Do these 3 things to become a virtual CFO

Hi friends! Happy  #TSheetsTuesday.

As I shared last week, I am now answering your burning questions about how to be successful in the accounting industry. To have a chance to have your question featured, click here to join the fun.

This week's question comes from Jeff in Indianapolis, Indiana, USA. 

He writes:

Hi Danetha! I started my bookkeeping practice almost a year ago. It’s going well, I have twenty-two clients. But, I’m working a lot and not earning as much as I’d like. In order to take on more clients, I’ll have to hire help, BUT my business is not generating enough revenue to pay someone well. Do you have any advice on how I can improve my business?
— Overworked Bookkeeper

This is a fantastic question, Jeff! First of all, congratulations on launching and building a great book of business.

As you are seeing, you have created a earning ceiling within your practice. In order to increase your revenues, you will either need to hire someone or expand your services to your existing clients.

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Hiring someone comes with additional costs, and it sounds like your margins are not to the point (yet!) where you can justify those expenses.

The route I would suggest is to begin offering CFO/Business Advisory services to your existing clients.

Have a conversation with 7-10 of the clients that you most enjoy working with and you feel could really benefit from additional support.

When you chat with them, be very transparent and say that you are testing a new offering. As a virtual CFO, you will help them gain a deeper insight into their financials so they can make more informed business decisions. Just like you did when you realized that hiring another team member may not be the best decision at this point in your practice!

The virtual CFO service will include one clarity session per quarter, and a monthly session to review benchmarks. No additional overhead and it will not require that much more of your time!

Expect about half of them to say yes. And when they do, do these three things to get the ball rolling on your new offer.

  1. Schedule a clarity session with each client. This is meant to jumpstart the new service. The goal of this 45-minute session is for both of you to get clear on their 90-day and one-year business objectives.
  2.  Schedule a monthly session. This is to review their financials and go over any recommendations you have their business.
  3. Become an industry expert. Start familiarizing yourself with each of the client's industries. Read trade publications, attend local events and start following thought leaders within the space. This will help you tremendously during your monthly sessions because you can share insights with them about trends that they may not be aware of.

Hope that helps, Jeff! Time to take action and reach out to those clients.

And now, I'd love to hear from you. Have you experienced an earning ceiling in your practice? How did you go about fixing it?

Leave a comment below!

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About Danetha: Danetha Doe is a millennial thought leader in the accounting industry. Named a "next-generation accountant" and one of the top 40 under 40 accounting professionals, she is an international speaker and leads business development trainings for accounting firms.