Just wondered how business was for you bookkeepers in practice? I started mine 8 years ago. I've only ever run it part time, as we had a young family, and it suited me to be flexible and fit in with school runs and holidays etc. From the beginning I had little trouble growing my client base. In fact by 2 years ago I was pretty much at the maximum I could achieve, but still with the flexibility to take time out during school holidays etc. I'd made it through the recession, and was planning on expanding further as the kids got older, as I had more time on my hands.
However, about a year ago I lost a client when he lost his main contract and had to close up. Then over the summer I lost a few more, either by retirement, selling the business or closing. One client moved the bookkeeping to his (untrained) wife, (on Xero), and wanted to pay me £50 per quarter to do the VAT submission. When I looked at the first quarter, it was such a mess, (postings made to incorrect accounts, sales missing, bank not fully reconciled etc) I said it would cost him a further £120 for me to go through and correct, as I wouldn't do the VAT in that state. Needless to say he got the hump and left me.
Since October I have been actively seeking more clients. Previously a 3 month ads in our local free paper would have resulted in 2 or 3 new clients. I placed a 12 month ad in, starting in October, and have had 1 enquiry on bookkeeping that came to nothing, and one personal tax return client. I've been to a few networking do's; but everyone is selling and no one buying. Although I am 'getting out there' with these events, it has produced zero enquiries to date. I've spoken to 3 accountants who know my work. All have said they would be happy to recommend me to anyone approaching them for a bookkeeper. But again, nothing has come of it so far. I've had cards printed up, and am going to get them into local shop windows / pushed through small business estates. My website is updated, and in the top 3 or 4 on searches. What else can I do??
I am beginning to get disheartened at the lack of growth. I like to be busy, but am scratching around for work, and the drop in turnover is obviously a concern.
Am I just going through a bad patch, or are more and more small businesses now doing their own books? I have applied for MAAT MiP, and will be offering full accounts (through a mentor) but it seems to me that everyone thinks they can do their own accounts these days. And I am seeing more and more ads for people offering bookkeeping who seem to have hardly any experience or qualifications. This month there is an ad in the same paper I am in from a guy (no qualifications mentioned) offering Personal Self Assessment from a box of receipts for £75, and small Ltd Comp Accounts (turnover to £100k), Corp Tax, 1x Directors SA, monthly bookkeeping, payroll and VAT for £400 all in! So there's no wonder I'm not getting a response from my ads if that's my competition!!
Sorry for the rant - Just feeling really fed up with it all....!
Its not a rant if it's something that needs saying.
The issues are not accross the board as some area's of the country are still seeing growth. However, money is tight out there and many are either doing it themselves or going to the cheapest service provider as they feel that bookkeeping and accounts are a statutory obligation rather than a benefit to them.
In many areas there are too many bookkeepers for too few clients. Thats quite understandable as people often turn to this career path on the back of redundancy but of course if many people are being made redundant in an area and too many turn to bookkeeping who are they going to service?
Another thing working against us is more focused internet marketing where businesses are bombarded with offers. Even I get them and I couldn't match the fee's that they are offering clients.
I am assuming that in many cases to reduce costs the work is being offshored to countries without a minimum wage.
Also note that a bookkeeper is not only competing against other bookkeepers for every client but also accountants who each generally needs to build a stable of 400+ clients for a small practice of a couple of accountants and a half dozen assistants.
On the comment about someone offering their services without including their qualifications that doesn't mean anything as many accountancy bodies allow students and members to offer limited services without being able to tell anyone who they are with so the lack of qualification in the ad covers the whole spectrum from unqualified to very qualified and experienced.
Of course, that does hide the unqualifieds who, via things like People Per Hour cause issues over comparative rates for all of us.
Another thing to consider is technology in that if small business owners are doing everything on their ipads are only accountants and bookkeepers linked to that software getting the filing and fixing work? (and the clients doing all of the main data entry).
On a personal note I have not lost any clients and those I have across the board I have increased my rates by an average of 30% this year (mostly in line with client growth and time requirements for clients rather than greed on my part). But, (big but) I did note in January that I received far fewer enquiries than I did this time last year.
The industry is definitely going through change and if we cannot shake off this illusion that clients have painting us as an overhead rather than a benefit to them then I fear that bookkeeping as a profession may be heading the same way as the dinosaur.
In conclusion I would say that it's a basic supply and demand issue in that there are too many of us chasing too few clients across a landscape that is changing faster than we are adapting to 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.
Just wondered how business was for you bookkeepers in practice? I started mine 8 years ago. I've only ever run it part time, as we had a young family, and it suited me to be flexible and fit in with school runs and holidays etc. From the beginning I had little trouble growing my client base. In fact by 2 years ago I was pretty much at the maximum I could achieve, but still with the flexibility to take time out during school holidays etc. I'd made it through the recession, and was planning on expanding further as the kids got older, as I had more time on my hands.
