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.

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.

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!

I’ll never forget when I first started my bookkeeping practice back in 2001 and I first started working in QuickBooks. I had never even looked at it, let alone touched, QuickBooks in my life before. I had always worked in high end software like Mas 90, Platinum and SBT. I think I even learned Peachtree in college – the DOS version of course – nothing in comparison to QuickBooks.

I have been certified as a QuickBooks Pro Advisor since 2002. Currently I am the top Advanced Certified Advisor in Hartford, Connecticut. So many people have asked me, is this a real benefit? The answer is, of course it is. Many business owners have now switched over to QuickBooks from their old software systems. It has become one of the most popular accounting softwares for small businesses. Becoming a QuickBooks Advisor was one of the first things I did once I figured out where I wanted to go with my business. As it turned out, it was the best choice I could have possibly made. It has been one of the best referral sources for new business.

Some of the benefits are:

You get unlimited tech support.

You always have the latest and the greatest software, so when you take on a new client that has the latest software release you will already have it since you get it before it comes out in the market.

You get a listing on the Pro Advisor website. This list now also opens when you look up questions for help in QuickBooks 2008 so potential clients know how to find you.

You get product discounts.

Some things you may want to consider are:

You will need to put aside some time to take the certification exam and pass it. If you get advance certified it could take up to four days to pass the exam. Currently I am certified in QuickBooks, Enterprise, and POS and I am current on all certifications. You can imagine how much time that took.

Instead of doing more bookkeeping you could end up becoming more of a consultant which means you will have to learn the new technology.

It also means that your firm will be specialized in one software, so if the market share changes it could effect you.

Whatever you decide, QuickBooks currently has the majority share of the market. The value you pay is well worth the return in my opinion.

To sign up today for the QuickBooks Advisor Program click here.

Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information and assumptions available, you draw a conclusion and state your forecast.  But then, the information changes and it is now raining and you are caught without your umbrella!

Forecasting, unlike the weather, isn’t a science but it is not pure guess work either.  It is:

1. A combination of knowing your business;
2. Understanding your market place;
3. Knowing what you want to accomplish in the future, and;
4. Common Sense.

Every small business will need to make reliable financial projections at one time or another.  This forecasting is critical at many stages of a company’s life span:

1. When looking for financing
2. Gauging the potential profitability of a new product or service
3. Trying to determine the impact of staff expansion or cutback, or;
4. When it needs to assess other important business decisions.

But let’s take it one step at a time – creating an accurate forecast for the remainder of the year.  There are a lot of components to think about when forecasting and it all boils down to the following five steps:

1. Review Actual Year-To-Date Results

The best place to start is to see where you have been.  If you use an accounting program like QuickBooks you can print out a Profit & Loss statement showing year-to-date results.  Make sure that the statement captures all financial transactions that have occurred to the date of the report and reconciles to your bank statements.  If you don’t use an accounting program, then add up your year-to-date cash receipts from customers and total expenditures.  Take the difference and this should equal your profit or loss.

Examine each line item to make sure that it makes sense – is your year-to-date revenue figure where you thought it should be or has it fallen short?  Are expenses higher than they should be for this time of year?  This exercise will really get you thinking about your business!

2. Establish Goals and Incorporate into Your Forecast

Now that you have seen where you have been, what is it you wish to accomplish by the end of the year?  Launch a new product or service, increase revenue on existing products or services, decrease spending, hire a new employee, launch a marketing campaign which will position the company for the beginning of next year?

Whatever your goals are write them out and then decide on the most important three (3) to five (5) goals you wish to accomplish by the end of the year. Determine what steps need to be taken to make those goals become reality, determine which Profit & Loss line item those goals impact and adjust your forecast accordingly.  For example, your goal is to increase revenue by 10% before the end of the year or launch a marketing campaign whose benefits will be felt in the first quarter of 2006.

3. Forecast Variable Costs

Variable costs are those costs that change in step with revenues.  For example, you are selling more widgets therefore your labor costs and materials costs will increase in relation to the revenue increase. 

Using the concept of Forecast = Projections + Predictions, combined with the knowledge that variable costs change in step with revenues, forecast each month’s variable costs.  Forecast each line item separately, looking for opportunities to reduce costs, and being aware of likely future influences on these costs.

Note:  A projection is an extension of the past into the future and predictions reflect your best understanding and your educated guesses about future changes, uncertainties and unpredictable events.

4. Forecast Fixed Expenses

Fixed costs are those costs that recur month to month and tend to relatively stable.  For example, rent, telephone, internet connection, etc.

Using the same concept we used to forecast variable costs, use the Forecast = Projections + Predictions, combined with the knowledge that fixed expenses tend to be relatively stable and do not change in step with revenues, to forecast the month’s fixed expenses.  Again, forecast each line item separately, looking for opportunities to reduce costs, and keeping in mind the likely future influences on these costs.

5. Forecast Net Profit

The final step is to evaluate what your forecast is projecting for a net profit for the month.  Decide if the profit forecast is reasonable and acceptable.  If not re-evaluate the forecast for each line item, including revenues, and make appropriate adjustments.  Also, if possible anticipate non-operating income and expense items, and include them in your forecast.

Your forecast may not be perfect at first, but we didn’t’ learn to walk without falling down.  We may get a few bumps along the way but I can guarantee you that setting your financial projections down on paper and revisiting them frequently keeps them in your consciousness and helps you to achieve them. 

