How to Start a Bookkeeping Business and Get What You Want

The best way to get started is to come up with clear answers to these two questions:

1. WHY do you want to work as a freelance bookkeeper?

2. WHAT does a freelance bookkeeping business mean for you?

There are no right or wrong answers here, but without these answers before you begin your business, you could end up frustrated and in a situation that you don’t want.

The reasons for starting a bookkeeping service business vary, but often it is sparked by a short-term situation. It might be that a job or other reliable income source was suddenly lost, or new household expenses arrived (such as a new family member). Regardless of the circumstances, oftentimes the primary motivator is a need for more income quickly.

If that’s the case for you, a word of caution is in order. There is a difference between creating a job for yourself so you can work from home, and starting a business – it’s a BIG difference. Starting a new business with your eyes open will determine whether you get the results you want, or struggle, sometimes for years.

This is not intended to discourage you from the idea of starting a freelance bookkeeping business. Far from it! It’s more about setting yourself up for getting exactly what you want right from the start.

When you think about WHY you want to become a freelance bookkeeper, is it because you simply want to work from home with a flexible schedule, possibly to be more available for your family? Or have you always wanted your own business and like the idea of providing valuable services to a variety of clients? Are thinking about building a team of bookkeepers? Maybe you’d even like to pass the business on to your children, or selling it when you’ve had enough of it.

Your first step is to take some quiet time, 30 minutes or so. Envision in your mind’s eye, vividly with as much detail as you can muster, what you see your life being like running a freelance bookkeeping business of your own.  See yourself actually doing it. What would your daily routine be like? Would you work from home? Would you have a virtual staff? How would it fit into the rest of your life?

Do this type of daydreaming first, before you get down to the “practical” steps of wondering what services you’ll provide or which software programs you should use. Instead, compare that vision, that picture and feeling of what your business will be like, to where you are today. No matter how dramatic the difference between your vision and your life now, it’s just a matter of moving one step at a time from where you are to living your vision. Really.

Getting from Where You Are to Where You Want to Be – Quickly!

Now that you know clearly what your freelance bookkeeping business will look like, it’s time to take practical action to bring it into your life. How? With a basic plan, of course!

Laying the foundation and plan for your business is part research and part learning as you go along. So you will need a measure of flexibility. But always start with the vision of what your business will look like when you have “arrived” at how you want it to be.

Then it’s a matter of finding what will cause the results you are looking for. That is, what expertise do you have now, and what do you still need? Clients will pay you for the value you provide them. So, what value do you have to offer, or what could you develop? Do you have any specialized knowledge, such as is needed in a specific industry? An example might be if you have experience with bookkeeping for a non-profit organization.

You’ll also want to consider a basic budget and how much you will need to charge in order to meet your financial goals. How many hours a week do you want to work? Don’t forget to consider the “overhead” expenses involved, such as insurance, taxes and vacation time.

Finally, you’ll want to have a plan for how you will market your services and attract clients. Just being “ready” to offer bookkeeping services will not automatically attract clients. You need to get the word out to those who are looking for the specific services you have to offer. That’s what a marketing plan will do for you.

We’ve briefly touched on some of the setup work needed before you start looking for your first bookkeeping client as a freelancer. Without proper planning, while you may bring in some income reasonably fast, you won’t end up with the business of your dreams unless you are clear on what you want and how you plan to move in that direction first.

But putting it all together doesn’t have to take a long time or be difficult. In fact, if you’re ready to start your freelance bookkeeping business using the power of the Internet AND you want to know how to snag your first paying bookkeeping client quickly, check out my no-fluff audio book, Virtual Bookkeeping Secrets, and use the included business planning worksheets.

If you’re already running your bookkeeping service business, what do you wish someone had told you before you got started?

.

Tagged As: bookkeeping business, business plan, freelance bookkeeper, get started, how to start, marketing plan

A Good Way to Find Bookkeeping Clients

Now that tax season has passed, many bookkeepers (whether you do taxes or not) are seeing a bit of a slowdown and are looking for more clients.

Others who haven’t started their freelance bookkeeping business yet, but are serious about getting their business off the ground are trying to figure out the best way to find new clients too.

How about you?

Do you feel like the person who sent me this email recently…

Would you rather listen to the answer?

Find Bookkeeping Clients [ 7:13 ] Play Now | Play in Popup | Download

If you can identify with the struggle of not being an extrovert, but know that you need to take action to find new clients for your bookkeeping business, you are not alone!

