Why Following a Process Increases Your Bottom Line

Bookkeeping reminds me of laundry – they both seem to never end! Every day there are new dirty socks to be washed and everyday there is a new financial transaction (vendor bill, deposit, etc.) to be recorded. 

You pre-treat stains, match like colors together, hang certain clothes on the line, place others in the dryer, and even outsource a few to the dry cleaners. When you do your laundry, you follow a process, thus creating a plan that optimizes and adds efficiency. The same can be done when providing bookkeeping services to your clients. 

When you follow a process when providing your bookkeeping services you will: 

• Optimize the time spent working on each client account;
• Reduce the number of client requests that interrupt your day;
• Be more organized, and;
• Feel more confident and in control.

Systems exist everywhere and for just about everything. A system lays out a plan so every time you do that particular task, you don’t have to think, you simply follow the plan. Systems are important because they create efficiency and consistency. Systems also unlock the hidden profitability that already exists in your business! 

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

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

• Basic Processing Rules & Guidelines – 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.
  
• 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.
  
• 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.

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. 

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