Maximizing Bookkeeper Revenue with More Clients, More Transactions and Larger Transactions

Many bookkeeping business owners have not taken the time to really consider the three major factors that make up their total yearly revenue. Fewer still have taken the time to really make a concerted effort to see how they might maximize each of the three to push hard at maximizing their revenue and providing maximum value to their clients. Let’s take a moment to examine the three factors that make up the total yearly revenue for bookkeeping businesses and some ideas for maximizing each of the three.

The first factor, as you might imagine, is the number of bookkeeping clients that you have in your practice.

The more bookkeeping clients you have the better. So, what are a few ways that you might increase the total number of clients that you are providing your bookkeeping service to?

There are four ways that immediately come to my mind, as a marketing guy, on how to immediately and drastically increase the number of clients you keep the books for. The obvious one is more marketing, but that is not the whole story. Better marketing is also a key factor. As an aside it is not enough to just make a one-time improvement in your marketing, but you should be committing to a model of constantly improving your marketing. More and better marketing will get the phone ringing, but it really also takes an improved prospect conversion to really make a drastic improvement in the number of bookkeeping clients as well. Finally, the last way to really increase the number of clients you have is to provide work worthy of referrals… and here is the stressed part of the sentence… and ask for referrals. Having systems in place to systematically ask for referrals really does have a major impact on number of clients over any significant duration of time in business.

The second factor that contributes to your bookkeeping business’s total yearly revenue is the average transaction per client.

Many bookkeeping clients will have a relatively static amount of accounting work that will need to be done and attempts to increase the average transaction size with them will be futile, but there are ways to focus on increasing the average transaction size. Consider, for one, targeting businesses that have larger than average bookkeeping needs. By marketing specifically to these niches you have a much better chance of increasing your average transaction size. One way that many bookkeepers are reluctant to implement is raising your rates. If it helps you to think of it in terms of supply and demand, then go ahead and use marketing to get more than enough clients and then raise your bookkeeping rates to bring the number back down to a reasonable number for you to actually provide service to. I will point out for those astute readers that you do not need to use supply and demand but can immediately start with higher prices successfully. Your price is more often a reflection of your beliefs and not really a true reflection of the marketplace.

Finally, the third factor that determines your total yearly revenue as a bookkeeper is the number of transactions per year that you average client has.

Increase the number of transactions along with the other two factors and you will see revenue from your bookkeeping business skyrocket. But how do you do that? You probably already know. For example, you know that you need to provide amazing service to your existing clients. Happy clients will seek you out for more services. However there are other strategies that can help increase the number of transactions you can see from your clients like repeatedly marketing supplemental services to your client list. Perhaps your clients did not realize that you offered additional services. Mentioning it one time on a brochure you gave them during the initial interview is not adequate. Try some type of monthly contact like a newsletter to remind your clients and prospects. Another way to increase the number of transactions you do each year is to improve your sales and conversion process. Become better at recognizing challenges that business owners have that you can help solve and learn to be a better presenter of your solutions to those challenges.

In conclusion, by actively working on improving the number of clients, the average transaction size per client and the number of transactions per client in your bookkeeping business will truly maximize revenue in your business.

Until my next post,

James

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