Having a small business requires a certain mindset exercise. Napoleon Hill proved that with “Think and Grow Rich” which has most likely created directly or indirectly millions of multi-millionaires and many billionaires. If you already understand the “Mindset” part of the business you probably don’t need any motivation in investing the time and effort required to set your business up properly. If it is hard to think about and act on things like record keeping, file systems, payroll processing, and compliance….. You need to remember why you're in business to serve as your motivation to take care of this stuff. Procrastination decreases your chances of success and the purpose of this course is to increase your chances of success. Business is tough. Once you accept that you increase your chances of success. Follow the rules and regulations by incorporating them into your habits. If you don’t have the organizational or technical skills needed you can get someone like a good CPA and Bookkeeper. Knowing and understanding what needs to be done, why it needs to be done and when it needs to be done makes it a lot easier to delegate. In fact business owners should spend as little time on administrative tasks as possible. It’s easy to verify if people are doing their jobs when you know what the end result is supposed to be.
“Trust but verify” Ronald Reagan
Having “Books and Records” is a law meaning it’s not optional, it’s a requirement. It’s a requirement but you would need a good set of books and records if you want to run a good business. That being said, if you are not a bookkeeper or an accountant it is highly advisable that you retain both. With the advent of QuickBooks millions of business owners mistakenly believed that they could save money by doing it themselves or made their CPA the de facto bookkeeper, in effect paying for bookkeeping services at CPA prices.
Understanding what your accountant and bookkeeper do puts you at a clear advantage over your competitors because over 95% of small business owners have very little if any idea of exactly how they do what they do. The actual compiling of records that finally wind up on a financial report and tax returns.
The Services a CPA offers
Accounting and auditing services
- Licensed accountants develop financial books and records and prepare financial statements. These statements are used by owners, investors, and others to determine the financial position and operating results of an organization. Third parties, such as banks, use financial statements audited, reviewed or compiled by licensed CPAs or PAs who are independent of the organization whose records are being evaluated.
- Licensed accountants prepare tax returns, advise on tax issues and planning, and may represent clients before taxing authorities such as the Internal Revenue Service. Attorneys and individuals who are registered with the IRS as "enrolled agents" may also represent clients before the IRS.
Management advisory services
- Licensed accountants analyze, evaluate, design, and implement the systems that affect the planning, organizing, and controlling of business activities. These services also include assisting clients on business transactions (e.g., mergers and acquisitions) and offering expert testimony in legal proceedings. Some licensed accountants provide personal financial planning services as well.
The Services a bookkeeper offers
- Bookkeeping Services and Internal Financial Statement Preparation: Preparing books of original entry, preparing payrolls, checks, and posting to subsidiary ledgers. Posting to the client's general ledger in connection with preparing financial statements should be classified as bookkeeping services. Providing general accounting services to an employer or client is considered bookkeeping.
|Joe DiChiara is an “Out of The Box Thinking”, Entrepreneurial CPA that has helped thousands of small business owners start, build and manage their own business. Joe is a #1 Amazon Best-Selling Author and in 2009 he discovered a new approach to business through a book called “The Science of Getting Rich” by Wallace Wattles.
As a student of small business Joe discovered that the vast majority of small business owners fail while being overtaxed, unprotected and unfairly targeted by the IRS. Joe is a small business owner himself and has 1st hand knowledge of the abyss of government regulation and the devastating impact it has on small business owners across America.
Joe believes that If entrepreneurs followed a few simple principles small business owners will be able to overcome any and all obstacles in their way, including The Internal Revenue Service!
www.bedrockbusinessbuildersuniversity.com is the latest step Joe has taken to create a platform to achieve this goal. It includes free courses, tools, and resources for small business owners and potential entrepreneurs with passion and purpose.
Do you have great business ideas but don’t know exactly where to start? Book a free 30 minute chat with me. All you have to do is CLICK HERE NOW!