I need to increase my customer base.  Naveen 

Hi Naveen,
Setting aside dedicated time for marketing each week is crucial for growing your customer base.  It is so easy to get wrapped up in the detail of doing the work for our clients that we sometimes forget that we are business owners to and the responsibility for growing our business rests upon our shoulders.

I would pick a day of the week that is quiet, for me it is Wednesday and spend at least a half day dedicated to marketing.  Your marketing efforts can include identifying a networking group you could join, sending out letters to colleagues letting them know about your services; sending out introductory letters to CPA firms.  The important thing is to spend time marketing.

I had one more thought, ask your current clients if they know of anyone who is need of your services – business owners always know other business owners.

May 30, 2008

Showing your client that you care is one of the most important things you can do to keep your clients happy and ensure longevity in your working relationship. Being a freelance bookkeeper we are privy to private, personal information very quickly, often times during the very first meeting with a client.

In our society, most people make decisions based upon emotion. When I began looking for my first home, I interviewed several real estate agents to determine if we were the right fit for one another. Out of all the agents that I interviewed only one sent me a personal note, thanking me for my time and considering them to represent me. To this day receiving that note sticks out in my mind. Why? Because it demonstrated that this real estate agent was interested in working with me and obtaining my business. She got my business.

Business owners feel the same way about their businesses and when they hire a bookkeeper, they are revealing personal information and trusting that bookkeeper. When someone is so deeply and emotionally invested, it is normal that they expect everyone to feel and act in accordance with the way they are feeling. They want to work with people who demonstrate care, respect and expertise in their field.

Being a freelance bookkeeper your clients know on some level that you are working with other businesses and that is okay with them as long as they feel important, cared for and are one of your priorities.  Here are a few things you can do to ensure they feel this way.

• Planning. The first thing I and my staff do when we obtain a new client is to create a calendar with all of the important dates that will affect this account. For example, pay dates, when monthly reports are due, estimated tax payments etc. This will provides me and my staff with a visual and keep key due dates associated with this client fresh in our minds. We refer to the calendar each time we perform processing for this account.

• Systemization. The next thing we do is work with the client to create a standard process that each of us will follow as it relates to their account. For example, we go over with them in detail what materials we will need to perform the services they have hired us for and when those materials are needed. Over the first couple of weeks working with the new account, we will check in with them periodically to see if they have any questions and how they are doing with the process.

• Build Trust. Say what you do. Do what you say. It’s that simple to develop the trust of your client. If you say you are going to do something and cannot meet the original deadline, call your client and let them know. Don’t assume they are too busy to notice.
Communication. Be in frequent communication with your client and let them know what is going on. I do not mean call or email them with every minute detail. I do mean, leave a courtesy message or send an email checking in with them and a broad overview of how things are going at your end. Being in frequent communication with your client not only lets your client know that their bookkeeping is being handled it keeps the door open for when you need to make an adjustment in their overall process.

• Acknowledgement. Being a freelance bookkeeper we have a front row seat to what is happening with our client. Be sure to acknowledge important accomplishments and achievements – both personal and professional. It demonstrates that not only are you paying attention, you care and wish to share in their triumphs.

Showing you care about your clients takes only a few minutes and the return on your investment is priceless. Make it a point this week to call at least two of your clients and let them know you care.

May 29, 2008

Happy Memorial Day!

Hi – it’s Laurie this week.  It is hard to believe that it is the end of May and we are already approaching the half year mark!  My son came home last Friday after finishing his first year in college and today I am off to Florida to visit my Mom for a couple of days.

Life can be so busy so it is important to remember that follow-up is extremely important and something that will help you to stand out and differentiate yourself from the pact.  In this week’s article, Linda shares how her firm shows the care for their clients.

Last night we held our first teleseminar on How to Price and Package Your Services!  It was great speaking with so many of you with and being able to answer your questions live!  Save the date, Tuesday June 24^th.  When we will be holding the second part of How to Price and Package Your Services.  This is a call you won’t want to miss!

Wishing you financial serenity,

Linda & Laurie

By Laurie L. O’Neil

This is a tough question, because you are always trying to find the balance of how to make more money and what you are going to pay yourself. Currently, I am in the process of hiring two more employees, so how do you know when to bring on that next great hire?

Initially, I started out doing all bookkeeping for my clients. I found that when I was stuck in the day to day operations, it was difficult to market for new clients and grow my company. I do not do any bookkeeping anymore.

Here are some things that you want to think about before you hire an employee:

1. Focus on how many new potential client meetings you want to have in a week. Generally, I have five new sales meetings in a week and close about two a week. The ones I do not close I farm or keep in touch with until they are ready to come on as a client.

2. Find ways to manage your time and track time spent in your own company vs. client work. If you are consistently doing between 20-30 hours of billable time and trying to maintain consistent marketing appointments for new clients, it’s a good time to consider bringing on a new staff member.

3. When hiring a new bookkeeper, remember it could take up to three months for your bookkeeper to be up to speed to where you want them to be. A good bookkeeper is hard to find.

4. Keep in mind that when you hire employees you need to start thinking about where you want your focus to be in your company. Relinquishing control is sometimes hard to do. What are you going to do with all your free time?

5. Put procedures in place to measure productivity. Develop a culture that encourages all employees to look for ways to improve the company’s efficiency and productivity.

