“If You’re Ever in an Accident, How Will I Buy Stamps?”

When Meghan and I decided to embark on the adventure of working together as well as being married, she quickly learned what I had known for a long time….my CPA firm had NO documented processes.  I had utilized a number of different individuals in the position of Office Manager, and we had no fewer than three different lists purporting to contain our clients’ contact info.  Not one of them was complete, however.  This quickly grew to become a problem.

Over the past (nearly) four years, Meghan has compiled a detailed and powerful master binder of everything that she does to run my firm like a well-oiled machine.  There are screen shots, Word documents, receipts, samples, and spreadsheets.  Nothing is missing.  I put this binder to the test recently when she was traveling and I needed to print a stamp for mailing a large package.  My initial thought was “Wait, Meghan isn't here and I didn't ask her how to print postage before she left. I guess I’ll have to call her.”  But I remembered the binder, and sure enough, there was a tab for “Postage.”  I was going to be OK!

This sounds a bit foolish, but think of the things that happen inside a business that owners take for granted.  In the very beginning, the owners are in charge of these things.  In fact, they create the very first processes.  But, if those processes aren't communicated to the very first person hired to take over, new processes will emerge.  The owner now has no clue how to print postage, or prepare invoices, or when the copier lease ends and auto-renews.

Here are three reasons why documenting your business’ processes is vital:

1.     You are reminded of what you do and why you do it.  It’s amazing how many of our processes were antiquated and useless to us.  I had told Meghan how I used to do things, and for a time, she did them that way.  But, she quickly figured out that I hadn't revamped any processes since the Bush-Kerry election.  Now our processes fit the business we have become over the past 14 years.

2.   You eliminate redundancy and inefficiencies.  Nothing is more frustrating than looking through three contact lists and not finding the email address for your long-time client who needs to receive a tax organizer.  That’s what we kept running into.  I had all the contacts in my Outlook Contact List at the time, but I wasn't the only person emailing clients anymore.  Meghan researched and found a fantastic web-based CRM (Customer Relationship Manager) and now everyone has access to contact information for all our clients.

3.     You create something of value for a buyer. Service businesses like ours are difficult to sell.  You basically sell the hope that your clients remain with a buyer.  Buyers like a sure thing, and CPA firms don’t generally offer that.  But, if you create processes for everything you do, document them, and rely on them to produce predictable, successful results, you've created something of value to a buyer.  Would you rather buy a client, or the way that we managed to build a firm of 400 clients?

Entrepreneurs have enough to do without worrying about how to print a stamp or replace the toner.  In my first month of business, I would have loved to change the toner because I had time on my hands.  These days, I don’t even know where the toner is.  But I bet I know where to find out.  Trust me when I say that building a resource containing your documented business processes will take time, but it will be of great value to you as you grow.  Do it now, instead of changing that toner again.