Which Accounting Software Should You Use in Your Bookkeeping Business?

Which accounting software is best?

When setting up your practice, and especially when transitioning to a virtual bookkeeping business, you have choices. In fact, it can feel like too many choices! QuickBooks desktop or Online? Xero? Sage? What about Kashoo, Wave, and FreshBooks? Your clients may be using any of these, or others not even mentioned here.

Do you feel like it is a sea of software impossible to navigate?

Here’s just one of the many inquiries I received recently on this topic (and why I decided it’s time to write a blog post about it)…

Hi Gabrielle,

I love your webinars, and thanks to you I am ready to take the leap into cloud accounting this year. I am trying to figure out value pricing, Hubdoc, and all the other pieces of the puzzle. The part that is really tripping me up though is choosing the accounting platform. I’ve been trialling Sage One, QBO, and Xero (I’m in Canada).

However coming from desktop software (Sage), I am struggling with them all and am quite concerned about making the right choice…Do you have any advice?

I’m scared to transition only to find I should have gone with another option, as I know I am going to experience a lot of resistance from my clients already and I don’t want to aggravate the situation by making them doubt my decision making skills!

-Amie

These questions and emotions all wrapped up together is something all of us face when trying to keep up with technology in our profession. They’re especially critical when choosing your core tool – your accounting software. Here’s the three issues I see facing us.

  1.  Using a method to determine which is the “right” app to choose – whether your main software or add-on
  2.  Managing the implementation of change, for ourselves and our clients
  3.  Conquering our confidence issues on the path to reaching our goals and serving our clients

For this post, let’s dig into the first one, the process. Over the years, this is what I do in my own practice for upgrading systems or revising workflow issues where a new app can (or should) improve the situation.

How to Choose the “Right” App in 5 Steps

Step 1 -Identify what specifically is the problem, where things are “broken,” or just not working the way you feel it should. Write it down.

Step 2 – Come up with a list of the must-have functions / features needed to resolve the issue and accomplish the results you need. If not sure, take a guess and start from where you are right now.

In our example of choosing your primary bookkeeping software when you know you want to move to the cloud, come up with questions to make the process easier. Here’s some examples:

  • Who are your best clients, and what does the software need to do for them specifically (reports? functions? access?)
  • What are the specific functions you need to maintain or improve your efficiency? (bank feeds? reconciliation? multiple users? online invoicing & payments?)
  • What integrations are needed, if any? (CRM, bill payment, time tracking, payroll, taxes)
  • What kind of customer support does the software company offer? Do they have any programs / advantages / training specifically for accounting professionals?

Step 3 – Research which apps are available that will handle ALL of your must-have needs. Ask colleagues in online forums what they use for the specific needs you have. Search apps.com (if using QuickBooks), or simply “Google it.”

Step 4 – Narrow down your choices to 2-3 close fits and compare differences for features that may be “nice to have” or provide additional support to you as an accounting professional. Choose just one and sign up for a trial or see if you can get the software for free.

HINT: QuickBooks Online Accountant is provided for free to accounting professionals, and it includes a free QuickBooks Online Plus account for your own use. Xero and FreshBooks do this as well. There may be others, so don’t be afraid to reach out to the software company and ask if they have a special program for accountants / bookkeepers. You could also ask for a one-on-one demo where you can barrage them with your questions. (Keep your must-have features list front and center at all times)

Step 4 – Test the app and take any basic training provided by the software company to familiarize yourself with how it works. Then choose just one client who would benefit from switching to the software, if it does everything promised. Run the existing system and the new system in parallel (so choosing a small or simple client to start the process with will make this easier and less painful if it doesn’t work out). If all goes well in your tests, you can roll it out to your client and get his / her feedback.

Step 5 – If Step 4 is successful, begin to roll out the new app gradually across your client base, providing assistance where needed to staff (new documented procedures) and clients (training – usually a billable event or a great opportunity to switch to value pricing and include training in your packages)

Yes, following this process takes a bit of time and research, but in the long run, you’ll save you time and a lot of heartache compared to the trail and error based on slick shiny-app marketing messages from the software companies.

In future posts we can dig deeper into how to roll out your new online workflow when moving your bookkeeping business online with existing clients, as well as how to build your confidence in the process for a more consultative and premium fee practice.

