Knowing Your Client
One of the 2017 goals for GrowthLab is growth, both as a business and internally for our staff.
As I’ve met, and discussed with some of our staff members already, a similar question has come up, “What is the best way to improve?”
The answer has been the same, and I wanted to share that with all of you.
The answer is “Know your client.”
In order to excel with the client you are taking on, or the client you are about to work on, you should really understand who that client is, and what their business is.
As an example, we are working with a client who provides support to new mothers, and infants.
The client not only provides a service, but also sells some product as well.
Knowing all that, when this client purchases something from Babies R Us, it can be assumed it is a business expense and thus can be classified as such as opposed to posting to Uncategorized or as a distribution.
Another example can be applied to a client we work with, where he sells and repairs appliances, and also buys products (often in bulk) and resells them through eBay and Amazon.
In this instance, when he makes large purchases at a department stores or wholesale club, the purchases are most likely purchases for resale.
As a result, we should either classify as such, or present to the client as a question to confirm that’s what they are for, rather than posting to Uncategorized or as a distribution.
This deeper level of understanding your client, will allow a bookkeeper or financial services provider to better understand the chart of accounts for that client, and in turn to better understand how to classify transactions.
Understanding a client does not just translate to better classifying transactions though, but also to better understanding the cash inflows and outflows of that business.
The end result should be that the person, or persons, working with that client should result in faster processing, and better results.
It will also lead to better financial reporting when they understand the story behind the financials.
As the calendar turns into summer, take the time to know your clients, and see by the time fall comes how much of a difference it can make in your finished product.