Most accountants / bookkeepers are not outgoing (we tend to be introverts and prefer to associate with numbers more than with people, especially if we need to take the initiative to start the conversation!). Marketing is perceived as a hard hurdle to get over by most of us.

And times have changed, too. Years ago, accountants and bookkeepers just needed a Yellow Pages (phone directory) ad, and maybe a newspaper classified ad every now and then. It was easy. Slap down your money and new clients come to you. And once you get a few good clients, then word of mouth takes over.

Now, that is NOT the most effective way to find new clients.

Today, relationships and reputation are more important than ever, and “old fashioned” advertising is MUCH less effective. So, the idea of contacting new start-ups and soliciting their business may yield a client or two, simply because of timing. You would be approaching them when they are more likely to feel they need help.

Here’s why I don’t think it is necessarily the best way to build a successful business though:

• Start-ups usually do not have much money and are generally price sensitive. Especially if you are very good at what you do and provide high quality service, they will not recognize that value and be more focused on cost. Well-funded start-ups are rare in my experience.

• You should be targeting your clients based on a specialty. You could specialize in helping start-ups, but that really is still too general. You likely are not an expert at all the different types of start-up businesses that may come your way. So, you still would not be able to easily differentiate yourself from other bookkeepers in their eyes. So you’re still a commodity that they want at the lowest possible price. Not good.

• Contacting people by email to offer (sell) your services when they don’t know you and did not ask you to contact them is considered spam and is against the law.

All that being said, you could use “old fashioned” direct (postal) mail to contact new businesses with a letter of introduction. Sending unsolicited promotional postal mail is not against the law. But on average you can expect a 1% response from these kinds of mailings. For best results you would need to contact the people on your list repeatedly, and try to follow up with a phone call.

This is not an easy, quick or inexpensive marketing method.

You can usually get listings of newly incorporated businesses from your State government’s website, and you may also be able to get listings of newly registered business licenses from local City Halls in your area. Some may or may not charge a fee for these listings.

Of course, you may find direct mail marketing effective if you have the time, budget and chutzpah to do it, since fewer businesses are using it now because of the cost (hence the popularity of online advertising). Quite honestly, direct mail marketing may make sense as part of your regular monthly marketing mix, but it certainly should not be your main marketing method. That, of course, is my opinion. (If you’ve had great results finding new clients this way, please let us know about it in the comments section of this article below!)

Personally, I find attracting clients much easier than going out to chase them down. One way to do this (perfect for introverts) is by writing articles for your local paper or chamber of commerce (or online business blogs – and of course, you should do so for your own website so that new prospective client can find you via search engines)

You could also teach free or low-cost classes for small business owners through the Chamber of Commerce, Small Business Development Center or online using telephone conference lines or with webinars. This is a VERY effective way to build visibility, a good reputation and attract high quality clients.

Bottom line: the BEST way to get people talking about your services is to GIVE them value first.

Here are a few ways to do that:

• You could do pro-bono work in return for testimonials and/or letter of recommendation to small business associations (surrounding your specialty)

• Provide helpful information with no strings attached (tax class, small business cash flow tips, one hour free consultation)

• Reward those who send you referrals (Starbucks coffee card, free lunch, if from existing clients, discount on service they use regularly)

• Network face-to-face or online with colleagues (CPAs and fellow bookkeepers) or complementing service providers who are already serving your ideal clients

That is how you get word of mouth going and get the attention of potential clients. Thereafter, it’s just a matter of building a friendly relationship (not hard selling) with the people you meet and/or already know. You’ll be amazed at how easy it is and what great connections you’ll make, along with the opportunities that will open up to bring you new clients!

Using just one method of marketing will not build a thriving bookkeeping practice, but you’ve got to start somewhere. Pick one and run with it!

If you have been considering offering your bookkeeping services online, or you want to find out how to leverage free marketing methods to attract high quality clients, then you’ll want to get your copy of the new Special Report I just released called…

“How to Get Started as a Freelance Virtual Bookkeeper & Market Your Services Online”

Click Here to get your FREE copy.

.

What marketing methods have you tried so far?

Let us know what you’ve tried and the results you got by commenting on this article!

.

Tagged As: bookkeeper marketing, find clients online, how to find clients, marketing bookkeeping services, new bookkeeping clients

Document Management & Workflow Alternative to SmartVault?

