Speaker A
Yo, what's up, guys? My name's Jake Dima. I run a bookkeeping company in South Jersey, and I started about five years ago on the side. It's full-time now, and I absolutely love my business. I love talking about my business.
Jake Dima shares 5 key mistakes to avoid when starting a bookkeeping business and how to build a profitable, focused company.
Key Takeaways
- Focus exclusively on bookkeeping to build expertise and avoid burnout.
- Charge fixed monthly fees for predictable income and client clarity.
- Target local clients to build trust and reduce competition.
- Avoid expanding into tax, payroll, or CFO services early on.
- Create a business model that supports your lifestyle and work-life balance.
Summary
- Jake Dima runs a successful bookkeeping business in South Jersey, making over $200K annually while working 30 hours a week.
- He emphasizes the importance of focusing on bookkeeping only, avoiding offering too many services to prevent burnout.
- Jake advises targeting local clients within a 20-mile radius and building trust through personalized outreach.
- He recommends charging fixed fees instead of hourly rates to simplify billing and ensure consistent income.
- Jake highlights the benefits of bookkeeping’s monthly cadence, which allows for predictable workflows and recurring revenue.
- He discourages trying to do tax work, payroll, CFO services, or administrative tasks outside bookkeeping.
- Jake invites viewers to join his small community for weekly group calls and personalized business advice.
- He stresses that a bookkeeping business should be designed to serve the owner’s lifestyle, avoiding becoming a slave to the business.
- Jake shares his personal journey from side hustle to full-time business owner and the lessons learned along the way.
- He encourages hyper-focus on one service to build expertise and a unique client funnel.
Chapters
- 00:00Introduction and Jake's Story
- 00:30Personal Motivation and Business Passion
- 01:11Business Success and Work-Life Balance
- 01:56Invitation to Join Community
- 03:38Mistake #1: Don't Offer Everything
- 04:28Mistake #2: Focus on Local Clients
- 09:52Mistake #3: Charge Fixed Fees
- 12:01Benefits of Bookkeeping's Monthly Cadence
- 15:58Marketing and Client Outreach Tips
- 17:12Summary and Final Advice
Full Transcript — Download SRT & Markdown
Speaker A
and so that's why I do these YouTube videos because I love talking about it.
Speaker A
And so that's why I do these YouTube videos, because I love talking about it.
Speaker A
There's a very small group of people and you're included in that who are interested in starting their own bookkeeping business and you guys might be interested in how I've gotten to where I'm at now. How I have more than
Speaker A
My wife doesn't like to hear me talk about it. My friends don't like to hear me talk about it.
Speaker A
I love talking about it. There's so many things I've learned over the years and I think this video is important because if you're thinking about starting a bookkeeping company, I'm going to share the five mistakes that you should avoid. The things that
Speaker A
There's a very small group of people, and you're included in that, who are interested in starting their own bookkeeping business, and you guys might be interested in how I've gotten to where I'm at now. How I have more than
Speaker A
I've seen every complication, every issue, every problem, every situation and I'm just going to try to share as much as I can and obviously there's more in my head that I just can't really get out there.
Speaker A
50 clients, how I make over $200,000 in profit, how I can do it with a 30-hour per week budget, how I don't work weekends and nights, how I was able to quit my full-time job, start this thing on the side, and grow it to be full-time.
Speaker A
Wednesday at noon and Friday at noon and honestly it's a great opportunity for you to just pick my brain, ask your specific questions and to allow me to kind of dive into your scenario to help you get your business started. So if
Speaker A
I love talking about it. There's so many things I've learned over the years, and I think this video is important because if you're thinking about starting a bookkeeping company, I'm going to share the five mistakes that you should avoid. The things that
Speaker A
okay? I do bookkeeping and I talk about this all the time, but I just I feel like it's the number one problem that people struggle with is I see the low-hanging fruit you know in the business in in the
Speaker A
you should just be aware of before you get started, because I think it is important. Again, I've learned so much.
Speaker A
Like if you just add a couple other services, you can be full-time. I just think it's a it's a slippery slope and I think the reason I've been so so successful is because I've been locked in, hyper-focused on one service and
Speaker A
I've seen every complication, every issue, every problem, every situation, and I'm just going to try to share as much as I can, and obviously there's more in my head that I just can't really get out there.
