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Would you like a steady stream of new clients beating a path to your door?

Do you wish you could charge a higher fee for the services you provide and have your clients happily pay you?

If you answered yes to either one of these questions, it’s PEOPLE who will help you get what you want. You cannot get those results without other people!

More specifically, it’s the relationships that you build with people that will cause them to seek you out, value your services and recommend you to their friends and colleagues. Building relationships is how any struggling bookkeeping business can transition from just barely surviving (sometimes for years) into a thriving, growing, and prosperous business.

And the most effective way to build those kinds of relationships is by offering the VALUE that your existing and potential clients really want.  And it needs to be value that they recognize immediately – not what they may, in fact, need, but don’t understand or see as valuable to themselves or their business in some way.

For example, they may truly need their bank accounts reconciled to assure accuracy for their financial records, but that is likely not high on their priority list of the important tasks to manage their business. So if you are touting how you can make sure that their bank account is balanced and reconciled each and every month, you’ll have difficulty attracting new clients, or demonstrate high value to your existing clients. Many small business owners don’t even know why it’s important to reconcile their bank accounts in the first place, so it doesn’t mean anything to them. Thus, it doesn’t seem necessary or important. And certainly not something they want to pay for if they don’t have to.

The same is true if you’re promoting your services using accounting and bookkeeping jargon – accounts payable, accounts receivable, payroll liabilities, and so on. Potential clients generally do not actually understand those terms. Those words do not communicate value to them.

In reality, these words represent the functions you know how to handle for your clients. But they don’t communicate the useful value of those functions for your clients, value that your clients would be happy to hire you to provide for them.

So how do you provide VALUE that your clients will understand and readily pay you for?

Forget you are a bookkeeper! Put yourself in their shoes and consider what THEY care about. What do they spend most of their time doing in their business? What do they pay attention to on a daily basis and spend money on?

To answer these questions successfully, you need to get out of your own way and forget about what you want FROM your clients. You need to think about what they want most and how you can help them get it.

Relationships are built on exchanging VALUE. People value and are attracted to those who can help them reach their goals and fill their needs. As bookkeepers we are in a fantastic position to help our clients reach their business goals AND we can thrive in the process.

Learn the art of building relationships with your clients and prospects based on what is valuable to them, and you will not be viewed as “just another bookkeeper.” You will stand out from the crowd as a provider of REAL value. And THAT is what clients are happy to pay for because it means you are helping them get what they want. They will also talk about you to others, sparking the most powerful form of free advertising – word of mouth.

How can you learn to communicate value and build these kinds of relationships?

1. Start asking your clients and other small business owners you meet what they want most in their business that they don’t have right now
2. Pay attention to their answers and consider how the services you provide – and the information provided in financial reports – can be used to help business owners reach their goals
3. Learn how to communicate the true value your services give to business owners in a language that they can easily understand

One of the best ways to learn more about what small business owners want AND stoke the fires of word-of-mouth recommendations is to build strategic alliances with CPAs and Accountants.

If you’d like to learn how to crack the code for building this special kind of referral relationship, join me and fellow CPA networking expert, Val Barshaw, this Wednesday for our live online training, “Freelance Bookkeeper Networking: How to Build Strategic Alliances with CPAs and Accountants”

Click Here for more details

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Technology? The economy? Where are we headed in 2012 and beyond?

Little over a week ago I attended one of the bookkeeping industry’s most well-known events – the Sleeter Conference (aka The Sleeter Group Accounting Solutions Conference) and the message throughout most of the training sessions was very clear:

Desktop accounting is on the road to becoming obsolete!

There’s no question about it. More and more businesses are headed online, especially with the rapid development of mobile applications, the power of “smart phones” and how they now can integrate into popular business software – including (but clearly not limited to) QuickBooks.

The accessibility and sharing of electronic data to conduct business–anywhere anytime–is driving the move toward a truly paperless (and mobile) office with (nearly) zero data entry.

Does that scare you? How much of the services you offer consist mainly of data entry?

The future of bookkeepers will be more focused on managing data flow, not data entry.

Another BIG reason businesses are rapidly embracing the move to the clouds is all team members can instantly collaborate in real time without version problems – think about the hassles we so often must wrestle when coordinating backups, accountant’s copy, etc. Problem solved.

