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?

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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?

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.

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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!

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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!

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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.

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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)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

YES! Use online technology with appropriate security!

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

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

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

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

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

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

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

Recommended Resources

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

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

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An important question facing you as freelance bookkeeper is…

Are you going to specialize or will you remain a generalist?

As a freelance bookkeeper, do you offer specialty services? Or do you offer any kind of bookkeeping to anyone who’s willing to pay you to do the work?

Here’s three reasons why I strongly recommend you go the specialization route:

Specialists are viewed as experts and can charge higher fees

When you specialize in a specific type of service or industry, it helps set you apart from your competition. You have a lot more credibility, too. When a potential client is looking for a independent bookkeeper, chances are they’d much rather hire someone who already “knows” their business or the specific type of services they need.

If you provide that service or specialize in their industry, then you’re going to make it to the top of their list very quickly. And they will be more willing to pay a higher fee for your expertise.

Not specializing means lower quality service and slows you down

Choosing a specialty means you don’t have to constantly be researching how to handle new situations accurately, or worse yet, winging it and *hoping* you didn’t miss a step.

Let’s be real here. It’s challenging enough to own and grow your own professional bookkeeping business. The last thing you want to do is spend a ton of time that you can’t bill out trying to figure how to deliver the services your client is paying you for. They won’t want to pay you to learn new skills either.

But when you specialize in a particular industry or service, you are much more in control of your time, since you already know the ropes. It allows you to focus on being the best in your niche and provide high-quality services efficiently and profitably. It’s a win-win scenario.

Specializing helps you market your services more effectively

It’s tough to get the word out about your services when you’re not quite sure who your potential clients are exactly. But that’s what happens if you offer general bookkeeping services to any and all small businesses.

However, if you offer QuickBooks training and set up for online retailers, for example, then it’s much easier to market your services to those who specifically need your help. You know exactly who you’re potential clients are and the specific benefit you can provide them.

So, how do you choose a specialty?

There are a few considerations when making your choice.

• An industry: Such as, your specialty might be with staffing firms.
• A specific service: Such as, your specialty might be complete payroll services.
• An industry and a specific service: such as, complete payroll services for staffing firms.

You may be thinking that this degree of specialization limits you. However, consider this: How many staffing firm clients who need payroll services would you really need to take on before your schedule would be completely maxed out?

Additionally, if you provide your services on a virtual basis, you vastly expand the geographical reach of your service area. The reality is, there’s plenty of work to go around. Specialization simply makes your business easier to manage and grow… and easier for your Ideal Clients to find you!

Which specialty is right for you?

Specialize in what you know. If you are skilled at teaching others how to use software, then specialize in QuickBooks training. If you’re an expert at troubleshooting and taxes then specialize in QuickBooks clean up for taxes and partner with accountants that specialize in year-round tax preparation. (HINT: Don’t try to compete with CPAs for the tax work – you will do much better if you partner with them instead, since they will send you referrals once they trust you)

If you know the ins and outs of payroll for time & billing based companies, then specialize in payroll for law firms or consultants.

Specialize in what you enjoy, whether that’s the service itself or the industry. If you love gardening and flowers, for instance, consider specializing in bookkeeping for garden & flower shops. You’ll be much happier and productive if you’re doing something you really like.

Specialize in something that’s in demand. Take a look at the job boards. What jobs are commonly posted for bookkeeping positions, and from what types of companies? Chances are, there are some clues there for what’s in demand in which industry. If it’s also in an area you enjoy and are skilled in, then your chances at success are very high.

Nothing is written in stone

You might still be worried about limiting yourself if you specialize. However, remember – you are the boss! You can do whatever you want!

In reality, your business will naturally grow and change. You can always experiment with new service offerings. It’s perfectly acceptable to change your services (and clients) as you grow. Specializing simply helps you establish and grow your business so you can reach your financial goals more quickly.

So what’s your specialty?

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?

“How can I find new clients?”

This is the question that, far and away, both new and seasoned bookkeepers consistently ask me. They are looking for effective ways to market their bookkeeping services, especially in this choppy economy.

How about you?

In reality, ALL of us need a steady stream of new prospects, whether you run a large multi-bookkeeper business, or you’re a home-based solo freelancer. That’s because you’ll occasionally have existing clients outgrow your services (hire dedicated staff), or even leave you entirely because of circumstances beyond your control.

When that happens (and it will) you need new clients waiting in the wings to replace the lost income.

Even when you have “enough” clients, it does not mean you’re set for life. No business is static; it’s constantly either growing or dying. Choose to grow by making consistent marketing a priority, no matter how busy you get!

And of course, if you’re just starting out, or are ready to take your business to the next level, you may need more than a few new clients right now.

So…what IS the BEST way to market bookkeeping services?

It’s word of mouth, of course!

It’s powerful. It’s free. And referred clients are usually ready to engage your services right away.

