Many of us are currently being faced with tough economical times.  So how do you protect yourself as a business owner from a down turn in the economy and prevent yourself from being burdened with large Accounts Receivables?

A few years back, I was doing some deep soul searching.  I was not happy with my business model.  I was not making the money I thought I should be.  My Accounts Receivable Aging report was sometimes over $30,000.  Here I was providing onsite bookkeeping services and I was finding myself having to wait as much as 45 days from the date of the services to finally get paid.  I was billing bi-weekly, but I was still having cash flow issues.  My client’s payment terms were really putting me in a cash flow crisis.  The idea of spending lots of money on credit card fees definitely did not appeal to me, so what was I to do?  I was trying to grow my company, but continually felt like I was chasing my clients to get payments in the door.   I was tired of this.

I needed to make some big changes in order to fix my cash flow situation and feel more financially secure.  I started by changing the terms of my payment policy.  A good friend of mine at the time was working for a company called Alliance Payment Technologies www.allianceach.com.  She opened my eyes to something called an Automatic Clearing House.  After doing a little research, I realized that this was exactly the solution I was looking for in order to minimize my accounts receivables, without having to go down the dreaded road of accepting credit cards.  So what, you ask, is an Automatic Clearing House?  In plain English, according to Google, an Automatic Clearing House is a secure, private electronic payment transfer systems that connects all US financial institutions.

Alliance Payment Technologies helped me to make the changes I needed to stop having large Accounts Receivable balances.  So how did they do this exactly?  They are a company that specializes in Accounts Receivable Truncation, Direct Deposit, Electronic Check Conversion, Web Check and my favorite Recurring Billing.  The Recurring Billing enabled me to have my flat fee monthly recurring projects taken out of my client’s bank account automatically on a monthly basis - no invoicing and no waiting.  I also changed how we handled our onsite bookkeeping clients by setting a weekly minimum based on an estimated number of hours worked that would be taken out of the client’s bank account on a weekly or bi-weekly basis.  On top of all of this, I also changed my billing to be monthly in order to reflect adjustment bills from if we had gone over/under the minimums in the month for onsite clients set up as recurring.  Even t hough I had changed my billing to be done on a monthly basis instead of biweekly, with this new automatic payment system in place, my receivables would be minimal.

This turned out to be exactly the solution that I had been looking for to solve all my collection and cash flow problems.  It made a dramatic impact on my cash flow situation and minimized my collections almost completely.  It enabled me to be able to budget and manage my cash flow issues on a more regular basis.  So if you have ever found yourself in the position of feeling strapped for cash while you’re waiting on your clients to finally get around to paying you for the services you have rendered, this may be exactly what you’re looking for.  In this tough economy especially, you may want to consider minimizing your accounts receivables by using an Automatic Clearing House to collect your fees for you.

This week it’s me, Linda -

I’m back from an amazing week in Tucson where I met with my mentor, Kendall Summer Hawk! The weather was gorgeous and I stayed at a wonderful bed and breakfast, Casa Luna.

During my time with Kendall we worked with her horse on clarifying my vision for the future and building my leadership abilities. Let me tell you what an exhilarating feeling it is to move a 1400 pound horse with just your energy and clear, focused intention.  Watch out Bailey and Bella (my dogs); you guys are in for a big surprise!

Don’t forget to check out Laurie’s article this week where she shares tips on how to minimize accounts receivables in “this economy”.

Have a great week!

The other day a colleague was asking me to share with him what my secret is to keeping clients for such a long time.  He got me thinking.  I have had my accounting firm for 10 years and over 80% of our clients have been with us since year 2.  So I guess he is right.   I do know a few tricks on how to keep clients happy!

1. Longevity Mindset - it has always been my mindset to create long-term working relationships with my clients.  This mindset is reflected in how I speak to a potential client and in all of our marketing messages about our services.

   During my initial meeting with a prospective client and after understanding where their pain is and deciding whether or not we would make a good fit.  I then explain to them the value that we bring to the table and very directly tell them we are looking for a long-term working relationship with our clients.  Doing this puts all of the playing cards out on the table and from there everyone is able to make an informed decision.

