use an anticipatory set to make things easier for both sides.
by penny breslin
it’s not just the numbers
in 2000, our company created a quickbooks training dvd. the owner wanted it done professionally and hired a movie company and rented a studio. the rfp went out. all proposals received had a fee for discovery.
more: how to maximize on-site client meetings | use timesheets for productivity, not billing | revisit your back office support procedures | federated search: what it is, why it matters | accounting tech tools to minimize your pain | do your apps play well with others? | it’s ok to have favorite clients | ten questions for teamwork
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today, if you were to hire a development team to create, update or install code, they would charge you a certain amount for discovery before they would do any actual coding. what you are paying for is the development of the anticipatory set and a clear definition of the scope.
so what is the anticipatory set (as)? the as is used to:
- involve all participants, focus everyone’s attention and get them thinking
- make sure everyone’s on the train and knows where it’s going before it leaves the station
- bait the hook in order to catch the fish
- refocus attention on the objectives (especially useful after interruptions)
here’s an example of an anticipatory set from my early days as a student teacher. my first student teaching assignment was in special ed. but it was a bit daunting because it was the senior gifted talented class for a particular high school in the rocky mountains.
let’s just say i got slammed on the first day. i felt like i was dazed and confused. the actual teacher for this class was nice enough to explain things to me and gave me a detailed plan with due dates, tasks, team-building projects, objectives and the final goal. it was an exercise in handling dilemmas as a team. the teams were all doing the same exercise, but each of them would end up with different approaches.
i thought, “well, it’s all laid out. let’s get to work!” but that first day was a fiasco. mainly because i did not have the anticipatory set for myself, which was getting to know the members of the teams. nor did i give the anticipatory set to the kids, which was the final goal of the exercise. both the students and i went into the first part of the exercise without me laying out where we were going and how we were going to get there and what tools we had available. there was no discovery. i just went right to execution. and they served my head on a platter that day. i went home that night and did my discovery. in the next class meeting, i had them do theirs. it ended up being a delightful six-week stint with some smart kids.
use the anticipatory set for client onboarding in the same way that you would use it to prep a class of students on what was going to occur during the course of the semester. this allows you to set up a service level agreement that both you and the client can agree on.
what should the as include?
the anticipatory set should have direct relevance to the objectives and be stated clearly.
how long should the as be? as long or short as necessary. the as should include:
- a review of the current accounting and back-office procedures for the work that you are insourcing to your office
- the procedures for what the client’s back office will retain in-house
- all significant or related information to establish continuity; a structure for step-by-step information documentation
- a label for the work and tasks: vocabulary, name, title, overall direction or context for the objective
- information that allows the participant(s) to know which tool in the toolbox to reach for when a recall of the objective may be needed
the as is page one of the client-specific procedures. this will be in draft mode until you have a clear picture of the path you and your client will follow. the as is also included in the client leave behind manual, which will be created when the bookkeeper manager starts the work.
team exercise: practice developing an as
practice is a verb, not a noun. bring your team together and practice interviewing a client. use the following methods to hone your skills:
- questions
- demonstrations (especially one with a result that no one expects)
- a story or anecdote; shock; humor; pertinent news item
- role-playing
- be creative in planning your practice!
as you should be aware:
- this is a team sport.
- you are the quarterback.
- if you refuse to pass off to your offense, then do not be surprised by the sack.
- efficiency and smoothness come with time just as when you first started your practice.
use the following actual scenario as a start:
scenario: the company is a manufacturer of clothing. they purchase clothing already made and add designs to the clothing. the company has a warehouse with an assembly line of eight artists who hand-paint or stencil the owner’s designs onto casual clothing for women, men and children. they sell wholesale, retail and at special events. they have an online shopping cart attached to their website. their current accounting system is quickbooks pro and they keep inventory on an excel spreadsheet.
the company is an s-corp, and they have not reconciled their bank accounts for four months. there are two equal owners, and neither has the time to keep up with the paperwork. the other employees are all artistic types. at the warehouse, there is one web person who also works in the retail shop. they also have a delivery person who moves product from the warehouse to the retail shop, as well as other retail shops around the area, and ships online orders. the owners sell at music and street fairs in several states, so they are often on the road in the summer and fall. a cpa firm has been contacted, and the firm has a team ready to perform the necessary work for the client.
