Episode 92: Unlocking Hidden Profits: The Secret to Maximizing Client Margins

Nov 27

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Conquering Workflows & Systems for Bookkeepers & Accountants podcast with Alyssa Lang, founder of Workflow Queen and Magnetic Bookkeeping & Consulting. Episode topic: Unlocking Hidden Profits: The Secret to Maximizing Client Margins.

In this solo episode, Alyssa Lang covers the world of hidden profit leaks in bookkeeping and accounting firms, offering real strategies and actionable tips to fix inefficiencies and unlock true profitability. Alyssa shares how to implement tech, systems, and automation to scale their practice while also providing insights on using her client profitability tracker to ensure maximum profitability.

In this episode you’ll hear:

What the most common profit leaks are in accounting firms
What strategies to implement for effective rate increases
How to identify inefficiencies in your workflow and streamline processes with documentation and automation
Why understanding client profitability is essential

Resources mentioned in this episode:

⚙️ Zapier

💻 Client Profitability Calculator for Bookkeepers & Accountants

💻 Breakthrough for Bookkeepers & Accountants

💻 Kickoff with Asana for Bookkeepers & Accountants

🎙️ Listen to Episode 22: Mastering Time Tracking: Unleashing Efficiency and Finding the Perfect Hires for Your Bookkeeping and Accounting Firm

📝 Read the blog How to Use Clockify in Asana for Your Bookkeeping Practice

Listen to the Full Episode here 👇🏼

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Running an accounting or bookkeeping firm? Let’s talk about the sneaky profit leaks that are draining your bottom line without you even realizing it. Been there. These leaks aren’t just annoying—they’re sabotaging your profits. The good news? With a little know-how and some tools in your back pocket, you can turn things around and finally see the profitability your hard work deserves.

This isn’t about doing more—it’s about working smarter. I’ll share the most common profit leaks I see, how to fix them, and a game-changing tool that simplifies it all: the Client Profitability Tracker.

What’s Draining Your Profits? (And How to Fix It)

Here’s the thing: Every firm has hidden costs, inefficiencies, and time-sucking clients that are secretly holding them back.

Let’s uncover the big culprits and what you can do to tackle them head-on.

1. Undercharging Clients

Raise your hand if you’ve kept the same rates for years because you’re scared clients will bolt. I see it all the time. Maybe you started low to get your foot in the door, but now those same rates are crushing your margins as your workload grows.

Here’s how to fix it:

Use the Client Profitability Tracker to get the cold, hard data on which clients are actually worth it.
Build annual rate reviews into your contracts. My firm reviews client rates every quarter (but only adjusts once a year unless their scope changes).
Start small—raise rates for just a few clients or specific services to build confidence.

You’re not running a charity, and your clients want you to stay in business! When you see the numbers in black and white, it becomes easier to charge what you’re worth.

2. Overspending on Tools and Software

Ever signed up for a shiny new software because it promised to “make life easier” and then forgot you were paying for it? Same.

Fix it by auditing your tools:

List every software you’re paying for and decide if it’s truly essential.
For tools you do keep, make sure their costs are built into your pricing.
Use the Client Profitability Tracker to break down software costs per client and see if they’re pulling their weight.

In my firm, we bundle costs like accounting software and receipt management into client fees. That way, we’re never losing money on the tools we rely on.

3. Inefficient Workflows

If you’re manually sending 50 emails to gather client documents or handling tasks you know could be automated, it’s time to take a step back. Outdated processes don’t just slow you down—they chip away at your profitability.

How to streamline:

Start documenting your processes. Even if you’re solo, getting things out of your head will save time later.
Automate repetitive tasks. Zapier is a lifesaver in my firm for automating emails, reminders, and file organization.
Check out Kickoff with Asana for step-by-step templates to organize your workflows.

Pro tip: Focus on your biggest bottleneck first. Once you fix that, you’ll free up time and mental space for everything else.

4. Overworking High-Maintenance Clients

We’ve all got that one client. You know, the one who eats up 80% of your time for 20% of the revenue. It’s time to evaluate whether they’re worth it.

How to handle them:

Track your time per client using tools like Clockify.
Use the Client Profitability Tracker to see if their revenue justifies the time and energy you’re spending.
Set boundaries or adjust rates for clients who consistently go out of scope.

One trick I use: If a client asks for something outside of scope, I let them know I’m happy to do it—for an additional fee. It’s a gentle reminder that my time is valuable.

Turn Insights into Action with the Client Profitability Tracker

If you’re reading this thinking, “Yup, this is exactly what I need,” you’re in luck. The Client Profitability Tracker is the tool I wish I had years ago.

Here’s what it does:

Gives you clear data on each client’s profitability.
Helps you set profit margin goals and track whether clients are meeting them.
Simplifies pricing decisions so you can raise rates with confidence.

How it works:

Add your client data—revenue, costs, and time spent.
Analyze the results to see which clients are worth keeping and which might need a rate adjustment.
Take action by adjusting your pricing, letting go of unprofitable clients, or tweaking your workflows.

And don’t worry if you’re new to this! The tracker comes with a step-by-step tutorial to walk you through the process.

Why Understanding Client Profitability Is Essential

Here’s the deal: If you don’t know where your profits are coming from, you’re flying blind. Understanding client profitability:

Helps you make smarter, data-backed decisions.
Gives you the confidence to adjust rates and stand by them.
Makes it easier to scale your business sustainably.

Every successful firm I know prioritizes profitability over volume. It’s not about working harder—it’s about working smarter.

Ready to Fix Your Profit Leaks?

If you’ve been avoiding the hard numbers, now’s the time to face them. The Client Profitability Tracker is here to help you take back control of your profits.

Grab your copy here for $97: https://learn.workflowqueen.com/profitcheck

Don’t let hidden costs hold you back any longer. Let’s make every dollar—and every hour—count. You’ve got this!

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