If you are working virtually with your clients, you may have heard about the powerful and easy-to-use program called SmartVault. The following is a question sent in by a fellow freelance virtual bookkeeper regarding this type of online SaaS (software as a service) program and how you can use it to maximize your efficiency and profitability…

This is an important question!

Yes, SmartVault integrates seamlessly with QuickBooks (and actually got its start as a QuickBooks add-on program), but we must first consider the different functions this program can provide virtual bookkeepers, and whether those functions can be emulated by “cobbling” together one or more other online solutions for similar functionality.

What function(s) do you need that SmartVault does for QuickBooks that can work well with Simply Accounting (or other bookkeeping software popular with your clients) ?

If it is the document management feature of attaching electronic source documents to each transaction, I am not aware of a product that does that for other accounting software programs. But that’s because I am not familiar with how Simply Accounting (or Peachtree or MYOB, etc.) works specifically, since I’m a QuickBooks specialist. But you might want to check with Sage directly (or the maker of whichever software program you are using) to find out if there is an add-on or built-in feature that works similarly for their program for the paper trail / documentation function.

Doing a quick search online, I did find a program called QCDocs which says that it does document management and integrates with both QuickBooks and Simply Accounting, though I’m not sure how much integration is involved. But you might want to look into it if that’s your focus.

On the other hand, if you are looking for a program where you can streamline the functionality of how your clients’ source documents are converted to digital format and sent to you via a convenient and secure inbox along with storage folders and/or backups, there are other SaaS programs that can do much of what SmartVault does. But from a workflow perspective, I have not found another program that does it so seamlessly. If this is your priority, I would still recommend SmartVault over other programs, since this functionality can be completely independent of QuickBooks.

The workflow capabilities and ease of use for both you and your clients is actually what I see as most valuable with SmartVault, far superior to any other programs I’ve found so far.

That being said, if you would like alternatives to consider, DropBox and SugarSync are two document sharing / storage solutions that come to mind. There is also Shoeboxed, which may help your clients go paperless more easily and help you get a jump on the entry of financial information, whether you are using QuickBooks or another program. You just need to design a workflow that will be efficient and convenient for both you and your client to “drop off” information easily and securely.

Technology is moving quickly and we will likely see more solutions appear in the near future. I also see the emergence of SaaS bookkeeping programs (especially suited for small service-based clients) such as Xero and FreshBooks, which help to streamline document management and workflow too.

But as of now, I don’t know of another product that provides the same combination of functions as SmartVault for non-QuickBooks accounting software. However, with a little research and innovation, you can probably find a combination of solutions that will work the way you do, for a reasonable cost.

Part of our role as virtual bookkeepers truly is as a technology consultant! Therefore, we need to continue to keep our eyes open to the new and emerging online software that will help us work efficiently and profitably. This in turn makes us invaluable to our clients. That is a win-win situation worth pursuing.

As online technology charges forward, our services will become much like putting Lego blocks together to build the perfect (customized) bookkeeping system for each client, using online solutions.

We are truly on the front lines here.

If you are new to virtual bookkeeping and would like to learn more about how you can take your bookkeeping services online, OR you would like a complete step-by-step training for how you can use SmartVault with or without QuickBooks as an efficient, paperless workflow solution, I have created a complete training program, which includes a full-length SmartVault tutorial included as a free bonus.

Get the details here when you’re ready to step up to the next level with your freelance bookkeeping business:

• The Insider’s Guide to Your Own Virtual Bookkeeping Business

What online tools have you found helpful to your workflow when working virtually with your clients?

Please leave your comment below!

.

Tagged As: bookkeeper workflow, document management, online bookkeeping, SaaS, smart vault, smartvault, virtual bookkeeping

How To Protect Your Business Online

When offering your freelance bookkeeping services online, you may find that some prospective clients are concerned about security. This is especially true if they are currently getting their bookkeeping done on site using paper-based systems.

In a previous post, we’ve discussed how you can address those concerns for your potential client and move them toward a virtual working arrangement.

But what about YOUR business? If you are running a freelance virtual bookkeeping business, or even if you are running a part-time local bookkeeping service that is connected to the Internet in any way, this is vitally important to your business, too.

Why?

Because if you are using online services and have a website for your business, you do need to pay attention to security. While we’ve said that online tools are actually more secure than using a paper-based system, if you are using the Internet to access financial or other non-public information, there are still risks.

What should you be paying attention to? In a word, access.