Growing your company is an exciting time as well as a stressful time. Planning ahead and teaching someone else to take care of your clients with as much care as you did does not always go as anticipated. With a good plan of action and lots of patience you will be on your way to fulfilling your company’s growth potential.
Copyright © 2008 Linda Hunt and Laurie O’Neil, The Bookkeeper’s Referral Network, Inc.

This week, it’s me Linda. May has turned out to be such a busy month in my household – school plays, college graduations and all of the birthday parties including mine, this past Monday!

I was able to take off the time I needed to attend these events because I have a wonderful staff in place that take really good care of our clients. Finding good employees is not easy and knowing when to expand your staff is even harder. In this week’s article, Laurie shares her insights on when is it the right time to hire new employees.

Laurie and I want to send out a big thank you to those of you who have responded to our survey question. We are working right now on compiling your questions and putting our responses together – so stay tuned for that!

We’ve also got to let the cat out of the bag just a little bit – we will be making a really announcement during our free teleclass on Tuesday, May 27^th. We’re are busting at the seams and cannot wait.

Wishing you financial serenity,

Linda & Laurie

I know I can get clients if I keep my rates low enough ($25-$30/hour). How do I get clients at the rates I want to charge? ($45-$50/hour).

Evan

Hi Evan,

That is a great question!

I have a question for you - What makes you think you cannot get clients to pay the higher hourly rate?

As a professional bookkeeper you are an expert at the work you perform. Charging too low of a rate actually sends a message to your potential client that you do not value the services that you provide.

I have two challenges for you:

1) Right now raise your hourly rate to a minimum of $50 for all new clients. Practice saying it out loud and in the mirror – this will really help to build your confidence when quoting your rate to potential clients.

2) Send a letter to all of your existing clients that effective July 1st your rates will be increasing and TRUST that the clients you are meant to work with will remain your clients.

Also, sign up for our free tele-class on Tuesday, May 27th on how to Price and Package your services. For more information go to http://bkpr-network.com/pages/Price_and_Package.html

Linda

By Linda A. Hunt

Who is Today’s Professional Bookkeeper?  The Chief Cook and Bottle Washer?

Just the other day, I was speaking with one of my employees who very seriously asked me, “What are businesses looking for in when they hire a bookkeeper – a chief cook and bottle washer?”  She had been experiencing some growing pains with a couple of our newer clients who were asking us to do a few things outside of the scope of the services that we provide.

Her question got me thinking – what are businesses looking for in today’s professional bookkeeper?  I called a couple of colleagues and here is the consensus we came up with.    

A solid business resource who is part accountant, part tax whiz, part operations guru and part financial analyst.

In today’s entrepreneurial company, the heart of the American economy and the key to its future job growth, the bookkeeper has become the de facto CFO. Today’s professional bookkeeper, as opposed to someone who knows—and I say “knows” loosely—how to use QuickBooks, is expected by business owners to know:

o    That Joe’s health insurance is tax-free, but Alice’s must have federal income tax and Social Security tax withheld;

o    That the company SUV can be written off but the car and van must be depreciated under IRS annual depreciation limits

o    How much the company versus employee can contribute to Bob’s 401(k) and Jane’s SIMPLE IRA;

o    That when Jill worked 40 hours, then worked all day Saturday — after being specifically ordered not to work — she must be paid overtime.

o    That the free weekend at the company-owned (or paid for) fishing cabin is taxable income to Bill.

Why? The reasons are twofold:

1. Small business owners are savvier, more successful, and usually have more than one business. They have high expectations for themselves and expect the people they work with to have the same standards.
2. Even the greatest CPA cannot create strong financial statements from flimsy data.  (Quite frankly they don’t want to.)

Today’s bookkeeper is expected to know the answers to dozens of questions like these or at least know where to find the answers. So what does that mean for us, the professional bookkeeper?  Our services are not only necessary, they are needed.  Our clients look to us as a valued resource of information and it is in our own best interest to keep abreast of changes that affect small businesses. 

Remember your goal is to establish yourself as an expert in your field and to become that trusted resource your client comes to when a new issue arises.  This is what differentiates you from the competition and allows you to charge that higher rate.

Copyright © 2008 Linda Hunt and Laurie O’Neil, The Bookkeeper’s Referral Network, Inc.

If you would like to use this article on your website or in your own e-newsletter, please reprint in its entirety and include the following information: Copyright © 2008 Linda Hunt and Laurie O’Neil, The Bookkeeper’s Referral Network, Inc. Linda Hunt and Lauire O’Neil are the co-founders of The Bookkeeper’s Referral Network Inc., the place where business meets great bookkeepers. To sign up for free articles and insider tips to grow your practice, and add value to your clients while making more money, working less, visit www.bkpr-network.com.

This week, it’s me Laurie.  Hope everyone is doing well!

Linda and I had a lively conversation the other day about what business owners are really looking for in a bookkeeper.  When the working relationship starts, it appears as though they need someone to write checks, create invoices – you know the usual stuff.  Lately, we have been noticing the demands and the knowledge base our clients expect us to have is increasing.  We were wondering if you are experiencing the same thing? 

Check out Linda’s article where she explores what business owners are looking for in today’s professional bookkeeper.