2. Comprehensive Client Intake Process - whenever we begin working with a new client, we take a lot of upfront time getting to know the client, their business and identifying all of the key ingredients we need to make our client relationship work.

   This makes the client feel cared for and that we are really interested in the success of their business.  Everyone likes to feel as though someone is on their side.

3. Tell Them the Truth Not What They Want to Hear - this secret is very important.  Your client has hired you for you experience and expertise.  They did not hire you to be their “Yes-man” or “Yes-woman”.

   Being an accounting professional, you have the inside track on what is working in your client’s business and what is not.  Sometimes that will be news that your client wants to hear and sometimes it will not.  The thing you need to remember is that it is your job to shine the light clearly so that your client can make an informed decision.

   I like to use an example of a lighthouse.  A lighthouse’s job is to stand on the shore and shine it’s light out into the harbor.  Boats use the lighthouse as a steady beacon to guide themselves to shore.  It is their one truth.  You are your client’s one truth.

4. Consistent Client Communication - in this age of technology it is so easy to forget the human aspect in light of trying to get things done quickly and efficiently (aka email).  One of the most important things we did in my firm was to create a communication policy that has us touching our clients on several different levels at various frequencies.  This is a win/win for both the client and us.  For the client, because they feel cared for and regard us as a valued resource.  We become their go to person for advice and resources.  For us, because we are in the loop of major new developments occurring in our client’s business and are able to anticipate their needs.
5. Say What You Do - Do What You Say - you could be the winner of the Miss Congeniality award and if you are not providing quality, consistent services to your client, the bottom line is they are not going to stay with you over the long term.

   It is important to say what you do and do what you say each and every time.  Clients like consistency in their accounting professionals.  Not complacency - consistency.  This evokes a sense of trust and well-being.

Paul,

Hi - it’s Laurie this week.

This week I am writing you from the Sleeter Convention in Glendale, Arizona.  I really enjoy this event, because I get to meet a lot of you.  I also get to see all the new technology that is out there.  My favorite part of this is learning all the neat tips and tricks about QuickBooks.

Today is my birthday and I want to thank all my good friends here at the Sleeter convention for celebrating the day with me.  Tomorrow after the convention, a girlfriend of mine and I are heading out to Sedona for an adventure.  Stay tuned details to come - I have never been to Sedona before.

In this week’s article, 5 Secrets to Creating Longevity, Linda shares her secret on keeping clients long term.

Be sure to check our BRN Recommends Section, we have some great speakers coming up!  If you miss the calls you can always purchase them off our website http://bkpr-network.com/telecall/.

This is the time of year that people are often starting to plan and make changes to their bookkeeping businesses. Very often, Linda and I get asked a lot of questions from our members and other freelance bookkeepers about how to go about presenting their services to prospective clients.  Most of us are accountants by trade, not sales people.  But when we are trying to sell our services and get our prospective clients to buy from us, we have to think like salespeople.  Listening to these prospective clients and really hearing what it is that they need is the key step to bringing in new clients.

Step 1:  You need to prepare for your meeting:

1. 1. In the initial phone call start building rapport and building value by listening to what they need.
   2. Think about the questions you will be initially asking that pertain to their particular business.
   3. Make sure you will be meeting with the key decision makers.

Step 2:  Meeting the prospect:

1. 1. Develop a trust between you and the prospect. It will set the stage for getting the right answers to your questions.
   2. Get the conversation going by smiling and being friendly.
   3. Always remember that a prospect cannot evaluate your skill set – they can only evaluate you as a person.  Act accordingly.

Step 3:  What is your Company Story:

1. 1. Explain who you are and what it is you do to build creditability.
   2. Explain what your objectives are with the potential client.
   3. Talk about how you are different from other firms and why they should go with your firm instead of the alternatives.

Step 4:  Ask the tough questions:

1. 1. Find out what they know, what they don’t know and how they are doing things.  Find out what they need.  Be the detective.
   2. Remember – There is a reason they made the appointment with you.  If they didn’t need some kind of help, you wouldn’t be there.
   3. Do not focus on the sale but listen for the areas of pain in the business.
   4. Never assume anything.

