Money Leaks are only one of the task on our agenda for our clients as we get further into fall. We find this time of year is a great time to check in on our clients and strategize the next year of business from a financial perspective.
Do you offer this service to your clients or make them aware of it so they can check themselves? While these leaks aren’t always evident from a glance – they do add up. And yo can be the hero for saving them even more money!
Picture a bucket of water with pinholes – you may not see the water slowly dripping out but if you collected the water dripping into another bucket you would see it is collecting quicker than you thought.
We want to stop or mitigate those leaks. You don’t want your client’s money leaking away when they could be using it to enjoy nice meals, or a holiday and thanking their favourite Bookkeeper!
Find the Money Leaks
The first step to determining money leaks, is to always have financials ready and available for your clients. Consistent awareness of their numbers will support them on staying on top of their business.
- Going through their financials,break out what is automatically charged to their credit card for subscriptions
- What are they paying for and how much is this costing?
- If paying for tools or software programs monthly, are they using these tools? Or have they moved to a new tool that is doing the same task?
- Also review bank statements for recurring costs, such as their internet provider or cell phone plan!
- Make sure you set up a recurring task to do this on a quarterly basis for your clients. Need a way to do this easily? Check out our free Bookkeeping Business Systems training and get this set up today
What Leaks can you STOP?!
The BIG piece of this is determining which money leaks your clients can STOP!
- Is one of their tools capable of doing more? Perhaps they are not using a tool to its full capacity and it can easily take on the roles of other tools.
- Have they been using the same tool for a long time, and perhaps there are new tools out there that can do the task cheaper?!
- Maybe they signed up for the premium version of an app and really only need the free version?
- Do they still need all the tools/subscriptions they signed up for?
- Unique buisness needs – Have the marketing needs changed, and no longer require certain services?
- What about other services that are being used and because we all get busy, maybe they aren’t aware of a new internet or cell phone plan that can save a lot of money! Encourage your client to call the cell phone or internet provider and ask about new plans – ensure they are on the plan that is right for their current NEEDS!
- For monthly subscriptions, now is a great time to cancel all the auto renewals for tools no longer needed! If it is a yearly subscription, set a reminder to cancel before it is up for an auto renewal.
Preventing Future Leaks
Don’t forget to advise them on how to prevent future leaks by sharing the info below.
- Create quarterly reminders to check in on the usage of all the tools being paid for. They can set this up for themselves to do going forward.
- When reviewing these costs, ask yourself the following:
- Am I still using this tool?
- Is there a better option available?
- Is this tool capable of taking over tasks of another tool?
- Is this the right tool or service for what my needs are?
- If I am going to keep using this service, am I on the right plan?
- Don’t forget to remind them to keep track of all these expenses, as most likely they will be able to write them off, but remember there is only value in this if these services are being used!
Yes, I totally understand – your clients are going to say they are too busy to do this!
It is tough to pull away from income generating tasks to do this – so challenge them!
They have two options, the first is to ask an assistant to do this. It won’t take much time to research the software/apps being used. Then all that is need is a double-check that they are getting the most value out of these business expenses!
They need to be mindful that this is a conscious decision to look at all the little things that may be costing their business money. No head in sand allowed here!
What if your client can cancel a few subscriptions and get a better deal on their cell phone plan… This could easily add up to a savings of $500 per year and made within an hour!
Are you really pulling them away from income generating tasks, or HELLO you just helped them make $500 in an hour!
PS. Remember there are many reasons you are their favourite bookkeeper!
P.P.S. Still don’t have systems set up in your bookeeping business? Check out our Ultimate Guide to Creating Workflows and Systems here.