How to Transition from Surviving to Thriving in your Bookkeeping Business

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Would you like a steady stream of new clients beating a path to your door?

Do you wish you could charge a higher fee for the services you provide and have your clients happily pay you?

If you answered yes to either one of these questions, it’s PEOPLE who will help you get what you want. You cannot get those results without other people!

More specifically, it’s the relationships that you build with people that will cause them to seek you out, value your services and recommend you to their friends and colleagues. Building relationships is how any struggling bookkeeping business can transition from just barely surviving (sometimes for years) into a thriving, growing, and prosperous business.

And the most effective way to build those kinds of relationships is by offering the VALUE that your existing and potential clients really want.  And it needs to be value that they recognize immediately – not what they may, in fact, need, but don’t understand or see as valuable to themselves or their business in some way.

For example, they may truly need their bank accounts reconciled to assure accuracy for their financial records, but that is likely not high on their priority list of the important tasks to manage their business. So if you are touting how you can make sure that their bank account is balanced and reconciled each and every month, you’ll have difficulty attracting new clients, or demonstrate high value to your existing clients. Many small business owners don’t even know why it’s important to reconcile their bank accounts in the first place, so it doesn’t mean anything to them. Thus, it doesn’t seem necessary or important. And certainly not something they want to pay for if they don’t have to.

The same is true if you’re promoting your services using accounting and bookkeeping jargon – accounts payable, accounts receivable, payroll liabilities, and so on. Potential clients generally do not actually understand those terms. Those words do not communicate value to them.

In reality, these words represent the functions you know how to handle for your clients. But they don’t communicate the useful value of those functions for your clients, value that your clients would be happy to hire you to provide for them.

So how do you provide VALUE that your clients will understand and readily pay you for?

Forget you are a bookkeeper! Put yourself in their shoes and consider what THEY care about. What do they spend most of their time doing in their business? What do they pay attention to on a daily basis and spend money on?

To answer these questions successfully, you need to get out of your own way and forget about what you want FROM your clients. You need to think about what they want most and how you can help them get it.

Relationships are built on exchanging VALUE. People value and are attracted to those who can help them reach their goals and fill their needs. As bookkeepers we are in a fantastic position to help our clients reach their business goals AND we can thrive in the process.

Learn the art of building relationships with your clients and prospects based on what is valuable to them, and you will not be viewed as “just another bookkeeper.” You will stand out from the crowd as a provider of REAL value. And THAT is what clients are happy to pay for because it means you are helping them get what they want. They will also talk about you to others, sparking the most powerful form of free advertising – word of mouth.

How can you learn to communicate value and build these kinds of relationships?

1. Start asking your clients and other small business owners you meet what they want most in their business that they don’t have right now
2. Pay attention to their answers and consider how the services you provide – and the information provided in financial reports – can be used to help business owners reach their goals
3. Learn how to communicate the true value your services give to business owners in a language that they can easily understand

One of the best ways to learn more about what small business owners want AND stoke the fires of word-of-mouth recommendations is to build strategic alliances with CPAs and Accountants.

If you’d like to learn how to crack the code for building this special kind of referral relationship, join me and fellow CPA networking expert, Val Barshaw, this Wednesday for our live online training, “Freelance Bookkeeper Networking: How to Build Strategic Alliances with CPAs and Accountants”

Click Here for more details

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Tagged As: bookkeeper marketing, bookkeeping business clients, find new clients, how to get client referrals, how to get clients

Your Bookkeeping Business 2012

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Have you made some “resolutions” for your business? I’m hearing from many fellow bookkeepers who are determined to grow their business in 2012. How about you?

What does that really mean in practical terms though?

The economy is still a bit choppy, and times are changing. But our prospects are VERY bright, especially for those who are moving more toward working with clients on a virtual basis. That is, working from your own office and communicating primarily through the Internet and telephone.

Here’s why.

In a recent, informal survey conducted by FreshBooks (an up-and-coming simple, online bookkeeping software program for service-based businesses) small businesses are turning to technology to boost productivity and flexibility. With that, there will also be a shortage of technical help. And finally, relationships (including those through social media) will be more important than ever for small business success.

Why are these three points significant?

First, it means more and more small businesses are getting comfortable using the Internet to run their daily operations. They need the efficiency of online technology to trim costs and maximize value. This including handling their financial recordkeeping.

That’s great news for us!