Of course, this means as freelance bookkeepers, our role is changing. Those who are paying attention will seize the opportunities that are emerging and start moving  toward becoming a trusted business adviser now, who cannot be replaced by automation!

I’ve seen the opportunities coming for awhile. And it will only grow now as your clients start to upgrade their business technology. And by the way, this is GREAT news since consultants and advisers generally charge higher fees than bookkeepers.

In using multiple applications to run their business, clients will be best served by using a dashboard approach to instantly get a sense of what’s going on within their business. We’ve also seen this trend in the most recent versions of QuickBooks. Intuit realizes clients want tools to USE their financial information to grow more lean, profitable businesses. (Starting with QuickBooks 2009 they created the Company Snapshot feature)

But QuickBooks and even QuickBooks Online Edition had better watch it’s back!

New cloud-based bookkeeping software is also taking root and we need to pay attention. That’s especially so if you focus on small service-based businesses. A few that I’ll be watching and learning more about for my own business are:

- FreshBooks
- Wave Accounting
- Xero

These are FREE online bookkeeping programs (to start) that small businesses can grow with, are easy, and automatically tap into live banking data to nearly eliminate data entry altogether. FreshBooks even ties into QuickBooks.

But the biggest obstacle on the road of transition to the clouds is the human factor – the learning curve is not so easy to climb for everyone.

In truth, not all clients will embrace the new technology quickly. In fact, some people will downright refuse and resist the changes that are already upon us. While the shift to online is gaining rapid momentum, as Doug Sleeter said regarding the slow or non-adopters, “Some of these people just have to die!” (That was my favorite quote! LOL! )

Side Note: If you are one who resists change, don’t despair. There is a sparkle of sunshine here. You can choose to serve the clients who want to keep doing their bookkeeping the way they’ve always done it. But just realize that this market will continue to shrink (and their business profits will likely slip as well). But they will appreciate you for not forcing them to go online.

For those who welcome the online upgrades, you are positioning yourself and your business to prosper going forward! The highest fees will go to those who step up to lead their clients.

A sobering question: Do you serve your clients, or lead them?

Leaders always get paid more. Your clients will look to you to lead their business into the new way of using online technology to grow profitability. (And younger clients are already there waiting for you.)

Your role will be to…

1. Cobble together the technology that works together effectively for your clients
2. Step into the role of business consultant and mentor

In Summary:

• The speed of online technology is increasing rapidly
• Clients will need your help to upgrade their workflow and efficiency (motivated by the desire to increase profitability) using the new (inexpensive) cloud-based tools

What we need to do now:

• Educate ourselves on what’s now available and emerging
• Use the new online products ourselves
• Learn new skills, including how to build dashboards for clients to manage business more profitably
• Move from the role of bookkeeper to indispensable consultant

As a first step, I’ve created a sort of Virtual Bookkeeper boot camp to get up to speed quickly on the basics called, “The Insider’s Guide to Your Own Virtual Bookkeeping Business.” This program will grow and expand as new tools and technology emerge.

We are entering a new online era. We can’t stop where the future is taking us. But we can position ourselves (and our clients) to use the new technology to prosper. It will be a dynamic process.

So, how do you plan to face new online technology and trends during the coming year?

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

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

The Plan in a Nutshell

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

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

But you can save them from this peril!

Bookkeepers and Dentists

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

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

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

Why?

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

How do we apply this to bookkeeping and QuickBooks?

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

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

How?

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

How to Put This Simple Concept Into Action

1. Offer a free or low-cost “class.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Get more information HERE

QuickBooks is a registered trademark of Intuit, Inc.

“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

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

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

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

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

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

What does this mean?

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

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

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

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

So what do these changes mean for you right now?

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

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

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

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

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

Please leave your thoughts and comments below.

It seems we are constantly hearing about how we need to “go green” and cut down on paper. They say, we “should” be turning to digital or paperless ways of handling documents. It’s just good for the planet (supposedly). But there really is more to it than that.

If you’re working virtually with any of your clients (meaning, you work from your office instead of theirs), using electronic documents becomes even more important.

