Do you understand how your clients actually run their businesses or are you bogged down in running your own?

It is very easy to get lost in the day to day tasks you do and it is more difficult to find out exactly what is going on with the people you serve.

  • How does your client make money?
  • Do you really understand the process and why is it important for you to know this?

If you are in the privileged position of providing financial administrative support to your clients that gives you an income you better know how they make their money. If you don’t and someone else comes along who does you will be in a very difficult situation.

What does your client do?

What services do they provide and how do they work out how much they can charge for their services?

Do you understand their cash cycles – what do they buy and how long does it take for them to get paid and then pay their suppliers?

If you are seeing the costs come into the business, how are you able to attribute these costs to the right job so your client knows and understands the profit they are making. Or worse, the profit they are not making.

Mistakes Bookkeepers and Accountants make.

Every human has the ability to assume – and when this happens we are in danger. Danger of making the wrong choice and in danger of not asking the right questions. Every business is different and unique however the underlying principles are the same.

Identify an opportunity, create and present an offer to the potential customer, win the work and then deliver it within a given time scale for an agreed amount.

At the conclusion of the job a detailed analysis must be provided to allow the business owner to assess their performance and to make appropriate adjustments on the next job.

Conclusion

If you want to maintain long and fruitful relationships with your customers, then you better get to know more about how they work and provide the services they need to be better.

Published On: May 6th, 2022 / Categories: Accounting, General Tips /

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