One of my employees was telling me about reading to their kids the book “The Berenstain Bears and the Bad Habit”. Mama Bear’s advice to Sister Bear as they walked down the old garden path struck me. Habits, while they may not be intentional, can have negative consequences. Mama Bear was so accustomed to pushing her wheel barrow the same way down the old garden path that she had created a rut so deep that Sister Bear had to help her get the wheel barrow unstuck. Often, I find business owners experience much the same as did Mother and Sister Bear.
To illustrate, a small business owner recently asked me to help him enter an accounting transaction into an accounting software I’m unaccustomed to, namely M.Y.O.B. Trying to use my accounting knowledge and experience, I did a little navigating through the software and came to realize that this person had no idea what was being reported on his balance sheet or profit & loss statement for that matter. While he knew how to access and generate certain reports involving customer invoices and payments, he had no idea how much the business made in profits. When I questioned him about his current business profits and the way he accounted for his business transactions, he simply responded, “I do it all at the end of the year when I prepare for my taxes; It’s the way I have always done it; I don’t know any different.”
More than once, I have run into clients who don’t pay attention to keeping up to date on entering business transactions and are shocked at the amount they owe in taxes come the filing deadlines. Their reactions are, “I knew about what I was making, but I didn’t realize I made that much!”.
As we head into the last month of the 3rd quarter, it is time for business owners to be looking ahead to the end of the year and strategizing ways to minimize their income tax liabilities. Are you guilty of keeping bad habits, especially in regards to accounting and financial reporting?
The above examples illustrate what Sister Bear had to learn – habits, especially bad habits, have consequences that can leave us stuck in a rut. Don’t get stuck in the rut of having to pay off your prior year tax liability when you could be putting away to minimize your current tax liability. Act now and get your books in order so you know where you stand.
Don’t have the time? Feeling overwhelmed? Not sure what exactly to do? Don’t panic, just contact us at CFO Your Way and we will be glad to help you heal your bad habit(s) and get you out of the rut.
At CFO Your Way, we understand what it takes to run a business and the time needed to account for all your business transactions, that is why we offer to assist in performing bookkeeping and internal, day-to-day accounting functions; train and support you and your staff on basic accounting and finance functions, accounting software functionality, financial reporting; provide controllership services so you better understand your financial position and identify ways to run your business more profitability and efficiently; and much more.
As a virtual CFO, we work with small businesses in Northern New Jersey to lend a hand in organizing small-business finances through use of QuickBooks – online or desktop versions and are happy to train on QuickBooks and other accounting processes to ensure the most efficient and effective use of your employee(s).
Schedule a Complimentary Consultation to discuss your needs.