Recently we had an invigorating discussion on reviewing our own businesses. It highlighted a lack of drill down into direct costs and net profit by a number of bookkeepers for their own business (turns out we are way better looking after clients in this area!). How well do you know your own numbers? Here’s some areas you can (and should!) focus on.
Examine direct costs
Bookkeepers meticulously track their clients’ expenses, but are they scrutinising their own?
Breaking these down can reveal hidden inefficiencies that eat into margins. Take a look at:
- Software expenses – rate them on efficiency, value, and risk – and what would happen if you stopped using them? Often we start with a free version – is it time to go for the paid option for better functionality (and more efficiency)? Are there some to discard that are no longer in use or fit for purpose? Involve all users in a review to see what is and isn’t useful.
- Outsource or inhouse? Bookkeepers are hot on telling clients the reasons they should outsource their bookkeeping – is there anything you could consider doing the same with? Or if currently outsourcing – could it be more effective bringing back in-house? A great barometer for this can be the things you delay getting to and just hate doing. Can you delegate internally or is that task/service better suited to be done with an external specialist? Approaching colleagues in your professional network can provide good options with people you trust.
- Examine overheads – is everything needed? Can you negotiate better rates with suppliers – or look at changing providers? Insurances can be pricey – note your renewal dates – you want to explore alternatives before your current cover expires – it can be costly to change contracts mid-cycle.
- Invest time (and money) into more efficient systems. This has the added bonus of potential new service offerings for clients. Practice on your own info and data and become an expert! Think job software, marketing, admin procedures, and the like. Allocating half a day a week to work ‘on’ the business can include trialing possible new options.
Incremental price increases
Small, regular price adjustments help keep a business financially healthy without alarming clients. Bookkeepers should evaluate whether their rates reflect rising costs or if they’re inadvertently absorbing inflation. A clear strategy for pricing adjustments ensures continued growth and sustainable revenue. Often the bookkeeper’s barrier to increasing prices is the bookkeeper! Start the conversation – you might be surprised – and wish you’d taken the plunge a year ago! Take a look at our article from last year on pricing for some more great ideas.
Billable owner time
Many bookkeepers undervalue their own time. If owner-led tasks aren’t accounted for in billable hours, profitability can suffer. Tracking and charging appropriately for owner time ensures the business model remains viable and avoids unintentional revenue leakage.
The bottom line – take note!
Ultimately, every bookkeeper should step back and look at their own profit and loss statement. Are expenses creeping up unnoticed? Is revenue keeping pace with business growth? Assessing financial health from a business owner’s perspective – not just an accountant’s – can lead to smarter decisions. What can you do better? How can you improve both gross and net profit? What changes will you make?
Final thoughts
As bookkeepers, we pride ourselves on keeping our clients’ finances sharp—and it’s time to give that same attention to our own books. From dissecting direct costs to valuing our own time, the insights shared above serve as a reminder: profitability begins with visibility. Whether it’s tweaking pricing, streamlining systems, or setting aside time to work on the business, small shifts can drive significant growth. Let this be your nudge to take action—because knowing your numbers isn’t just good practice, it’s good business.
“What gets measured gets managed.” – Peter Drucker
(1909 to 2005) Austrian-American management consultant, educator, and author.