in preparation, the team leader (back-office support, bos) has reviewed the current quickbooks file and let her team in on the date and time of the meeting. she has also verified that the current bank and credit card companies in use by this prospective client have online access via the current software. her assistant has researched the lowest price to purchase upgraded quickbooks software if it is needed.
the bos sets up a time to go on-site at the warehouse; her assistant accompanies her. they first walk through the warehouse admiring the clothing and watching the painting process. this front area provides an opportunity to ask questions. because this is a new client, the bos has opted to have her assistant take notes on an ipad using an app. the assistant can outline using the ipad keyboard. the audio is recorded and linked to each line of the outline. the bos can now really focus on what she sees and hears and, most importantly, how the client is responding with body language. as time goes by, the client becomes very relaxed and is totally engaged with the bos. the company has been in operation for three years and is making around $500,000 annually with seasonal fluctuations.
needs assessment checklist
before developing the scope of the engagement, a needs assessment is in order. as the head of the bos team you will need to evaluate what you can and cannot do, as well as the time frame needed to accomplish the work. at first, many clients may have one or two areas that benefit from your help. over time, as the client sees the benefits, more of the work will come. discover what you can now, while on site.
evaluate:
- what is the scope of the current, in-house back-office accounting work?
- what existing technology and software are utilized?
- what is the ultimate objective of having the accounting and bookkeeping done by your firm?
- what are the politics of the office? ok, you may need to be a little adroit here. but do find out if you are just another in a series of frogs jumping into a frying pan.
the last two evaluation points deal with emotions and not debits and credits. in order for you to have a great relationship with this company, you need to understand the owner’s wants. as much as they want good numbers, the good numbers are a means to an end. what is the end game? find out. if you don’t know the end game, you could do a lot of work that doesn’t make anyone happy.
questions you might ask during the walkthrough:
- how do they pay the artists, hourly or per piece?
- you notice that two of the work area drafting tables are empty. how many artists work full time vs. part time?
- the front area has a desk with lots of papers that appear to be shipping lists and bills of lading. is this the receiving area? there are pallets of clothing around this desk.
- another desk has a pc, telephone and scanner. no one sits at this desk and it is relatively clean. what is the computer used for?
the procession moves to a small office in the back where the other partner is waiting. he primarily does the marketing and day-to-day operations of ordering and overseeing fulfillments. he works on a macbook air. after a quick intro, we start with more detailed questions:
- where is the quickbooks data file kept?
- do you use purchase orders?
- how do you receive the incoming goods?
- how do you handle pricing variances from wholesale to retail to online?
- how do you handle retail store sales? pos or manual?
- who is your merchant services provider for the website?
- who is entering the revenue to quickbooks now?
- how many bank accounts do you have?
- do you use credit cards?
- do you have personal cards that you occasionally use for the company?
- is any of the equipment leased?
- what kind of rental contracts do you have?
- when doing the street fairs and music events, how are you handling costs?
- do you drive or fly?
- do you take inventory that already exists or do you create goods specifically for the events?
- who, besides the owners, travels to the events?
- what, specifically, led you to contact us about taking on this project?
sample of service requested:
payables
sales invoices
sales receipt summary
payroll full
payroll after the fact 3rd party: ____________________
inventory
bank reconciliations: # of bank accounts: _______________
credit card reconciliations: # of credit cards: ______________
sales tax ? quarterly ? monthly ?
annual sales tax reconciliations
annual report
monthly reports
special reports
corporate tax return
other tax returns or other filing requirements
other services
although we have checklist templates, we did not use them at the meeting. the meeting and these open-ended questions provoke a story from the client. we are finding out what they want, need and most importantly, what pain we are supposed to remove. this meeting took two hours at the client’s location. the cpa mentioned a few items on sharing data, access, upgrading the quickbooks software, if it was decided they would stay with quickbooks. we were pushing for xero with a cloud-based pos. she suggested several ways they could manage their own inputting of data. the owners made it clear they did not want to do the data entry. so after the second recommendation the cpa began to say, “when we add this information for you …” on each recommendation. this is called the assumed close. a time was set for a second meeting to go over the proposal in two weeks.