In fact, most successful independent bookkeepers get a majority of their new clients from referrals. Once you’re established, referrals are like an engine that just keeps sending you more business.

Even in the beginning, the vast majority of new freelance bookkeepers get their very first client by simply letting their existing friends and professional contacts know that they are starting their own bookkeeping business. It’s the easiest first step to getting the wheels moving on your word-of-mouth marketing program.

Did you catch that?

If you’re just getting started (or you’ve hit a dry spell), brainstorm a list of everyone you can talk to about what you’re doing. Share the good news about your bookkeeping services with friends, family and any other contacts you have.  Let them know you are taking on new clients and ask for their help in your search. If you can describe the exact type of clients you like working with best, that will make it easier for them to find someone to refer your way.

And by the way, don’t assume that everyone in your life already knows what you do for a living. They probably don’t. And the truth is, you never know who they know that may need your services!

The Downside to Word-of-Mouth Marketing

There is, however, a problem with this marketing strategy.

It’s really a shot-gun approach. While it’s quite possible that you will get quick results from your initial awareness campaign, you need to focus your ongoing word-of-mouth message more specifically on those closer to your Ideal Clients (aka a specific segment of the small business market).

The easiest way to do that is to go where your potential clients gather. By doing so, you will not only have more opportunities to strike up conversations with those who may wish to hire you directly, but also with those who regularly have contact with your potential clients.

Where might that be? The basic answer is at networking events or any other location (online or offline) where your best clients might gather to talk shop or socialize (such as at Chamber of Commerce meetings, a golf club, LinkedIn Groups, charity events, industry-specific conferences, etc.)

A Key Source of Targeted Referrals

Referrals work because they are built on relationships. And in this economic and technological climate, social interaction is extremely powerful.

That being said, the best source of high quality client referrals will come from those who are already working with the clients you want to snag. Therefore, building strategic relationships with professionals whom you can complement is the #1 way for freelance bookkeepers to build a solid referral engine.

For most of us, that means building strategic alliances with CPAs and accountants. (You may also consider strategic relationships with lawyers, insurance agents and any other small business service professionals who focus on serving the same clients you do).

Yet, as powerful as these relationships are, I’ve heard time and again how frustrating it can be to “crack the code” on getting referrals from accountants.

If you’ve run into that roadblock too, you’ll be glad to know that I’m holding a FREE teleseminar specifically for freelance bookkeepers and QuickBooks consultants on how to build mutually beneficial relationships with CPAs and accounting firms.

Together with CPA networking expert Val Barschaw, we’ll reveal the simple strategies that you can use immediately to connect with CPA firms and accountants to kick YOUR referrals and word-of-mouth marketing into high gear.

If you want to listen in on this exclusive 1-hour FREE training call, mark your calendar now for next Wednesday, July 27, 2011 at 8:00 PM Eastern Time.

So whether you’re looking for just one or two new clients, or you’re ready to ramp up your business with a whole slew of new clients as quickly as possible, what are YOU going to do right now to get your word-of-mouth marketing going?

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Resources

Recommended Book:

The Referral Engine by John Jantsch

This is a VERY common question most often asked by those who are either just getting started, or who have been struggling to get their freelance bookkeeping business off the ground.

It really can feel like a big mystery in the beginning:
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Q: I am just starting my bookkeeping business and looking for new clients. Can you recommend what type of businesses to target for someone that is relatively new to Quickbooks so that I can get started without getting in over my head? How do I target the right businesses for me and send out my marketing materials?
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This is a great question, and even seasoned freelance bookkeepers do well to see if we are building our businesses deliberately, or if we’re just taking on any client that comes our way.

That can get you into trouble in short order, if you’re not careful!

My best suggestion, especially when starting out, is to narrow your focus even more than just to small businesses in your area (you can always expand your target later).

Traditional advice says that you should get involved with business groups such as the local Chamber of Commerce. That may or may not be a good idea (depending on your goals and the area in the country where you live).

A better choice would be to first get very clear on the specific kinds of businesses you want to serve. Who would you LIKE to work for, and who are you best qualified to help? You’ve got to be specific.

You simply can’t find the right clients for you if you don’t know how to identify them!

To start moving in the right direction, ask yourself a few simple questions:
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• What type(s) of businesses are you most familiar / have experience with?
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• Is there a type of business that you are passionate about (such as one that would be associated with a hobby or interest that you have)?
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• Are there any specific kinds of businesses that you think you would LIKE as clients, even if you don’t have any experience working with them yet?
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Do you like working with retail businesses? Do you prefer service-based businesses? What about manufacturing, or contractors, or even non-profits?

All of these types of businesses have their unique needs when it comes to their bookkeeping. So if you focus in specifically on the type of businesses you are familiar with, have worked with in the past first (or those you have a passion for and would love to learn more about), you can more easily find clients whom you can truly enjoy serving, and do it more confidently.