In the meantime, what methods do you use to find the best apps? What do you think is most important to consider, with technology moving so quickly?

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What Bookkeepers Want Most in 2017

check_mark_voteAt the end of December I ran a bookkeeper survey to subscribers of this blog. I wanted to check in and find out what do bookkeepers want most to move your bookkeeping business forward in 2017.

We do this every year for existing members of The Freelance Bookkeeper Premium program, since I believe that as a community, we can grow and build strong, progressive practices together. It’s a joint effort to move our profession forward, internally and externally in a way that benefits both us and our clients.

If you didn’t know about the membership, it’s the super-affordable monthly training program specifically designed to help us get more clients, leverage technology and build a win-win bookkeeping business that gives you a steady income, freedom and makes a difference.

In times past, in fact, for YEARS, the #1 answer to the question of “What do you need most in your practice to grow?” has been: ‘Get more clients.’ Or, ‘How to market bookkeeping services.’

But based on this year’s results, we are changing. We’re learning that just getting clients is not too hard after all. But other parts our practices – internal policies and procedures, along with technology – are where we’re getting stuck. Here are the results from this year.

Survey Says:

2017-survey-screenshot-bars-blog

In the write-in comments section there were requests for more training that includes processes and systems, as well as being concerned about how to protect client’s data in the cloud.

From this survey, the top 5 picks were:

  1. Pricing Policies
  2. Recommended Apps
  3. Working from a Home Office
  4. How to Get Top Quality Clients
  5. How to Become a Trusted Advisor

We still want to keep clients coming in, but now we know that all clients are not created equal, and higher quality clients are important to grow a high quality bookkeeping practice. Amen!

But I’m still curious. How do you see our profession changing in the year ahead? Do these results seem on the mark to you, or are you facing different issues this year?

Remember, if you missed the survey, you can always request topics for this blog that will help your bookkeeping business by using the suggestion box at the bottom right of your screen. This helps me to know how I can best support your progress, and together we can grow and hit our goals faster.

If you’re curious about the actual schedule that we came up with for the 2017 TFB Premium member training based on this survey, here’s what’s in store this year…

TFB Premium Schedule for 2017

January – How to Effectively Run a Professional Practice from a Home-Based Office

February – Pricing Policies for a More Profitable Bookkeeping Practice

March – Social Media Marketing for Freelance Bookkeepers

April – How to Transition Local Clients into Virtual Clients

May – How to Fill Your Practice with Top Quality Clients

June – Systematize Your New Client Onboarding Process

July – How to Become a Trusted Advisor with Cash Flow, Budgeting & Forecasting

August – Recommended Apps for Today’s Virtual Bookkeeper

September – How to Grow Your Practice with Subcontracting

October – How to Confidently Convert Prospects into Clients

November – Effective Online Networking for More New Referrals

December – How to Add Training Services to Your Bookkeeping Practice

If they’re a good fit for where you want to go in your practice, you can learn how to join us here: TFB Premium

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Bookkeeping Business Planning – 7 Fast Steps for Real Results

bookkeeping-business-planningHow often do you use business planning to grow your practice? Once a year? Quarterly? Weekly? Only when you first started your bookkeeping business and winging it thereafter?

Whether you want a ‘fresh start’ to your existing business, or you’re truly starting from scratch brand new, here’s a quick summary of what has worked for me over the years.

But before I get to that, let me share a little story about why I think many of us get tangled up when it comes to business planning.

This year I decided to invest a good hunk of money to try a new “planning system.” I’m still working my way through it, so the jury’s out right now on whether I’d recommend it. But the promotion said it’s designed for busy entrepreneurs who really want a streamlined approach and focus on doing the ‘right’ things to move forward rapidly, in the same way top-level athletes do.

As a runner, I could relate to what it takes to train to reach big goals with limited time available.

I’m only about half-way through the course’s 7 modules, but I’m already frustrated. There’s a lot of “fluffy” material that I’ve been wading through to pluck out the truly valuable tips that I can use.

The reason I’m grumbling is because I’ve seen this too many times. So many methods for planning your business and even your daily work schedule are, in my opinion and experience, unnecessarily complicated, with jargon you have to learn and too many steps to follow. They remind me of what I see with a lot of practice management software programs as well (but that’s a blog post for another day).