Despite this, and the fact that my own business has been 100% virtual since 2003, I have a confession to make.

I’m only currently about 75% paperless at this point. Getting closer to 95% has not been as easy as I had hoped. That’s mostly due to my own internal resistance.

As necessary as it has been to use paperless methods to work with my clients, I’ve found that most of my own business procedures are still quite paper-based.

So I decided to sit down and come up with both the Pros and Cons of going paperless internally to determine whether I really need to push myself to get closer to that 100% paperless ideal.

Here’s what I came up with:

Pros for going paperless:

• Easier to work with your clients virtually – I’ve mostly got this one handled since the benefits are nearly a necessity and go straight to the bottom line. They include…
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  • More flexible schedule – that’s because I work in my office not in theirs
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  • More efficient – can handle more work in the same amount of time, which means more billable hours
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  • Increased geographical service reach – my clients can be located anywhere, not just my local area
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  • Travel cost savings – rarely do I need to travel to see my clients face to face, and when I do, it’s a real treat to visit with one another
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• Saves money on office supplies – I recently compared my costs over the past few years when I’ve started using more scanning and a dual monitor set up, and the cost savings related to paper and toner have been significant, especially during tax season. These savings will only increase by using more scanning and PDF documents for my internal operations
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• More secure – all my digital files are stored (at least in backup form) online. That is far more secure than paperwork with sensitive data, even if stored in locked file cabinets (which could be destroyed by flood or fire). Digital documentation also can be attached to bookkeeping records for bullet-proof documentation if ever audited.
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• Space saving and convenient access – This one is significant, since over time accumulated paperwork can take up a lot of space and it’s a pain in the butt to have years of old documentation shredded. Finding needed records in digital form is also much more convenient and fast, since they can be searched if “misplaced” and, at least for me, my digital organization is better than how I’ve been organizing my paper files.
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• It’s Green – Although I know the real motivation when my banks nag me to get email statements instead of paper copies (it saves them money on paper and postage costs), the more paperless I’ve become the less trash is coming out of my office. And the less trash we all produce definitely makes a difference to the waste load on our planet.
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So, if all this powerful evidence is FOR going paperless, why have I still felt some internal resistance to changing over more of my internal operations?

Let’s take a look at the arguments against going paperless:

Cons against going paperless:

• Dependent on third party internet services – There is some loss of control when using any web-based services. If your Internet access goes down, or your service provider has server problems (like Intuit has had more often than you’d expect), you may not be able to get access to your documents 100% of the time. The actual percentage of time this happens is not high, but it does happen and can cause frustration. I know this from first-hand experience with some of the SaaS (software as a service) solutions I use regularly.
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• Changing habits – handling documents and procedures in a new way means workflow needs have to be updated and new habits formed. This has probably been my biggest resistance factor. Despite the fact that I’m often teaching my clients the latest high-tech ways to use QuickBooks software, the “if it ain’t broke, why fix it” mentality still nags at me, too.
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• New Costs – While going paperless creates some very significant cost savings, as noted above, there are some costs involved in changing how we deal with digital documents. That includes dual monitors (I could not live without dual monitors now), a scanner (if you don’t already have one), and a document management solution for storing and managing your digital documents (highly recommended). In reality, these costs are quite low compared to the BIG savings in the Pros section.
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My conclusion: The Pros far outweigh the Cons by a long shot.

My New Goal: From this point forward, convert my own “back office” operations to digital format, starting immediately.

This includes using my favorite document management system for all my own business operations.

Document Management Using SmartVault

This coming Thursday, March 31st at 8:00 p.m. Eastern Time I’ll be holding a brand new online training surrounding the use of SmartVault.

This FREE webinar training is designed especially for freelance bookkeepers who want to go paperless using this must-have online service for working with your clients on a virtual basis. But you can also try out this amazing and versatile tool for your own business for free for as long as you like.

Click Here to Get all the Details
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There are actually many more small businesses that need the help of professional bookkeepers than there are bookkeepers to go around!

So why is it so hard to find new clients – especially when starting a freelance bookkeeping service business?

