One of the nine systems that you want to have in place for your accounting business to run efficiently is a standard client processing schedule for your clients. Basically, you need to let them know what information they need to include in their submission to you. 

This will be easier for the clients that you process on a weekly or bi-weekly basis as they get used to the routine.  The clients that you process on a less frequent basis will need more reminders and handholding.

For weekly or bi-weekly clients, you’ll need to concentrate on educating them as to what is needed during the first two months of your working relationship.  Provide them with a comprehensive checklist of what they need to submit. Be prepared to give them reminder phone calls if you know they’ve received certain documents but haven’t submitted them to you yet.

For clients that you process on a less frequent basis, you should plan on sending a reminder of what information is needed and when. For example, for clients who are processed monthly at the beginning of the month, send them their checklist via fax or email and include on it the due date.  If they don’t submit their information to your accounting business when it’s due, give them a phone call and follow-up the first couple of times.  Remember, you are training the client to follow your process and the payoff is huge in reducing the amount of time you will spend managing that client account in the future.

Follow the same process for any additional information that your accounting business may need to process the client accounts.  Again you will find this to be less of an issue with the clients you are processing on a more frequent basis because gathering their accounting information is something they are doing on a routine basis. I suggest that you create a standard type of communication for additional information requests and go through this with the client when you first start working together.

Just like the standard process you have (or should have) for your staff, you really need to create a standard process that your clients can follow as well.  The key is to keep it simple for the client so that they will do what it is you’ve asked them to do.  If you make it complex, they’re not going to do it. It takes some upfront time to get your clients trained, but I guarantee you that the time you spend will pay off in the long run. 

Discover more proven techniques at the Bookkeepers Club – every month you’ll learn new systems that increase your productivity and the bottom line of your freelance bookkeeping business.

Have you ever found your clients slightly stressed with the idea that someone else is going to be doing their bookkeeping? Maybe now that your business is growing and you need to add support staff they say, “It’s okay that your staff helps your other clients but I want you to continue providing my services.”

The whole purpose of hiring additional staff to grow your firm is defeated if you can’t turn the work over to your staff!

If you’ve ever faced this dilemma, creating uniformity and consistency for all of your client accounts will help your staff know what’s expected so they can produce the same results as if you were doing the work. Over time, your clients will be reassured that they receive the same quality of work that they’ve come to expect from you. (And even if you aren’t delegating tasks the following suggestions will definitely help you to be more organized.)

Here are four ways you can create a business that works efficiently and even unlock hidden profitability.

1. Create basic processing input rules for these five areas that are being performed on a regular, routine basis: accounts payable, accounts receivable, cash receipts, payroll and interim bank reconciliation.

The easiest way to create your own set of basic processing rules is to thoroughly go through how you process accounts. Here are a few suggestions:

• Write down the rules, in bullet format, you want applied across the board for each client. Keep this simple and easy-to-read.
• Review it with your staff.  Don’t just hand it to them and expect them to read it.
• Answer any questions they may have and listen to their suggestions of other rules to add to your list.
• Provide them with review notes when they don’t follow a rule and have them fix it so they’ll learn how to do it.

2. Create a standard chart of accounts with staples within each of the numbering categories. For example, accounts payable is number 2000. Owner equity for partner number one is 3000, etc. General and administrative expenses always begin with 6000.

3. Create standardized general ledger memos that are detailed. That way anyone can understand the transaction and doesn’t have to go back to the original documentation to determine the purpose of that transaction or answer a question that arises six months from now.

For example:

• Vendor bills – The GL memo should include the billing period or statement ending date.
• Payroll – The GL memo should include the payroll date.
• When applying a payment against an invoice, the invoice number should be documented.

4. Create follow-up of outstanding issues and/or missing information by compiling a client status report which summarizes all of the activity that occurred for that client for the past week. Pay special attention to the outstanding issues section, which documents:

• the issue,
• the date it came about,
• a brief description of the issue,
• a brief description of what has or has not been done to resolve it,
• and the initials of the party responsible for resolving it.

It may take some time and effort to get these processes up and running, but once you do, you’ll appreciate how well your business runs.

Want to read more about processes that will help your business grow? Here are some blogs on the subject. Be sure to post your comments or questions!

Unlocking the Hidden Profitability in Your Business

Why Following a Process Increases Your Bottom Line

We’ve all had one.That client who on a good day is not the easiest person to get along with! Managing them can drain your energy and make you cringe each time the phone rings!

But that is exactly what you need to be doing – managing them and all of your client relationships. Taking the lead in your client relationships places you in a proactive position and will even help you to anticipate even your most difficult client’s needs.

The key to a happy client relationship is being clear and in charge of how you are providing your services and then communicating exactly this to your client. You don’t need to provide them with every detail of how you run your business, just enough information to give them a sense of understanding so that the questions in their mind are answered.

How can you proactively manage even the most difficult client?

There are many ways clever ways you can manage your client so that they feel cared for and regard you and your business with trust and respect. Here are seven simple ways to get you started.

• Routinely Check In With Your Client . Reach out to your client to say hello and check-in and see how they and their business are doing. Remember, to keep the call short and professional. The purpose of this call is to not follow-up on any missing information you may need from the client. It is purely a feel good call.
• Plan Ahead. Make it a point to plan at least three months in advance for all of your client accounts. This will help you to anticipate their needs and place you in a proactive position. Be sure and discuss what is coming up for your client directly with them so that they gain the sense that you have their needs covered.
• Create A Set Schedule for Client Work. Creating a set schedule for when work will be performed on each client account helps everyone involved with the account to relax and know when events are going to occur. This helps clients to know when to submit their information for processing and when the finished product will be returned to them.
• Say What You Do and Do What You Say. If you tell your client you are going to do something and have it completed at a specific time, be sure that is what you are doing! Saying you will do one thing and then not delivering what you have promised creates distrust in the eyes of your client.
• Ask for Feedback on Your Services and Listen to Your Client. This may be hard at first. I guarantee you that you will garner some very important information that will not only help you to improve your services, it will also help you forge a stronger working relationship with your client.
• Send out a Quarterly Recap Report. Once a quarter, send your client a brief one-page overview recapping the events of the previous quarter and HOW you helped them. I cannot even begin to write about the many benefits you will reap from this recap report.
• Share Your Successes With Your Clients. Everyone likes to hear good news and be associated with people who are successful. Be sure and share when you add someone to your staff or if you’ve added new technology to enhance the services you will be providing to your clients.

Remember, it’s that personal connection that matters most and will help you to create long-lasting client relationships.

Take some time today to think about how YOU can better manage your client relationships. Then chose at least one of the 7 ways listed above to implement this month. Who knows, that grumpy client could become your biggest advocate!