now we are back at the firm office to begin writing the proposal. the end result of the actual proposal for namaste clothing is below. you will come up with a different path to get to the ultimate goal. the proposal is there to give you ideas.
however, keep in mind earlier when we said verticals. don’t try to implement a unique system for each client. if you do that, you are back to just doing compliance work. the key is to start at the ultimate goal and work your way back through the process.
the ultimate goal was to allow the owners more time to work on growing their business, while providing reliable and useful data. the owners needed to simplify how they were managing data, but still have detailed reports of each product they sold, including where was the product sold, how much it cost to sell the product and inventory turnover rate. the need for collaboration (integration) was high because of the retail-wholesale-special events- and online sales channels. because the owners traveled often, being in the cloud was a given.
the quickbooks file would need to be cleaned up and converted to xero. the client, as we were sure the prospect was now a client, had no issue with changing to a hosted or online accounting program. they had not kept the qbd data file current, and three previous bookkeepers had each managed data entry differently.
artists were paid contractually on a per-piece basis for the first three months, then went to a flat-rate salary. this would make the addition of cost of labor to the bill of materials much easier to deal with. the owners were using ipads while on the road so an asp, although doable, might not be the best solution. their vendors were pretty static, all u.s.-based, easily contacted and would send their invoices via email. the bank had online access and the client liked the idea of bill.com.
overview of the work proposal
the bos created a proposal for the cleanup of the current accounting to bring it up to date from the beginning of the year and then export the ending balances to a new online accounting system. additionally, the firm would import the product inventory to a pos and online shopping cart. all of these services were one time and to be completed within two weeks. a second proposal covered the month-to-month work. in addition, the bos added an sla checklist that she would go through with the client, line by line. below is a copy of the proposal we submitted for the scenario in this step.
proposal for services for namaste clothing
prepared for
tim and tina moon, owners, namaste clothing
prepared by
penny breslin, moneypenny, llc
tel: 760.214.4787
pbreslin@moneypennyllc.com
table of contents
statement of confidentiality and non-disclosure
executive summary
1. company background
2. identification of objectives
2.1 namaste clothing objectives
2.2 additional requirements
2.3 assumptions
3. proposed services
3.1 services
3.2 coordinated services
3.2.1 requirements vs. solution
4. why choose moneypenny, llc?
4.1 benefits of our services
5. implementation plan
5.1 methodology
5.2 implementation schedule.
5.3 performance metrics
6. fees
6.1 fee breakdown
6.2 payment terms
7. conclusion
submission date
statement of confidentiality and non-disclosure
this document contains proprietary and confidential information. all data submitted to namaste clothing is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with moneypenny, llc. the recipient of this document agrees to inform present and future employees of namaste clothing who view or have access to its content of its confidential nature.
the recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent that such matter is generally known to and is available for use by the public. the recipient also agrees not to duplicate, distribute or permit others to duplicate or distribute any material contained herein without the express written consent of moneypenny, llc.
moneypenny, llc retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.
by acceptance of this document, the recipient agrees to be bound by the aforementioned statement.
executive summary
moneypenny, llc is pleased to present namaste clothing with this proposal for its virtual bos services. we understand the need for real-time, fast access to accounting data and reports. moneypenny recognizes this unique opportunity to assist you in implementing a system providing the owners with timely reporting of accounting information. as well, we understand that namaste clothing is interested in porting their current software and data file server from their internal pc to one that provides a 24/7 support, backup and access solution. we believe that the current economic market is one in which fast decisions and safe access to data is critical for management to make those decisions necessary for the success of any organization. the dedicated staff and expertise at moneypenny are uniquely positioned to successfully assist you in achieving these goals.
