Online Bookkeeping Business: The Journey To Starting One And Uncovering Myths with Lauren Klafke
Apr 19, 2021
In this episode of Profits + Prosecco Podcast, I am joined with Lauren Klafke who is the owner of Willow Creek Financial Services. She’s a mom, a wife, and a successful online bookkeeper who is here today to talk all about how she grew her bookkeeping business. Together, we’re going to also be debunking some MAJOR myths we’ve seen in the online space over the years.
But before we dive right in, welcome to the Profits + Prosecco Podcast! I’m your host, Katie Ferro, CPA, reformed rule follower, creator of Booked Out Bookkeeper, mom to 3 little ones, and Kajabi enthusiast.
This podcast is for entrepreneurs who desire to change their life through their profitable business, and for bookkeepers and accountants who want to escape the 9-5 and start a simple scalable bookkeeping business like I did.
Bookkeeping increases profits and profits change lives. So pop some bubbles and let me show you how!
In this episode, we are going to talk about all the myths we see in the bookkeeping space and Lauren will also be diving into her entire experience with starting a bookkeeping business. For even more juicy details, listen to ALL of episode 20 of the Profits + Prosecco Podcast on your fave streaming platform.
Debunking the common myths in the online space.
While talking to Lauren, the first myth she has constantly seen in the online space is whether you need to have an S Corp as a business owner.
We've seen SO many people try and give advice about turning a business entity into an S Corp and we want you to understand that an S Corp is NOT a necessity.
You can file under the status of an S Corp but your entity does not change.
Your business entity is either an LLC or a corporation. The S Corp status is an election that you make with the IRS (not even with your state) on how you get taxed.
From this myth, and many others, Lauren expresses her beliefs around those who are not in the financial and accounting space handing out unsolicited advice.
The reality is - if you’re not knowledgeable in the finance and accounting industry, you shouldn’t be giving misleading or false information to others.
Another myth Lauren brings up is the idea of people, who aren’t accountants, starting a business on how to make a certain amount of money.
These “money gurus” aren't necessarily professionals but if they’re connecting you to authority then that's totally acceptable.
A lot of people glamorize what they make on social media and that's the fun thing about doing books. You get to peek behind the curtains and see if people are telling the truth or just playing along with this “money mindset” idea.
I am ALL for money coaches helping people out only if they're going to connect them with bookkeepers and tax preparers, help them increase sales, set up accounts, and manage their money.
You can't just talk about it and expect clients to see results. If you're an online money guru, you need to have those connections and put your clients in the right hands.
More money is never the solution to your issue.
As bookkeepers, it is our job to help our clients do better and accomplish what they want to accomplish.
I no longer struggle on sales calls anymore because I know what I bring to the table and I know there are going to be people who value that.
If someone is not willing to pay for my value, I have zero problems with that.
I want a client who feels confident and knows they will feel comfortable.
Throughout my bookkeeping business, I truly don't think I have had a single client whose profits dropped while working with me.
Everyone is proud of their sales (as they should be!).
Lauren says that more money is more problems if the problem is you and this is SO TRUE.
This all goes back to the money guru myth and don't get me wrong, I've seen plenty of coaches that are super profitable but if you aren't making the money, you shouldn't be guiding people in the wrong direction.
Why you should have a second set of eyes and serve well with a bookkeeping business.
I always want my clients to work with tax preparers who follow by the guidelines and ensure everything looks good.
A second set of eyes on the books is NEVER a bad thing.
If you don't have a tax preparer and things get messed up down the road, it could affect all of your clients, which you definitely don’t want.
This is one of the reasons why I like to focus on the same type of client because it's easier for me to dive in and get them greater results.
You have a lot more time to serve better if you focus on the same kind of client.
Serving well should always be a big focus for any bookkeeper.
One reason Lauren gets a lot of clients is because of referrals and that’s simply because she knows how to serve well and reach her dream clients!
Online Bookkeeping Business: The Journey To Starting One And Uncovering Myths with Lauren Klafke: The Bottomline
I hope this episode has helped you understand the online bookkeeping business and all the myths surrounding it. My conversation with Lauren was super valuable, so be sure to hear the whole thing on your preferred streaming platform.
If you want to hear more from Lauren, be sure to follow her on Instagram to keep up with her business!
Don’t forget to tune into episode 20 of the Profits + Prosecco Podcast. Thank you so much for listening!
If you enjoyed the episode, please take a second to rate and review. Each review helps us reach and inspire more entrepreneurs and bookkeepers just like you.
Don’t forget to take a screenshot, share it in your Instagram stories, and tag me at @orderlyaccountingbykatie. Cheers to your inevitable success and I’ll see you in the next episode!