DIY Systemising - Step 1

DIY Systemising - Step 1

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My attempts at finding an off the shelf software for systemising has failed. The ones I have found involve paying a high monthly fee. The size of my practice does not make this option viable. I have now decided on DIY approach.

The table below  shows my first step (apologies for the length and format of the table. Copy from Word messes it up). It is not completed. It only covers taking on  new clients. I will draft existing client’s procedures at a later stage.

My current thinking is to write some brief guidance notes on each of the areas in the table below. These notes would then be linked to templates (emails and forms). For example when a potential client calls/emails on my FileCentre there will be a folder call Prospect, within that they would be a file called First contact, this would have the brief guidance notes and templates.

I would be grateful for your feedback in general on my DIY approach. Further if you are able to, please provide feedback on the following:

  • Have you systemised? If so how do you go about doing this?
  • How has systemisation helped you?

System Area

Clear System(s) needed?

Form Needed/template needed?

Client as a prospect

  1. Getting the basic data from first contact and meeting.
  • How did they find us?
  • Name, email address, contact number
  • Type of business structure -Sole trader/limited company, partnership or just simple tax return
  • How long in business?
  • Currently have accountants? Why moving? Fees currently paying?
  • Ask if okay to send monthly newsletter.
  • Add client email address to newsletters distribution list.
  1. Questions to ask to make sure clients fits the practice profile
    • Who does the bookkeeping?
    • Computerised accounting systems?
    • Client okay with electronic communications?
    • How flexible to change to Xero or VT?
    • Current fee level?
    • Outstanding tax inquiry? Get details.
    • Clearance Letter

Create/design a form

First Meeting

  1. Arrange first meeting from the initial call at our premises
  2. Send a confirmation email for the meeting. Make clear in the email they need to have their last of accounts ready for the meeting.
  3. Make sure client is ease at the meeting. Listen more and talk less.
  4. Do not quote fees in this meeting (need time to think). Give it in a formal email quotation.

Amend current template email.

Quotation

  1. Email a quotation the same day.
  • No ambiguity
  • Wait for a response for a week
  1. Follow up quotation if not heard after a week. Follow up through an email? Or call?

Amend current quotation template.

Create a template

Client agrees to sign up

  1. Email Engagement Letter the same day using Echo sign.
  2. Set Echosign reminders to weekly.
  3. If not heard within 7 days of emailing the EL, call (?) and chase.
  4. On the same day as emailing EL. Also email:
  • Direct Debit mandate form
  • Client Data form

Create a template cover note for Echo sign

Create a template email or script(?)

Create an email template

On Signed EL

  1. On the same day, thank you email to the client
  2. If DD mandate and client data form not received chase by calling client.
  3. Setup client on FileCentre
  4. Add client to fees  list
  5. Add client to tax package (currently Tax Calc)
  6. Create recurring deadlines on Toodledo
  7. Send clearance letter to previous accountant
  8. Create a VT file or add client to Xero.

Create an email template

Make current letter as a template.

Replies (16)

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By Moonbeam
09th Oct 2011 14:51

Good Start!

Dear First Tab - where have you been? I've missed you because your posts cover the areas I'm concerned about. (And of course, am fond of you!)

First Meeting - You say - "do not quote fees but give in a formal email quotation". I know you need time to think in an ideal world, but the client looks at it differently. You would presumably agree that it is best to discuss face to face with the prospect the way you would handle their affairs etc.

The fees are just another aspect of the service and if you don't quote a figure at the meeting, you won't be able to guage the reaction. If their reaction isn't good, at least you can counter it in some way by pointing out that you are only charging market rate, or perhaps they could do more themselves to keep the fee lower, etc. You may lose someone by emailing a quote later, as if they don't like it they will already be looking elsewhere by the time you chase them and you don't have the face-to-face scenario. They almost certainly won't call you if they don't like the quote, so you'll have lost the initiative.

It isn't easy to think on the hoof. As most of my current work is book-keeping work, I have statistics for all clients showing number of transactions etc. and I look at the prospect's book-keeping when I go to see them to check similar statistics and how neat and tidy they are. It is then relatively easy to say - this will be so many hours a month, roughly, at such and such an hourly rate - "based on what you've told me". I don't usually get my quotes wrong.

For tax work I would quote a fixed fee, and it would depend on how much tidying up of the client's work I would need to do to get to the tax bit. I would still want to look at their book-keeping for the previous year to see what sort of problems this would cause me. I would probably have many more questions in my standard questionnaire that would help me identify how much to charge. Is the problem more easily solved if you have a (private) menu list of what you will charge based on your rough estimate of the time it will take you?

