Why Bookkeeping Still Matters (And How to Profit From It)

If you've spent any time around the bookkeeping industry lately, you've probably heard some version of this:

Bookkeeping is a commodity. AI is going to replace bookkeepers. You need to start offering CFO services if you want to make real money.

And I have some thoughts about that.

Because I've built a profitable bookkeeping business around relatively simple services, and I know firsthand how much value good bookkeeping provides.

I recently sat down with Serena, a fellow bookkeeping business owner and educator, to talk about why we're both frustrated with the way bookkeeping is sometimes portrayed in our industry.

And one of the biggest things I want you to understand is that you don't have to abandon bookkeeping to build a successful advisory business.

Good Bookkeeping Is More Than Categorizing Transactions

There's a difference between simply categorizing transactions and actually providing a valuable bookkeeping service.

If you're reconciling accounts without reviewing the balance sheet, sending reports that don't mean anything to your clients, or not communicating with them at all, there's a lot of room for improvement.

But that doesn't mean bookkeeping itself isn't valuable.

It means we need to do it better.

When I onboard a client, I spend time understanding their business and how they move money. Sometimes that means helping them change a process so their bookkeeping becomes easier and their reports become more useful.

I also make sure clients receive meaningful financial reports and have resources to help them understand what they're looking at.

Because what's the point of doing someone's books if they never understand what those numbers are telling them?

You Don't Have to Become a CFO

One of the things Serena and I talked about is the pressure to move into advisory or CFO services.

And listen, there's absolutely a place for those services.

I've offered a version of CFO services in my own business. At one point, I upgraded several existing clients into monthly calls where we reviewed their numbers and talked about their business goals.

It worked for that season.

But eventually, I realized I didn't want all those calls on my calendar.

So I went back to focusing on bookkeeping.

That doesn't mean advisory is bad or that I'll never offer it again. It means I get to choose how my business operates.

And so do you.

You can offer bookkeeping. You can offer advisory. You can offer both.

The important thing is understanding what your clients actually need and what kind of business you want to run.

Better Systems Can Make Bookkeeping More Profitable

Another thing I think gets overlooked is how much your processes affect profitability.

My business serves around 50 clients with a very lean team.

That didn't happen because we started charging everyone thousands of dollars for advisory services.

It happened because we developed processes, trained our team, streamlined our work, and built trust.

I know the work is getting done because we have systems and checks in place.

And I don't have to personally do every transaction to trust the financials.

If you're overwhelmed with client work, that doesn't automatically mean you need a completely different business model.

Sometimes you need better processes.

What About AI Replacing Bookkeepers?

I know AI is making people nervous.

But from what I've seen inside real businesses, bookkeeping involves so much more than software automatically processing transactions.

There are decisions to make, mistakes to catch, processes to improve, and business owners who need someone to help them understand their financial information.

There's still tremendous opportunity for bookkeepers who are willing to learn the skill and adapt as technology changes.

And that's why I care so much about teaching actual bookkeeping, not just how to click around inside software.

Build the Bookkeeping Business That Works for You

You don't need to build the biggest firm, offer every service, or follow whatever business model is currently being promoted.

You need to become good at what you do, serve your clients well, and build something that supports the life you want.

In this episode of Profits + Prosecco, Serena and I get into the realities of running our firms, what we think bookkeepers should focus on, and why we're both so optimistic about the opportunities in this industry.

Listen to the full episode here: On Apple Podcasts or On Spotify

CONNECT WITH SERENA:

Instagram: @ambitiousbookkeeper

🎧 The Advisor Activation Audio Series: Listen Here

ELEVATE: Learn More Here

About Katie

Katie Ferro is a CPA who surpassed her corporate tax manager salary working only the hours she used to commute, while home with her 3 babies born within 4 years.

To have a successful bookkeeping business that actually supports your life, you need to master two things:

1. Your technical skills
2. Your knowledge of growing a business

My programs are always enrolling and ready when you are.

Become a Bookkeeper
The program that teaches you the technical skill of bookkeeping, from the lens of owning a simple, scalable bookkeeping business. Learn, shadow, apply.

Life By the Books (aka “Libby”)
The program that takes those technical skills and helps you turn them into a business. Covering how to plan your business, find and sign clients, serve them well, and grow a team to support you so you can actually live your life.

Interested in starting a simple, scalable bookkeeping business?
Learn more about what it takes in my free 6 Secrets series.