having reviewed your objectives, we are confident that our proposed services will effectively address your needs. our goal is to provide you with the best available team of trained accountants and bookkeepers who will work together effectively to quickly make what is a difficult task easier for namaste clothing.
by availing itself of our services, namaste clothing:
- will have access to over 100 years of expertise and experience in accounting
- will have access to xero professional advisory network and business process specialists who will develop processes and procedures in xero, vend pos, shopify and bill.com as it applies to namaste clothing’s needs
- will have expert bookkeeping services
- will enjoy the safety and security of reliable backup of your source data
- will experience quality speed and tech support with saas providers that understand security and have strong qualified 24/7 tech support
our unique ability to manage multiple vendors and support persons in various specialties and our successful track record in virtual bos services for over 10 years make us an enviable partner for any company. we look forward to a mutually rewarding relationship with namaste clothing.
- company background
moneypenny currently serves 20 retail clients in support of their back-office processes and tasks as a virtual bos.
mission statement:
the company’s mission is to assist namaste clothing in preparing and maintaining real time managerial accounting information to allow management to effectively manage and understand the daily operations and results of its business, while providing a viable understanding on how technology can assist you to run your operations efficiently.
services available:
- virtual bos service
- workflow consulting
- xero consulting
- full tax & compliance services
certifications:
- xero professional advisor; 2009-2021
- quickbooks professional advisor
- intacct certified advisor
- certified public accountant
- professional project manager
- identification of objectives
2.1 namaste clothing objectives
moneypenny understands the objectives of moneypenny’s involvement in namaste clothing to be as such:
objectives:
- set up and maintain xero data files for namaste
- maintain namaste clothing bank accounts
- enter information from third-party payroll and apply payroll transactions using journal entry (je) method
- enter accounts payable for disbursement by owner via bill.com sync to accounting program
- document processes and procedures of work in xero
- sync xero, vend, and shopify for data across systems
- verify source documents against data feeds
- prepare sales tax liability payments
- prepare dashboard reports: p & l by sale venue, monthly balance sheet, company p & l, inventory reports to be designed with owners and bos
technical requirements:
- access to current quickbooks (qb) data file and license number
- establish accounts at xero, vend, shopify and bill.com
- communicate shopify addition to web manager of namaste online store
- secure access to financial information
- set up protocols for outsourcing data entry of accounting to moneypenny, llc
reporting/monitoring methods:
- provide financial reports at management’s request
- monthly virtual/live meetings with company operations team to track progress
evaluation methods:
- cost to completion
- time to completion
- customer reviews and satisfaction measurements
timeline requirements:
| proposal
submittal |
supplier
selection |
project
start |
initial
review |
project
renewal |
weekly
budget |
total
budget |
other |
| 5/25/20xx |
2.2 additional requirements
moneypenny has identified the following additional requirements that should be met in order to successfully complete these objectives:
- subscribe to xero.com
- clean up and convert qbd to xero
- set up vend pos and shopify online cart
- move all source data to firm’s dms/the client portal
- read-only access to banking, credit card, merchant services and payroll accounts
- scheduled training times for namaste clothing internal office staff on xero, vend, shopify, bill.com and source documentation capture
2.3 assumptions
the following assumptions were made when preparing this proposal:
- namaste clothing is interested in real-time, accurate reporting methods
- namaste clothing is interested in tracking the profit and loss of each of their selling venues
- namaste clothing is interested in tracking profitability of special events
- the current back office systems are outdated
- namaste owners travel to live events and need a means to manage the financial operations virtually
- proposed services
3.1 services
moneypenny, llc will provide the following services for namaste clothing:
- monthly bank reconciliation of one operating bank account, two credit card accounts, and one merchant services account
- data entry of customer payments
- data entry of biweekly payroll
- data entry of customer invoicing
- data entry of accounts payable
- maintain inventory via pos system imports
- maintain accounts receivable, accounts payable ledgers
- preparation of monthly sales tax liability payment
- weekly p & l by venue reports
- monthly cash flow projections
- monthly p & l and balance sheet reports
- inventory roi reports
- monthly review and discussion with client
3.2 coordinated services
moneypenny, llc will coordinate with all third-party vendors that namaste clothing chooses to work with on the deployment of the migration and the transition to new saas environment providers.
