The Freelance Bookkeeper

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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No, I’m not talking about your future hopes and goals for your bookkeeping business. I’m talking about all the buzz surrounding what’s called “cloud computing,” and how it is affecting the way we work with our clients.

Technology is moving quickly, and since the vast majority of freelance bookkeepers perform their services using a computer (as opposed to manually with pencil and ledger paper), this is important to understand  and prepare for, because it’s coming fast. In fact, it’s already here!

What Is It?

In reality, you are probably already using cloud computing yourself, if not using it with your clients.

Here’s a simple definition: “The term cloud is used as a metaphor for the Internet…Typical cloud computing providers deliver common business applications online which are accessed from a web browser, while the software and data are stored on servers.”  (If you’re the techie type, you can read all the gory details on wikipedia.org)

In practical terms, this means software applications that are web-based are what’s known as a SaaS (software as a service) and/or virtualization. QuickBooks Online Edition is an example of a paid SaaS, and Gmail is an example of a free online application.

Here’s a 5-minute video that explains how cloud computing works.

How Does This Affect You?

We’re going to see more and more “cloud” software and services everywhere, and for good reason. More and more people are working together virtually, whether they are physically located across town, or across the globe.

Having anytime access to vital software applications is not only convenient, it is especially practical for business owners who do a lot of traveling. They can work on cloud-based software from any computer with Internet access. This is more productive and efficient. It is also a great way for you to work with your clients when keeping their books.

But it’s not without it’s downside too.

Cloud Resistance

When first introduced to the concept of using a bookkeeping program (such as QuickBooks) as an online service or on a hosted server in the clouds, most small business owners are initially afraid. They fear that their sensitive financial data is not safe and secure if it is residing “out there somewhere” on the Internet.

While care should be taken when choosing an application hosting service (when using QuickBooks desktop softare on a virtual server), generally speaking, hosted applications are far more secure than what our clients currently have in place on their own in-house computers.

Some clients are comfortable moving forward with new technology. Some will resist it for years to come.

What To Do About It

There are opportunities to be pursued, depending on how you want to position your business and the clients you want to serve. Cloud computing will continue to grow. Decide on how you will provide your bookkeeing services, and then pursue the clients who are in sync with your business goals.

Here are a couple choices:

1. Embrace the new technology and work virtually (or more virtually) with your clients.

If you’re not already working with clients on a virtual basis, but instead, are shlepping to their office to work on their computer to get the books done, you will find that you will become much more productive working from your own office. You save time and travel expenses, and you can serve more clients in a day or week than you can if you work on-site.

You may also be able to raise your rates, as you act as consultant and guide your clients on how to work more efficiently and conveniently by not only using QuickBooks (or other bookkeeping application) in a hosted environment, but also other key business applications if they have workers who are telecommuters or physically located elsewhere. You’ll be educating your clients on how taking advantage of cloud technology reduces costs and increases productivity in a convenient way. That’s a valuable service you can charge for.

(Can you guess which side of the cloud I’m on? )

2. Stick with the “old fashioned” way, and specialize in what is most comfortable for less tech-savvy clients.

There is a significant segment of the small business market (mostly small mom and pop type clients) that is rather leary of new technology and will not want to have their financial records anywhere else except “safely” in their own office.

By catering specifically to that type of client, you can build your business quite easily, since there will always be some who will prefer the lower tech option and the relationship-building face-to-face service provider.

Make Your Choice And Run With It

Providing bookkeeping services through the Internet is only going to expand and grow with time, as more and more small businesses will become dependent on the clouds to handle more and more operations.

You just need to decide how much you want to get involved and be ready to seize the opportunities that emerge either way. There are plenty of opportunities to go around. You just need to pick one and run with it.

So tell me, will YOU be taking your business to the clouds?

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Recommended Resources:

QuickBooks Online Edition – not as robust as the QuickBooks desktop software, but useful for virtual businesses that have multiple users who need real-time access from remote locations (including a bookkeeper).

Right Networks – secure and stable application hosting service QuickBooks and other “off the shelf” desktop software applications

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Some of the above are affiliate links.

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Have you heard all the hype about using social media to market your business online? How much of it is hot air and how much of it is true? Is it worth the time (because that’s what it really costs) to get out and mingle online?