I am particularly worried myself about quoting for fixed rate tax work as I have not done this before. My few tax clients are book-keeping clients as well on an hourly rate. I am almost certainly undercharging them for the tax bit. So I need to work out how to get the elements right before quoting.

I think the whole area of quoting is a massive one for those of us new to the area of fixed fees.

Thanks (3)
FT
By FirstTab
09th Oct 2011 15:56

Moonbeam

Hi Moonbeam, thank you for your comments. It made my Sunday!

I have switched over to what I would call the BBC 2 channel. It's the AW blogging channel. It just gives me a chance to explore my ideas and opinions in depth. I do not think Any Answers would be appropriate for this. Have a look, they are good some bloggers. 

On fees front, I can see your point. One of the reasons I do what I do is because, I have not got  my fee structure clear in my head. This was commented by Red Leader one of my posts. My approach is very much doing it on the hoof when it comes to fees. This is not good.

The other reason is my own discomfort and talking about fees in person. This is stupid. I will change this.

In terms of your tax work fee, as you say, you now have good idea know about the time it takes, so you can charge a fee that recovers your full rate.

 

Thanks (2)
By ShirleyM
09th Oct 2011 16:15

Systemising

I like systems. It makes you more efficient, it saves a lot of time when training up new staff, but best of all it helps prevent mistakes caused by overlooking something, which can easily happen if you get interrupted.

Once you get things organised and documented you find more efficient, and simpler, ways of doing things. It is especially helpful where there is more than one person involved, as it helps define tasks and keeps everyone informed of the progress of the job.

EDIT: @FirstTab .. you will probably find (as I did) that having a method of calculating fees and giving quotes gives you the confidence to quote a price in a meeting ... and stick to it. I always found quoting difficult until I developed my 'system'. As Moonbeam says, clients (or potential clients) can change the fee (upwards or downwards) by changing their requirements!

 

 

Thanks (3)
avatar
By jaybee661
09th Oct 2011 16:45

... are you not with AVN then?

I was under the impression you were signing up with AVN FirstTab which would obviously provide you with 'System Builder' - did this not happen in the end?

Thanks (1)
FT
By FirstTab
09th Oct 2011 16:53

AVN

Hi jaybee661, my intentiom was to put AVN on hold till Jan next year. Having thought about it, good as AVN is the monthly fee would be just too high for me.

If I was a bigger practice then I would be ably to justify the monthy fee since the cost would be spread among more clients/fees.

Thanks (0)
Kevin Salter
By Kevin Salter
09th Oct 2011 17:13

2020 Forms Letters and Tools

Have a look at http://www.the2020group.com A one off payment for Forms LEtters and Tools will provide a lot of what you are already trying to do.....and a lot more besides....

Standard letters, checklists to systemise quality control, graphing tool, what if scenarios.... over 450 items in the product....

 

Thanks (2)
By petersaxton
09th Oct 2011 19:00

Good attempt

I think what you have come up with is a good first attempt.

I agree that you shouldn't send a quote in the post or email. Many potential clients are happy to sign up there and then. Delaying by quoting later will give them a reason for looking elsewhere.

The quote may involve tooing and froing about how much the client can do and how much the accountant does.

Remember that you should be changing this template very often because it's a work in progress. Don't keep using it just because you have prepared it.

I don't think your left hand column is needed - put the info between each section. I would have a column on the right for initials and date. I would also encourage explanations of any problems with client or template. This is usually better done by a numbered reference referring to numbers on a separate sheet.

Thanks (2)
FT
By FirstTab
09th Oct 2011 20:22

Just to make it clear

Thanks for the reponse so far. Please keep it coming.

Just to make it clear the table is a work plan on things I need to do. I am thinking of using Visio or word.

For example, on Getting basic client data, I am thinking there would be a word document my staff can use (it would be in the systems folder). The document would be something like this.

The first call from a potential call is important, since we will not get a second chance to make that all important first impression.

Always be polite and courteous when handling calls.  Firstly listen to what the client is saying and answer all their questions. Once they have said what they want to say ask the client if it is okay to get some basic information for our records.

Here is the link to the form that needs to be completed to gather client’s basic data.

 

Thanks (1)
By Bob Harper
09th Oct 2011 22:17

What about

 

@First Tab - I totally disagree with your sales process; I recommend developing proposals with clients and being prepared to invest time.