3.2.1 requirements vs. solution
the following table shows how each requirement will be addressed:
| requirements | solutions | deliverables |
| upgraded accounting software | xero accounting
cleanup and converting of qbd (separate agreement for initial setup) |
24/7 secure access to xero file for namaste clothing and moneypenny employee(s) |
| non paper (virtual) pos system for retail store and special events | vend pos | vend utilized on company ipads
syncs to shopify and xero |
| adding new shopping cart | shopify | syncs with vend |
| source documentation—1 | access via read-only to bank, payroll, credit card, merchant services | linking of documents to client portal and syncs to xero |
| source documentation—2 | dedicated, secure fax number for scanned items sent directly to bill.com | syncs to xero |
| documentation of process for sustainability and succession | moneypenny, llc | digital editable procedure manual |
- why choose moneypenny, llc?
4.1 benefits of our services
moneypenny has over 10 years’ experience in the virtual bos industry with a proven service model. our dedicated team offers the highest quality “total” back office solution, not just bookkeeping services. we not only remove the burden to the business owner of maintaining timely, accurate accounting information, but we help you understand what this information means.
- implementation plan
5.1 methodology
once the decision is made to use our services, our team will get started.
we will begin with the setup of the xero, vend, shopify and set sync schedules. we will initiate a bill.com account and request all your vendors to email invoices to the new namaste@bill.com email address. we will establish a sync schedule of bill.com to xero. simultaneously, we will discuss with you the specific functions and reporting you want from your accounting system and begin to design the flow of information between us. once everything is in place, we will begin to process the daily accounting information. at each step of the process, we will keep you apprised of the status and work through any concerns and issues that may arise.
5.2 implementation schedule
the implementation schedule is summarized in the table below.
| id | activity | dependency (id of related activity) | duration | start date | review date | end date |
| 1 | data migration | 2 days | [date] | [date] | [date] | |
| 2 | data entry | ongoing | ||||
| 3 | training | |||||
| 4 | source data hosting | |||||
| 5 | ||||||
| 6 |
5.3 performance metrics
the following metrics should be used to measure the success and progress of this project:
- past results of accounting reporting access vs. reporting in new updated xero file,
- consistent data entry control. in the past, namaste clothing has had three locations for data with triple entry
- speed of access to data between inventory, online store and accounting software
- accurate managerial and month-ending reports
- behavior-based:
- increases ease-of-use for company accounting department
- minimizes external reporting requirements as is currently occurring
- speeds up retrieval of accounting data for better cash flow
- management and controls
- provides constant support during project and follow-up support
- provides a baseline procedure file
- cost-based
- lower cost of implementation over time and fees spent on new hire or extending hours of current office manager to perform data entry tasks.
- faster access and faster turnaround
- behavior-based:
- fees
6.1 fee breakdown
based on our analysis of your needs and objectives we have determined the following fees by service:
| service(s) | amount
($) |
| xero (monthly) | 0 |
| shopify (monthly) | 29 |
| vend pos (monthly) | 59 |
| bill.com (monthly) | 49 |
| sync program | 0 |
| initial setup fee (one-time)
review of xero reporting requirements installation of xero, vend, shopify, bill.com syncing of saas programs import of current data creation of shared procedures |
795 |
| monthly bos services | 2,280 |
6.2 payment terms
we will bill you on the third day of each month for the previous month’s work. on the sixth day of each month, we will electronically debit the bank account or charge a credit card of your choice. please complete the accompanying electronic draft form and return with the signed copy of this proposal.
at the acceptance of this proposal we will debit your bank account or charge your credit card for the purchase of the $795.00 initial setup fee.
- conclusion
moneypenny is confident that our virtual bos strategy will provide namaste clothing with the desired results of faster reporting, lower cost applications and more visibility into their business. we sincerely hope that namaste clothing will consider us as a partner in this endeavor and allow us to enter into a mutually beneficial relationship. we are available to answer any questions you may have and look forward to discussing this opportunity further.