Maybe I’m just jaded. But to me, for planning to be effective, the actual planning should be reasonably streamlined. It shouldn’t be complicated, since that’s counterproductive to getting into action and actually doing the things that get the results.

I haven’t hit the streamlined part in this particular program yet. Funny thing is, before I started it, I had already outlined my key goals and projects for the year to come. I’m not yet sure if this new “investment” will be worth it. But in the meantime, here’s my tried and true “short cut” method that I hope will be helpful to you this year.

7 Simple Steps to Bookkeeping Business Planning

1 – Set your big picture vision. What is the reason you started your business? What results do you want to achieve when it’s “done”? This is the possibilities part that is in touch with WHY you do what you do. Yes, your goal may be to provide a living for yourself and pay the bills. But there’s a lot of other (easier?) things you could be doing to get that result; AKA, get a job.

What’s the juice for you in starting and running a bookkeeping business? How does it impact your life (and the lives of others)? Jot down a few sentences that describe how you want your business to be and the results you want it to produce as though it has already happened. This part takes the longest to do, especially the first time through.

2  -Set your one-year vision. How far toward that big picture goal do you reasonably think you can get in the next 12 months? Think about what would the milestones from where you are now to where your big vision is. What would be the big steps in that direction be? These are specific results.

3 – Identify what has to change What do you / your business need to start doing? What do you need to stop doing? What specifically has to happen in your operations, your revenue, the number of clients you serve, to get the results you’re after? Define those mile markers as projects and then break them into key tasks with deadlines

4 – Use the power of 3. Choose only 3 projects to focus on over the next 3 months. This is where less is more! It seems to be a typical folly that we think we can get much more done in the time we have than we really can. Deadlines help, but with less to focus on, you can move forward much quicker.

5 – Lay out all the tasks for your 3 projects. Identify what has to happen specifically in each of your 3 current projects. Set deadlines for each of the tasks, delegate as possible, allowing extra time for unexpected slowdowns.

6 – Schedule time each week to work / monitor your 3 projects progress. Each week on either the Friday before, over the weekend or first thing Monday morning, review your 3 projects for the quarter and deadlines of the tasks involved. Then schedule the completion of the tasks for that week. It’s the focus that will build the momentum and keeping it top of mind makes it easy to make consistent progress.

7 – Use simple tools to stay on track on a daily basis. Don’t laugh, but my super effective tools come down to a low-tech sticky note, a 5”x 8” notepad and index cards.

On the sticky note I write the 3 primary projects I’m working for the quarter and stick it to the bottom of my computer monitor as a constant reminder. Each Sunday afternoon I write out the tasks that support my 3 projects on the 5 x 8 yellow notepad and keep it on my desk within sight. Finally, first thing each morning (or at the end of the previous day) I write the 3-4 key tasks I need to get done that day. The index card is in front of me all day, and I check off each task as it’s completed with a red pen.

So there you have it. It’s not rocket science, and it’s fast. How does it compare to your own business planning process? What works best for you?

 

Speaking of bookkeeping business planning and really focusing on what works best, one of the current TFB Premium lessons (December) is a much deeper dive into not only planning your progress, but designing your bookkeeping practice from the ground up. If that’s part of your plans this year, please join us!

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Bookkeepers and Coaching: TFB Spotlight on Donna Leyens

tfb-star-spotlightWe’ve all heard that we should be moving toward being seen as a ‘trusted advisor’ to our clients. But how can a bookkeeper make that kind of a change?

That’s what I discussed with Donna Leyens of Provendus Group at a recent conference we both attended. Donna is a coach and passionate about the value bookkeepers can bring to small business owners for a real win-win result. Here’s Donna’s story about how she made the move from a financial career, to entrepreneurship, and finally to coaching… and why this is her life’s work.

While this is not the typical TFB Spotlight interview, it is a chance to take a look at the new path that lay before us in these changing times. I’d love to know what you think about bookkeepers learning coaching skills and if you think it is something we “should” be pursuing… or not. Please say what you think in the comments below.

