One of the barriers that can be prevalent in the accounting business, is trying to get your clients organised, especially if they already have bad habits of keeping messy accounting records! Spending time helping them to get and stay organised, will ultimately benefit you in the long run. Here are some tips on how you can achieve this.
Understand the importance
Firstly, it will be valuable for your clients to become aware of why it is so important to keep records organised. Companies will need to keep these financial records as not only does it help with legal obligations such as tax, but it will also come in handy managing cash flow and keeping track of the companies’ progress. Monitoring progress, viewing purchasing trends, assessing financial statements, and achieving targets are all reasons that you can relay to your client to explain to them why keeping their records organises is important.
Take it day by day
Your clients might be feeling overwhelmed by the amount of work they have to do to upkeep their account organisation. Devise a plan which encourages them to check their books often for short periods of time, so that the task doesn’t build up and become a chore that is forever ignored.
It can also help to encourage clients to complete tasks as they happen- we’re all guilty of saying we will do it later or leaving small jobs that can be done in a matter of seconds until another day. But persuading clients that they’re saving time on small tasks (such as taking photos of receipts) will help them to get more organised.
Ensure they’re using separate personal and business banking
If your clients are still using the same account for their personal and business banking, now is the time to put a stop to it! This is an easy solution for the painful task of riffling through bank accounts to find business transactions. They will be quickly accessible when the time arrives to check transactions.
Help clients stay on top of invoicing
It can be difficult at times for clients to keep track of who’s paid what, and what their customers owe which can lead to messy accounts. Clients can use reminder systems, or software such as Xero to send automatic invoices to their customers and get paid faster. There is a variety of different software that customers can use, so be sure to ask them to explore this option. A good bookkeeping system can reduce the amount of confusion when it comes to invoices and help clients stay on top of their invoices.
Track all expenses
Ask your clients to keep track of all expenses and keep receipts. It might be easier for them to make and receive their payments using their bank account as opposed to cash so that it’s all kept in one place. Make sure they know what they can claim as expenses as well so that they can be sure to add these to the list.
It might even help to categorise expenses- for example, rent, insurance, and supplies, so that it’s easier to keep an eye on cash flow.
Upcoming deadlines
Make sure that your clients are aware of any deadlines that they will have to meet- and what is required from them well in advance. This way, even if their accounts are slightly unorganised, you’ll still be getting the information that you need in good time. Make a list to provide them with at the start of their onboarding process and be sure to remind them about these dates as the time approaches.
Go digital
Using online systems has a variety of benefits for companies- especially when it comes to their accounting. It will greatly help in transferring information between you and your client and help to keep things in order. As well as this, it can add extra security as documents are at less risk of being stolen, lost or damaged. Your clients might find that going digital will help them to increase their productivity and speed, and reports can easily be produced in a shorter amount of time as a result. It has the added bonus of using less paper and being better for the environment!
Create a plan
It’s easier in any aspect of life to become more organised when you set a plan in place. It’s important for businesses to create a financial plan so they can set goals for the future and assess if they are reaching those goals. A good plan will allow business owners to plan for the future, and budget for the year, including taxes and for quieter months. You can work with clients to look at their previous year’s income and decipher what their plan of action will be for the upcoming year, helping them to gain clarity on what they will have to do to achieve these goals.
Create a review routine
Reviewing accounts often will prevent build-up and keep things running smoothly. Establish a routine with clients and set a date/time for when they will review their finances so that you know they will be implementing this into their monthly routine. Consider booking a call with your clients just to check in and remind them of the tasks that they must complete.
Offer assistance
Some clients might be unorganised due to the fact they have little assistance. Make sure that they are aware that you’re there to help. The reality is that they started their business to do just that- not to take care of their accounts. Frustration can often lead to ignorance, letting their account tasks build more and more. You can start by breaking the tasks down for them and making them easier. It might be helpful to create an FQA sheet for your clients so that they know what is expected of them. Regular calls will also help with addressing any questions that they have. You can use software such as Zoom to host regular meetings.
