Bookkeeping Business

Home/Bookkeeping Business

Why You Need to Schedule A Year End Bookkeeping Review

As the year wraps up, I encourage all solopreneurs to engage in a little financial self-care, by reviewing your 2019 books! There are several reasons to review your books at this time of year, and they would benefit from the eye of an expert. If you don’t already have a bookkeeper and feel like you could benefit from some oversight, schedule a review with someone. The financial insight will go a long way for your business. Here are my top two reasons for reviewing your books now.

Tax Prep

First of all, straightening out your 2019 books to prep for tax season simply makes sense. Hiring an expert to help you do this can ensure that your books are accurate. That extra bit of readiness will feel so good come tax season, I promise! It will save you some stress and last minute rushing come tax time. Think of it as a holiday gift to yourself!

Where Did You Make Your Money?

My second reason for scheduling a bookkeeping review with a professional is so that someone with a trained eye can go over your books and help you discern where, when, and from what you made the most money. This kind of insight is invaluable to any small business, especially if your goal is growth. Your financial records hold this info. Work with someone willing to help you find it! For more about finding and working with a bookkeeper, check out “How to Get the Most Value From Your Bookkeeper”. The insights you gain from a good bookkeeping review could help shape your plan for your business in 2020. All the more reason to review them now!

Going over your books with a professional will save you a lot of stress and provide you with knowledge needed to run a successful business. Please consider scheduling a year-end review – you’ll thank yourself later! If you’d like to work with me, I’m currently offering a Quickbooks Online 2020 Reboot, a session meant to help you review and understand your books. You can set one up anytime from now through December 20th, through my scheduling form here.

Here’s to tying up your financial loose ends!

☮

Angela

Why You Need a Bookkeeper From the Beginning

I recently had the chance to hear from some other women about the hardest financial lessons they’ve learned through running their businesses. One of the women I spoke to listed not hiring a bookkeeper from the start as her number one mistake.  

The Mistake

When she started her business, this woman decided not to hire a bookkeeper right away. She had a vague plan to address it eventually – she knew she could either do it herself, or hire someone when her income was higher. However, when it came time for taxes, she had a big mess on her hands. She had to hire a professional to clean it up on a short timeline in order to pay taxes, and that emergency help was costly. She also missed out on having a complete understanding of her business that year, because she couldn’t look at her numbers clearly. Because of this, she missed all sorts of important analytics, like what sold best, when it sold, etc.

The Solution

After this fiasco, the best thing to do is to hire a professional to come in regularly. Even if it’s once a month or once every two weeks, knowing someone else is coming in can keep you accountable to your books. A good bookkeeper also finds and shares any financial insights they catch. This is an invaluable but often understated aspect of bookkeeping services. Understanding where your profit comes from, where your operating expenses go, and any other money-related patterns in your business can help you make better business decisions in the long run. If you’re interested in more on this topic, I recommend my articles How to Get the Most Value From Your Bookkeeper and “Know What Your Numbers Are Telling You.”

Why You Need a Bookkeeper From the StartFinally, once you hire a professional, instead of just taking your best guess yourself, you may find you’re more relaxed about the state of your business. The value of feeling at peace with money is not to be understated.

I hope you found this helpful! I’m doing a series on financial lessons learned from business in honor of Financial Planning month, so stay tuned. And if you enjoy these thoughts, I wrote a lot more about planning and financial lessons in this month’s newsletter. Read it here and subscribe if you wish – you can unsubscribe any time.

☮

Angela

Image Source: Steve Johnson

Why DIY Business Owners Can Still Use a Bookkeeping Partner

Why DIY Businesses Can Still Use a Bookkeeper: At Peace With Money

Recently, several people have reached out to me who prefer to do their bookkeeping on their own, but want to have a second set of eyes on their numbers. I can’t tell you how pleased I’ve been to receive these requests. I think consulting someone else about your books is a great idea, even if you typically keep your records yourself. There are two main reasons why I think occasionally working with a professional bookkeeper, even if you’re a whiz on your own, can greatly benefit your business.

Accountability

Having someone who regularly looks at your books, even if it’s only once every month or so, motivates you to stay on top of them. Regularly scheduled reviews can help you maintain consistency and accuracy in your record keeping, which can streamline your business even further. It’s easy to fall behind on your books if no one’s watching. Having someone else look at them every now and then encourages you to keep up.

Accuracy Check

Your financial records are something you don’t want to mess up. Mistakes can be terribly inconvenient at best, and very costly at worst. Plus, if you are working to learn the skill of bookkeeping, it’s great to have an expert on hand to review your work. That extra pair of eyes can help keep your records orderly.

