Setting Up Recordkeeping Initially

[CFlowers]

I'm hoping the bookkeeping VA's out there can give me some guidance on this.

Last night I did an initial phone consultation with a potential new client. He has formed an LLC to buy properties in "depressed" areas, renovate them and sell them to low-income, credit-challenged individuals who need a second chance. He is currently maintaining his financial records in an Excel spreadsheet and was seeking VA services to have someone get his recordkeeping off to the right start.

How should I respond to this? I'm not a bookkeper, and not looking to offer bookkeeping services; but I could "point him in the right direction" as to what bookkeeping software to purchase or or even set up the system for him and turn him loose to maintain it himself.

Do you have other suggestions? I've even considered outsourcing/subcontracting this portion of the work so I keep him as a client but don't have the headache of providing a service for which I'm not qualified nor interested in.

What would you do?
Charlotte
JUSTCALLCHARLOTTE

[tildavirtual]

Charlotte, I don't subcontract work that I can't do myself. That way if something happens to the VA I've subcontracted to, I can at least meet deadlines by doing it myself. I'd refer this potential client to a VA that specialises in bookkeeping as its just my personal belief that if you don't know and love bookkeeping, then you shouldn't do it.

Good luck!

[Donna]

I agree with Kylie. Bookkeeping is for those who know it and want to do it or it quickly becomes a negative force in your life. I have an association with a wonderful bookkeeper who I refer regularly and in turn she refers my services and does my bookkeeping. It's worked out very well and I now feel confidence when telling a potential client that I do not offer this service, but I can point them in the right direction which is also a service.

Donna

[ChristinaVOS]

I agree with Donna & Kylie.
I have a woman close by who I sub admin work out to so I can focus on my bookkeeping clients. When she heads out for vacation or needs a day off I can fill in easily. Unfortunately, she can't do the same for me LOL.

[Rebecka Melson]

I agree with the others, I would recommend passing this on to a bookkeeper who is familiar with real estate bookkeeping. The way the books have to be kept for real estate, especially for the purposes of flipping, is different than for an average business. It's not as simple as booking income as income and expenses as expenses.

I work pretty closely with CPA's myself on these types of projects, because they are quite different. I would definitely get him out of Excel and into QuickBooks.

[lanelt]

Charlotte,

As the others have mentioned I'd wouldn't suggest subbing out the work if you don't know bookkeeping. In fact, as a bookkeeper, I won't take subcontract work from other companies unless I can have direct client contact because things get mixed up in the relay.

If you want to recommend something for him I would suggest finding a bookkeeper that you know and trust and referring him to that person. The set-up of his books is one of the most important parts in the whole process and if you aren't familiar with how to properly set-up a new company it can be a problem in the long run. I have spent many, many hours fixing a set of books that weren't properly set-up and that is a lot more costly than paying to have someone consult on setting them up right in the first place.

This is one of those times where it's great to have an extensive network of people so you know who to refer these types of calls to.

Good luck!

[CFlowers]

Wow--these are excellent comments, and I thank each one of you. I shall take your advice to heart and follow it to the letter.

This has not only been a great teaching for this one particular client, but will help me as I continue to build my practice.

You guys rock!
Charlotte Flowers
JUSTCALLCHARLOTTE

[Donna]

One big issue I had when first getting started was coming to terms with the fact that I did not and could not know everything that a client may want or need. I took the time to learn some things that would be important to various clients such as web maintenance and constant contact and embraced that I did not know everything and that everyday is a learning process. I am completely open to learn new things, if necessary at my own expense, this has come through in my contact with potential clients and I have learned that not only is it OK to not know everything, but people are appreciative for honesty and the quest for knowledge.

Go get em.

Donna

[Modern Marketing Support]

One big issue I had when first getting started was coming to terms with the fact that I did not and could not know everything that a client may want or need. I took the time to learn some things that would be important to various clients such as web maintenance and constant contact and embraced that I did not know everything and that everyday is a learning process. I am completely open to learn new things, if necessary at my own expense, this has come through in my contact with potential clients and I have learned that not only is it OK to not know everything, but people are appreciative for honesty and the quest for knowledge.

Go get em.

Donna

Well said Donna.

[lanelt]

Donna that is a great point. I've often thought "I should be able to do this" but I can't do everything. I have a VA who helps me with stuff and I just asked her if she knew how to do something that I wanted her help with. She didn't but said she'd like to learn it and would do the job I needed for free if I'd let her learn it. I appreciate that and will be hiring someone to do the set-up (the difficult part) then she'll take over maintenance.

I also have a team of VA's that I work with and we each have our own strengths. I have no problem passing things on knowing that another VA will be a better fit.