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)

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

.
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”

.

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

Please comment and share your thoughts and experiences below.

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.

.

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

.

.

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?

.

.

Have you hit resistance to transitioning your bookkeeping service business from in-person and on-site to working virtually from your office and through the Internet?

You’re not alone, especially if your clients are primarily small, traditional mom & pop type businesses. In fact, one of the questions I hear most often from freelance bookkeepers who are thinking about taking their business online is…

“How do I deal with clients who are hesitant to start scanning paper documents so they can send me their information electronically?”

Going paperless is not so much a question of technology anymore. To do it successfully, the bigger hurdle is often the human mindset.

The fact is, smaller businesses are usually slower to embrace new technology. They fear change, loss of control and security. It’s just plain uncomfortable to move away from routines that have become familiar.

That’s just human nature.

But as with anything new, the willingness to change usually comes from one of two things:

1. The promise of relief from pain

2. The possibility of gaining of pleasure

We are generally hired to relieve our clients of the “pain” of keeping their financial records up to date, often out of necessity for tax reporting requirements. The more savvy clients also recognize the pleasure of building a more profitable business when they have key financial data available to manage the destiny of their company.

Clients will more readily accept the changes involved in working virtually when they see the benefits of doing so. In other words, much of their acceptance will come from HOW you present the concept of working remotely, especially if it is far different from how they are used to running their own business (i.e., they’re rather low-tech)

With existing clients, a gradual approach will likely be easier for them to swallow. Highlight how it will benefit THEM (time savings, cost savings, and/or other benefits, depending on the technology solutions and methods you use). Come up with a specific transition plan and implementation date. You also want them to step up and participate in the success of the new strategy.

You are always in partnership for mutual success with your clients. So the rewards should be shared for best results.

Your clients will also need your reassurance and guidance until the new procedures feel comfortable and they start to actually see the benefits for themselves. You may want to document and report back to your client on the progress of the transition. Show them “before” and “after” results, especially if you expect a dramatic change in efficiency (i.e., how quickly they receive reports, or the savings that is passed onto them because you are able to do the work in less time)

An easy first step toward transitioning from paper to electronic documents is to suggest that your clients start faxing their information to you. Even clients who are not the most tech saavy usually have a fax machine. This is a gentle way to help them move in the right direction with something they already use.

Of course, for best results on your end, you will want to be using an email fax service yourself (if you’re not already). They are inexpensive and instantly convert faxed documents into PDF files. I switched to an email fax system for this reason several years ago, and it has worked perfectly.

If you’re still using a phone/paper-based fax, you’ll love that using an email fax service immediately eliminates spam faxes too! (It also saves the cost of paper and supplies, so it is cost-effective to make the switch.)

Ultimately, the transition from on-site services to virtual bookkeeping should be a win-win proposition. So if you have clients or prospects who just refuse to embrace online technology, then you have to decide whether they are the kind of client you want to be serving.

There is no right or wrong answer here. Some freelance professional bookkeepers will go 100% virtual (like I have since 2003). Some will choose a mix of on-site and virtual clients. And some will dig in their heels and stick with clients who require on-site services.

Any of these choices are viable. There are still plenty of clients for all of these bookkeeping business models, too. The question is, which fits your business goals? If a client’s needs and yours differ, simply refer them to a colleague who is a better fit. When mutual benefit is a requirement, everyone wins.

Recommended Tools I Use:

MyFax

SmartVault

You Send It Express

If you’re in the process of transitioning to virtual bookkeeping, what’s your biggest challenge in making the change?

If your business has slowed down due to the rocky economy, or just because we’re in the dog days of summer, your thoughts may be turning to how you can bring in more business quickly, or rev things up as we head into the fall.

Either way, if you know QuickBooks well, here’s an easy way to not only get the word out about your bookkeeping services, but expand the services you offer to a wider audience at the same time. All without any hard selling.

The Plan in a Nutshell

Offer to do a health check-up of QuickBooks data files

While this doesn’t sound sexy, it’s something that 95% of all small businesses using QuickBooks really need, whether they know it or not. The fact is, the vast majority of small businesses are NOT using QuickBooks correctly. Some of them have SERIOUS problems with their books that may cause a HUGE problem for their bottom line.

But you can save them from this peril!

Bookkeepers and Dentists

I’ve often compared keeping bookkeeping records up to date like going to the dentist. We all know we SHOULD do it to avoid BIG problems later, but many of us do not eagerly anticipate our next dental checkup.

In this simple comparison, however, we, as bookkeeping experts can take a cue from our dentist friends. They are pretty savvy about overcoming this hurdle and keep a flow of return patients… and revenue… coming into their office!

Yes, they take in patients with toothaches and broken teeth and make big money from those emergency services. But the foundation of their STEADY income is from the patients who are coming back for regular checkups every six months or so.

Why?

Because that’s how they uncover additional work that needs to be done. And their patients appreciate it because it takes care of problems while they are still small.

