Last Thursday I was running one of our quarterly Boardroom meetings for my BlackBelt clients.
Part of these meetings involves reporting on KPI’s from the last 3 months, so it’s important that their accounts are fully up to date so that the figures they’re reporting are accurate.
A few new clients turned up, and instead of reporting on the last 3 months, their figures were reporting on the 3 months before that.
When I asked them why, it was because their practice accounts weren’t up to date, so they couldn’t bring along accurate figures to report.
And when we dug a little deeper into why this happened, it became clear that the reason their accounts weren’t completely up to date, was because they were the ones doing them…
Why is it that most partners insist on doing their own practice accounts?
If one of your clients turned around to you and said, “I’m going to do all the accounts myself going forwards” you’d think they had gone mad.
Why is it any different for you?
If your clients’ accounts are kept up to date on a weekly, monthly, quarterly basis and they’re completed by somebody else, then yours should to!
As a partner or practice owner, it is an inordinate waste of very expensive time doing your own practice accounts.
Some of the benefits of delegating your practice accounts include:
- It frees up your time to focus on higher value activities e.g. sales or spending time serving your A+ clients.
- Your accounts are more likely to kept up to date, which allows you to set and track targets on relevant KPI’s, not historic ones.
With that in mind, here are 2 options for you to delegate this to somebody else as soon as possible:
1. In-house – A trusted team member
One option is to simply delegate the task of preparing and keeping up to date your practice accounts to somebody in your team.
Now this person is probably someone you need to be able to trust, and that also has the capacity to take on this extra work and responsibility.
If you don’t have this person in your practice, then check out the 2nd option below…
2. Outsourced – A remote worker
This option will definitely feel the more uncomfortable of the 2, but it’s a great option if you don’t have the luxury of a trusted team member like we discussed above (and it’s a great option even if you do!)
Using sites like www.upwork.com, www.onlinejobs.ph, and www.peopleperhour.com, you can find a remote accountant, who is fully qualified and trained to use your choice of accounting software e.g. Xero, to do your practice accounts for you at a reasonable cost.
One of my clients Elena found herself an accountant in the Phillipines who took over the responsibility of updating and managing her practice accounts.
And in my business, I use an accountant based in Pakistan to keep my books up to date throughout the year.
Here is a screenshot from Upwork, showing some of the potential candidates out there:
As you can see, they are fairly inexpensive and you can see based on the amount earned and their job success % that they are successful in what they do.
Like with anything, there’s a right way to do something and a wrong way, and outsourcing is no different.
Be sure to learn the 3 biggest mistakes accountants make when outsourcing (and how to avoid them) before commuting to hire an outsourced accountant.
Whichever you choose…It doesn’t matter which of the above processes you choose, each will take time to get working properly.
Think of it as a ‘puppy training’ phase, it might take a greater time commitment upfront to help train them and get it right, but down the line all the training will pay off and your involvement will be greatly reduced.
I’m interested, who currently does their own accounts, and who has already delegated/outsourced it?