Towards the end of each year, every major business publication writes their “annual outlook for the upcoming year to motivate/scare small businesses” report.
I’m exaggerating a bit. They aren’t meant to scare but to help small businesses prepare for the year ahead.
For 2024, in each report I read, the top two concerns of most small business owners is the looming specter of inflation coupled with persistent hiring difficulties. For many, at the root of their concerns is the ability to maintain financial stability. You know…keeping the money flowing in, being able to cover the costs of operations and having a sufficient amount left over to reinvest in the business for continued growth.
So how can a bookkeeper help beyond their usual duties of organizing transactions and reconciling bank statements?
Here are 4 simple but strategic ways bookkeepers can be a valuable ally in steering their client’s businesses through these challenging times:
Regular Expense Reviews
Bookkeepers have a bird’s eye view of the most intimate details of our client’s business finances. Who better to conduct a thorough review of the client’s expenses and highlight areas most susceptible to inflationary impacts? We can provide a short report via email or phone call, outlining cost-saving suggestions like alternative vendors/suppliers, unused discounts, wasteful subscriptions, etc., that can help clients feel empowered to make informed decisions swiftly.
User-Friendly Financial Monitoring Tools
Bookkeepers can also help clients implement simplified financial tracking tools to maintain better control over its finances. The tools should be cost-effective and user-friendly to aid the client in managing cash flow and monitoring expenses. Cloud accounting software like QuickBooks Online and Freshbooks provide detailed expense tracking as well as receipt scanning tools. There are also apps like Expensify or Mint that also allow users to see spending by different categories. One of the best things about the tools is that clients can access them to review data without at their convenience giving them more autonomy over their expense management.
Financial Strategy Meetings
If possible, the bookkeeper can schedule periodic strategy sessions with clients to discuss financial concerns and offer any insights into the businesses financial health. During these meetings, the bookkeeper can offer targeted advice and guidance, enabling the business to adapt its strategies accordingly.
Resource Allocation Recommendations
Based on their expertise and industry knowledge, bookkeepers can offer brief, tailored recommendations on resource allocation strategies. Resource allocation is the process of distributing available financial, human or other resources across different projects, departments, or initiatives to optimize efficiency and productivity. Bookkeepers could suggest areas where cost reductions can be made or advising on essential expenses to prioritize.
I know that most of the suggestions above fall under what is now called “accounting advisory” services and may not be offered by some bookkeepers under their usual services. However, from my experience, many bookkeepers are already going beyond the basics, giving clients tips and advice that go beyond just crunching numbers. Given that clients are already concerned about the economy and seeking cost-saving measures, demonstrating extra long-term value could be immensely beneficial to them.
These simple actions offer significant value to small businesses by providing focused, strategic support that addresses their concerns. What’s even better is that these solutions don’t demand extensive additional financial investment, making them even more advantageous for your client.