Well, I started bookkeeping a few years ago now with my own business. It took a while to gain the customers that I had and I was getting to the stage where I was happy with how the business was progressing. But unfortunately within the last month I have lost 75% of my clients. Some businesses have decided to close due to struggling times , some have decided that they need to cut their outgoings and have decided to carry on with the bookkeeping themselves. Although I have tried to persuade the clients that bookkeeping can save them money in the longtem (especially as they don't really know what they are doing), their argument is that they are looking at the here and now and can't justify spending the money when they need it themselves. All have mentioned that they have been happy with the work that I have done for them, and they will continue to recommend me, but i still feel so disheartened that its happended so quickly.
I'm so disappointed today and now not sure whether to quit bookkeeping altogether. After paying insurance, money laundering etc its barely worth continuing. I'm only a small business, as its worked around my family, and my fees have probably been undercharged for a few clients so I don't think reducing my fees will help to gain new clients.
Has anyone else been suffering in this market, or is it just my time for some bad luck.
Sorry, sometimes getting it off my chest helps me to refocus and hold back from making rash decisions.
I'm really sorry to hear about your current anguish.
Is there any option to go beyond the services that you have been offering to date?
Bob Harper has touched upon it before that bookkeepers need to offer more than bookkeeping services to survive.
I have personally found that I was unable to turn a profit offering only bookkeeping to trial balance, VAT and Payroll work and had to reinvent my practice.
The issue as you touch upon is that in these trying times clients do not want traditional bookkeepers but rather cheap accountants able to give a full all round service... Or at least supply a one stop sollution.
As you have already identified, it's not your fee's, it's that your clients are like many looking to do as much as they can themselves before involving the accountant to finish the job. If you can offer the full service to smaller entities you should be able to shore up your current losses...
However, as positive a twist as I try to put upon things the Governments relaxation of SME reporting that's on the horizon isn't going to help matters for any of us (bookkeepers and accountants alike) as things are likely to get somewhat worse yet..
Good luck with whatever option that you take and I truly hoping that we don't lose you from our ranks. But when it gets to the point where it is more expensive to be a bookkeeper than the return available then as you say one has to take a long hard look at the diretion of our businesses.
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Really sorry to hear about your current situation. It's hard to be positive when something like this happens. As Shaun says it may be the chance you need to look at the services you offer.
Don't give up. Remember the darkest hour comes before the dawn.
kjmcculloch83 wrote:Don't give up. Remember the darkest hour comes before the dawn.
So if your going to steal your neighbours milk delivery that's the time to do it...
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I have personally found that I was unable to turn a profit offering only bookkeeping to trial balance, VAT and Payroll work and had to reinvent my practice.
wow, defo need a community discussion on the future role of the bookkeeper in society. A bookkeeper's job is to keep records up to date to trial balance, vat returns, payroll, AP, Credit control, run off balance sheet, P&L reports and do self assessments for clients with simple income streams (unlike trusts and complex tax avoidance schemes).
Maybe to turn a profit, bookkeepers need to take on more clients and find ways to spend less time processing transactions; but then following on from that logic; there will be a need for fewer bookkeepers to support UK businesses.
Regarding ICB's quote
"As banks get more worried about lending, and have obligations to make sure they are lending wisely, they are becoming more strict on who they give overdrafts or short term loans too." This only applies to accountants with chartered status (ACA, ACCA, CIMA, CIPA)
Dalbir
-- Edited by Dalbir on Tuesday 31st of July 2012 01:56:03 PM
"As banks get more worried about lending, and have obligations to make sure they are lending wisely, they are becoming more strict on who they give overdrafts or short term loans too." This only applies to accountants with chartered status (ACA, ACCA, CIMA, CIPA) "
If you are just talking about a small loan or overdraft, say £2,500, a bank is unlikely to demand you use a chartered accountant to go through your books. They just want to make sure the person has thought about cash flow properly, and a professional bookkeeper is more than capable to do that.
You would be supprised how many get told to contact bookkeepers.
Gill, out of the trades people I know most of them get professionals. Keep in touch with those that want to leave you to do it themselves. Mostlikely they will be in touch when they get letters from HMRC
What advertising are you currently doing?
Edit: spelling
-- Edited by ICBUK on Tuesday 31st of July 2012 02:21:35 PM
Try and stay positive, easier said than done I know.
At the ICB we hear of this quite a bit recently, the good news is that we also hear new clients coming along. So it would appear to be client rotation, replacing old clients with new ones.
For example, I had dinner with a good friend of mine who is a plumber. They used to work for a residential building company, but since recession has hit most of the employees (plumbers/electricians/tilers etc) have lost their jobs. The good news for bookkeepers is that they have all set up self employed, bringing a load of potential new business into the market.
I obviously pointed them to the ICB's find a bookkeeper page
That is just one example of stories where members can pick up 3-4 clients in one go.
Another slightly related example would be where existing self employed trades that used to do their own books are now being told to get a professional. As banks get more worried about lending, and have obligations to make sure they are lending wisely, they are becoming more strict on who they give overdrafts or short term loans too.
Try not to give up hope, but budget for advertising for a few months without immediate return.
Maybe try contacting some of the accountants you have contacted in the past, or attending networking meetings.
If you are a member of the ICB don't forget to try there also, there are members who are too busy and looking to sub contract.
I wish I could offer more services, but unfortunately I am not a tax specialist, and therefore don't do tax returns. I have done them when I was employed, but as self employed I am not qualified to do so.
I am also quite restricted because I still have children at home with me, a 2 yr and 4 yr old (soon going to school . I have been contacted by a couple of people but they needed onsite bookkeeping which I am unable to do. Putting my child in to child care would cost more than I would earn... so its very difficult. My market is aimed really at small businesses that are mainly run from home, for example like James says, the plumbers, but unfortunately they all want to do it themselves.
Part of me thinks maybe I should train in webdesign - total redirection I know. I did my own couple of websites for GM Bookkeeping and Family Research, and my sister in law has asked me to do one for her online business Home Accessories, but because I'm not trained in the techniques the website is taking a while to do. I don't think clients would wait as long as my SIL has! Maybe I should offer webpages to new clients
I will continue to try and get new clients for a few months at least and re-evaluate the the situation when I have to renew insurances etc. Its just disheartening when you build up a nice little business and all of a sudden its gone.
Oh just thought I would add that even if the bank did demand a chartered accountant, I doubt the accountant is going to spend time trawling through receipts and bank statements, they are going to get a bookkeeper to do it