• Access to financial information (yours and your clients)
• Access to your website (you do have a website for your business, right?)
• Access to all types of online accounts

Let’s address each of these.

Access to Financial Information

If your clients are paying you electronically, such as with PayPal, you need to make sure that it is not easy for someone to access your account. This means your password. And that is especially important with PayPal, since it is tied to your e-mail address. If you have someone else access your account, you should add a layer of protection by setting up a separate user login that has appropriate permissions. (Yes, you can do that with PayPal)

Of course, this principle applies to your clients too. If you do not need full access to their financial accounts, check to see whether there are security measures that will allow you to only have access to what you need. This is for your protection as well as for your clients.

If you receive or process paper checks, you need to keep the bank account information safe. That means if you are taking any photocopies of financial information, you need to make sure that those files are secure, and when discarded, they are shredded. Scanned copies should also be protected.

Access to Your Website

In this day and age, having a website is a must. It provides your business with credibility and your potential and existing clients an information center to come back to again and again (or it should). In fact, it’s one of your most important marketing and client relationship tools for your business!

Of course, with such a visible piece of property, you are subject to possible vandalism. In the online world that means hacking. This can include both the general defacing of your site, and/or theft of valuable information.

Whether your site is HTML based, or you are using a WordPress site (I recommend the latter), there are some simple actions you can take to protect your site from being hacked (and thus protecting your online image so that clients can find you easily online)

When using WordPress…

• Keep your WordPress software up to date (remember, this doesn’t cost you anything)

• Keep your plug-ins up-to-date

• Choose an admin user name and password that is difficult to guess

• Keep a complete backup of your website so that you can easily restore it in case it gets hacked or accidentally damaged (or you ever need to change hosting accounts)

For all websites…

• Prevent unauthorized access of website files in subdirectories (these are usually image or downloadable documents that you do not want the general public to download and use) by creating a blank HTML page, name it “index.html”, and put it into the directory folder you want to protect. This will hide the file list contained in that folder from public view.

• Make sure your username and password for your hosting account are not easy to guess, and consider changing your password periodically.

• Make a complete backup of your hosting account, including a separate backup of your website. The trick here is to make sure that it is easy to restore (backing up and restoring are two separate operations).

Access to All Online Accounts

All of us have many logins and passwords to keep track of. If you are working virtually, you also likely have  many of your clients’ logins and passwords too. How do you keep them all organized and secured?

What I did for a long time was to keep a spreadsheet on my local hard drive that had all my login addresses, usernames, and passwords. If you use this option, make sure that that document is password-protected on your computer.

You could also do this using an online application, such as Google Docs or SmartSheet where you essentially do the same thing, but it is protected in the clouds. You then only need to remember the single password to access that document.

However, I found the most efficient, convenient, and cost-effective way to do it is to use password management software. I currently use RoboForm, which allows me to have access to all of my logins and passwords synchronized among my computers. It remembers the website addresses and login info, and with the click of the button, it will automatically log me in to each online account. This adds up to huge time savings and is very secure.

Next Steps

So how are you doing in protecting yours and your clients’ business information? If you see room for improvement, take steps now to protect yourself and your clients from accidental negligence.

Are there any other areas where you see more protection is needed? How have you dealt with it? Please share your comments and experiences below.

.

Tools I Use for Protection

RoboForm – password management software that is a convenient timesaver and very economical. It also has very helpful features, such as a tool to generate high-security passwords for you. Highly recommended.

Backup Creator – WordPress plug-in that is simple, easy and reliable for backing up AND restoring your entire website.The cloning feature also makes it easy to move your website if you ever want to change hosting accounts. This is the best that I’ve found (and I’ve been looking for quite a long time for a plugin like this one that is so easy to use)

Tagged As: bookkeeper website, cloud security, login, online safety, online security, password, virtual bookkeeping security

The Biggest Success Killer for Freelance Bookkeepers

I’ve come to a startling discovery. And though I guess I kind of knew this already, I really did not expect it to be such a huge problem for so many people.

What am I talking about?

It’s what appears to be the #1 problem 95% of all of the new freelance bookkeepers, and even MANY of the seasoned freelance bookkeepers I talk to, face on a regular basis. It’s not what you think.

This problem is insidious because it actually prevents us from taking on new clients and building the business that we so want to have for ourselves and our family. It can cause you to work far too hard without adequate compensation… Repeatedly! In fact, it’s almost like a disease.

