How To Start A Bookkeeping Business

Katy sent us this email:
“I am currently working as an office manager in [Perth] city for a new company. I have completed a degree in Business and Management and understand the basics however I am new to MYOB (or software of any type) therefore I am learning as I go.

I run all accounts payable and receivables fine and have started doing the BAS returns etc however I feel I could do with advice on times of yr BAS etc is due & payroll. Really looking forward to hearing from you.

Does she want to learn MYOB or wanting to become a bookkeeper?

Is Katy saying she wants to learn how to use MYOB? Or is she wanting to learn how to do bookkeeping?

Perhaps she should ask her bookkeeper to train her to use MYOB. Learning to use MYOB does not mean that you will become a bookkeeper – it’s simply a software program like any other software program

GIGO [garbage in - garbage out] – what information is put into the MYOB will affect what information comes out of the MYOB

We are bookkeepers that train business owners to do the basics in MYOB required for their book keeping – if they want to learn more about MYOB we suggest that they go to the local TAFE and do a MYOB course

having a driving license does not make someone a grand prix driver

We do not teach bookkeeping – we are too busy doing bookkeeping to do that – we suggest that people who want to become bookkeepers go to the local TAFE and do a bookkeeping course

Having a certificate from a MYOB course, or from a bookkeeping course does not make someone a bookkeeper – just as having a driving license does not make someone a grand prix driver

For more information get yourself a copy of the EBook “How to find bookkeeping clients” – this book is a reference manual for people wanting to start, or those who want to know how to get more clients, for their bookkeeping business

I tried some flyers to find bookkeeping clients, but they didn’t work!

That’s a common response from bookkeepers wanting to know how to get their business started.

Let’s just think about that statement. “The flyers didn’t work!” – What does that mean exactly? When you design the flyers, or instructed someone else to design the bookkeeping flyers, what result were you looking for?

So many people see junk mail in their letter box everyday – they pick it up and walk straight over to the recycle bin.

Then there’s the people that “love” the junk mail, and read everything that arrives in their mailbox.

This means that the flyer promoting your bookkeeping business is amongst a handful of others – most people would spend only a couple of seconds glancing at each flyer, so you need to GRAB their attention

Then what? You drown them in information, because this is the ONLY chance you have in pitching your bookkeeping services.

WRONG!

What’s the purpose of the flyer? Not to answer all the questions, but to raise the curiosity to the next level.

Remember this: You are selling the sizzle – not the sausage

There’s more about this in our Ebook “How To Find Bookkeeping Clients”.

“Sorry, I can’t take on new clients!”

“Sorry, I can’t take on new clients!” is a common response from bookkeepers. Many bookeepers see this dilemma as a negative.

You may be working flat out, and really have no more hours left in a week. Have you considered your true income level? Perhaps you started out at a low rate and picked up some clients that have “been good to you” by providing you income that you were desperate for as you were starting your bookkeeping business.

You gain more confidence, and put your rate up for new clients. Gradually you find that you’ve got more clients and they are all paying different rates for your services.

When you reach the stage that you are at full capacity, you decide that you cannot take on new clients.

This conclusion is often based on incorrect information. You look at yor diary and see that it’s already full.

We never turn away new clients. Not immediately. Here are some points to consider before turning away new clients:

1) Do you have “troublesome” clients?
If so, could the new client become a replacement?
- You could approach you difficult client and advise that you were putting your rates up – Consider first whether a rate increase is worth the pain of the troublesome client. Otherwise you could just tell them that you are too busy to continue working with them

2) Do you have any clients that are still on the low rates?
Advise that you are putting your rates up – and you’ll get one of two responses. Either they decide to stay and accept the rate rise, or they choose to move on, and you’ve now got time for the new client.

3) Pareto’s Rule
Before you ask, it’s also known as the 80 / 20 rule. Have a look at your client list and determine how much time you are spending with which clients. Chances are that you spend 20% on the clients that generate 80% of your income, and you spend 80% of your time on clients that generate 20% of your income.

This doesn’t necessarily equate directly to billable time especially if you charge hourly.

4. Have you considered employing a junior bookkeeper?
Do you know of any bookkeeper who’s looking for some extra work? You could see if they’d be interested in working for you part time, as you build up your client base.