These are questions I’ve been investigating myself. And this video is something that got me to start paying closer attention.

Social media is definitely not a fad – but how can we use it to help grow our client base as freelance bookkeepers?

First, we must remember that the basis of social networking is relationships. It’s about connecting with people, not selling your services directly. It’s attractive because it’s social and interactive, not to mention fun. It’s about everyday life and connection.

The reason that social networking does makes sense from a business standpoint, however, is that wherever people tend to gather, conversation often turns to asking for recommendations when in need of products or service…or discussing what’s new, what’s been happening at work and at play, including unsolicited testimonials about products and services. Social media fosters powerful word-of-mouth referrals in a natural, softer sell platform.

Careful! It’s a Double-Edged Sword

While everyone loves to buy, they hate in-your-face sales pitches. That’s a no-no in social networking. They also don’t like to be manipulated. So if you try to work the system, the smell of sleaze will come through and hurt your reputation big time. And of course, negative gossip spreads like wildfire online!  So don’t give them a reason to spread the wrong message about you.

To make social networking work in favor of your business, you have to be a real person and build real relationships. If you hate the direct approach to selling your services, however, then this is music to your ears.

All you need to do is be conversational and enthusiastic in a genuine way about what you do and what your company has to offer. The idea is to attract clients and prospect. Not to sell directly to them. Telling stories about how you’ve been helping others is a great way to do this. (Just make sure you don’t disclose anything confidential!)

In time, social networking automatically builds your expert status and your brand using your name and face. Everything you do online will ultimately reflect on your image. So also be aware of the inherent transparency of your interactions online. Because you never know who’s watching you and the lines between personal and business will blur, make sure you don’t post anything you don’t want everyone on the planet to know.

Social Media Is Not a Marketing Quick-Fix

You will not build your business overnight with social netowrking. It takes time to build relationships. And social sites like Facebook and Twitter can suck a lot of your time without you even realizing it, if you’re not careful.

To make it work, therefore, schedule a set amount of time to spend consistently on your social marketing efforts. And be disciplined about it.

Similar to in-person networking, you need to do it on a regular basis. But the rocket fuel is that online networking has a much wider reach. So, if you work virtually with your clients like I do, this is an especially important tool in your marketing toolbox.

So far my conclusion is that social marketing does indeed make sense, when kept in it’s place. It appears to be an important, cumulative way to help stabalize and grow your business over time. But because of its seductive, time-consuming  social nature, discipline is needed to keep it productive.

I’ve been planning 30 minutes a day, and so far, the results have been good. Fostering solid relationships on a regular basis is what builds word of mouth referrals. And referral sources are a key to long-term success as a freelance bookkeeper.

I’m still learning how to hone my online marketing skills, so I’ll keep you posted as I learn the ropes more thoroughly. But here are my best suggestions so far:
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1. Be clear on who your target market is (Ideal Client) and find where those people hang out online. Then join in the conversation, being willing to share helpful info to build your expert status.
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2. Start with just one or two social networks, and grow from there. Twitter is the easiest place to start.
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3. Be yourself, but stay professional. Focus on building relationships and adding value. Don’t be afraid to let folks know what you do in a conversational rather than salesy way.
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4. Make your time count by setting a schedule and sticking to it.
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5. Track what you are doing and what the results are. Do more of what’s getting the best results.
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So if you haven’t jumped on board with social media yet, it’s time to get your feet wet and get some exposure and brand recognition online. The best way to learn how is by doing.

Have you already been using social media with good results? Let’s hear about it!

What tips can you share on the best way to build relationships and spread the word about outsourced bookkeeping services through social networking?

Leave a comment below and let’s get a productive conversation going.

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Gabrielle
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Resources

How to Market Your Busienss with Facebook – NY Times

Twitter Guide – courtesy of makeuseof.com

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Have you found that the recession is causing some of your clients to take a hard look at reducing expenses? Is that making them consider the idea of taking their bookkeeping in-house?

If so, don’t panic. There is actually a golden opportunity here, if we look a little deeper.