Step 5:  Qualify the Client:

1. 1. Determine whether or not they can afford your services.
   2. Confirm that they really need your help.
   3. Decide if this is a client you even want to have.

Step 6:  Closing the sale:

1. 1. Re-iterate your discoveries.  You have found the areas that are important to the prospect.  You have explained how your services can help service their needs and you have differentiated your services from the competition.
   2. Ask them if they have any questions?
   3. Price the package or service you are offering.
   4. Have you asked 3 times if they have any questions?
   5. Answer their objections.

With these six steps you are on your way to becoming a pro at sales.  Just be sure to practice, practice, practice.  As long as you stick to these guidelines and put in the time fine tuning your personal sales technique, you should have no problems closing sales and growing your business to where you want it to be.

This week it’s me Linda –

This week I am writing to you from Tuscon AZ where I am on a private business retreat with my coach Kendall SummerHawk.  Having a business coach is one of the ways in which I keep my batteries charged and working with Kendall helps to keep me focused on the big picture and unleashes my creativity.    It is great being away from the office so that I can relax and focus on my goals and objectives for next year!

Don’t forget our new Pricing & Packaging Bootcamp starts this week and there is still time to sign-up!

Don’t miss Laurie’s article this week where she shares with all of us the 6 steps in the sales process.

Have a great week!

When I started my freelance accounting practice ten years ago working virtually was not as widely accepted as it is today.  At that time my client base was split evenly down the middle – 50% onsite and 50% offsite.  Over the years I was able to migrate my onsite clients into becoming virtual clients by showing them how working remotely was really no different than working onsite and eliminating their fears.

Usually a client will object to your working remotely because they do not understand or have confidence in how the process will work.  Their fears take over and believe me they can imagine all kinds of problems that will keep you working onsite at their location!

Remember, most people do not like change.  So the first step to successfully working remotely with your clients involves you answering these four very important questions:

• How will your client(s) get their accounting information to you?
• How will you return original documents to your client?
• Where will the accounting file (data) reside?
• How will the accounting file be protected?

It is up to you to define the structure of how you and your company will work remotely with clients.  Here are some things for you to think about as you answer those questions from above and define your remote working structure.

1. Structure, Structure, Structure – whether you work remotely or at the client location, creating a consistent structure of when and how work is to be completed are essential.  For example:
   1. You work on the client account the same day of the week, every week
   2. You provide your client with a list of information that is needed on a regular basis and also a list of items that are missing.
   3. You take the responsibility to follow up on those missing items.

   The less your client has to think about and the more consistency you can provide to them, the more likely your client will be to cooperate.

2. Having the Right Tools – if you want to work remotely then you need to use the tools that will make working remotely easy.  This includes using a remote hosting service that allows you and your client access to their accounting file from wherever they are.  Remote hosting services also offer a daily offsite back-up of all data files.  This feature becomes a benefit to your client whose current back-up routine may not be as good as it should be.Another tool you will want to consider is a scanner.  As I moved to being a 100% virtual office, I incorporated the cost of a scanner into my client’s set-up fee.  This way my client can easily scan their documents and email or fax them to my office without incurring the cost of a delivery service.

   Next year we are also looking at incorporating the program Sourcelink.  Sourcelink is a QuickBooks add-on program that associates documentation to a specific transaction.   The benefit here is if you need to look something up, it is right at your fingertips.

3. Keeping the Lines of Communication Open – when you work remotely it is very important to be in contact with your clients on a regular basis.  The worst thing you could do is disappear into your remote office and forget about the personal aspect of your client relationship.In my office, we have created a process that is followed to ensure that we speak with our clients at least once a week.  Our communication process also includes the scheduling of several face-to-face meetings throughout the year.

   Another tool you may want to consider is GotVmail. In my office, we use this service because it provides my company with one phone number for the client to call.  They simply enter the extension of the person they are trying to reach and they are then forwarded directly to their cell phone.  If the staff person cannot answer, GotVmail takes a message and emails it to you.

