There are lots of owners for bookkeeping business with knowledgeable bookkeepers whose not taken their time to consider the 3 major factors which make up the total revenue for the year. Fewer were taken their time to make a more concerted effort in order 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 which contributes towards your total yearly revenue for your bookkeeping business is what your average transaction every client.
Many bookkeeping customer will really have their 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 Melbourne 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.
The second 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?Learn some tips at https://www.usnews.com/news/best-states/new-jersey/articles/2017-09-02/bookkeeper-who-stole-more-than-1-million-gets-prison-term
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 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.
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.