The first reaction most business owners have when they see a sudden (or not-so-sudden) dip in revenues, is to tighten the belt on their expenses. And unless they are aware of the true value of your services, they may target their outsourced bookkeeping expense for elimination. “It’s just simple data entry,” they may think.

Of course, we know that accurate bookkeeping involves far more expertise than simple data entry. But sometimes our clients don’t fully realize that.

What To Do About It

Before I show you how you can turn this into a golden opportunity, let me tell you what NOT to do.

Don’t sound devastated when your client breaks the news. If you sound rattled and scared to lose their business, that will only make them not want to discuss alternatives with you. (They likely feel awkward talking to you about it already.)

Instead, step into the role of consultant and explore whether this change truly is the best option for your client’s business success. To do this effectively, you MUST get out of your own way!

DO NOT worry about losing the client. Really. This will likely turn out to be a good deal for you whether the client wants you to continue doing the bookkeeping or not!

Focus fully on your client’s welfare for the moment.

DO look for how you can assist your client to make the best possible decision for his / her success. You will stand out from the “typical” freelancer in this situation. And you will be setting yourself up for success.

Here’s why.

If, in fact, it truly would be a wise decision economically for your client to do the books on his/her own (although, most often, this is simply not the case), some training is definitely going to be needed. Maybe a lot of it. Aren’t you in the best position to provide that training?

Even after the client has been adequately trained (and the client isn’t overwhelmed by what it really takes to get the books done right), s/he will probably need ongoing support. This is especially true if s/he is using QuickBooks. This service alone could actually save the client from making a big mess that will cost much more to clean up in the long run.

You could even offer to do the bank reconciliations and/or set up a regular review of the books on a monthly or quarterly basis, just to make sure everything stays clean and up to date. The client may find this an invaluable service that won’t break the bank.

This type of arrangement is good for your bottom line too because your fee as a trainer and consultant should be at a higher rate than what you’re charging for basic monthly bookkeeping services.

Positioning Yourself As A Consultant

The most important factor in pulling this kind of transition off is to really listen to your client and hear where the pain is coming from. You want to provide highly valuable solutions that your client will appreciate.

If your client really does want you to continue doing the books, but they are simply looking to cut overhead, offer suggestions for where else in their business they might cut some fat that will provide short-term as well as long-term results. Show them how to find these opportunities in their financial reports.

I’ve seen clients whose sole reason for taking back the books was to save money. But they had no desire whatsoever to keep track of their finances. So they soon found themselves in hot water because their bookkeeping records quickly became a disaster. And then, of course, they had to pay big bucks to have their accountant clean up the mess at tax time. Not smart.

Save your clients from this pain and offer a great solution that works for both of you! (Remember: Win-Win)

So whether they keep you as their bookkeeper or not, help your clients to avoid the penny-wise-and-pound-foolish mindset by showing you really care about their success. If needed, help them tighten the belt (as well as identify ways to pull in more revenue) by transitioning to the role of business consultant.

As a valued advisor to your clients, you will make your services indispensable, increase your rates, and hold on to top-notch clients for life.

Who knew the recession could turn out to be such a blessing in disguise?
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~Gabrielle
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Resources

If you are looking for ways to become a QuickBooks trainer or consultant, consider these helpful resources:

QuickBooks ProAdvisor Program – QuickBooks software, training, certification and Train the Trainer resources included in the ProAdvisor Program

Successful QuickBooks Consulting – This is a helpful guide to starting and growing a consultant business that focuses exclusively on QuickBooks. Highly recommended.

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In my previous article, The Freelance Bookkeeper’s Credentials, we discussed the training and certifications most often recommended for bookkeepers who gear their business toward straight month-to-month write-up work (aka typical bookkeeping services) for their clients.

If you remain as a one-person business (and you don’t plan to grow your company in the traditional way by hiring employees and/or subcontractors), however, there is a downside.

Your earning capacity is very finite. As a solo bookkeeper, you generally cannot actively handle more than 10 or 20 clients at any given time. Of course, the number of clients you are able to serve is also affected by their business volume. But once you reach your capacity, you will likely need to turn away any new clients that come your way. And then the only way you can make more money is to raise your rates.

That is not a bad thing, just a limitation to be aware of.

