Being a business owner can be a bit overwhelming. When you first start out, you’re typically wearing every hat in the business. You’re selling your product or service, creating and sending contracts, onboarding clients, servicing clients, and oftentimes, taking care of your invoicing and other bookkeeping tasks. Just because you own the business, does not mean that you’re good at all these things. In fact, it’s important that as your business grows, you delegate responsibilities that are not in your wheelhouse. No matter if the responsibility directly involves money or not, it can impact your business financially. If the thought of that scares you, don’t worry! You can still succeed in business, even if you’re not good with money and if you don’t understand how everything can impact you financially. Here are a few professionals that would be great to have on your side, especially if you feel you’re not good with money.
If you haven’t started your business, consult an accountant to see what type of entity to create. The type of entity determines how you are taxed and identified your rights and responsibilities. Even if you have been in business for a while, it’s best that you consult a trusted accountant to make sure that you are the entity type that you should be. If not, they can help you make that change.
You also want to use an accountant for tax planning purposes. They can help you set up quarterly taxes and take advantage of tax breaks. They may tell you that you need to spend a certain amount of money by the end of the year to help reduce your taxable income, keeping you from going into a higher tax bracket. They can also help guide you on what you can and cannot writeoff on your taxes.
Many people believe that accountants do bookkeeping when oftentimes, that is not the case. A bookkeeper is good for tracking your daily expenses and income in software like Quickbooks. A lot of times, when businesses are just starting, the owner will do it themselves. If you do your bookkeeping yourself, it’s still a good idea to have a bookkeeper look over your books and reconcile them at least quarterly. If you have a lot of expenses and income transactions, it would be best to have them do that monthly.
Are you like many business owners who determine how well their business is doing by the balance of the checkbook? You’re not alone if you do. However, this method of running your business will not help you sustain it in the long run. A business financial coach can help you look at the numbers that are most important to pay attention to because of the story that they tell about your business. Every business has a financial story and you can’t learn to make smart business decisions about things like purchases and growth until you understand what that story is, not just what your checkbook says. Being clear about your numbers is key to financial success in businesses and a financial coach can help you with that.
A financial coach can also help you change your money mindset and work towards a better relationship with money. That way, you become better with spending, saving and planning.
Other professionals you may want to consider helping you with financial decisions are an attorney, a financial planner, a plan administrator, and a licensed insurance professional. They can help make sure you’re protected and making the right decisions.