While it’s true that you can’t run a business without managing money, the fact is that most business owners aren’t experts with accounting. Furthermore, few business owners actually go to school for business or finance, so bookkeeping is often a learn-as-you go experience for many. Tracking your business’ money accurately is one of the most important aspects of your business, and not doing so can lead to tax- and cash flow-related grief. That said, tracking your cash doesn’t have to be a painful experience, especially if you seek out the right help early on.
As makeup artist and eyebrow expert Suzie Moldavon explains, handling her income, payroll and taxes alone while running her business was a daunting task, and continued to be until she hired experts to help her manage the numbers. Initially, she only had a tax consultant that she met with once a year, but even then, once a year was too infrequent to reign in 365 days worth of cash and non-cash receipts. Realizing she would save more money in the long-run, Suzie hired an accountant to keep a close eye on her books year round, and the difference has been liberating.
As Suzie has come to learn, you don’t have to necessarily personally understand every column of your Profit & Loss sheet in order to keep your business running. Keeping your documents well organized helps your financial team—whether it’s a One Accountant Show or good accounting software—do its job to the best of its ability. Part of being a wise small business owner is recognizing one’s strengths and weaknesses. When you get the proper help to address your weaknesses, you ultimately empower yourself to focus on your strengths, which will make your business thrive.