But once I saw it clearly after talking one-on-one with several of my students recently, I could see just how debilitating it really is. In fact, I even know what it feels like to battle this obstacle because I suffered from it myself, especially back when I first started. (and it can still crop up once in a while.)

What is this business-wrecking problem?

Is it a lack of credentials to provide bookkeeping services to clients?

Nope.

Is it a lack of experience in working with small business clients? (In some of our more recent blog discussions we’ve had some questions surrounding those who have more than enough academic credentials, but no hands-on experience. This can be a problem, to be sure, but that is not the problem we’re talking about here)

Is it not charging enough for bookkeeping services? (This problem can actually be a symptom of it, but in itself this is not the problem.)

So, what is it already? And more importantly, is it something you’re suffering from too?

Here it is – the #1 problem I see most freelance bookkeepers struggle with that can destroy your business or cause you to struggle for years on end is a lack of self-confidence.

All of us have likely struggle with this at one time or another. That’s natural. But it has become crystal clear that this is THE biggest problem that stops so many freelance bookkeepers from ever reaching their goals. And it’s primarily based on fear of the unknown.

In other words, much of that fear is NOT based on reality. And it’s working against you, often without you even realizing it.

But why is this such a critical problem?

It’s because if you don’t believe in yourself, you will either struggle with your business for years, or never be able to get your business off the ground in the first place, no matter how hard you try.

If you don’t have the confidence to stretch outside of your comfort zone in order to actually DO the marketing that you need to do in order to attract new clients, and demonstrate your expertise, you will never be able to find paying clients who will appreciate the work that you can do for them.

It doesn’t matter how many credentials you have. In fact, I see many freelance bookkeepers going after every possible credential, wasting a ton of time and money, in an effort to feel more confident! In most cases, it doesn’t work if the real issue is on the inside.

Similarly, if you’re battling self-esteem problems, years of experience won’t matter either.

In short, it’s your mindset that tells you that you do or do not have what it takes to start your own business and make it thrive; whether you are “ready” or not. But what your mindset is telling you may not be based on the truth.

And here’s the real kicker: Even if you do stretch yourself to try to find new clients, but your self-confidence is too low, that will come across in your communication. And when that happens, those you talk to won’t put much confidence in you and your abilities either. It’s a vicious self-defeating cycle.

So, now that this monster has been revealed, what can you do if you are struggling with it? How can you banish it?

From my own experience, I’d say it is actually a gradual process. But you have to be willing to deliberately step outside of your comfort zone to do things that scare you a bit. That’s how you do battle and come off victorious.

Sometimes you may need to tell yourself that it’s okay to fail so that you can get some practice and learn how to do better. (We all have to start somewhere, after all) You don’t have to be perfect and know all the answers immediately. This applies to both your marketing and taking on new clients.

I’ve also found that having a specific plan of action to take every day step-by-step will cause you to build up your confidence. All you have to do is work your plan. You also have to be determined to do it no matter what.

These are the steps to take if you’re ready to start winning this battle:

1. Identify whether a lack of self-confidence is holding you back
2. Identify where it is hurting you in your business
3. Choose one action you can take this week to challenge yourself and stretch your comfort zone in that area.
4. Give yourself a deadline and put it on your calendar
5. Take ACTION! (And promise yourself a reward when you succeed in getting it done, regardless of the results)
6. Repeat steps 3 through 5 one or more times per week

By simply facing your fear one step at a time, with a plan, you can build up your confidence, even if it is only with one baby step each week.

Bottom line: it’s all about your mindset. More than anything else, it’s your mindset that determines the success or failure of your business.

In fact, I recently interviewed my own business mentor who has helped me to battle some of my self-confidence demons successfully for branching out in scary territory in my own business. (He is not a freelance bookkeeper, but he has helped me transform my business)

In this interview, he shares how he started with over $25,000 in debt to build a multimillion dollar business, now with zero debt. In his well-known animated, and entertaining way, he also explains why your mindset is so critical. This really is a complete training in how to create your own winning mindset and how to put it into action.

As my gift to you, get free access to this highly valuable recording. I know it will be a huge help to anyone who truly wants to break free from the shackles of low self-confidence and get what you want for yourself and your business faster than you ever dreamed possible.

Click Here to Listen to the Interview

Tagged As: business killer, business success roadblock, mindset, obstacles, roadblock, self-confidence, self-esteem