However, about a year ago I lost a client when he lost his main contract and had to close up. Then over the summer I lost a few more, either by retirement, selling the business or closing. One client moved the bookkeeping to his (untrained) wife, (on Xero), and wanted to pay me £50 per quarter to do the VAT submission. When I looked at the first quarter, it was such a mess, (postings made to incorrect accounts, sales missing, bank not fully reconciled etc) I said it would cost him a further £120 for me to go through and correct, as I wouldn't do the VAT in that state. Needless to say he got the hump and left me.
I lost one client last year, but it was a CIS once a year job, so didn't make any serious impact.
Since October I have been actively seeking more clients. Previously a 3 month ads in our local free paper would have resulted in 2 or 3 new clients. I placed a 12 month ad in, starting in October, and have had 1 enquiry on bookkeeping that came to nothing, and one personal tax return client. I've been to a few networking do's; but everyone is selling and no one buying. Although I am 'getting out there' with these events, it has produced zero enquiries to date. I've spoken to 3 accountants who know my work. All have said they would be happy to recommend me to anyone approaching them for a bookkeeper. But again, nothing has come of it so far. I've had cards printed up, and am going to get them into local shop windows / pushed through small business estates. My website is updated, and in the top 3 or 4 on searches. What else can I do??
Last year I advertised for 10 months in a local glossy magazine. I had 3 enquiries, which I secured, but they were one off self assessments rather than regular work. Plus another one that was asking me to check his self assessments over the last 5 years due to a verge large recalculation from HMRC. To be fair I made a small profit on what I spent and what I gained but I was disappointed with the overall result.
Worse than that was the £450 I spent with yell.com the previous year. Two dead enquiries but a million sales calls from people selling me gas electric telephone service and water coolers!
All my other work is from recommendations and long may it continue. I gained a new client through a friend in Hull, who has since recommended me to his nephew and potentially one of his customers. It truly is the best form of advertising.
Am I just going through a bad patch, or are more and more small businesses now doing their own books? I have applied for MAAT MiP, and will be offering full accounts (through a mentor) but it seems to me that everyone thinks they can do their own accounts these days. And I am seeing more and more ads for people offering bookkeeping who seem to have hardly any experience or qualifications. This month there is an ad in the same paper I am in from a guy (no qualifications mentioned) offering Personal Self Assessment from a box of receipts for £75, and small Ltd Comp Accounts (turnover to £100k), Corp Tax, 1x Directors SA, monthly bookkeeping, payroll and VAT for £400 all in! So there's no wonder I'm not getting a response from my ads if that's my competition!!
Depends on how many receipts! One of my clients has 250 receipts a month so if you get me the number I'll contract that one out and pocket the difference
Keep at it, maybe taking a part time paid job if needed. One suggestion which I'm planning on doing myself later this year is to get some A5 glossy 350-400 gsm cards made up professionally and either mail shot or deliver door to door. I saw it recommended on here in an old thread and thought it a good idea.
Hi
Im having the opposite problem at the moment Liz, but not on the back of any advertising at all. I dont have a website nor do I leaflet drop although I did do some networking but with mixed success. Ive gained all my clients through recommendation - the first one more on the back of helping them sort their paperwork out rather than bookkeeping, although it snowballed then to other things.
I would say do two things - always ask your existing client base if they know of anyone needing a bookkeeper or if they will introduce you to someone. Probably most of us shy away from asking but I often find the answer is - oh yes 'xx' was asking me the other day...they just dont always connect the dots to think of passing it on to you! Odd I know, but definately true. The other is to offer something the other bookkeepers arent....businessplans, credit control, bit of admin work (the admin work you can quite often charge more for, believe it or not!) - I look after an ex footballer so Ive even done some sports agency work for him on a temporary basis!! That sure as heck pays more if you have the right contacts! All of that is, of course, if you dont mind diversifying that little bit, which might appeal given the downturn you are experiencing.
Good luck with it, whatever you decide to do!
Good point John about the box of receipts for £75 - I could use that contact number too!!!!!!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I am have the opposite experience and having difficulty keeping up with issuing engagement letters.
Signed up 30 new clients in the last 3 months and have 22 prospective that really need to get around to contacting again and trying to move a few of them on.
Well I am like Mark, I am at the point where I don't advertise anymore although I do have a website. I have networked loads the last 2 years and it has definately paid off. I am at the point where I am turning work away as I can't cope with what I have.
I did get hit in the recession like a lot of us did, but I still did tick over, I was very part-time then, where as now I am more or less full-time.
Keep plugging away at it and don't become disheartened it will happen, just keep networking, I don't necessary think cards in shop windows are any good to be honest. Hit the small LTD co's on an industrial estate, this is where they will more likely be using a bookkeeper. I personally don't do too many small sole traders now as they are more hassle than they are worth, go for the small to medium size companies where you can add value to your work, this is where you will become a valued bookkeeper and they will hopefully get you to do more and more and then you can charge for it. Adding value to your client is always profitable!
