If you feel like your bookkeeping company could run more efficiently, you may be having workflow issues. Whether your firm is long-established or still in its infancy, there is always room to improve – even if it's only by 10%.
However, before making any changes to your company, you first must identify the areas of concern. For example, which departments, employees, or systems are causing this lack of efficiency? Would you be better off outsourcing specific jobs to focus more on your core services? If so, continue reading to discover 8 ways to improve the efficiency of your bookkeeping company and determine which ones to implement.
1) Be Transparent
Transparency is a given in every industry, but you're dealing with others' finances. So it's important to detail every step of your process to both employees and clients. This way, nobody is confused at work, and everyone can get the job done efficiently.
Plus, nobody wants to sign up for bookkeeping services with a secretive company. If you're constantly embedding hidden fees into your contracts, or you poorly communicate with clients, you're going to develop a negative reputation. On the other hand, when you're transparent, you'll attract your ideal clients, have improved workflow, and build a strong foundation for success.
2) Only Book Profitable Clients
As your client base grows, it's essential to weed out those slowing down business and profits – especially when the quality of your firm improves. For example, Jane may be one of your oldest clients, but if she's paying the lowest rates and taking up valuable time, she turns into a liability.
When you get to this point, it's time to let her know that your company's value has increased, and so have your rates. Whether she recognizes your value and accepts is up to her. Otherwise, let her go to make room for people who will grow your business.
3) Implement Workflow Software
The biggest thing you can do to improve your company's efficiency is to upgrade your technology. Accounting practice management software will allow you to get a clear view of your company's workflow, so you can make adjustments where they're needed. Additionally, you can assign work, track progress, report to clients, and meet every deadline. The software is specifically designed to streamline the entire process and keep all of your work in one place.
4) Provide Incentives to Employees
Rewards are an excellent motivator for hard workers. You're more likely to retain quality employees when you offer competitive compensation. Plus, bonuses and gifts are great ways to increase productivity since you're giving them more to work for than just a paycheck – something they can get at any other firm.
5) Outsource When Necessary
If you're struggling to maintain your core services because you're focusing on keeping up with other tasks, it may be time to outsource. For example, if marketing costs you too much time and money, consider outsourcing that job to a freelancer or marketing firm that can handle it all.
In addition, if you are short-staffed, it may be necessary to outsource some work to freelance bookkeepers until you can hire more internal staff. This will help you avoid employee burnout that could reduce the quality of your services and cause you to miss deadlines. Additionally, when you outsource, you could save money by eliminating the need to provide full-time employees with hearty benefits.
6) Training Programs
To keep your employees current with the latest tax laws and technology updates, it's crucial to provide training programs. Continuing education helps avoid a large-scale lag when these changes are implemented. Plus, having employees constantly evolving with the times is a valuable asset.
7) Reduce Interruptions
Distractions can significantly slow down company efficiency – whether working remotely or in the office. Allowing your workers to listen to music while they work can be a great way to keep them focused when people are going back and forth in the workspace. Additionally, you should position the workspace in a less frequented room by unnecessary traffic. So, keep cubicles away from the conference room where you meet with clients. That is if you have the space to do so.
8) Continue Adjusting
As your company scales, you'll need to continue making adjustments to improve workflow and efficiency. After all, a larger business cannot always operate with the same functions as a small business. If you keep things the same throughout the life of your company, you'll become outdated. Additionally, you may come across clients with special needs that require certain adjustments on your end to accommodate.
Bookkeeping businesses must always keep up with industry evolution, particularly when laws and technology constantly change. Without doing so, you'll fall behind, and client satisfaction will likely decrease. The solutions listed in this article will increase the efficiency of your company, but they only work if you do. Once they're implemented, ensure every employee and client is aware and on the same page to avoid confusion.