Speaker A
The people that come to me know that I only do bookkeeping and they come to me because they know I'm the expert in bookkeeping. They're not coming to me for tax work, we'll leave that for the CPA. They're not coming to me for you
Speaker A
So if you want to ask specific questions to me, I highly recommend you join my little community. There's only 20 people in it right now. It's super tight-knit. We have weekly group calls, and right now we have a group call on
Speaker A
People ask me all the time if like if I lose out on business, if I don't get a lot of clients because I'm so hyper-focused on that one thing and the answer is no because there's so many businesses that just want to pay for
Speaker A
Wednesday at noon and Friday at noon, and honestly, it's a great opportunity for you to just pick my brain, ask your specific questions, and to allow me to kind of dive into your scenario to help you get your business started. So if
Speaker A
going to create a business that um that doesn't serve you. You're going to become a slave to the business. You want to have a business that is hyper-focused on that one thing because here's the reason guys, bookkeeping is unique because you get
Speaker A
you're interested in doing that, look in the description for the link to my website where you can sign up for that. But anyway, the five mistakes, guys, let's jump right in. Mistake number one: don't offer everything under the sun,
Speaker A
You don't have deadlines and seasonal commitments. With bookkeeping, it's a monthly cadence and it's beautiful. It's so easy to build that into your life, to create systems, to delegate and so bookkeeping in QuickBooks online is the way to go. Again, you're not doing CFO
Speaker A
okay? I do bookkeeping, and I talk about this all the time, but I just feel like it's the number one problem that people struggle with. I see the low-hanging fruit, you know, in the business, in the
Speaker A
made in bookkeeping, okay? So that's number one is don't offer everything under the sun. Number two is stop trying to reach out like when when as you market your company, don't waste your time with trying to reach people in
Speaker A
world. As they start, as they become self-employed, you know, maybe they start offering services, but they're like, "Oh, I can do sales tax," or, "Yeah, I can do payroll," or, "Yeah, I can do tax work, income taxes." And it looks like really easy pickings.
Speaker A
You'll notice that the competition is way less and also people are going to trust the local bookkeeper. They're not going to trust as much the person who's across the country because bookkeeping is a business built on trust and there's
Speaker A
Like if you just add a couple other services, you can be full-time. I just think it's a slippery slope, and I think the reason I've been so, so successful is because I've been locked in, hyper-focused on one service, and
Speaker A
and phone and cold calls to businesses in your area. Come up with a list. Go on Google Maps and search all the plumbers in your area and get their contact information from their website. Shoot them a specific a very unique like
Speaker A
I've been offering that one service, and because of that, I have a very unique funnel.
Speaker A
that need bookkeeping help. By the way, my my shirt is all stretched out cuz I have four kids that that pull on my shirts. I'm going to get new shirts.
Speaker A
The people that come to me know that I only do bookkeeping, and they come to me because they know I'm the expert in bookkeeping. They're not coming to me for tax work; we'll leave that for the CPA. They're not coming to me for, you
Speaker A
the life as an employee where I had to keep track of my time. You don't want to do that. I track my time anyway just for my own internal purposes, but nobody questions my time. When I when I sign on
Speaker A
know, deep analysis and budgets and forecasts; they'll go to their CFO for that. They're not coming to me for payroll; the payroll company will handle that. I do bookkeeping, and there's a huge need for it.
Speaker A
pricing. That's the beauty of fixed pricing. I don't have to send them um you know, a report of how I use my time.
Speaker A
People ask me all the time if I lose out on business, if I don't get a lot of clients because I'm so hyper-focused on that one thing, and the answer is no, because there's so many businesses that just want to pay for
Speaker A
Fixed fees are the way to go and it also allows you to do the auto recurring billing. So you can set them up with auto recurring um payments where you receive a direct deposit automatically on the first of
Speaker A
that one thing. All they want is bookkeeping done on a monthly basis. And so you need to avoid, you need to be wary and careful that you don't try to do too much. That's how you're going to get burned out. That's how you're
Speaker A
in April, okay? And and as a reminder guys, I do all my bookkeeping in one sitting for the previous month. And so in the month of April right now, I still have clients that I haven't finished yet for the month of March. I haven't even
Speaker A
going to create a business that doesn't serve you. You're going to become a slave to the business. You want to have a business that is hyper-focused on that one thing, because here's the reason, guys: bookkeeping is unique because you get
Speaker A
But um charging fixed fees is huge and also on that point guys is don't overcharge. I'm sorry, but I see too many calculators, too many bookkeeper gurus who are saying to charge a thousand, 1500, 2000 dollars per month for bookkeeping. I just think
Speaker A
the monthly recurring revenue. You don't have the government breathing down your back. You don't receive letters and notices from them.
Speaker A
yeses from it for people that reach out for bookkeeping help and I'm more competitive. Like people are going to come to me. Why would they pay somebody else 600 dollars a month when they can come to me for 400 dollars per month?
Speaker A
You don't have deadlines and seasonal commitments. With bookkeeping, it's a monthly cadence, and it's beautiful. It's so easy to build that into your life, to create systems, to delegate, and so bookkeeping in QuickBooks Online is the way to go. Again, you're not doing CFO
Speaker A
For example, somebody came to me and they wanted to lower their bookkeeping price. They they were coming from another bookkeeper.
