How much did you make in your business last month?
Knowing your numbers is critical for decision making, but I’m sure you already knew that, right?
When it comes to the actual work you do in your business, accounting and bookkeeping tasks aren’t exactly at the top of your priority list.
But, they should be.
Knowing your numbers can make all the difference in ensuring that you’re able to pay yourself, that you’re prepared for tax time, and that you are pricing yourself for profit. It also gives you greater visibility into the areas of your spending that offer the best return on investment (ROI).
If you have been struggling with knowing your numbers, know that you are not alone!
I meet business owners who have been struggling with the numbers for months, and some for years! They understand the importance of having good financial records, but they’re short on time – time they’d actually rather spend focused on their passion.
If you want to hear some of the questions and fears my clients had before we began working together, keep reading!
“Accountants are expensive. Can I really afford to hire one?”
First things first, what’s more expensive – not knowing how much you’re already spending every month or an accountant’s fee? You won’t know until you crunch the numbers. I once had a client who was overspending simply because she didn’t realize how much she was using her business debit card for personal transactions. Once we made this discovery, she realized she could stop the behavior, afford to hire me, and pay herself more consistently.
You might have some nerves about allowing an accountant to comb through your finances. I can totally relate! But, knowing that your books are being looked at by an ethical professional should totally put you at ease and give you the confidence to move forward. Considering that the right accountant will take work off your plate AND teach you how to legally grow and sustain your business, they are worth every penny!
“Why (and when) should I start working with an accountant?”
Are you pulling your hair out when you look at your business accounts? Or, are you just not looking at all? Either way, it is probably time to start working with an accountant in some capacity. (Now, if you are a business owner who is conducting business using your personal bank account, we should talk immediately!)
Hiring an accountant will help you make better informed financial decisions in your business. It is also a good relationship to establish early in business so that they’re already familiar with your business prior to you needing them for something bigger, like a tax audit or a proof of income letter.
“What can an accountant give me that I don’t already know?”
This is such a great question! While most accountants can analyze financial statements and transactions to ensure that they are recorded properly, some of us can also help you structure financial transactions such as inventory purchases or the sale of your business, plan your tax strategy for maximum deductions, and make recommendations on what you should do for greater profitability and sustainability for the future.
“My books are a mess. Should I clean them up first to start my accounting relationship on the right foot?”
I can’t tell you how many times I’ve heard this – “I really want to work with you, but give me a month to clean up my books first.”
Listen, Linda. We’re a judgment-free zone over here. We’ll take your books just as they are and work magic! Though I appreciate your effort, I’m sure your books won’t scare me in the least.
Besides, if there are a few months of incomplete bookkeeping, it actually gives your accountant time to see your business’s regular transactions and get to know your business operations a bit better.
Honestly, we are not here to judge you or your business; we’re only here to help! We are purely looking at numbers and how to make sure that those numbers line up with the goals you’ve communicated to us. If you are worried about what you can do to prepare to work with an accountant, check out this blog post.
“Okay, I THINK I might be ready to hire, what’s next.”
I am so glad you asked. I’ve actually already written a blog post about finding the right accountant for you and the questions you should be asking during the interview, check that post out here.
If you think we might be a good fit to work together and you’d like to chat more, contact me here!