How do we apply this to bookkeeping and QuickBooks?

Not only can we help clients who have neglected their books and are in trouble because they have a tax deadline looming or some other “urgent” need to get their books straight…

But we can also help clients who have been attempting to handle their books themselves (and will ultimately get themselves into trouble).

How?

Through education, regular check ups and “repair” services.

How to Put This Simple Concept Into Action

1. Offer a free or low-cost “class.”

It could be on something like, “The Most Common QuickBooks Errors that Could Be Costing You a Bundle”

You could teach this at your local business networking groups, to past clients, or even offer it free to clients of local CPA firms who do not specialize in QuickBooks. (That gets you good exposure from two angles!)

2. Present a simple but educational session that lasts 30-60 minutes.

Brainstorm your class content by thinking about all the problems you see whenever new clients come in and their books are a mess. Show them the tell-tale signs of the most common problems as they show up on their financial reports.

If you’re part of the QuickBooks ProAdvisor program, there are also plenty of free QuickBooks training materials you could use for this and other types of QuickBooks-based classes that could serve the same basic purpose.

You want to make them aware of problems that could be draining them of profits that they need to address within their bookkeeping records.

3. At the end of the class, offer a free 30-minute QuickBooks data file check-up.

This should be by appointment and can be done at the client’s site, in your office, or via online meeting. Whatever works best for you is the way to go. The point is to get them to raise their hand and say that they want more information from you, and give you their contact information so you can follow up.

To conduct the check-up, use the Client Data Review tool available in QuickBooks Accountant Edition 2009 and newer. Or create your own diagnostic checklist.

IMPORTANT: The purpose of this “check up” is NOT to FIX problems with the client’s books! You are simply identifying issues found and providing an overall report (I suggest a written report) on how “healthy” their bookkeeping records are.

Discuss your findings with the client and then come up with a mutually agreeable action plan for…

• Prioritizing and addressing any important problems found, including your suggested solutions
• Decide whether or not the client will engage your consulting or bookkeeping services, will need guidance in fixing problems themselves, or require training to avoid repeating the same problems again
• Offer ongoing maintenance with regular check-ups to keep the books in a “healthy” condition (just like dental cleaning & checkups every 6 months!)

This process naturally leads to new client prospects, referrals and more billable work both in the short term, and over a long period of time. You will be remembered for providing this valuable, professional  service!

Even if you’re not a QuickBooks specialist, you can use these same principles to help small businesses assess the overall accuracy of their bookkeeping records, even if they’re using a pencil and paper system.

Using this simple strategy, or some variation of it, will position you as a top-notch expert in your community AND attract high quality clients at the same time.

If you’d like to learn more soft-sell, high-value ways of attracting new clients, then you’ll want to take a look at my NEW Freelance Bookkeeper Marketing course.

It’s the easy way to fill your business with more clients than you can handle, using simple, but powerful relationship-based strategies!

Get more information HERE

QuickBooks is a registered trademark of Intuit, Inc.

.

What’s the single most powerful way to grow your business?

Based on my experience over the last 20+ years?

It’s attending live seminars and conferences.

What Makes Attending a Live Events So Powerful?

Most people attend seminars and live events because they want the education the event has to offer. They feel the new information they learn will help grow their business.

The knowledge you gain is one important benefit, no question.

As freelance bookkeepers, we have a need to stay on top of the fast-moving technology changes to work efficiently (and more and more virtually) with our clients, as well as keeping up with the growing list of software our clients are now using on their computers AND in the clouds (with a variety of devices!).

Along those lines, the two most notable annual conferences (surrounding QuickBooks and accounting technology) are:

The Sleeter Conference

Scaling New Heights

If you specialize in a particular niche, you may want to attend other seminars and conferences specific to the type of clients you serve There, you’ll gain valuable training to position yourself as THE expert bookkeeper in a particular industry.

For example, if you love doing the books for professional speakers, trainers, authors and consultants, then you might want to attend the annual convention held by the National Speakers Association.

Another choice is to attend events for entrepreneurs surrounding specific aspects of your business, such as how to market your services more effectively.

Personally, I tend to favor online marketing events, since, as a virtual bookkeeper and consultant, ALL of my promotional efforts are done using the Internet.

But there is another, even MORE VALUABLE reason to attend live seminars than for the educational content!

What Makes Live Seminars Incredibly Valuable?

The people you meet and the connections you can forge. These are what will ultimately grow your business and potentially explode your bottom line.

In-person networking helps you to build strategic alliances and stimulate new ideas that can have a HUGE impact on your business. When you look for ways that you can complement other businesses, build strategic alliances, and make friends in the process, that’s a powerful way to build your business that you just can’t do any other way.

This is true both at events you attend with your peers and those where you will be mingling with potential clients and referral partners.

An example of this for me this year was that I attended the IVAA conference, since there is a definite overlap of virtual bookkeeping with virtual assistance. The connections I made there were both with peers and complementing virtual professionals!

