Unlocking the Hidden Profitability in Your Business

Many freelance bookkeepers find that in order to increase their profitability they either have to raise rates with their existing clients or seek out new business. They then feel pressure because they have no idea how they are going to fit those new clients into an already jam packed schedule.

Already feeling overwhelmed and stressed, one client request when you are already up against the wall on a deadline for another client can make you feel completely out of control, more stressed and prone to mistakes. You find yourself working all of the time, sometimes feeling as if nothing is getting done and the fees you are being paid, well they just don’t measure up to the amount of effort being exerted.

When you feel as though your business has taken over, it’s hard to take a step back and look at it from a different vantage point. There is hidden profitability right now in your business, and with the clients you already have.

The key is to unlock that hidden profitability so that it serves you and your client without sacrificing quality is creating and implementing systems. Systems add structure to how you deliver your services and are the keys to consistent quality results for you and your client.

There are two reasons why you would want to create systems:

1) to stop the trap of recreating the wheel each and every time a task needs to be completed, and; 2) to ensure work is being done consistently and as you want, even if you are not the one doing the work.

A system lays out a plan so that every time you do that particular task, you don’t have to think, you simply follow the plan. Systems are important whether you are a solo-provider or have staff that provides the service along with you.

Here are nine systems you will want to create for your business that will unlock and keep more of your hidden profitability in your pocket.

• Service Offerings – define what items or tasks are included in your core service offerings. This eliminates the creation of custom packages.
• Client Schedule – identify a set schedule for performing all client work. Similar to the way in which a payroll company processes your payroll.
• Processing of Financial Transactions – define how each type of bookkeeping transaction is to be input, including the fields to be filled in to how the general ledger memo reads. This system is a key ingredient to unlocking profitability.
• Requesting Client Information – define what standard information is needed from your client on a regular basis. Provide them with that information to eliminate and reduce questions.
• Client Package – identify the contents of what is included in a standard client package that is returned to the client for weekly or month processing.
• Time Standards for Providing Services – define the average amount of time it takes to complete each group of bookkeeping tasks. Use this as the measurement against which work is performed. This system is a key ingredient to unlocking profitability.
• Status Reports – create a method or report that will allow you to easily know the status of each client account at a moment’s notice. These reports come in handy, especially when a client calls with a question.
• Responding to Messages (Phone & Email) – define and communicate to your client the best way to reach you and/or your staff and the timeframe within which they can expect a response.
• Communicating Client Co-Accountabilities – in every relationship there are actions that each party is responsible for. It is important for you to define and communicate what those expectations are to your client.

As freelance bookkeepers we are consumed with the details involved in keeping our client’s books and records accurate and up-to-date. Accounting, bookkeeping, and recordkeeping, is just one of those services that seem to never end – just like laundry. There is always more to do, which makes it so important to identify and define the processes (aka systems) that allow you to create a freelance practice that will support you body, mind and spirit.

© 2009 SUMSOLUTIONS LLC. All Rights Reserved.

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Linda A. Hunt, the small business accounting expert teaches bookkeepers how to create a 6-figure freelance practice. To learn how to create a freelance practice that supports you body, mind and spirit, register here for her free bi-weekly newsletter at www.sumfreereport.com.

Want to learn how to achieve a gross profit of 50% or better?

Last week was distressing!

I had been in coaching call after coaching call with my mastermind members and almost EACH one had the same issue – THEY AREN’T PAYING THEMSELVES!!

And if they were, they were not paying themselves enough to make ends meet. This is absolutely no way to live and why I have quickly put together the 3-call series:

“How to Keep More Profitability From the Clients You Already Have!”

You see, the secret success formula to my 6-figure practice was not getting a ton of clients.  (The maximum number of clients we had at any one time was 25.)  The secret is in HOW I serviced those clients.

Which helped me to maintain a 57% gross profit margin on ALL my accounts (…and HOW YOU CAN TO!)

Do you know what your average gross profit margin is?  From speaking with many of you across the country, it averages between 35% and 42%.    What if you could increase your gross profit percentage by:

• 5 points?  That’s an additional $400 in your pocket each month.
• 10 points?  That’s an additional $800 in your pocket each month.
• 15 points?  That’s an additional $1,200 in your pocket each month.

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In this 3-call series (2 instructional and one live Q&A), I will be sharing with you:

• How to catapult your results, increase your sanity and free up your time (the 4 critical systems every bookkeeping business needs to have in place)
• How to manage the time spent working on each client account (HINT:  it starts before you even begin working with the client)
• How to price and package your services to support the way you DELIVER your services

These are the three keys to the puzzle that when put together properly they are the keys that will unlock your hidden profitability with the clients you already have!

Look I know you don’t like to move quickly but I know you need money and because of that I am starting this program in ONE WEEK.  That’s right on Wednesday, September 23rd.

This is a quick program – 3 classes: Wednesday, September 23rd, Friday, September 25th and Saturday, September 26th.  And from these 3 classes you will have the tools to KEEP MORE MONEY IN YOUR POCKET.

For the 1st 5 people who sign up, you will receive a private LIVE group coaching call, where we will identify the steps you need to take to implement these steps into your business immediately.  Each person will receive one-on-one time with me directly focused on your business. This call is just for the first 5 who sign up.

I’m also rewarding you for quick action!  Sign-up by Friday, September 18th and pay $197 – that’s a savings of $100! 

Click Here for more details and to sign-up!

The classes will be held as 90-minute webinars where I will share with you the tools you need and HOW to implement them into your business.  Plus, I’ll be offering live coaching during the Q & A Session, so you’ll have the information you need to apply these proven methods to your own bookkeeping practice immediately.

Let me help you to keep more profitability from the clients you already have.

To your success & more money in your pocket,

Linda A. Hunt
Small Business Accounting Expert

PS.  Remember, the key to increasing your profitability is not in how many clients you have, but in how you service those clients.  Lock in your space now: Click Here for more details and to sign-up!