A few other things for the initial stages:

Discuss developments of HMRC tax investigations – this sets the scene for clients being held accountable for proper bookkeeping and taking professional fee insuranceGain an understanding of client’s personal goals and valuesReview of the business - this is where you can uncover opportunities to add-valueExplain your referral policy

For best results, there needs to be a whole resource set with training and coaching behind the client engagement process.

Bob Harper

Accounting Franchise

 

Thanks (2)
FT
By FirstTab
10th Oct 2011 08:56

Bob

Thanks for the feedback Bob. Your bullets points are good. They did not even occur to me.

On referral policy. This is difficult one for me since I am at a loss what to say. Any ideas anyone? I just feel uncomfortable bringing this up with clients. The reason for this discomfort is because I think I will come across as being begging for referrals. I am sure there is a way of asking that makes it easy for me.

Your point about the sales process - I am not clear what you mean here Bob. Do you mean that the first meeting/contact with clients are missing some key aspects? Some of these aspects are met by the bullet points you have provided? 

The point you make about training and coaching - Clients just do not want to spend on this area. It is difficult enough agreeing fees for compliance work. I have found clients just do not have the time. Perhaps it's the way I am presenting the proposal.

I would be grateful for feedback from anyone who have managed to sell training and coaching. If you have had success with this, what aspects of training and coaching were you able to sell? How did you do it?

Thanks

 

Thanks (1)
By Bob Harper
09th Oct 2011 22:56

@FirstTab - your referral policy could be that you do not want a new client to refer you for 12 months. This puts referrals on the agenda but without looking desperate. 

Alternatively, you could run a quarterly prize draw. You could include any client who has ever made a referral. This gives you an excuse to remind clients every quarter in a fun way and when you engage clients you could ask if they want to be involved in principle and include them for the first year on the basis they are happy to refer.

The first meeting should no quote a price unless you are happy with a low price. Slow the process down and the price goes up and there is less pressure for you and the client.

Bob Harper 

Crunchers fixed fee accounting franchise

Thanks (2)
By petersaxton
10th Oct 2011 12:19

Slow?

If you slow the process down there is a big risk that the client will go elsewhere.

Thanks (1)
By Bob Harper
10th Oct 2011 13:44

Slow

@Peter - you may be right, if the client was price sensitive and not interested in value. 

If the initial conversation/exchange is done well, slowing down the process is welcomed by the prospect as it reduces the sales pressure and opens up new opportunities the client may not have thought about before.

Bob Harper

Crunchers franchise

 

 

Thanks (1)
By petersaxton
10th Oct 2011 17:01

Clients

I think clients want things to be easy and not drag on. Once a client knows their accountant they are less price sensitive but when they are looking for an accountant they are more price sensitive because that is all they have to go by. It might change after meeting an accountant but they also want to get on with the process.

Thanks (2)
By Bob Harper
10th Oct 2011 21:01

Different

 

Different clients want different things.

When a client meets an accountant they also have the experience with the accountant to go by as well as the price. The sales meeting is a great opportunity to deliver value, most do not and so they end up pricing early and low.

Not quoting a price at or after the first meeting is very easy and it is still getting on with the process, it’s just a different process than quoting for basic services.

I appreciate a client maybe less price sensitive once they know the accountant but it is hard to increase fees once you engage them.

Bob Harper

Crunchers Accounting Franchise

Thanks (2)
By Moonbeam
11th Oct 2011 11:57

Bob - You've Convinced Me!

Bob - The sort of basic businesses I'm looking for will want to keep costs down and many won't want extra frills so no point in thinking too hard about what to charge and best to sort it out at the meeting.

However, I can see that larger businesses than this may be willing to accept that more help on the management accounts side can help them grow. These are the ones that pay me quite large book-keeping fees for doing management accounts work.

There aren't many book-keepers around who can provide the management accounts service, so those types of businesses that I don't look after would be interested in hearing about add-on services from prospective accountants.

If First Tab meets the sort of entrepreneur who clearly wants more input than just year end statutory stuff, the meeting should demonstrate the sort of extra services he could provide, and I agree with you that he could quite justifiably say he will get back to the prospect later, with a range of fees and services. That will leave the prospect time to reflect on what extra services he would really value. First Tab could then quote at several different levels of service and call prospect to discuss further, thus cementing even more the relationship that started with the first meeting.

That's what I'll do when I'm a big girl!!

Thanks (1)