Working alone as a solo freelancer may also severely limit your schedule flexibility, since you will have a good deal of labor-intensive work to deliver every single month.

However, viewed from a more positive angle, if your income goals are quite modest and you prefer the relative income security of doing month-to-month bookkeeping, this business model might be the perfect fit for you. And these days there’s something to be said for stable cash flow and a predictable workload.

So what’s my point? It’s this: Doing monthly bookkeeping work is just one option; it’s not your only option as a freelance bookkeeper. Not by a long shot.

Bigger Goals and More Adventure

If you already have substantial bookkeeping experience and have a firm handle on accounting mechanics, AND you’re the type who would feel tied down or bored working for the same clients doing the same work month in and month out, then maybe positioning yourself as a consultant is a better fit for you.

As a consultant, you can charge much higher fees than a bookkeeper generally can. So it is easier to build your business to the six-figure level, without the need to hire employees.

Additionally, there are different types of consulting service you could provide. In my own experience, there are many business owners who are starved for someone to fill the role of their business consultant. Because bookkeepers have an intimate view of the numbers, you are in a unique position to fill the gap left by many accountants who see their clients only at tax time.  If you have the experience and inclination to work with your clients from a big picture perspective, consider this type of consulting.

Other consulting specialties might have to do with cash flow or credit management, or dealing with employment issues, or even tax planning, if you have those types of qualifications.

But no matter which consulting needs you fulfill for your clients, you will be working with QuickBooks. No doubt about that. Transitioning or building your consulting services around QuickBooks is a natural – and lucrative – option all by itself.

The two main areas I’ve seen that work well are QuickBooks training and troubleshooting. There is also a high demand for set up of new QuickBooks installations.

QuickBooks Credentials

As with bookkeeping credentials, you have several choices. And whenever new freelancers ask, I have a definite opinion about which certification(s) I recommend.

Intuit, the makers of QuickBooks, provides two certification programs for their software – one for users and one for accounting professionals who want to become what they call ProAdvisors. If you want a professional credential that you can highlight to your clients, being a Certified QuickBooks ProAdvisor gets my highest recommendation. One of the big reasons I recommend it (besides the fact that the ProAdvisor program provides you with many, many excellent tools to build your QuickBooks consulting practice), is because of the credibility you get with being certified by the company that makes the program!

Among others, there are also certification programs available through NACPB and Universal Accounting. Now to be fair,  I have not thoroughly evaluated the content of these programs, so I cannot make a recommendation either way. They are likely to be helpful for expanding your knowledge of QuickBooks as a service provider, to be sure. But as a certification for credibility with your clients, they will not carry as much weight as the one provided by Intuit.

If you are not so concerned about having a certification for marketing purposes, but more focused on a deeper working knowledge of QuickBooks itself, my best recommendation for learning the program inside out is the training (and they also have a certification program) provided by the Sleeter Group. The depth of their training information is second to none. They also have an in-depth QuickBooks Consultant’s guide that will be your best friend when working in the trenches.

It’s Always a Package Deal

As with most businesses models, being a consultant is a package deal too. Yes, you can make more money and have greater flexibility over your schedule. But you may be exposed to a possible roller coaster income ride too. When you work on a project basis, you are more likely to have many gigs all at once, and then suddenly nothing.

There are ways to even out the cash flow to make it more steady as a consultant. But that is a topic for a future article. I just want to let you know that you may have to watch your step if you decide to move up to the world of consulting. Though I personally prefer it.

If you want to explore the world of QuickBooks consulting, I’ve included a couple of excellent books on the topic in the Resource list below that you should look into before you make the leap.

Bottom line: Both business models have their advantages and disadvantages, and you may even decide on a mix of both typical monthly bookkeeping services and consulting projects. Just always remember, you are the boss and that’s why they call it FREElancing!

Tell us about your plans, or if you’ve had experience with any of the QuickBooks certification programs, how have they worked for you? Comment below and let’s tawk!

Gabrielle

RESOURCES

Successful QuickBooks Consulting

QuickBooks Solution Guide

QuickBooks Certified User Program

QuickBooks ProAdvisor Program

NACPB QuickBooks Certification

Universal Accounting QuickBooks Specialist Designation

The Sleeter Group

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