A Letter to the Newer Entrepreneur
My passion has become helping small business owners on account of I've always been one myself. The Bureau of Labor and Statistics defines us as company owners with less than 500 employees. Conveniently, "small business" owners are virtually every business owner I meet.
We all start out in business to make money but with so much focus required on the value creation process, it's easy to become a [ money-in // money-out ] business owner. Knowing success is going to hinge upon the system you trust to track all your transactions is the first critical lesson to learn.
If the system you choose is folded-up receipts in your wallet, you're going to struggle needlessly along from financial crisis to financial crisis. You must become committed to recording your business activities inside a data-driven accounting system in order to accurately benchmark your ongoing business successes or shortfalls.
If the goal when it's said and done is to make money, then it is better to only bring in $100,000 and keep $40,000 than it would be to bring in $200,000, but only keep $20,000.
That's why the business owners we work with know their month-ending results, how they compared to the prior periods, and the impact the month-ending results had on the projected pro-forma income statement. The goal is to find and exploit all the greatest areas for opportunity and eliminate the biggest threats to financial freedom each day.
On top of that, we want the dreaded tax season to be just another money-making season. It's very reassuring knowing the tax liability created by profits is well considered and not going to be a surprise. When we plan along side you year long, you don’t end up owing big bucks to Uncle Sam at the year end.
The financial statements hold a mosaic of information to draw from when making business decisions or course-of-action corrections. However, most new business owners have a hard time naming more than the Income Statement. It's the balance sheet that tells you if you're actually healthy and strong financially, and it's the statement of cash flows that reconciles all activities back to your net cash position.
If you aren't looking at an Income Statement, Balance Sheet, and Statement of Cash Flows every month, you're not managing your business well enough.
Callaghan Public Accounting, PC was started to offer accounting and tax consulting services at very competitive prices so they would be affordable by the newer entreprenuers, and even more so to create recurring client relationships with the success driven people who launch their own companies.
As part of my firm's service, we provide full service payroll including direct deposit and all the related tax filings. We are an excellent resource for small business organizational questions, whether schedule c, partnerships, 1120S, or 1120C, as well as a valuable resource for small business tax questions.
If you're starting a business from scratch, or just looking to improve your financial health, please take advantage of our free consulting offer. I'll personally handle all your accounting questions and get you on the right path before you find yourself way behind the accounting eight ball.
I look forward to meeting any and all entrepreneurs, hardworking well-doers, and people passionate about their own personal financial journey.