Pillar 1: Operational Efficiency

Inefficiency strangles growth. If your business design has flaws, rapid growth will quickly identify them for you. The flaws usually appear as pain points—they quickly become the things that wake you up at night. In this Pillar, we will focus on the following:

• digitization of data

• project management

• work flow automation

• staffing alternatives

By first focusing on operational efficiency, we can build our businesses on a solid foundation.

Digitization of Data

As a bookkeeper, you can take a quantum leap in your efficiency if you embrace digitization of your data. First, I will discuss how a bookkeeping business can enter the digital age. Then I will finish this Pillar by demonstrating how you can help your clients go digital as well, realizing further gains in efficiency and creating a new product offering for you.

If yours is like most businesses, you are in one way or another struggling with your paper. Digitizing your data can improve operations significantly. I have worked with several firms as they transitioned to a paperless environment. The process can be daunting if you do not have the necessary skills or expertise to do this with your existing staff. I have also seen a few mistakes made in the process, due mainly to lack of experience with the process.

I personally recommend that my clients seek expert help with going paperless, as it can significantly improve results and expedite the process. I have worked with Tursa Group (www.tursagroup.com) with my current clients. They offer a five-step process and a project management team member to facilitate your paperless project. Their five-step process includes the following:

1. digitize your data

2. document systems and processes

3. implement cloud-based services

4. outsource tasks to improve efficiency and flexibility

5. embrace telecommuting as a strategic initiative

I will examine each of these in further detail.

1. Digitize Your Data

• Go paperless. The easiest way to eliminate paper is to do it at the source. I use a service called DocuSign in order to obtain legally binding documents that are digitally signed. This step eliminates the need to print documents, obtain signatures, and then scan them.

• Utilize PDF versions rather than printed documents where possible. My clients encourage the use of secure portals and PDF versions of data to streamline operations and enhance their client communication.

• Convert your fax line to a fax-to-e-mail service. You can reduce costs by eliminating a redundant phone line and printing only the documents that you absolutely have to print.

• Use existing staff to convert existing documents to digital by buying a good-quality scanner. If you do not have the resources to scan in-house, businesses exist that will help you scan documents at a very reasonable price.

• Capture and file receipts digitally with your smart phone's camera. Expensify is a great application for capturing data for you.

• Use www.shoeboxed.com. You (and your clients) can fill an envelope and send them directly to Shoeboxed. Shoeboxed will scan your data and store them in a secure online account, ready to be exported to your preferred accounting software.

2. Document Systems and Processes

Your ability to scale your business or grow is limited if you do not have effective documentation and training procedures in place for new staff.

• Tursa Group works with their clients to create short three- to five-minute videos on how to do almost every internal process in their company.

• The videos are shared with staff on a private YouTube channel.

• Staff access the videos by accessing links on an in-house intranet site.

• Complete documentation means that management is able to spend less time training employees.

• Training becomes on-demand and self-serve. Employees can find the information they need quickly without wasting time waiting for help.

• A variety of great software programs are available to capture video on your computer. Personally, I favor BB FlashBack (http://www.bbsoftware.co.uk). The Express version is free and has a lot of great features. Their paid versions are well worth the money if you are looking for additional features. The software captures the activity on your screen, and staff simply talk their way through their regular work. In this manner, your staff can document their daily duties without taking time away from productive work.

• The audio and video are saved in a video format and can be stored on a server, e-mailed, or uploaded to YouTube. For more confidential videos, I like the simplicity of Box.com for online collaboration and file storage.

3. Implement Cloud-Based Services

• Start planning now to implement cloud solutions over time. I do not recommend changing everything overnight; just make changes as you are able. If you have just spent money on server hardware, now is the time to plan so that you are ready for the cloud when your hardware is scheduled for replacement.

• Migrate your company to cloud-based solutions such as Google Apps, Office 365, Zoho CRM, Wave Accounting, Xero, etc. See appendix 4 for more examples of solutions that can help you as you grow your business.

• Cloud-based solutions allow you to eliminate your internal information technology infrastructure, significantly reducing information technology costs and improving reliability.

• With planning and forethought, you can implement hosted or custom solutions that will take your business completely into the cloud.

• Cost savings can be substantial, but the greater flexibility is probably the best feature of cloud-based solutions. You can work from any web-enabled device anywhere, anytime. One of my clients was able to access her client records from a beach in Cuba, solving a significant problem and allowing my client to return to her vacation.

• If you are reluctant to fully embrace cloud solutions, there is an intermediate step. You can use www.CloudLinx.ca as virtual computers. Your data are safe in the cloud, but you have your traditional programs installed on a computer that you can access from anywhere.

4. Outsource Tasks to Improve Efficiency and Flexibility

• Outsourcing is not a dirty word, nor is it the immoral act of...