Personally, I’m now “addicted” to attending live events several times a year for the simple reason that I want to re-connect face-to-face with the powerful friends and business partners I’ve made at these events (and continue to build new ones, too!)

In fact, just this year alone I’ll make more than $28,000 from just one client as a direct result of a connection I made at a live seminar!

I can’t promise you’ll get that kind of tangible result immediately from attending just one live seminar. But I can tell you that I have consistently reaped HUGE benefits because of attending seminars and conferences. They have boosted my business in totally unexpected ways that would be impossible otherwise.

How To Get Results from Attending Live Events

While the sad reality is, only the top 10% (or less!) of freelance bookkeepers will make the investment to attend a live conference or seminar, it’s not just attending them that will really boost your business. It’s what you do AFTER the event that is the true “secret to success.”

(By the way, the fact that only about 10% or less of most industries will attend live events is a GREAT reason why you should be one of them! You will be rubbing shoulders and making connections with the best in the field!)

Based on the two main benefits of attending seminars – education and making connections – to maximize your return on investment, you’ll need to…

1.  Implement what you’ve learned

2.  Follow up with the people you connected with

To make that simple, you can use my own cheat sheet, which I created for myself a few years ago.

=> Live Seminar Tips Sheet

Which seminar(s) should you attend?

Here are two coming up that I’ll be attending this fall:

The Sleeter Group’s Accounting Technology Conference – this is all about the cutting edge of technology for the accounting industry. Primarily attended by CPAs, accounting IT professionals and QuickBooks ProAdvisors. Best pricing is by June 30th (TOMORROW!), but even after that date, if it’s your first time attending, let them know I recommended you and save $100

The Jim Boat – though it’s specifically geared toward information marketers, this fun-filled and educational seminar – held on a cruise ship! – is extremely beneficial for virtual professionals who market their business using a website!

If you will be attending either or both of these events, let me know so we can get together in person! I’ll introduce you to my contacts at each of these events, so you’ll be surrounded by friends. Then we can learn new skills and build our businesses together! 

Technology is changing WHAT we do for our clients, along with HOW we do it.

If you are working with your clients virtually… or headed in that direction, your role is in the process of some major changes.

A large part of the bookkeeping role has been to do “intelligent” data entry so that financial records are accurate. But with the improvements in electronic information processing, much of this is being done by computer programs via the web instead.

Think about how banking transactions can be downloaded directly into QuickBooks Online. Or services like ShoeBoxed can scan paper receipts and categorize expenses for you. Even Bill.com has a feature where they will seamlessly get your faxed or emailed vendor bills entered into QuickBooks for you.

And finally, there are new programs emerging that bring all the financial data together, using the Internet, to feed into the bookkeeping records automatically… from banks, vendors and client sales, using online accounting programs like Xero.com.

What does this mean?

Entering data into bookkeeping software is something that will eventually be nearly eliminated (or at least greatly reduced). Does that mean the role of the bookkeeper will also be eliminated?

No. But WHAT we actually do for our clients… and the value we provide… is starting to shift dramatically. We are moving from entering financial information efficiently and intelligently to get it into the bookkeeping records to managing the financial data flow and interpretation of it. We are facing a unique opportunity to assist our clients with getting the real VALUE from what their financial information means for their business. This prepares them for more productive meetings with their accountants for tax and business planning.

In other words, we are growing into the role of assistant / consultant with our clients to help them get the BENEFIT of their financial information for managing business. This is MUCH more valuable than simply doing the clerical work of keeping records updated after the fact so taxes can be filed. Our services are becoming more present and future focused.

and THAT is a VERY good thing for both you and your clients… if you’re willing to step up into this revised role. Of course, with a promotion to higher value for clients comes higher fees, too. It will likely also mean the TYPE of clients you serve will begin to change (improve), too.

So what do these changes mean for you right now?

Be aware that they are coming, and they are taking hold rapidly. You need to pay attention to how your existing clients are reacting to and embracing new mobile / online technology. You also need to choose the changes that you want to support for the future of your own business and the services you provide.

Of course, there will be some clients (and bookkeepers) who will dig in their heels, resist change altogether, and want to keep handling their financial records the same way they always have. If you are one of them, there will continue to be that “old fashioned” business owner who will still need your help… for a while. But know that those clients will be left behind in their market and eventually struggle, and possibly go out of business. How long that will take remains to be seen.

Small businesses are changing HOW they operate because of the major advancements in mobile and online technology coupled with affordable applications… this includes how they get their bookkeeping done.

So the question is, if these changes are coming – whether we like them or not – what will you do to prepare for it now, and how will it affect the way you provide YOUR bookkeeping services in the near future?

I’d love to hear your thoughts, complaints, excitement, or any other reactions you have to where our services are headed and how it is changing our role as bookkeepers with our clients in the months and years ahead.

Please leave your thoughts and comments below.