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 at 8:00 PM Eastern Time.
Then click here to claim your spot on the call.

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

FREE Teleseminar:

“Effective Methods for Building Strategic Alliances with CPAs and Accountants”

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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That’s the question I’ve been asking.

Like me, I’m sure you’ve heard all the noise about the BIG claims of mega-success by businesses who are using Social Media to promote their businesses. But is it really just that – a lot of NOISE that doesn’t mean a hill of beans in the real world? Or is this an important trend that small business owners need to pay attention to for the sake of their bottom line?

Cut through the hype and find out what the real deal is with social media. Get straight answers from an expert who’s actually doing it and knows first hand whether it’s really just a big waste of time, or if you can truly use it to market your business profitably.

Join me, Gabrielle Fontaine, and my special guest, marketing expert and social media guru, Ely Delaney as we cut through the hype and finally learn…

* How to use social media to build relationships with prospects, customer and referral sources

* How social media is changing the way we do business

* How to easily get up and running on the three biggest and most strategic social media networks

* How to attract quality “friends” and “followers” without getting caught up in the numbers game

* What free automation tools you can use to maximize your reach and save time in the process

* How to avoid getting sucked in to wasting a ton of time keeping up with your social posting

* What NOT to do so you don’t make enemies, or worse, get banned from the social networking sites

* How networking online is not the same as in-person networking

Find out for yourself why such respected business authorities as Inc. Magazine are now saying that Social Media really is worth your time.

Isn’t it time you found out how to put it to work for YOUR business? Now you can, right after you attend this cut-to-the-chase, FREE, get-action webinar.

Join us Thursday, July 8 at 8:00 PM Eastern Time for this LIVE webinar training.

“Social Media” Online Business Networking Basics”

Grab your seat as our free guest right here:

=> Register Here

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I’d like to ask you an important question: In your business, are you a perfectionist or a pursuer of excellence?

Many bookkeepers tend to be perfectionists. It makes sense really, when you think about it. We are very good at organizing and processing lots of small details, and getting them booked into business financial records accurately. An admirable skill that many simply do not possess.

But being a perfectionist does not mean that you are pursuing excellence.

The reason? Perfectionists have a tendency to focus on the wrong priorities.

Haven’t you found yourself spending way too much time fussing over details? I know I am always at risk of getting sucked into making every little detail on my clients’ books exactly perfect. If you haven’t had this experience, well, you’re probably not a perfectionist! (But read the rest of the article anyway. You’ll learn how to pursue excellence with a simple system even non-perfectionists can use effectively.)

Perfectionists can easily waste a lot of time and energy (that they ultimately cannot bill out to their clients) trying to do certain tasks exactly right. Sure, we tell ourselves that we are providing top-notch client services. However, the truth may be, doing those tasks “perfectly” may not be necessary or even valuable to our clients.

Interestingly, this is often the difference between bookkeepers and accountants as well. Accountants tend to look at the big picture and make adjustments accordingly. Bookkeepers have the tendency to want every little transaction booked exactly right.

Who generally makes more money?
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The difference between Perfectionism and the Pursuit of Excellence
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Perfectionism: A disposition to feel that anything less than perfect is unacceptable — Princeton University website

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It’s easy to see how being a perfectionist can be a double-edged sword when it comes to running your own business. Perfection, of course, is not possible in an imperfect world, so it is an unrealistic expectation.

The good news is, perfectionism, with a little tweaking, can be directed toward the pursuit of excellence, with amazing results.
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Excellence: Achieving a high level of performance; exemplary performance; exceeding normal expectations of performance or meeting the highest expectations of what can be achieved; performing well in excess of the norm; outperforming most. — University of Southern Queensland website

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How can you pursue excellence while letting go of perfectionism?

Rewards help.

It’s a lot like how I learned to become a Scrabble® champion (among family and friends). I learned this lesson from my Lithuanian immigrant grandmother.

When we would play, I used to come up with fantastic words using nearly all my allotted letter tiles all at once. But I never seemed to make many points. My English-as-a-second-language grandmother, however, had this knack for dropping a single letter on the board and raking in mega points – usually from my big fancy words! That used to really burn me, and it just didn’t seem fair. I was doing all the work, but she was getting all the points!

But then I figured out her strategy. She was paying attention to different priorities than I was. She was focused on points, looking for opportunities to put her letters on the Double and Triple Word Score boxes. I was just trying to use as many letters as possible by coming up with long and thoughtful words. Her priorities were in the right place. I needed to pay more attention to WHERE I was placing those big brilliant words.

