What is the one subject business owners want to talk about the least? Like with most marriages, it’s money.
I’ve recently had several discussions with business owners regarding compliance, taxes, and finances in general. The common theme was a fear of facing reality – they had built up a catastrophe in their minds, and rather than discover what the true situation was, they wanted to ignore it as long as possible. Because that works, right?
I completely understand where they’re coming from, though. Having financial trouble is frightening, especially when the IRS or other government authorities are involved. After all, the consequences of non-compliance are pretty steep. However, I am a firm believer that, particularly with regard to money, the first step to handling it is to know where you are now. Once you know your true financial situation, you can start to create a plan to get you where you want to go.
Simply paying attention to your financial situation can create improved profitability and a higher bank balance. Much like keeping a weight loss journal, having to track spending can help you spend less. Reporting that spending to an accountant is even more helpful, since now you’re accountable to a third party.
Are you ready to find out your financial situation? We can help.
Donna Harris holds a BSci in Accounting and is the owner of Bookkeeping Made Simple.She is a current MBA candidate and expects to finish by May 2022.
Donna Harris, BSci Accounting, MBA, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her master's in Accounting.