Proof That Accounting Is Sexy

Accounting Is Sexy

It’s tax season, and that means that you’re probably looking at your accounting systems (or lack of them). Maybe you’re considering whether you should hire a book keeper (yes!) or work with an accountant (double yes!).

I thought it would be a good idea to share why I believe that accounting is sexy, and how you can get ready for your smoothest tax season yet. No crazy unexpected bills, and lots of time to plan for and make smart money decisions in your business.

Many creative people who get into business aren’t a fan of numbers… they may not track their income and expenses, which is dangerous because that’s like driving in the desert without knowing how much gas you have left.

The two most overlooked parts of a business are:
1. Marketing
2. Accounting

I talk about marketing a lot, but accounting is just as important.

Taking a look at why accounting is sexy

Marketing is all about how to get other people to know about your business, and accounting is all about knowing yourself and your business.

Taking a closer look at your business numbers can bring up a lot of resistance, because you’re not sure if you’re going to like what you see… but without looking, it’s really hard to know if you’re on track or if you’re going off a cliff.

There’s also the fear that you won’t do a perfect job in your tracking, but even if you’re missing some details – it’s still better to be looking at something when you’re making financial decisions, than driving blind.

How Accounting Is Sexy…

If you’re not comfortable looking at your money stuff, you’ll run into issues as your business progresses. Here are 5 key things that a basic accounting process can help you with in your business:

1. You can see how much money is going in and out of your business each month, so you can make investment decisions based on real data and not just a number in a bank account…

When you’re flush, it’s tempting to spend it. And when times are lean, it’s hard to keep going if you don’t know that there are payments coming in.

2. It gives you the confidence to do launches, upgrades, and hiring…

Growing your business generally means you’ll need to spend money, but growing too fast is a sure way to kill a business… because your cash-flow needs to be able to keep up with your growth.

When you’re confident that you can deliver on your business obligations, you can earmark a percentage to purchase software, hire a contractor or employee, and plan bigger launches.

3. If your business runs on a launch model where you’ve got money peaks and valleys, you can use historical data to decide which percentage of your income to re-invest.

No one can predict how well a new program will sell, so your best course of action is going to be small incremental steps that give you feedback before you go “all in” and invest a ton on a new project.

4. Another key to doing regular accounting, is that you can see how quickly you’re able to bring cash into your business… From the point of sale, to receiving payments.

If you’re in a service business, you might realize that there’s a lot of time between when you book the business and deliver on a project, and that can cause financial stress on your business if you need to pay other people.

Knowing the numbers helps you figure out if you need to change your payment terms or ask your clients to pay upfront.

5. Finally, when you have a strong grasp on your business finances, you can confidently pay yourself.

In the early days of a business, it doesn’t make much sense to pay yourself because the income is still building and you’ll want to re-invest. But even starting with a small salary, you’ll get better at budgeting and making smart business choices.

icon-money-webI’ve got a comprehensive program all about money and accounting in the Heartquarters Insider membership – and we’d love to have you join us if this is something you know you need to explore more.

Now, I want to hear from you

Do you think accounting is sexy? Do you wish you could look at your numbers more objectively? Leave a comment below and let us know!

 

14 Responses to Proof That Accounting Is Sexy

  1. Nathalie,

    Such a great reminder and outlook on the accounting side of things! I know for me that as I’m strating to get more refined in watching the monetary flow as well as keeping track of what’s happening I feel like I have so much more knowledge and control of what’s happening in my business and there’s not the added worry of not balancing the checkbook so to speak.

    Love the desert analogy!

    Thank you! Now I’m off to refine my profit and loss sheet!

    xo

    • Ooh yay Licia! It’s interesting what comes up when you say “balancing the checkbook”, even for me. But somehow if you can reframe it for your business, it can feel way more fun! ;) Enjoy!

  2. Hi Nathalie,

    Yes I believe this is such an important and neglected topic. Thanks for bringing it to the surface in your amazing fun style!!

    Do you know or possibly recommend an accountant who specializes in online business. I’ve found most don’t really understand what we do or how our business works. It would be cool to connect with one that know the inner workings and can help advise and strategize with is online folk.

    Thanks Luke

  3. I’m so glad you posted this Nathalie. I was so ignorant of numbers that I forced myself to do tax training last year and I did find it to be very sexy. It was like a gateway “numbers” drug for me. I’m usually on the creative “find your path” side of business but I’m now delving into the numbers and I couldn’t be happier to learn more about it and help business owners. I hope you don’t mind but I have a special for business owners who haven’t had their taxes done on my fb page Karma Is a Biz.

  4. Thanks sooo much for this blog post. You’ve made my day. It’s so refreshing to hear someone value what an accountant can add to your business. You’re dead right, if you want to make the right decision quickly you have to have good accounts. Way to go!!!

  5. Hi, Nathalie,
    thanks a lot for this valuable information! Last year I nearly killed my private practice by growing too fast and I do not want to do the same mistake again as I am about to start an online bizz. And jes, it is possible to find numbers sexy :-)
    lots of love
    Dodo

  6. Ran across your video at just the right time…as I was sitting down to organize and begin my taxes…thanks, Nathalie!

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