201 ⎸ [Q&A] Nonprofit Niche, Software, and Standing Out as a New Bookkeeper

Hey ambitious bookkeepers!

After recording over 200 podcast episodes and building a successful bookkeeping firm, I've learned that success isn't just about knowing debits and credits. It's about positioning yourself strategically, choosing the right tools, and setting boundaries that protect your sanity and profitability.

In this May Q&A episode, I dive deep into the practical side of building a bookkeeping business, covering everything from software partnerships and pricing strategies to finding your niche and standing out from the competition. I share real-world advice on working with Xero and Gusto, address common struggles with client onboarding, and provide actionable tips for bookkeepers at every stage of their journey.

Listen here or on your favorite podcast player, or watch the video version on YouTube >>

Now let's dive into some highlights!

The Software Partnership Game-Changer

Let's start with something that trips up a lot of new bookkeepers: software costs. Here's what nobody tells you about Xero and Gusto partnerships.

Xero Partnership Benefits:

• Free Xero account for your firm
• Partner discounts for clients
• You can choose to handle billing or let clients manage it themselves

Getting Xero partnership isn't as simple as signing up (unlike QuickBooks), but it's worth the phone call. They want to make sure you're serious about bringing on clients, which honestly filters out people who aren't committed.

My Gusto Strategy: I always let clients handle their own Gusto billing. Why? Because their fees increase with every employee addition, and I don't want to be responsible for managing those variable costs. I extend the partner discount to them and call it a day.

Standing Out in a Crowded Market

"How do I differentiate myself from other bookkeepers?" This question comes up constantly, and the answer isn't complicated – it's about going deeper than the bare minimum.

Most bookkeepers stop at categorizing transactions. Here's what you should do instead:

• Create monthly reports with simple KPIs
• Track revenue versus last month
• Calculate gross profit margins
• Monitor operating expenses as a percentage of sales

Even just emailing these bullet points monthly will set you apart from 90% of bookkeepers who just categorize and disappear.

The Niche Advantage: When clients in your chosen niche are deciding between you and a generalist, you've already won. You understand their industry challenges, compliance requirements, and growth patterns. That expertise is invaluable.

The Nonprofit Niche Reality Check

I had a student recently who was talked out of pursuing nonprofits because "there's no money there." This frustrates me because it's simply not true for established organizations.

The Reality:

• Audit costs can reach $40,000
• Grant management requires expertise
• Compliance is complex and crucial
• Many nonprofits have substantial budgets

If you're passionate about serving nonprofits, don't let someone else's limited perspective derail your vision. The money is there if you know where to look.

Client Onboarding: Where Most Bookkeepers Fail

The biggest issue I see with new bookkeepers is being afraid to set boundaries during onboarding. You're the expert – act like it.

My Pre-Discovery Process: Before anyone gets on a call with me, they complete an intake form that includes:

• Acknowledgment of our minimum fees
• Questions about commingling personal and business expenses
• Commitment to stop problematic behaviors

The Commingling Clause: If clients have more than 5 personal transactions per month through business accounts, we charge an additional $100/month. Why? Because excessive commingling is never just 5 transactions – it's usually 20-40, requiring extensive detective work from our team.

Software Preferences: Why I Switched to Xero

After years in corporate with proper ERP systems, QuickBooks felt chaotic. Xero functions more like enterprise software with better controls and audit trails. Once I trained my team on Xero, the efficiency gains were massive.

My Migration Strategy:

• New clients go straight to Xero
• Existing QBO clients get educated on the benefits
• Eventually draw a line: to work with us, you migrate to Xero
• We handle migrations for free using Jet Convert

The Bottom Line

Building a successful bookkeeping business isn't about being the cheapest or saying yes to everything. It's about:

• Positioning yourself as an expert, not an order-taker
• Using tools that make you more efficient
• Setting boundaries that protect your profitability
• Going deeper than basic categorization to provide real value

Remember, clients hire you to get their financial house in order. They expect you to lead them through the process. Don't be afraid to do exactly that.

What's Next?

We're opening Bookkeeping Biz Workshops again in August – three intensive evenings covering everything you need to launch and scale your bookkeeping business. After 200+ podcast episodes and hundreds of students, I'm excited to share everything I've learned in this condensed format.

The workshop will cover marketing, pricing, operations, workflows, and all the systems that have made our firm successful. If you're ready to stop playing small and start building the bookkeeping business you've been dreaming of, this is your chance.

Connect with The Ambitious Bookkeeper®

🌐 Website: ambitiousbookkeeper.com

👩‍💻 Blog: ambitiousbookkeeper.com/blog

📱 Instagram: instagram.com/ambitiousbookkeeper

📱 Facebook: Facebook.com/serenashoupcpa

💼 LinkedIn: Linkedin.com/in/SerenaShoup

For experienced bookkeepers & accountants:

Learn how to start your bookkeeping business in The Bookkeeping Business Accelerator® >>

Grab my FREE Start your Bookkeeping Biz Checklist >>

Grab my FREE New Client Onboarding Templates >>

For new bookkeepers:

Learn the fundamental accounting skills in Katie Ferro's Become a Bookkeeper >>

For online course creators:

Become a client at my firm, Of Course Financial >>

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