God I am sounding like Bob Harper!!! Us oldies will know who I mean, unfortunately the newbies won't.
The best bit of advise I ever had was from Rob on here, and he said go out and network, it takes a long time to get a return but when it does it will snowball and go mad! Get in with as many accountants as you can, if they are at a networking event make a point of going and talking to them. Then afterwards send them an email and ask them if they want to meet up for a coffee and chat, it always works, I have done it loads. Be bold and go for it!
despite our run ins (sheep video, alternative accountants, Grrrr) I actually find myself missing Bob.
Don't know if you ever read Accountingweb but he got an even worse time there than he got here.
Think that if he'd led with value pricing and been able to explain it in non psuedo management consultant speak then he would have done far batter on here as I'm sure that the guys heart was in the right place even if things did get a little lost in translation.
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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 found it very busy recently and demand for bookkeeping work has increased. This has been mainly from existing end of year accounting clients where their business is growing.
Biggest problem I think is, as highlighted, competition. It seems very easy for bookkeepers to get qualified and take on work at £10-12 per hour. The trick is ensure you can justify why you charge that little bit more. Get client testimonials, recommendations, success stories etc. and put them on your website, facebook page so that they can be seen and referred to.
Networking is a great way of promoting your business and there are plenty of good ones around. I use 4Networking www.4networking.biz/
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Phil Hendy, The Accountancy Mentor
Are you thinking of setting up your own practice or have you set up and need some help?
If so a mentor may be the way forward - feel free to get in touch and see how I can assist you.
Only £10-£12 per hour, god that's very cheap, the cheapest I have come up across is £15/hour, I charge a lot more than that now. I have increased all of my prices and haven't lost anyone or anyone even query it.
Its the value that you can add to their business not necessarily how cheap you can be. No point in going out and getting paid a pittance to do a job that is worth a lot more. The old saying is you pay peanuts you get monkeys!
Bend over backwards and add value to each client, it will work and people will talk, recommendations will then flood in. You be be on here in a years time and say that you are rushed off your feet!
Shaun - I kind of miss Bob too! You know what after a couple of years not hearing from him on here, I kind of get what he was talking about. Its a shame it just didn't say it all in plain old english instead of jargen. I understand the 'adding value' bit now, took a while for the penny to drop!
Although there is competition where I am we are all more or less full to capacity so we are not treading on each others toes at all.
Networking is the key and a website and of course facebook. Go for it, its worth it in the end!
I saw a website yesterday - advertising bookkeeping monthly packages for sole traders from £7.95 (and yes a qualified bookkeeper) - made me feel a bit despondent !!!
Yes but it says form £7.95 but I bet in reality once they saw the client etc it would be a lot more. They are just dangling the carrot, and if it is really that cheap what are you going to get for your money? You would be lucky if the bookkeeper is capable of turning on the laptop for that!
I saw a website yesterday - advertising bookkeeping monthly packages for sole traders from £7.95 (and yes a qualified bookkeeper) - made me feel a bit despondent !!!
Hah - that made me laugh! Thanks for all your positive comments. Think perhaps I'm suffering from the winter blues!! I do want to get more small Ltd company work. They seem to be the ones you can add value to. I have been told by both clients and their accountants that I am good and thorough at what I do, so why should I charge a pittance?
The reason I put up my fees last year was because a client pointed out that I had local competition- from someone who, from the info on their website was a lot less experienced than I, but was quoting £22 per hour (£2 more than I was charging.) Hence my fee increase! And although I lost some clients last year; it wasn't as a result of that.
Might look at the 4Networking. Will hang in there and hope things take a turn....
I've been really lucky just recently. Took on a new customer who wants 1.5 days per week but he is in contact with lots of small/medium businesses through his networking and acquired 2 more new customers within the first fortnight!!
I am on my own and working full time hours (which I didn't want to do!!!) but it's all money in my little bank account and now having to turn work down - which goes totally against the grain! Don't know what to do really!
My numbers are holding steady and while I have lost the odd client the gap never sits there long! I have two medium size businesses coming into the fold soon, one is waiting on a physical change in location, at which point the old bookkeeper will retire (the solicitors have been dragging their feet since last May! I'd be going loopy but this crew are so laid back it's amazing) the other is the sister business to one I already work with and if their books are in as much chaos as the ones I had to sort out 2 years ago I shall cry! Please note that I will not be surprised.
I don't advertise but I do network, as with Phil I'm with 4Networking and I find I get all the leads I need from there and the associated word of mouth that goes with.
Not been on lots as I'm having a similar problem to Mark and Amanda. I can hardly keep up with the new clients.
I find that by clearly defining and targeting only my ideal clients have really helped in getting new clients. I wrote a couple of articles on this if anyone is interested.
I find that so many bookkeepers I talk to think that everyone is their ideal client and waste loads of very limited resources trying to advertise to everyone and end up attracting no one (or very few)
and now having to turn work down - which goes totally against the grain! Don't know what to do really! 
