How To Start A Bookkeeping Business

“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