If you have been working with your clients by going to their location, you know how time consuming that is and inefficient. You cannot charge full price for your travel time (if you charge for it at all). There are usually interruptions and distractions while working in your client’s office, and you are not available to your other clients, or worse yet, not free to answer calls adequately for potential new clients who want to contact you.

If you’ve already been working with some clients on a virtual basis, the trend toward more online technology and efficiency, as well as mobile team mindset, is fantastic. This is what many of us have been promoting for years. Until now, clients have often been resistant to using online technology to handle their financial records. But that is changing rapidly. Because of the convenience, speed and cost savings, many more potential clients are open to working on a virtual basis to get their bookkeeping handled.

It’s important to note, however, that as the way we work with our clients changes, nurturing relationships are more important than ever for both getting new clients and for holding onto your existing clients. Open and frequent communication is a must to succeed this year! Therefore, building trust and maintaining a strong, positive connection with each of your clients is going to be super important for your business success.

When working virtually, this may take some extra, proactive effort on your part. But in my own experience, creating opportunities to occasionally meet in person with your clients, whether they are local or cross country, goes a long way toward building rock-solid client loyalty.

SIDE NOTE: If many of your clients are long distance, you should have a recent photo of yourself prominently available on your website. Your clients will look at your picture often when they are not able to meet with you face to face.

But there was one other finding in the FreshBooks survey that reveals a HUGE opportunity for us. If you really want to set yourself apart from the vast majority of other freelance bookkeepers. This is REALLY important to success in a tough economy.

Small businesses are in a pinch because they may have discounted their prices to attract new customers. They will find it difficult to raise their prices, even as the economy improves. That’s because people have come to expect lower prices than before the economy went South.

How is this an opportunity for freelance bookkeepers?

As I’ve often mentioned when talking about marketing your services, you need to know where your clients and potential clients are feeling “pain.” That’s because we all gladly spend money on solutions that relieve pain because that equates to high value for us.

So the question is, if small business owners are feeling pain from tight cash flow, do you have solutions that you can share with them to help relieve that pain? Can you explain to a prospective client how to use his financial reports to identify where he can improve cash flow? If you can, you will definitely get his attention and easily justify the cost of your bookkeeping services.

As an example, showing them how to use their financial reports to identify expenses that can be trimmed, as well as what’s working best on the sales side can have a huge impact on their cash flow very quickly. You just need to spend a few minutes helping your clients understand what their financial reports mean in practical terms. And of course, to have financial reports that provide this kind of information, they need to keep their bookkeeping up to date and accurate!

Do you think your clients will value your services if you show them the information they need to run their business more efficiently and increase cash flow?

You will be worth your weight in gold because rarely do bookkeepers or accountants take the time to REALLY help clients in this way. (And the clients who don’t see the value in this kind of service won’t be “qualified” clients for you – so this works as a filter for finding and keeping high quality clients too!)

This year, 2012, is ripe for showing clients how you can help their business succeed – and you will likely find that your business will grow and prosper like never before as a result!

So do we have reason to be excited about what 2012 has to offer us?

You bet! Not only is the trend toward virtual services accelerating, but you are in the perfect position to provide your current and potential clients exactly what they want and need most.

If you’ve been looking for ways to take your freelance bookkeeping business online, work virtually, and set yourself apart from the competition, you’ll want to check into the audio book, “Virtual Bookkeeping Secrets: 7 Steps to Taking Your Bookkeeping Service Business Online”

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Have you started working with your clients on a virtual basis yet?

Please comment and share your thoughts and experiences below.

Tagged As: bookkeeping business, change, new technology, remote services, virtual bookkeeping

How Safe is Outsourced Bookkeeping in the Clouds?

Recently one of your fellow readers submitted an excellent question about what we face as freelance bookkeepers when working virtually (from your own office rather than on-site in the client’s office)…

“I’d like to know how to address the concern of prospective clients who suspect that they will lose privacy when they outsource their bookkeeping to a back office business service company.  This is ultra important to closely held companies… Will they lose their privacy or are there ways to calm their fears?”

Clients with this concern are assuming that bookkeeping done on-site is more “private” than when it’s done remotely. Privacy is, in reality, more secure when it is done virtually using secure online tools in a paperless environment. But I’ll admit that that does seem counter-intuitive.

Your first hurdle is the client’s perception of what is private. And that really is an opportunity for you to identify whether this is a client that you really want to work with on a long-term basis.

