepared his statement. He was one of my best clients, I wasn't about to turn him down.
6. Regardless, of the business you start you need an accounting system that will track your income and expenses. You need a CPA or an Accounting Service (one of the services I offered) to set your books up. Your accounting books will keep you up to date on your company's progress, if all transactions are posted on a daily basis.