Get the real answer to that question (and many more) on a brand new LIVE webinar designed especially for Freelance Bookkeepers on Wednesday, February 23 at 7:00 PM Eastern Time (6:00 Central, 5:00 Mountain, 4:00 Pacific)

If you’ve been looking for …

* Effective, low and no-cost ways to pull in additional revenue quickly and easily

* A reliable way to get referrals that’s easy and sends you a steady stream of new client inquiries every month

* High quality clients who appreciate your expertise and are glad to pay you what you’re worth

…then you’ll want to join me on this ground-breaking webinar.

“Freelance Bookkeeper Marketing: Proven Strategies for Getting Clients to Come to You”

Get all the details here:

http://thefreelancebookkeeper.com/webinar

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Have you ever thought about what a little bit of fame could do for your business?

If you were considered a top, highly respected bookkeeper in your community, what kind of clients could you attract?

Best-selling business authors are assumed to be the best in their field, usually because they’ve written articles and/or published a book. That’s the catalyst that helps them get invited to appear on TV spots or radio talk shows. And you can be sure that that kind of attention works wonders for their business.

SECRET REVEALED: Business authors don’t write books to make money from the book sales, but to make sales in their business because of the authority and notoriety the books give them!

But when we think about it, what great feat have they accomplished?

Nothing too difficult, really. They’ve provided some helpful information related to their field of expertise…and made it easily accessible to the public. That’s it!

Guess what?

You can easily (and quickly) do nearly the same thing and start positioning yourself as the go-to bookkeeper in your community too! That’s what will help you attract high-quality clients to your business like a magnet (and they won’t complain about your rates, either!)

Why So Few Do It

Q: If it’s so easy, why don’t more small business owners do it?

A: Because writing a book can be a huge, time-consuming project…when done the hard way, which is how most people do it. It can take a long, LONG time. Most entrepreneurs cannot afford the time. And once it’s written, they don’t know how to get their book published.

But what’s slowing them down is actually VERY good news for you!

With the Internet and online technology, it is quite easy (and MUCH faster than traditional methods) to publish information, whether in writing, as audios, or with videos (or all three!).  You can even SELL your information to create another income stream for your business!

This is exactly what I’ve done in my own virtual bookkeeping business, and it has attracted FAR more high quality clients to me than I can possibly serve myself. I regularly refer incoming client inquiries to colleagues because I am truly booked solid. (And my colleagues always ask how I’m able to keep pulling in so much business!)

How did I get my business to this point?

By simply providing helpful, instructional information online surrounding my expertise as a QuickBooks trainer and consultant. I’m just sharing my knowledge by publishing what are known as info-products.

And here’s the secret – as a professional freelance bookkeeper, you can DEFINITELY do this too. One way is by offering a free or low-priced, special report from your company website.

That’s actually how I got started.

And the best part is, once you do it, it’s like having a little salesperson working for your business 24/7! Online technology automates the whole thing.

And I’ve got to tell you, it sure is a nice little bonus to open your email in the morning and find out that you’ve made sales (and found new customers and prospects) overnight while you were sleeping.

Will Info-Products Work For YOU?

Creating small, but effective info-products works for ALL kinds of businesses, but it’s especially powerful for service-based businesses.

Because so few people are doing this effectively, creating small but valuable educational products positions you as the obvious expert and the person your prospects will trust and want to do business with when they need your services. In effect, you won’t have any competition!

As you become more known and in demand, you can also easily raise your rates.

If you can see how powerful it would be to position yourself as THE bookkeeper to go to by simply providing useful information geared toward your best customers’ needs, then I highly recommend you seriously consider publishing simple information products as lead generators for your freelance bookkeeping business.

It’s really quite easy to do.

And remember, you can even sell the information to create an additional revenue stream. Few ways of marketing your business is sweeter than that!

But I bet you’re wondering, “Where do I begin?”

I’m glad you asked!

This coming Thursday, February 10th at 7:00 PM (Eastern Time) there’s a FREE online webinar that shows you how to create your first info-product fast AND avoid making BIG mistakes that can backfire on you and actually KILL your reputation.

Even though I’ve been doing this successfully in my business for years now, I’ll definitely be attending this online event myself. The guy teaching it is (in my opinion) the absolute BEST!

I always pick up time-saving tips every time I attend one of his events.