Another option is to sub-contract to another bookkeeper

It’s worth bearing in mind that if you follow this path, that you need some quality control proceedures in place. There’s always a risk that your staff or sub-contractors make a mistake, and you are the one that has to face the music

It’s upto you: Having too many bookeeping clients can be a problem or an opportunity

“Too busy to take on new clients”

“Yes, please”, replied the bookkeeper. “Please will you help me find some more bookkeeping clients”

Often we will receive calls from clients that need someone yesterday, or even last week – so we need to find a bookkeeper to service that client immediately

Two weeks ago a client contacted us wanting Quickbooks training – we contacted the bookkeeper who then agreed to accept the contract

Last week we get a call from the client asking what happened to the bookkeeper – it seems that some bookkeepers are just too busy to find a couple of hours to earn some easy money.

“Having too many clients is a great problem”

The bookkeeper didn’t get back to us, so we then contacted another local bookkeeper – who was very keen to take a new client.

Two days later, after we send a follow-up email, we got a curt reply saying that they were too busy to service this client.

This is a concept that we really do not understand: We do whatever we can to service new clients, knowing that our regular clients are quite happy for us to shuffle around our timetable.

That new client could be worth $1000’s to our business. Having too many clients is a great problem to have. Having too many clients gives you the option to review your client list and decide which clients are giving the best return on investment

So many bookkeepers have benefitted from our Ebook “How To Find Bookkeeping Clients”. Just as there are clients that will never appreciate the value of your services, you’ll find that there are bookkeepers who do not see the value of information that is put under their noses.

We offer a free extract of the book – “try before you buy” here

Some people just miss the point – but are willing to waste endless hours in research chasing the “holy grail” of resources.

Andrew writes: “The introduction is not really a chapter in a book. It is just outlining what’s in the real chapters.

All that info was already on the website – it’s just been restated

[correct, Andrew. Any good bookkeeper will tell you, they never assume anything in their work - we never assume that everybody has read what's on the website]

I thought that you would give a proper chapter to see if what is in the book is worthwhile to me and to see some of your ideas and all that.

[We do, Andrew. Perhaps you just skimmed through the free extract]

All the intro does is tell me what you are going to tell me but it doesn’t give an idea of why your book is better than all the others. Doesn’t really help. You really need a practical chapter that I can review so I can see if the book is really good. Even an extract of a chapter with something I can use to see if the book really is good and knows what it is talking about.”
[We do, Andrew. Page 6 of the extract is "Chapter One - The Foundations of Marketing Your Services"]

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Andrew, you are absolutely correct. The inroduction is not really a chapter in the book. Page 6 of the extract is “Chapter One – The Foundations of Marketing Your Services”

This chapter sets the foundation of the book.

This book has helped bookkeepers establish a business turning over in excess of $60,000 in the first year.

It’s not for everybody, only for people who are looking to get ahead. It’s not a novel, it’s a working manual full of various strategies to help bookkeepers build a strong and solid business.

The bookkeepers that have benefitted from the book have read through the book, then gone back and read through each chapter.

They’ve highlighted concepts and strategies that are suitable for their particular needs.

The bookkeepers that skim through it hoping to find a list of clients waiting for a bookkeeper will be disappointed. Since most bookkeepers are very thorough and pay close attention to detail, they will pick up on the “gems” that are in the book that others will miss in their search of the “holy grail”

What value do you place on your future as a bookkeeper?

The value of the information is far in excess of the price tag – an amount that many people are willing to spend each week on buying a lottery ticket with no guarantee of success

Working from home is a challenge for most people initially.

If you treat it as if you are “going to work” – so you get dressed, and ready for work, then “go to work” in your home-office, and write a “To Do” list.

Try to schedule your day / week just as you would when you were working fulltime for someone else

Being “the boss” means that you have to make the decisions for “your staff” [which, in this case, is you].

Maybe write a business plan for your business, and create the “Job Titles” or “departments” for the work that needs to be done.

Since it’s all up to you, you’ll be changing “job hats” throughout the day or the week, to complete the tasks that you have set “your staff” – i.e. you

You’ll soon find yourself so busy that you won’t have time to do a load of washing – it will have to wait until the weekend!