By Linda A. Hunt

This month, I have been really frustrated – there just does not seem to be enough time in the day to get everything that I need to done. I was becoming irritable and burnt. Then it hit me! I was not maximizing my most precious resource - managing my time and I was allowing those “Time Vampires” back in.

A “Time Vampire” is anything or anyone that steals your time – a new employee, a talkative client, the telephone, your mother-in-law, broken office equipment, etc. Time is an irreplaceable resource and effective use of your time, more than any other habit, increases your productivity. While it is important to understand how much time you spend on activities that produce a result, it is equally important to identify ways in which your time is stolen from you.

Here are the 6 secrets I use to eliminate “Time Vampires” and maximize my productivity:

1. Create a Daily Routine. I actually do this by the week. I have an excel spreadsheet that lays out what I will work on during the week and when. It includes everything from answering email to the time I will have lunch each day. I do this on broad terms. For example, Monday 10 AM to Noon bookkeeping.

I also schedule in two hours of unscheduled time just to handle those unexpected things that come up.
 
2. Plan Your Phone Calls. Plan your phone calls. Make a brief note of what you want to say and what you want to find out. It saves time for everybody and makes for better communication.

3. Set “Do Not Disturb” Periods. Plan a definite time each day when you conduct a meeting with yourself!

4. Don’t Over-Commit. Beware of over-commitment. Remember you are the only one who can protect your time. Learn how to politely say “no.”

5. Set Deadlines. Set reasonable deadlines for all jobs and stick to them. Available time always gets filled with something!

6. Think, Then Act. Avoid the “Shoot First, Ask Questions Later” phenomenon. Think first, then act. Nothing is so urgent that there is no time to consider the decision-making process.

By Laurie L. O’Neil

With today’s technological push, finding great ways to utilize some of the new technology out there can be time consuming and very painful. One thing you will learn about me is that I am a great proponent of pushing time to the end of its limits. Time is the very essence of our business. One of my biggest challenges was figuring out how to maximize my time.

Going on-site to clients in not always feasible so what are some other remote methods out there?

One of my favorites is a site called Log me In. www.LogMeIn.com. This allows me to remote into my client’s desktop. It has printing capabilities. It also acts in a real-time fashion and has easy set-up. You can use LogMeIn for any training capabilities you may have with your clients. You can even switch the control of the mouse back and forth between you and your client. You can use it on a Mac computer as well and you can download it free for 30 days.

Another similar software is webex. www.webex.com. Webex works in the same fashion as LogMeIn but setting up the printing can sometimes be cumbersome. I have also found that it can be sluggish as well. Webex is constantly making improvements to their product and sending out new releases.

Another software that has been around for quite some time is Go to My PC www.gotomypc.com. GoToMyPC is efficient and user friendly. It has some of the same features offered with LogMeIn and webex but it can be more costly.

No matter what your preference is, each package can help you to achieve great results in order to get the work done for the client remotely. Each package can support whatever your needs may be but can vary based on price. Research each and try them all out.

We recently asked our readers “What’s Keeping You from Having Freedom in Your Bookkeeping Business?” and we got so many great responses! Here’s a good one from Lee S –

“My sense is that I need to implement a standardized approach to routine services. I’ve worked alone so much of my life that I “just do it.” This impedes delegation and can be prone to omission.

Hi Lee,

You have great instincts! Creating a standard approach and systemizing routine services is one of the keys to creating freedom in your bookkeeping business. Systemization helps you to deliver consistent results to your clients, increase delegation while at the same time empowering the success of the person you have delegated the task to!

When you begin to create standard processes it can be a bit overwhelming. Here are a few tips:

Ø  Create an outline of one functional area at a time. For example, accounts payable or accounts receivable.

Ø  As you are performing the accounts payable function, compare the actual tasks you are performing to your list and make the necessary modifications.

Ø  Follow your modified list as you complete accounts payable for a couple of different clients to ensure you have captured all of the steps applicable to your process.

Linda and Laurie

By Laurie L. O’Neil

In my second year of business, I was contemplating hiring an employee or hiring a subcontractor. I decided on the subcontractor. I had my first heartening experience as a business owner. I had a client that had a high volume of work that needed to be done quickly and a lot of back work. I needed someone to help get everything up to date, so I hired a subcontractor. Being of a naïve nature, I did not have any agreements with her. Well you guessed it; she cut me right out of the middle and took over the account. This was the beginning of compiling contracts for employees and contractors.

This is a difficult topic because not all states will uphold Employment and Non-Compete Agreements. Connecticut is a state that will and they can be enforced. Also you will need a good attorney to review these documents.

Here are some things that should be covered in Non-Competes and Employment Agreements:

When it comes to a Non-Compete agreement be sure you cover: 

1. Geographical area – within reason
2. Timeline of non-compete needs to be reasonable
3. Terms of employees/contractors soliciting your clients.

When it comes to an Employment Agreement or Contractor Agreement:

1. At-will employment for employees
2. Termination clause for both employees and contractors
3. Discussion of general duties and expectation
4. A clause to not solicit employment from clients
5. Breach and liquid damages
6. In case of any issues, what state will enforce the breach

The important part of business growth is protecting the time and money you have invested into the building of your company. Employment/Subcontractor Non-Compete Agreements protect that investment. You do not want to be in the job of being a recruiter for your clients nor do you want to continually find clients for your employees to take away.