Tuesday, August 14, 2007

Home-Based Accounting Businesses Thrive

50% of Accounting Businesses show a profit. Other Home-Based Businesses don't do too bad, either. 46% is the overall average. The most profitable business to run out of your home is computer design services. 76% of those show a profit.

The really good news for accountants is that the profit margin runs 46% while the home-based average is 36%. The bad news is that the bulk of the firms surveyed were non-CPA's. That means that they have MUCH lower overhead. I would guess that home-based CPA firms have lower margins because of higher professional requirements.

My source for this is today's CPA Insider, an e-mail publication I get. This got my attention because I am a CPA who works out of my home. Their source is a report from the Small Business Administration, titled, “The Impact of Location on Net Income: A Comparison of Homebased and Non-Homebased Businesses.”