Would you rather listen on the go? Right Click Here to Download the Audio  (51 mins)

Guest Bio:

Donna Leyens started as a Wall Street executive, but always dreamed of being a business owner. She achieved that dream in 2002, and then eventually turned to professional coaching to follow her true passion – helping entrepreneurs grow, thrive, and have the opportunity to create their own destiny. Donna is currently the President of Provendus Group which provides business tools, programs, strategies and support for small business owners.

Interview Highlights

From the client’s standpoint, when we are ‘just keeping the books’ we become a commodity and can only compete on price. Adding value to what we do by adding additional coaching services makes us stand out and worth more to our clients.

Coaches face the same issues bookkeepers do who charge by the hour when it comes to pricing your services, so building packages makes sense for coaching services too. Think in terms of how you can give advice to clients that will affect their bottom line, and they will be glad to pay for it. Pricing is part of your branding and marketing strategy.

Surprising fact: Introverts happen to have natural skills for being good advisors. Most bookkeepers and accountants are introverts. Effective coaching is about asking the right questions and being a good listener. (By the way, what Donna shared on this point is right in line with one of my favorite books, Just Listen: Discover the Secret to Getting Through to Absolutely Anyone by Mark Goulston)

You don’t need to have all the answers to be an effective advisor and coach to your clients. Just ask questions and listen.

Change doesn’t happen overnight. You need to learn how to get your client’s participation, and that can take time.

You can start learning coaching skills by helping clients make small changes that will benefit their business. This helps you to learn how to talk to the client in a non-confrontational way, and reduce their resistance to change, and instead become a valuable partner with them.

We also discussed about balancing the perceived risk and liability of providing coaching services (but we are not lawyers – consult your attorney for your specific situation) . Bottom line, it is considered normal business risk, as long as you truly have an understanding of the topics on which you provide advice. (We gave examples in our discussion). We also discussed the language you should include in engagement letters.

The greatest reward for Donna as a coach, is making a real impact in the lives of her clients, even beyond the financial rewards. This is work with a purpose. Bookkeepers can do the same thing!

Donna’s advice: Start with your own knowledge of how your clients could get better results with little things. She shares how we can broach the subject with clients to start the transition from just a compliance to a more coaching type relationship.

donna-leyens-headshot

You can get more tips from Donna for growing your business by signing up for her newsletter here.

 

Do you think bookkeeping services and coaching should be combined for the bookkeeper of the future? 

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Leverage Automation in Your Workflow!

free webinarYou’re invited!

Join me, Gabrielle Fontaine, for the next in our free training webinars…

“How to Automate Document Workflow for Virtual Bookkeepers”

When? Thursday, October 20 at 2:00 PM EDT (New York)

In a different Time Zone? Use this tool to find your time

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Register Here

This coming Thursday we’ll be jumping into the nuts and
bolts of embracing online document management and turbo-charging
the process with automation. This will save you from the hair-pulling
frustration of trying to get your clients to provide you with the info
you need to complete the bookkeeping each month.

To be sure, there is no single one-size-fits-all solution in every
situation, but we’ll be cutting through all the noise with online technology
and show you how to build and automate the core app chassis that
will support an optimized workflow specifically for your virtual
bookkeeping practice.

Join me and my special guests, Sam Santangelo of SmartVault and
Yoseph West of Hubdoc as we show you how to build and then automate
your core virtual bookkeeping workflow to efficiently work with your clients
and automatically gather and process nearly all of the monthly transactions
flowing through your clients’ books. This makes everything so much easier
and FASTER!

This is a free 90-minute class that includes a software demo
and live Q&A segment.

If you’ve been overwhelmed with the need to sort through a multitude of online
apps and simplify your bookkeeping workflow, go paperless, gather
client documents and statements electronically, and streamline your apps to
play nice together to remove the drudgery with less frustration, then this
free online class is for you!

Register for the LIVE event here (it’s free):
=> http://thefreelancebookkeeper.com/automated-workflow

Register for the webinar even if you can’t make it live,
since the replay will only be made available to those who
register for the live class, and only for a limited time.

Oh, and once you’ve saved your spot, feel free to share this
email / registration link with any other bookkeepers you know
who have been trying to find a way to leverage the power of
online apps to automate and streamline core bookkeeping services.

Times are changing, but together we can make it a win for
you, your clients, and everyone we touch! 🙂

 

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