Taking on the wrong client is expensive. Learn how to screen bookkeeping prospects to avoid nightmare engagements and price your services accurately.
Every experienced accountant has a horror story: the client whose books were a disaster, who consumed 3x the quoted hours, who disputed every invoice. The root cause? Inadequate screening.
Traditional discovery fails because prospects often: understate complexity, exaggerate revenue, don't know their own books' condition. You quote based on what they tell you, then discover reality after you've committed.
The #1 driver of bookkeeping effort. Ask prospects for their monthly transaction count, but verify it. More transactions = more time = higher price.
Are their books currently maintained? Is there a backlog? Are transactions categorized or dumped into "Ask My Accountant"? Messy books require cleanup fees.
What's their actual revenue? This affects: their ability to pay, complexity of operations, and whether they're worth your time.
Can they afford to pay you? Check cash balances and cash flow trends. Clients in financial distress often become collection problems.
Watch for: AR aging > 90 days (collection issues), declining revenue trend, negative working capital, irregular transaction patterns.
The best way to screen is to see their actual data. Ask prospects to complete a "financial health assessment" (position it as a benefit to them). Tools like BizDoc generate instant reports from their QuickBooks, giving you complete visibility before you quote.