Speaker A
work or tax work, and also you're not doing admin work. You're not paying bills, you're not sending out invoices, you're not doing collections, you're not helping the business in their operations, you're not creating special software for them. Guys, the money is
Speaker A
unnecessary details in their books. They had their contractors broken out. They had every revenue stream broken out.
Speaker A
made in bookkeeping, okay? So that's number one: don't offer everything under the sun. Number two is stop trying to reach out like when, as you market your company, don't waste your time trying to reach people in
Speaker A
and let's just do basic bookkeeping. Let's record the transactions. Let's reconcile the accounts and let me send you reports on a monthly basis." And I always tell them like you're going to be covered for tax purposes. You're going to be covered for
Speaker A
other towns or other states. Focus on your state. Focus on a 20-mile radius around where you live.
Speaker A
You will get the amount you will build up a book of business soon enough within about a month.
Speaker A
You'll notice that the competition is way less, and also people are going to trust the local bookkeeper. They're not going to trust as much the person who's across the country, because bookkeeping is a business built on trust, and there's
Speaker A
Also, number four guys, the mistake number four is not getting paid up front. If you do clean up work or catch up work or even for the monthly bookkeeping work, you need to get paid 100% up front. I made the mistake of
Speaker A
something about being a stone's throw away. I talk about that all the time, too, but I would focus on your local region. So do things like, you know, show up to the farmers market, you know, reach out via email marketing
Speaker A
I put so much time into this client and they argue with me about something that I did and there was just miscommunication maybe on my part, but I didn't get paid. It killed me. 2000 dollars was not given to me and it was
Speaker A
and phone and cold calls to businesses in your area. Come up with a list. Go on Google Maps and search all the plumbers in your area and get their contact information from their website. Shoot them a specific, a very unique, like
Speaker A
amounts up front. I have a team offshore that helps me. I tell I tell them that I'm going to need view-only bank access and view-only payroll access. I tell them I don't do the bookkeeping till after the end of the month. I I'm up
Speaker A
personalized email or give them a call. Do that. Reach out to the CPAs in the area. I have a whole video on how to find clients, but don't waste your time trying to reach other areas. Focus on your area. There's so many businesses
Speaker A
I want to work with a specific client that is willing to work with me. And that's just the only way that I can do it.
Speaker A
that need bookkeeping help. By the way, my shirt is all stretched out because I have four kids that pull on my shirts. I'm going to get new shirts.
Speaker A
Um I provide great customer service. I respond to emails. I serve my customers. But at the end of the day, if my service to the customers is at the expense of my family, uh um at the expense of my time,
Speaker A
Don't worry about it. Don't just focus on the bookkeeping, okay? But anyway, guys, number three is you need to charge fixed fees. Do not charge hourly rates. I promise you, you will regret doing an hourly rate. I
Speaker A
don't get a lead for a couple weeks, if you don't get a client for a couple of months, if you aren't getting the work and the money that you thought you would get. You just need to press in. You need
Speaker A
lived the life as an employee where I had to keep track of my time. You don't want to do that. I track my time anyway just for my own internal purposes, but nobody questions my time. When I sign on
Speaker A
Maybe you're not telling enough people about it. Maybe you're too afraid to open up on social media because you're afraid of what your employer is going to say.
Speaker A
with a client, I tell them upfront what their fixed fee is going to be. It's usually $300 or $400 or $500 per month. After that initial conversation, I never have to talk to the client ever again about
Speaker A
it literally has um blown up my life in the best way possible. Um I can't believe I used to commute 45 minutes, had to wear I I can't believe I had to wear a polo. I can't believe I had to
Speaker A
pricing. That's the beauty of fixed pricing. I don't have to send them, you know, a report of how I use my time.
Speaker A
Um I I can't believe it. And looking back five years from now, it's just amazing to see how much better my life, the quality of my life is. I went golfing last Friday in the middle of the afternoon. Um next week I have to bring
Speaker A
I don't have to, you know, if one month takes me a little bit longer than another month, I don't have to answer any questions about it. I don't have to undercharge if I'm more efficient.
Speaker A
That's where you want to be and you can get there if you just um stick at it. If you don't give up, one client at a time.
Speaker A
Fixed fees are the way to go, and it also allows you to do the auto recurring billing. So you can set them up with auto recurring payments where you receive a direct deposit automatically on the first of
Speaker A
So, that's what you need to do, guys, okay? So, hopefully that's helpful. If you're thinking about it, you got to take the leap. You got to do it. Um and I think I think it'll be worth it, okay?
Speaker A
each month for the previous month's bookkeeping, okay? So for example, we are in April right now. I've already received almost all the money I'm going to get for the month of April for the March bookkeeping that I'm going to do
Topics:bookkeeping businessstart bookkeepingsmall business advicefixed pricing bookkeepinglocal bookkeeping clientsbookkeeping mistakesbusiness growthentrepreneurshipJake Dimabookkeeping tips