When you specialize, you will also be able to raise your rates more quickly then if you remain a generalist. It is much harder to serve many different industries, and even harder to do it well AND to be paid what you deserve.

Once you know WHO you want to really focus on, your next question should be, “Where do these type(s) of business owners hang out?”

If it’s the Chamber of Commerce or the Rotary, great! But are there other industry groups in your area or online that would help you find more of the EXACT type of client you’re looking for?

For example, years ago I used to do work specifically for independent insurance adjusting companies. I did a little research and found that there was an industry association that nearly all of them belonged to, and there was an active chapter in my area. I also found another small local business group specific to this industry. I joined both groups and started attending their events, even volunteering to help the association’s staff to coordinate their meetings.That way I had a reason to contact the members individually so that they could get to know me in an indirect way.

This strategy helped me to become known, build relationships and get some perfectly targeted clients. They knew that I already understood how their business worked and I was seen as THE person to go to when they needed help. (I had no competition)

So take a little time this week to target your best clients for where you are in your business right now. Be as specific as possible. Then do a little research to find out where they tend to gather, whether locally or in online discussion boards. Then look for opportunities to let them know who you are and the services you have to offer them. Build relationships first, and the referrals will follow.

So…what kinds of clients do YOU like working with the most? I’d love to hear your thoughts, experiences and advice, too!

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It’s an important question.

I was reminded of this the other day when I happened to see an email that was sent to a potential bookkeeping client by an accountant.

The email left the potential client confused and overwhelmed. And this is also how it goes when I see fellow freelance bookkeepers attempting to offer their services to their potential clients too, whether in person or in writing.

The email was intended as a way to persuade the potential client into doing business with the accountant by illustrating the services he had to offer. In his lengthy message he ran through a technical list of all the customized functions he could perform for the client.

Whenever we do that, we often defeat our purpose and snag far fewer clients than we could, for several reasons:
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• We don’t realize we are using our own accounting jargon, which the vast majority of our clients don’t understand (Accounts Payable, General Ledger, Balance Sheet, Adjustments, etc.) They have no idea what we are talking about, and worse yet, it does not communicate ANY value to solve their problems
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• We tell them WHAT we can do laundry-list style, instead of demonstrating how we can truly BENEFIT their business. In an effort to show how experienced and knowledgeable we are, we often make what we do sound like a lot of work and complicated. Again, this defeats our purpose because it doesn’t communicate value to the potential client
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• We are oblivious to the true needs of our potential clients. Instead of asking questions and finding out what they really WANT, we tend to tell them all about us and what we do and what we think they need.
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Do you really know what you have to offer your clients? How is what you do for them different than what other freelance bookkeepers offer?

If you don’t know the answers to those questions, you will be treated as a commodity, just like any other bookkeeper they can find online.

Likely, more than a few of your potential clients will try to get your rates as low as possible, since your services provide nothing of particular benefit to them, at least none that you are communicating.

And that’s the crux of the problem. Do YOU know what unique VALUE and BENEFITS you are providing for your clients? It is impossible to offer value that your clients will be willing to pay for if you are not crystal clear about the value you provide them yourself.

In my own business history, I’ve found it extremely helpful to come up with a short “elevator speech” which is what you say to someone that you meet in person who asks you, “What do you do?” It is a short blurb you give to help show WHO your ideal client is and WHAT you do for them.

But I think we need to dig deeper and know what our core offer is that we are offering as individuals and as a business. In fact, here’s a great short video I saw by Jim Edwards (my own marketing mentor) that really boils it down to four main components. These help you enter the conversation that is going on inside your client’s head when they are considering hiring you to do their bookkeeping. It’s definitely worth watching.

“Your #1 Business Problem” (6 min video)

And according to Jim, you have to be able to communicate what you have to offer in only 3-5 SECONDS! Wow! But if you think about it, that’s what Federal Express has done, and it’s easy to remember. That’s very powerful.

“When it absolutely, positively has to be there overnight”

Companies sometimes come up with a slogan that communicates their true offer (and sometimes they don’t) So it got me thinking about what my own true “sweet offer” is. Hmm…

It really takes some thought to come up with just a few well-chosen words that “say it all” about what we have to truly offer our clients.

So, I’ve decided that it’s time to come up with a laser-targeted short phrase for my own business. Care to join me? What is the essence of the VALUE you provide your clients that you can express in 3-5 seconds?

We can do some brainstorming and then share ideas and compare notes. I’ll also do a follow-up post when I’ve come up with just the right “sweet offer” for my own business and share it with you.

It sure does seem that we can always improve how we communicate to our clients and our prospective clients. And being able to get absolutely clear on what VALUE we have to offer is probably one of the most important bits of communication we all really need to master.

What do you think? How do YOU communicate what value you provide your clients that sets yourself apart from all the other freelance bookkeepers in your area?

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