Once I started putting my words in the right places, I virtually become unbeatable! I even dethroned my grandmother from her long-standing family champion position. (No one wants to play with me anymore.)

This is exactly how perfectionists can learn to pursue excellence and build a highly profitable business as a result. It takes a little practice and discipline, but once you apply the tenacity of perfectionism to the pursuit of excellence, you will be reaping extremely powerful benefits for both you and your clients.

Focus and Priorities

Simply put, you must keep the end result of what is most important clearly in focus at all times. Then set definite deadlines for reaching those results.

In practical terms, I do this on a daily and weekly basis with priority lists. I keep deadline-driven project priorities visible at all times. I also block out specific time periods on my calendar for the week’s top priorities.

Each of my clients’ files also have outcome-based priority lists. These are reviewed and revised whenever I work on my clients’ books.

When time runs short, I know exactly what needs to be accomplished and when. I evaluate which details matter and which ones don’t. Then work in high gear only on the tasks that matter and let go of any other details so projects are delivered on time. This results in truly excellent service that is ALL billable.

How will being an excellence-focused perfectionist affect your bottom line?

By channeling your skills as a perfectionist toward the pursuit of excellence, you will see a dramatic increase to your bottom line! You will be concentrating your efforts in a way that will not only boost your self-esteem, but also your profits and reputation.

What action will you take starting this week to use your skills as a perfectionist to build a freelance bookkeeping service focused on excellence?

I want to hear from YOU! Commit to a healthier bottom line (by making a comment below)

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~Gabrielle

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Inspiration for Excellence

In a discussion about the vast distinctions between Perfectionism and Excellence, Jeff Baas of One Stop Web Support penned these inspiring contrasts which I’ve excerpted below to help us all stay on the road to excellence without getting tangled up in perfectionism:

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PERFECTIONISM is the fear of being wrong.
THE PURSUIT OF EXCELLENCE is the willingness to be wrong and to learn from it.

PERFECTIONISM is seeing any effort that doesn’t turn out exactly as planned as failure.
THE PURSUIT OF EXCELLENCE is seeing any effort that doesn’t turn out exactly as planned as a valuable opportunity to refine the plan and make it better.

PERFECTIONISM is fear that others might think you don’t measure up.
THE PURSUIT OF EXCELLENCE is a desire to be the best you can be.

PERFECTIONISM is staying stuck in anger and frustration.
THE PURSUIT OF EXCELLENCE is growing beyond where you ever expected to grow.

PERFECTIONISM is confining.
THE PURSUIT OF EXCELLENCE is freeing.

PERFECTIONISM is conformity to presuppositions.
THE PURSUIT OF EXCELLENCE is exploring new possibilities.

PERFECTIONISM is self-doubt.
THE PURSUIT OF EXCELLENCE is confidence.

PERFECTIONISM is closing yourself off.
THE PURSUIT OF EXCELLENCE is opening yourself up.

PERFECTIONISM is remaining right where you’ve always been.
THE PURSUIT OF EXCELLENCE is a journey of discovery.

PERFECTIONISM is fear.
THE PURSUIT OF EXCELLENCE is trust.

PERFECTIONISM is the fear that something unpleasant will come from our efforts.
THE PURSUIT OF EXCELLENCE is an excitement over the improvements that we will help discover.

Jeff Baas is a website guru and Internet marketer who knows the challenges new business owners face (with perfectionism being only one of them). He has a new special report for anyone starting a business who wants to avoid the #1 business-killing mistake so many of us make. It’s free. So if you’re just starting out with your freelance bookkeeping service, you’ll want to get your hands on this helpful information right away.

Click Here to get your free copy now ==> Going From Employee to Entrepreneur

Many freelance bookkeepers also do taxes for their clients. That’s probably why I so often hear the question, “Is it necessary to be a tax preparer in order to run a successful freelance bookkeeping service?”

The answer I usually give is…it depends.

Successful Bookkeepers and Taxes

There are many ways to be successful in the bookkeeping field. While tax preparation services can be a good source of seasonal income, it is NOT necessary of offer this service to do well. In fact, there are situations where NOT offering tax services may even be an advantage, depending on how you position yourself.

For instance, if you don’t have experience with tax preparation and don’t want to offer that service, it may be easier to build complimentary relationships with CPAs. They won’t be worried that you’re a threat to their tax clients, who are often their bread and butter. You can position yourself as a strategic ally by referring clients who need tax services, while they refer clients who need help with their bookkeeping to you. This works as a mutually beneficial relationship, especially at year end.

