When Clients Want to Do Their Own Books…
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.
10 Responses to “When Clients Want to Do Their Own Books…”
Robin on September 3, 2009
Thank you Gabrielle for this very topical blog. When I see that my clients business is slowing down, I tell them it would be better for them if I came only every other week instead of every week. That way, it doesn’t waste their money or my time going there when there is only 1 hour’s worth of work. Setting yourself up as a consultant is a great way to stay involved with them for when their business picks up.
Kim on September 3, 2009
Great article –
As a new QB ProAdvisor I was wondering if I should even offer regular bookkeeping or stick with branding myself as a consultant/trainer only? After reading your post I am really swaying toward the latter.
Thanks for all the great posts.
Kim
Gabrielle on September 5, 2009
Hi Kim,
You can do whatever you think will work best for your business! You’re the boss.
You may be able to charge a higher rate if you position yourself as a higher level consultant, but you will also need to hustle consistently to make sure that your “pipeline” of projects stays consistent, whereas you may not be able to charge as much doing bookkeeping, but if you have month-to-month clients, you will have income you can count on. So, it just depends on your experience and your priorities. It doesn’t have to be one or the other, you could also take a combination approach, as well.
Hope that helps,
Gabrielle
Bob on September 19, 2009
There’s a massive opportunity for providing training, coaching and other services like management accounts and credit control. And, these services should command premium prices.
The Freelance Bookkeeper » Quick Money, More Clients, Great Reputation on October 9, 2009
[...] taught them. (See my previous article on how to handle this situation gracefully – “When Clients Want to Do Their Own Books” ) [...]
Donna on April 20, 2010
Hi Gabrielle,
I’ve done this with several of my clients. They are doing the data entry and I’m reconciling and going over the financals with them. It’s a great way to stay close to them all the while helping them with their lack of cash flow.
A few of my clients are now a bit better then they have been in the past year and I’ve noticed that I’m doing a lot more “bookkeeping” to get them reconciled.
It goes to show you that if you hang in there with them – they will hang in there with you.
Donna Sooter
Gabrielle on April 22, 2010
Thanks Donna. So true. What clients really appreciated in this changed economy is someone who is there to help guide them through. When we can clearly show them how they are better off working with us than just viewing us as another expense, it pays off for both them and us. As you’ve shown, being flexible makes a difference!
Kudos to your for being willing to do whatever it takes to create a win-win situation.
Gabrielle
The Future and Freelance Bookkeeping | The Freelance Bookkeeper | The Freelance Bookkeeper on November 22, 2011
[...] I’ve seen this opportunity coming for awhile. And it will 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. [...]
Andris on November 24, 2011
I suppose business owners will earn more money if they use their time for business and not for bookkeeping.
Gabrielle on November 24, 2011
Yes, exactly, Andris! It’s a great selling point for why they should hire a bookkeeper! But when they are thinking that they will “save money” by doing it themselves, that gives us opportunities, too. So, either way we win!