My Story

When I was running Dolce Beada, I knew how to do my bookkeeping, but I still had someone come in once a month to make sure I stayed on top of all the entries. Having someone look at my records regularly kept me in the habit of recording my numbers and keeping my books from getting messy. I also really benefited from a monthly numbers-check, just to make sure I was doing it right. 

Some business owners may feel that they are not ready to hire a bookkeeper, so they prefer to keep their own records. If this is you, you can still benefit from having a bookkeeper review what you’ve done. Or perhaps you need some training on how to set up and maintain your bookkeeping – an expert can offer this too.  Many solopreneurs also benefit from Profit First Financial Coaching in order to set a revenue goal for their business, fully understand how much they are spending both personally and in their business, and prepare to pay themselves and all taxes as they come due. All of these business concerns require some financial work, and an expert who can coach you through that work can be an invaluable resource. 

If you’re interested and want to learn more about the Profit First and financial services I offer, check out my services page, and book a call with me!

Angela

Image Source: Ashkan Forouzani

Know What Your Numbers Are Telling You

Know What Your Numbers Are Telling You: At Peace With Money

This article is the third in a month-long series on taking care of your finances as self-care. Specifically, I’m focusing on what you can do with your money to take care of yourself and improve your business in 2019. You can read the whole series by clicking here. 


 In the last installment of this series, I talked about how important it is to separate your business and personal finances. Doing so gives you access to a lot of important information about your finances. However, it’s also important to know what to do with that information once you have it. This requires some analysis. Let’s dive in:

Know What Your Numbers Are Telling You

Look back through your financial records for the year. Figure out what products, services, or other sources brought in the most revenue. Identify which months you made your largest and smallest amounts of revenue, so you can understand the rhythm of your income.

Do the same for your expenses. Did you have surprise expenses come up that caused you problems? How can you plan for these surprises in case they happen again? For many people, taxes are a surprise expense. You can plan more effectively once you look at last year’s tax expenses, and prepare for upcoming years. 

Solopreneur Paycheck

Look at your total revenue. Did you pay yourself? Did your business pay you money? If so, move money from your business to your personal account. In the Profit First system, Owner’s Pay and Profit accounts are used to divvy up income and ensure that the owner is getting paid. This is called paying yourself first, an important practice for any business owner. Actually separating your income from the other categories, like savings for operating expenses and taxes, is key to a thriving business. 

Bringing It All Together

By analyzing your finances and gleaning all this information, you are ultimately able to tie loose ends and What Your Numbers Say About Your Business: At Peace With Moneycreate a financially streamlined business. Strategizing to prepare for surprise expenses and taxes, offer more of your most profitable products or services at the optimal time of year, and remembering to pay yourself all contribute to financial success. If you’re interested in doing this analysis work with some professional help, I’m happy to speak with you. Take a look at my service packages and schedule a curiosity call. If this has piqued your interest about Profit First, download the first 5 chapters for free here on my website! I do hope this post helps you find some financial insights into your own business!

Angela

Image Source:  Martin Sanchez

Schedule Your Year End Bookkeeping Review

As the year wraps up, I want to encourage all solopreneurs to engage in a little financial self-care, by reviewing your 2018 books! There are several reasons to review your books at this time of year, and they would benefit from the eye of an expert. If you don’t already have a bookkeeper and feel like you could benefit from some oversight, schedule a review with someone! The financial insight will go a long way for your business. Here are my top two reasons for reviewing your books now.

Tax Prep

First of all, straightening out your 2018 books to prep for tax season simply makes sense. Hiring an expert to help you do this can ensure that your books are accurate. That extra bit of readiness will feel so good come tax season, I promise! It will save you some stress and last minute rushing come tax time. Think of it as a holiday gift to yourself!

Where Did You Make Your Money?

My second reason for scheduling a bookkeeping review with a professional is so that someone with a trained eye can go over your books and help you discern where, when, and from what you made the most money. This kind of insight is invaluable to any small business, especially if your goal is growth. Your Why You Should Schedule Your Bookkeeping Review Now: At Peace With Moneyfinancial records hold this info. Work with someone willing to help you find it! For more about finding and working with a bookkeeper, check out my post “How to Get the Most Value From Your Bookkeeper”. The insights you gain from a good bookkeeping review could help shape your plan for your business in 2019 – all the more reason to review them now.

Going over your books with a professional will save you a lot of stress and provide you with knowledge needed to run a successful business. Please consider scheduling a year-end review – you’ll thank yourself later! I offer bookkeeping services along with Profit First strategic advising. If you’re looking for someone to work with, don’t hesitate to schedule a curiosity call with me.

Here’s to tying up your financial loose ends!