If you’d like to attend too (remember, it’s 100% FREE), you can get all the details here:

=> Click Here for the Webinar Details

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In the previous post we discussed some of the benefits to YOU for taking your bookkeeping business virtual. But there are some significant benefits to your clients for letting you take their bookkeeping online as well.

One of the big ones is, it can actually save them THOUSANDS of dollars in taxes, interest and penalties. No kidding.

To illustrate what I mean, let’s take a look at a Tax Court case that took place earlier this year. (K. J. Fessey v. Commissioner of Internal Revenue)

If this self-employed loan consultant had used a virtual bookkeeper to not only keep his books, but a paperless solution to handle all the paperwork, he would have saved himself a HUGE amount of time and tax dollars.

This sole proprietor ended up owing over $11,000 in taxes and over $4,700 in interest and penalties, with the vast majority of that being due to business deductions that the Court determined he could not claim.

Why were so many of his business expenses disallowed by the Court?

One word: Substantiation.

It wasn’t because these weren’t truly viable business expenses, but rather, he could not prove that the expenses were directly related to his business.

Didn’t he keep records?

Yes, but much of his recordkeeping was done using his American Express credit card statements alone. With the statements he had documentation of who he paid, how much and on what date, but nothing more. Because he did not have his receipts, there were no additional details to prove WHAT the money had been spent on specifically.

The Court denied many of his business expenses because a credit card statement alone is not evidence of the business purpose of an expense. Receipts contain details that demonstrate the nature of the purchase; just noting the vendor is not proof enough that the purchase was for business purposes.  (i.e., just because you buy something at Staples doesn’t mean it was for your business)

Receipts provide the best substantiation of business expenses and need to be stored with the credit card statements or financial records files, for tax purposes.

So how does a Virtual Bookkeeper come to the rescue?

Having complete bookkeeping records would have given him better documentation. Additionally, by using a paperless solution, electronic copies of his receipts would have been saved and tied to each transaction. He would have had air-tight proof of his business deductions. None of his deductible expenses would have been lost.

Since most small business owners don’t like to be bogged down with keeping track of all the receipts, using a paperless solution is a way to get rid of the clutter and conveniently provide the information you need as a bookkeeper to properly keep the books.

By simply scanning receipts as they come in, or gathering those that are already in electronic form, and sending them to an electronic dropbox, your client can forget about the bookkeeping AND feel secure that nothing will be lost. Should the IRS come calling, they could easily breeze through a tax audit unscathed.

And of course, we all know how difficult it can be do to “after the fact” bookkeeping from bank and credit card statements alone. So going paperless makes your job much easier, too.

If going virtual and converting business expenses to a paperless system sounds like a good fit for your business, consider which of your clients are vulnerable and would benefit most by switching to virtual bookkeeping and paperless expense tracking.

To get started, all that’s needed is a scanner.

I also highly recommend considering the use of document management software, such as SmartVault. I use that program myself, and it is a great all-in-one solution for your virtual services that also works seemlessly with QuickBooks. It’s easy and convenient to use both for you and your clients. And convenience is a BIG motivation for getting your clients to go paperless.

If the concept of using the Internet and electronic solutions in your freelance bookkeeping business is new to you, you may want to catch the replay of the free training webinar I did last week, “Taking Your Bookkeeping Services Online” (See below for details)

No matter how you decide to do it, one of the BIG reasons your clients will want to work with you, is because you can protect them from a very painful tax audit by making sure their business expenses are adequately substantiated (with receipts) and accessible.

That kind of protection is worth a lot and will help your clients, or potential clients, see the true value of what you can do for them.

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Free Resources

“Taking Your Bookkeeping Services Online” – This free training webinar replay shows you why bookkeeping services through the Internet is the wave of the future, and why getting onboard now will make your life easier and your business more profitable.

Here’s what a fellow bookkeeper had to say about this webinar:

I got so much helpful information last week on the webinar.  Just started using SmartVault and LOVE it!  Told my employer he has until the end of the year to get over keeping paperwork too.
– Karen Howell

The webinar replay is free, but it will only be available through October 31st.