Usually, the reason they *think* their info is safer in their office is because they can see and touch it themselves. They can also see the people who are working with that information. That seems to make sense. But in reality, when using proper online technology, their information is actually much MORE secure when outsourced than when keeping it in-house in the “traditional” paper-based way.

That’s because when appropriate cloud-based applications are used,  their financial information is stored more securely and privately than when it is handled in their office the “old fashioned” way. The biggest privacy risk, in reality, is with the PEOPLE who have access (or could have access) to their financial information, not WHERE those people are working.

Online software (including remote access tools) uses high level security encryption, which is actually safer than how these potential clients are likely handling their info in the office now. Online, only those authorized to see and use the information are allowed access. Security in a typical paper-based office is not so tight.

So how do you “gently enlighten” your potential client?

Ask them if they are comfortable in using online banking. Does that make them nervous? If it does, I’d suggest that this may not be a client you want to engage, unless you are willing to work onsite and and be paid less than your virtual colleagues.

In truth these days, all businesses face privacy risks. But those doing their bookkeeping in the “traditional” way actually are at HIGHER risk (Side Note: If you are handling their financial data, who do you think they will blame first when something goes wrong? Something to consider.)

When attending the Sleeter Conference last month, I learned that a full 33% of businesses experience fraud – usually due to paper checks.

Recently my own business account was subject to fraud. But not because of any online transactions or electronic information handling. It was because of a local vendor who did not protect my data taken from my PHYSICAL business debit card! And today I learned that one of my clients is currently going through the same inconvenience for the same reason with one of his business credit cards.

The reality is, secure online software is actually much safer than physical financial tools.

So, we are left with the last part of our colleague’s question: “…are there ways to calm their fears?”

YES! Use online technology with appropriate security!

When a client recognizes the value of outsourcing their bookkeeping, but needs some reassurance, make it easy on them (and you)!

• Transition them into virtual services one step at a time. The easiest way is with remote services. Their bookkeeping files can remain on their computer and you simply connect remotely to perform the work. (You will need to use digital source documents)
• Use online tools that are secure – don’t email QuickBooks data files or financial source documents. Use a secure file transfer service instead.
• If offering hosted QuickBooks services, use licensed, secure hosting solutions, not your own website hosting account.
• Consider using an online accounting solution by a trusted software company, such as QuickBooks Online for secure, anytime access to your client’s books.

You will need to determine your potential client’s online “tolerance” and choose the level of service that won’t feel “too risky” for them. Most of what they fear is just an illusion. Once they start to see the convenience and the built-in security, they will relax.

Of course, you may also need to accept that not all clients are ready to adopt new technology. When that happens, it raises a big question mark for you.

“Desktop accounting is on the road to becoming obsolete” – Randy Johnston, founder of K2 Enterprises

You need to be clear on WHO your ideal client is. If your outsourced virtual bookkeeping services are not a good fit for a client prospect, be willing to move on. The truth is, everyone is NOT well suited to be your client.

Bottom line – ALWAYS hold fast to the unfailing motto: win-win or no deal. If you do, both you and your clients will prosper!

Recommended Resources

SmartVault – a nearly all-in-one tool for virtual bookkeepers for secure document management and file transfer service that integrates with QuickBooks. You can get a free Lite account to see if it’s right for you.

Insider’s Guide to Your Own Virtual Bookkeeping Business – my comprehensive training course that shows you exactly how to get your own virtual bookkeeping clients in 30 days or less, along with ALL the tools you’ll need for working securely with your clients.

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Tagged As: bookkeeping in the cloud, cloud, online privacy, online secuity, outsourced bookkeeping, QuickBooks online, smartvault, virtual bookkeeping

Introducing The Freelance Bookkeeper Spotlight with Connie Carlson

I’m happy to introduce the first in our brand new series of freelance bookkeeper interviews where you’ll hear from grassroots freelance bookkeepers who are in the trenches building their businesses from the ground up.

This very first interview is about 33 minutes. So take a break, grab your favorite beverage, and sit back and get to know fellow bookkeeper Connie Carlson, who transformed her business dream into her reality.

Connie Carlson

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Tagged As: bookkeeper case study, bookkeeping service business, freelance bookkeeper, freelance bookkeeping, start a bookkeeping business

The Future and Freelance Bookkeeping

Technology? The economy? Where are we headed in 2012 and beyond?