It does take a little trial and error to work out all of the kinks and once your clients have begun to work remotely with you, they will begin to wonder who else they can work with remotely!

Hi – it’s Laurie this week.

Well I am back from my world wind tour of Florida. It was great to visit my mom. We visited the Austin Carriage Museum, which was pretty neat and went to Gator Joe’s. It was a bit of a shock to come home. I left and it was 75 degree weather and I came back to digging out my winter coat because it is 30 degrees!! I was not made for this cold weather. I was hoping it would stay warm for the children for Halloween, but it looks like it is going to be cold. Linda and I hope you and your family have a great and fun Halloween!

Linda and I have been busy beavers. Starting November 4th we are launching our Pricing and Packaging Bootcamp (see the details below) where we share our insider secrets to successfully price and package especially in this economy. The class is booking up fast and space is limited. You do not want to miss this opportunity, as we will not be offering this class again in 2008.

In this week’s article, Linda shares some dos and don’ts on how to successfully work remotely with your clients.

Be sure to check our BRN Recommends Section, we have had some great speakers! If you miss the calls you can always purchase them off our website http://bkpr-network.com/telecall/ .

In the past couple of weeks, I have talked to several of you who have been in a little distress because you needed to put together a presentation for a BNI meeting.  I do not know about you, but when it comes to public speaking – my anxiety level goes through the roof and it is enough to put me into a tail spin.

At first you are in a panic because you realize that you need to speak in front of a group of 15 or more people.  Then you become horrified because you realize exactly what it entails, that you’ll need to stand in front of these people and talk for at least 15 minutes.  Your last thought is, what am I going to talk about for 15 whole minutes?

You need to stop, take a deep breath and take five steps back.  Remember, presentations and 60 second promos about your business are the best way to educate people on what it is you do.  Keep this in mind.  By doing this you are building relationships with the people that you meet and promoting your business.

Whenever I do a presentation for the BNI network, here is my approach:

1. We, as bookkeepers/consultants, should focus on the value of our service, not the price. Ie.  Our clients love us because we take the worry away from them and allow them to focus on their business.  They have comfort knowing that their bills are being paid on time and the work is accurate.
2. Define what makes you different from your competitor or companies in your area.
3. I define who is a good contact for you to meet with.  For example, I am looking to connect with Lawyers, landscapers or non-profit organizations.
4. Some presentation topics that relate to my business that I have talked about are
   1. Updates on what’s new with QuickBooks or Peachtree – Talk about the latest versions of software you work with and what changes they have made within the programs that could benefit different businesses.
   2. How to streamline your Clients Book- I have done a PowerPoint presentation before that showed areas that most people do not use QuickBooks and how to use them in order to implement better bookkeeping procedures.  Find an area most people are weak in and show them a way to improve.
   3. I have educated the members in my group on what the difference between a bookkeeper, a full charge bookkeeper and a controller is and discussed the different roles and expectations associated with each.  By discussing the different aspects of bookkeeping, you have the opportunity to educate others on what it is you offer.  Most people are pretty uneducated in this area, many business owners’ don’t realize there is a difference in these services.

Don’t let the fear of public speaking keep you from sharing what you love best about what you do and who you are.   As much as public speaking takes me out of my comfort zone, I do find that it ends up being worth the tiny discomfort that I have to endure.  I have gotten a ton of referral business from it, so it pays to put yourself out there.

This week it’s me Linda –

This morning on the radio I heard the announcer talking about Halloween and how it is the kick-off to the holiday season – funny I thought that was Thanksgiving!  Any way Halloween is next week so you better hurry up and get your costume!

With everything going on in the economy right now, Laurie and I wanted to share with you some valuable tips on how to show your clients your value.  So if you aren’t already signed up for our F^REE teleseminar tonight on how to Price & Package Your Services in a Downturn Economy there’s still time.  We’ll be sharing some of the proven strategies that we are using in our own practices.

The important thing to remember in an economy like this is not to panic and that there are many opportunities to make money!  It’s all about having the right mindset.