Angela

Image Sources: rawpixel,  Ella Jardim

 

How to Get The Most Value From Your Bookkeeper

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

As a business owner, every time that you outsource a task for your business, you want to make sure you are getting the highest value out of that task. Particularly if you are hiring a professional for services, such as a CPA or bookkeeper, they should not only provide the service you need to keep your financial records up to date. They should also be able to provide you with insight or advice into your business finances. They regularly see all the financial facts of your business right in front of them. If they aren’t interpreting and discussing with you the trends they see in your business,  or they aren’t talking about or making suggestions to support the health of your business , they are actually doing you a disservice. Financial professionals can easily access that information. Making sure you hire someone who is willing to talk to you about those things and provide information that will provide you with much greater value from this professional service. If you are able to apply these financial insights, your business will benefit greatly in the long run.

This point also illuminates the value of hiring a professional in the first place. Hiring someone who knows what they’re doing to both keep your books in order and analyze financial trends is important. Paying a professional a higher wage for a better quality work, rather than hiring someone who doesn’t do the job well, will greatly benefit you and your business. Someone who can provide you with valuable information about expenses, cash flow, profit margins, and other financial inner workings of your business can prove invaluable in the long term. Think of hiring a talented professional as an investment in your business’s financial wellbeing.

How to Get the Most Value Out of Your Bookkeeper: At Peace With Money

When you are looking to hire a CPA or bookkeeper, inquire whether their services include providing these insights and consultations. If you are already working with a particular professional, ask them if they are willing to start discussing their financial findings with you. If not, maybe it’s time to find someone else – because that valuable financial knowledge of your business is absolutely worth it. If you’d like to speak with me about my financial services, schedule a discover call!

Angela

Image Sources: Sergey Shmidt , Sharon McCutcheon

Business Expenses Are Not Free

Business Expenses Aren't Free: At Peace With Money

There is a common misconception among business owners: thinking that “I will write that off as a business expense” means it’s free. Let’s bust this myth! Our business (and bottom lines) will be all the better for it. 

Why Do We Think This?

The root of this misconception probably stems from our experiences as employees of larger companies. As an employee, business expenses are often “free” in that you get reimbursed for them or your company is covering the expense. However, now that you own your business, the expense is included in your bottom line. Business expenses no longer disappear into the ether of corporate bureaucracy – owning a small business means every expense shows up. 

A New Way to Think About Business Expenses

It’s true that as a business owner, you do get a tax write-off for business expenses. But it is also true that an expense is still an expense; the money still leaves your accounts. It’s important that, as business owners, we rewire our brains to recognize this. Business expenses are not equal to receiving things for free. Free stuff is still the best option!

Business Expense Advice: At Peace With MoneyRecognizing this may mean we need to reexamine our approach with expenses in general. When making a purchase, it’s important to ask yourself, “Is this expense actually adding value to my business? Do I really need this?”. Often we are pressured into spending money on our businesses that we don’t really need to, especially when starting out. Evaluating our priorities and finding financial clarity in our businesses can be a helpful step in the right direction. 

As my final tip, I’d like to present a favorite Profit First strategy of mine. Ask yourself, “Can I wait just one more day to make this purchase?” This simple question can again help you in evaluating your financial priorities, and buy you more time to get your business finances in order. 

 


Angela

Images: rawpixel.com , Brooke Lark

How to Boost Your Revenue Now!

Boost Your Revenue Now! At Peace With Money

Alright, I’ll just come out and say it: invoice your customers! I know it sounds obvious, but you would be surprised how many business owners put off that task of invoicing their customers. Doing just that can help you boost your revenue immediately.

You know your business needs cash flow to survive. You cannot pay yourself or your bills or buy the things you need to keep your business moving forward if you don’t have the cash flow. Invoicing your customers is your way to secure that cash.

Invoicing

If you’re running your business with recurring billing, or better yet, recurring automatic payments, then you already understand the power and importance of invoicing. With that type of system you can better plan for your revenue stream and upcoming expenses. In contrast, if you are doing any type of project-based or one-off billing, you need a system in place to get your invoices out to your customers as soon as possible. It’s likely that your customer will sit on that invoice for a couple of weeks before they bother to get it paid. All the more reason to invoice them as quickly as you can!

The Follow-Up

After you send the invoice, follow up with the customer to make sure you get paid. Again having a system in place comes in handy here. If you don’t get payment within a few days, resend the invoice, send a reminder or call them and ask for payment. Calling gets results. As a bookkeeper, I know which vendors are going to call me to ask for payments and which aren’t, so I pay those that don’t ask last.

Boost Your Revenue Now! At Peace With MoneyYou need to be the one following up to get paid. If you truly don’t like this part of your business, ask yourself why. After all, you started a business to make an income, you are offering a product you believe in, and your customer benefits from your product. You deserve to be compensated!

The main takeaway here – to boost your revenue immediately, get a system in place for invoicing and following up with your customers. If you need help putting together an invoice system, maybe it’s time to work with a profit strategist. You know where to find me!


Angela

Image Sources: 1, 2