Little over a week ago I attended one of the bookkeeping industry’s most well-known events – the Sleeter Conference (aka The Sleeter Group Accounting Solutions Conference) and the message throughout most of the training sessions was very clear:

Desktop accounting is on the road to becoming obsolete!

There’s no question about it. More and more businesses are headed online, especially with the rapid development of mobile applications, the power of “smart phones” and how they now can integrate into popular business software – including (but clearly not limited to) QuickBooks.

The accessibility and sharing of electronic data to conduct business–anywhere anytime–is driving the move toward a truly paperless (and mobile) office with (nearly) zero data entry.

Does that scare you? How much of the services you offer consist mainly of data entry?

The future of bookkeepers will be more focused on managing data flow, not data entry.

Another BIG reason businesses are rapidly embracing the move to the clouds is all team members can instantly collaborate in real time without version problems – think about the hassles we so often must wrestle when coordinating backups, accountant’s copy, etc. Problem solved.

Of course, this means as freelance bookkeepers, our role is changing. Those who are paying attention will seize the opportunities that are emerging and start moving  toward becoming a trusted business adviser now, who cannot be replaced by automation!

I’ve seen the opportunities coming for awhile. And it will only grow now as your clients start to upgrade their business technology. And by the way, this is GREAT news since consultants and advisers generally charge higher fees than bookkeepers.

In using multiple applications to run their business, clients will be best served by using a dashboard approach to instantly get a sense of what’s going on within their business. We’ve also seen this trend in the most recent versions of QuickBooks. Intuit realizes clients want tools to USE their financial information to grow more lean, profitable businesses. (Starting with QuickBooks 2009 they created the Company Snapshot feature)

But QuickBooks and even QuickBooks Online Edition had better watch it’s back!

New cloud-based bookkeeping software is also taking root and we need to pay attention. That’s especially so if you focus on small service-based businesses. A few that I’ll be watching and learning more about for my own business are:

- FreshBooks
- Wave Accounting
- Xero

These are FREE online bookkeeping programs (to start) that small businesses can grow with, are easy, and automatically tap into live banking data to nearly eliminate data entry altogether. FreshBooks even ties into QuickBooks.

But the biggest obstacle on the road of transition to the clouds is the human factor – the learning curve is not so easy to climb for everyone.

In truth, not all clients will embrace the new technology quickly. In fact, some people will downright refuse and resist the changes that are already upon us. While the shift to online is gaining rapid momentum, as Doug Sleeter said regarding the slow or non-adopters, “Some of these people just have to die!” (That was my favorite quote! LOL! )

Side Note: If you are one who resists change, don’t despair. There is a sparkle of sunshine here. You can choose to serve the clients who want to keep doing their bookkeeping the way they’ve always done it. But just realize that this market will continue to shrink (and their business profits will likely slip as well). But they will appreciate you for not forcing them to go online.

For those who welcome the online upgrades, you are positioning yourself and your business to prosper going forward! The highest fees will go to those who step up to lead their clients.

A sobering question: Do you serve your clients, or lead them?

Leaders always get paid more. Your clients will look to you to lead their business into the new way of using online technology to grow profitability. (And younger clients are already there waiting for you.)

Your role will be to…

1. Cobble together the technology that works together effectively for your clients
2. Step into the role of business consultant and mentor

In Summary:

• The speed of online technology is increasing rapidly
• Clients will need your help to upgrade their workflow and efficiency (motivated by the desire to increase profitability) using the new (inexpensive) cloud-based tools

What we need to do now:

• Educate ourselves on what’s now available and emerging
• Use the new online products ourselves
• Learn new skills, including how to build dashboards for clients to manage business more profitably
• Move from the role of bookkeeper to indispensable consultant

As a first step, I’ve created a sort of Virtual Bookkeeper boot camp to get up to speed quickly on the basics called, “The Insider’s Guide to Your Own Virtual Bookkeeping Business.” This program will grow and expand as new tools and technology emerge.

We are entering a new online era. We can’t stop where the future is taking us. But we can position ourselves (and our clients) to use the new technology to prosper. It will be a dynamic process.

So, how do you plan to face new online technology and trends during the coming year?

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Tagged As: bookkeeper training, bookkeeper tutorial, bookkeeping business, bookkeeping online, bookkeeping programs, bookkeeping services, bookkeeping software, online bookkeeping, small business bookkeeping