Taxes and Bookkeeping are Not the Same

Bookkeeping and taxes are two different things entirely. True, the information found in a client’s bookkeeping records is used to prepare the tax returns, but that’s where the similarities end.

If one knows only how to prepare individual tax returns, that does not mean that that person can handle bookkeeping. In fact, I know of a CPA who struggles with this very issue with his staff during the off season. His staff primarily knows tax prep. But when he needs them to work on adjusting a trial balance for his business clients, they are helpless.

The reverse is also true. Just because you understand double-entry bookkeeping does not mean you can breeze through tax return preparation. You need to be adequately educated to offer either service if you want to offer that skill to your clients.

Should You Offer Tax Services?

So my first bit of advice is, if you already have income tax preparation experience, and you enjoy it, then by all means consider adding it to your service offerings. It provides a one-stop-shopping convenience for your existing and future clients who may be in need of professional tax preparation.

However, I do NOT suggest that you attempt to “steal” tax clients away from their current preparer, especially if that person is their CPA. A strategic relationship with your local accountants is far more valuable than the preparation of an annual tax return or two. You always want to be building strategic alliances, not promoting adversarial competition.

If you offer tax services, be sure to keep your knowledge up to date. The tax laws change every year, so this is not a service you should offer if you are not willing to invest in ongoing education. Lack of knowledge in the tax arena can come back to bite you hard. The IRS is actively raising the bar for tax preparers and will continue to do so over the next few years. You’ve been warned.

Tax Laws ALL Bookkeepers Need to Know

Up to this point, we have been talking about income taxes. While including income tax preparation to your service offerings is not a necessity, there are some types of taxes you really do need to know about, at least on a basic level.

Most, if not all of your clients will need your guidance when it comes to payroll taxes, state and local sales and use taxes, and possibly meals and/or lodging taxes.

If you don’t already know the ins and outs of these types of business taxes, then you need to educate yourself so you can handle them responsibly. Usually the information needed can be found directly from the taxing authorities at the federal, state and local levels; checking their websites is the easiest option. I’ve included some of the most common resource links at the end of this article.

Pay Attention to Payroll Taxes

Probably the stickiest of business taxes are for payroll. Penalties and interest on mishandled payroll taxes are very stiff. So don’t fake it when it comes to handling your clients’ payroll services. Get help if you need it.

If you are not comfortable with handling payroll taxes yourself, you may want to insist that your clients hire an outside payroll service. These providers are well worth their fees.

Payroll companies not only prepare payroll checks, but they will also prepare and timely file payroll tax returns, seeing to it that your client’s liability deposits are made when due. That is of key importance.

Personally, despite the fact that I have experience handling payroll, I HATE it. So I insist that my clients use an outside payroll service. This keeps my clients out of hot water with the authorities, and lets me focus on the services I truly enjoy providing.

That being said, if you actually enjoy doing payroll, it is a valuable service that can provide a source of steady revenue, if you aren’t already offering it to your clients. The QuickBooks ProAdvisor program has a nice package at a reasonable price for those who provide payroll services to their clients.

It All Depends on What You Want

As is clear from this discussion, there are lots of choices when it comes to taxes and bookkeeping. In reality, you get to choose which combination of service offering will best support what you envision for yourself and your business. Just realize that there are advantages and disadvantages to each situation.

Make Your Choice and Stick With It

Once you’ve decided which service combo is right for you, keep up to date with the education requirements. Provide the best service possible for your clients. After all, that’s why they hire us – for our expertise.

Top quality service will fetch you the best fees and keep your business growing. Happy clients are your best source of new referrals. That holds true no matter what the economy is doing.

So “should” you offer tax services? That’s entirely up to you. It just all depends on your current (or desired) skill set, how you envision your business, and the services you enjoy providing the most.

Resources

National Tax Training School

National Association of Tax Professionals

Federal Income Taxes – Tax Professional Resources

Federal Employment Tax Resources

US Sales Tax Information

Sales Tax Rates Quick Reference List

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WANT TO USE THIS ARTICLE IN YOUR OWN BLOG OR E-ZINE? You have permission to re-publish it, as long as you include the author’s bio paragraph and links below:

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Gabrielle Fontaine, PB is a freelance Professional Bookkeeper and Advanced Certified QuickBooks ProAdvisor. She publishes the free online newsletter, The Freelance Bookkeeper, and is co-author of the new book, “How to Start A Successful Home-Based Freelance Bookkeeping and Tax Preparation Business,” available at Amazon.com

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