Do You Really Need That New Client? A shift in perspective for overwhelmed Bookkeepers!

As 'End of Financial Year' approaches, I know that many bookkeepers out there are already starting to feel overwhelmed. Every EOFY, I come across countless posts on industry forums from bookkeepers who are stressed out, overwhelmed, and on the verge of burning out. It's a familiar story, repeating itself year after year. So many in our profession are:

·??????Struggling to keep up with relentless compliance deadlines

·??????Feeling obligated to meet unreasonable client demands

·??????Constantly short on time

·??????Working late nights and weekends, missing out on precious family moments

·??????Questioning why they subject themselves to this stress each year (and probably also each Quarterly BAS Lodgement period as well)

If this sounds like you…it’s likely your main issue lies around “capacity”.

I've been through the hurdles of growing a bookkeeping business and struggling with capacity issues firsthand. Balancing a growing client base, maintaining exceptional service, managing workflow, meeting deadlines, managing a team—it's a juggling act! And let's not forget the ultimate goal…. increasing revenue and earning a solid profit.

Trust me, I know exactly what you're going through!

When you're wanting to grow a successful bookkeeping firm, it's natural to feel the need to bring in new clients to boost revenue and profits, but what if I told you there's a different way to tackle these struggles?

Instead of chasing after more clients, the solution lies in shifting your mindset and making strategic decisions.

In this article, I want to get you thinking about the benefits of:

·??????Focusing on, and repricing existing clients (rather than chasing new ones)

·??????Consciously reducing the number of clients you work with

·??????Leveraging technology to build an efficient practice

By embracing this approach, you can achieve better revenue, higher profit margins, and ultimately experience less stress and more freedom in your professional (and personal) life.

So…how can this be achieved?

Evaluate Your Capacity:

Before you eagerly accept that new referral or client, take a moment to assess your current workload and capacity. Often, bookkeepers become burnt out and overwhelmed due to taking on too many clients without considering the impact on service quality. It's crucial to consider your capacity before taking on a new client, taking into account factors such as End of Financial Year and BAS Lodgements periods, and your ability to provide exceptional service to each client no matter what time of year it is. Quality should always take precedence over quantity.

Review & Reprice:

Rather than chasing new clients, consider repricing your services to reflect their true value. Many bookkeepers find themselves undercharging due to a fear of losing clients or a lack of confidence in their worth. By reviewing your pricing structure and adjusting it to match the value you provide, you not only increase your revenue per client, but you also attract clients who appreciate the expertise and quality you bring to the table.?You can also consider how you could provide even more value to existing clients with higher priced advisory services.

Consciously Reduce the Number of Clients You Work With:

Having a large list of clients doesn't automatically translate to success. In fact, it often leads to stress and a decline in service quality. By intentionally reducing the number of clients you work with, you can dedicate more time and attention to the ones you retain, resulting in better service and stronger client relationships. By ditching the D Class clients who can drain your time, energy and profit margins, focus on cultivating a smaller client base composed of higher-value clients who align with your ideal client profile.?

Embrace Technology for Efficiency:

Efficiency is key to maximizing your capacity and delivering exceptional service. Many bookkeepers struggle because they rely on outdated, manual processes that drain their time and energy. Investing in technology, such as cloud-based systems and embracing automation tools and integrated systems, as well as AI Tools, can streamline your workflow, reduce errors, and free up valuable time. By utilising technology, you can enhance your productivity, serve your clients more efficiently, and unlock opportunities for growth.?

Shifting from a Growth at All Costs Mindset:

It's essential to question the mindset that 'growth at all costs' is the only path to success. Instead, adopt a 'freedom mindset', where your focus is on sustainable growth, profitability, and personal well-being. Understand that more clients, do not automatically equate to greater success. By strategically selecting clients and focusing on higher-value engagements, you can achieve better revenue, higher profit margins, and improved work-life balance.

Remember, success lies not in the number of clients you have, but in your ability to provide exceptional service and find balance in your practice. In my own practice, I have half the clients I had several years ago; however, I have higher revenue and far better profit margins.

?So, before you take on that next client, ask yourself, "Do I really need them?”