=> Get Access to the Webinar Now

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SmartVault document management solution. This is an all-in-one paperless solution that also integrates with QuickBooks. In fact, SmartVault started as a QuickBooks document management product, and now is a total online solution for handling paperwork on a virtual basis. You can start using it for your own business (recommended) as well as for your clients for free (no obligation to upgrade). I use SmartVault in my own business, and believe this is the best choice for Virtual Bookkeepers.

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Do you feel like you’re being held back from building your business and your income as quickly as you might want?

Actually, there are several hurdles successful freelance bookkeepers must typically overcome, but most of these obstacles can be traced back to two main areas:

• Not enough clients (or sales)
• Not enough time (or capacity)

One of the most common questions I hear from new and even seasoned self-employed bookkeepers is, “How can I find more clients?”

Why would a freelance bookkeeper lack clients? Every business on the planet needs bookkeeping done, right? And many of them don’t have the time or the expertise in-house to do it themselves. The demand for bookkeepers SHOULD be quite high!

And the truth is – the demand is very high.

Part of the problem is that bookkeepers are not necessarily self-promoters. And unless potential clients know that you exist, they can’t hire you! That’s why marketing your services is so important. But that’s usually not something we relish.

Many seasoned freelance bookkeepers will tell you that clients come naturally from word-of-mouth referrals. And it’s true! It’s because, as we’ve all heard, good help is hard to find… including the finding of a good bookkeeper. If you’re good at what you do, the word will get passed around and new clients will find you.

But there’s a problem. How do you get your first few clients so they can get the referrals rolling?… or what if your referrals have slowed down and you need more clients NOW?

Answer:  You need to market yourself. You need to attract potential clients who are a good fit for the services you have to offer.

Like it or not, the reality is, if you’re running a REAL business – even if it’s a business of one – you will need to do some marketing to stay in control of how many clients you have at any given time and to maintain and grow your cash flow.

There are easy marketing methods, however, that are well suited even for freelance bookkeepers who are shy. (More on that soon)

Lack of Time and Capacity

Why would a freelance bookkeeper lack time?

For the simple reason that when you sell a service, it takes time to get the job done (as opposed to selling a product that is limited only by supply). Your capacity is limited by availability of adequate production time.

Since there is also a level of expertise needed to provide accurate bookkeeping services, your capacity is further limited by the amount of available skill.

Typical Solutions

When availability is the problem, most businesses will seek to hire additional staff.

• SIDE NOTE: By the way, the problem of availability is the very reason your clients hire YOU!

For the freelance bookkeeper, you can choose one of two basic solutions:

1.  Get help – hire staff or subcontract to other freelancers

2.  Become more exclusive or specialize – raising your rates, specializing in a particular area of bookkeeping or specific industry, and turning away potential clients who do not fit your ideal client profile.

One option is not better than the other. Your choice will depend upon the primary goals for your business.

But there are new variations on how you can implement these choices that may have a huge impact on the success and growth of your business.

Technology and New Solutions

The Internet is adding some exciting new twists to conquering the limitations of both attracting new clients and available capacity to get the work done.

In fact, it is actually opening up ways to helps us attract an unlimited number of clients, as well as ways to work far more efficiently!

Building a virtual bookkeeping business – that is, providing your bookkeeping services to clients regardless of location because it is all done through the Internet – is an ideal way to find and service many more clients than those in your local area. (Although you can also work for local clients on a virtual basis)

Because the geographical limitation is removed by working online, you can also have greater access to a virtual staff and/or colleagues with whom you can collaborate to take on more clients than you might otherwise serve offline.

All of this adds up to far greater earning potential.

These developments are very exciting! We are now at an important time period where we can truly be of service to many more clients and quickly grow our own businesses at the same time. There is even more good news about the benefits of adding a virtual bookkeeping component to your business.

So that’s why I’m doing a FREE webinar LIVE on Thursday, October 21 at 8:00 PM (Eastern Time) to share with you what I’ve been doing with my own business, as well as the other “virtual” opportunities that are now available to all of us.

If you could use more clients or are frustrated with not being able to get enough billable work done in a day, then I think you will really find the information in my new webinar invaluable.

Find out more HERE.

How about you? Have you ventured into the world of Virtual Bookkeeping yet?

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