Welcome To The Month Of April!

Photo by Bich Tran: https://www.pexels.com/photo/white-blue-and-purple-stars-illustration-974197/

April is here and the 1st quarter of the year is behind us. I hope that the year is getting off to a good start for you and that sales are pouring in. This month we will look at 3 reasons why knowing your numbers and the status of the financial health of your business matters. The 3 reasons are:

To help you to know if you can pay yourself and how much

To help you to know if it is a good time to hire new team members

To help you to know if you are making money or is it time to close down your business.

I am excited to dive into why knowing your numbers and the financial health of your business is crucial to being a successful entrepreneur. I hope you are ready for the journey.

Keep IT Sunny!

I Have No Idea How Much Money I Made Last Month!!!

Photo by Andrea Piacquadio from Pexels

Have you ever said this to yourself?

It is a common mantra among entrepreneurs who are so busy doing the daily work in their business that managing the financial performance of it gets lost in the sauce. This month we are taking a look at why it is important to track your business bookkeeping inside of an accounting software. One of the main reasons is to have the ability to answer the question: How Much Did I Make In My Business?

The best way to get this answer is to keep your books reconciled on a monthly basis. The art of reconciling the books just means grabbing your bank statement and literally matching it line by line item to what is showing in the accounting software. Once everything has been accounted for then you know that your books have been reconciled and can close the month and start fresh in the next month. Now bookkeeping and accounting is way more complex than pulling out a statement to match transactions but doing this aspect of it is necessary to pull reports that answer questions like the one above. 

So if you have no idea how much money you made last month then head over to the reports section in your accounting software and find the profit and loss statement or what it is known as in the accounting world, income statement. The income statement or profit & loss will tell you the story of how much you made by selling your services or products, what you spent on expenses and what was left over. The “what is left over” part will tell you how much you made in your business last month. 

Keep It Sunny!

Are You Ready For The Tax Man?

It is that time of year to start looking at your books to make sure they are in order. The taxman will come knocking in a few short months along with contractors looking for their 1099’s.

Are you ready to meet these demands? Do you have a tax professional in place already to help you navigate these choppy waters?

If not then it is time to get in gear. Check out this post I previously wrote about finding an endorsed local provider that can help you get with minimizing your tax bill and alleviate your stress during this time of the year. I also wrote a post about how to minimize your tax bill that I will be using for my own business.

Keep It Sunny!