The big problem that small business owners run into is when they realize that ACCOUNTING IS THE LANGUAGE OF BUSINESS. And not many small business owners have ever taken a course in accounting, and why it’s so important to understand the business.
We’re small business owners ourselves, and better yet, we only work with small business owners. We know what business owners know, and more importantly, what they don’t know. It’s okay to not know all of the answers. How to start a small business, how to run a small business, how to seek financing, even basic information like what type of income is taxed in the United States, isn’t taught in school. There is a huge gap in financial literacy in schools which leads to a lack of knowledge and understanding by business owners. You’re not the only one! It may feel lonely to not know where to start or what questions to even ask, but that’s why we created this course.
We deal with these situations every single day. And we’ve seen the costly errors (time and money) that can occur if certain steps aren’t followed when starting a business and all implications considered before making decisions. We’re here to use plain English to teach you everything from:
- How to choose your entity type to what to consider from a legal, accounting, and tax perspective for your choice of entity
- Why it’s important to set up and maintain a set of books and records.
- What counts as a tax deduction in the eyes of the IRS
- What should probably just be considered a personal expense.
- All of the potential tax exposure you have to various taxes, not just income taxes.
- How to read your financials and what your numbers mean.
It’s not only important to maintain your books and records so that the IRS can verify your income and expenses should they select you for an audit, but knowing how to read your financials can lead you to become a better business owner, usually of a more profitable business. Knowing the difference between an asset and a liability and how to read your balance sheet and cash flow statement is paramount to business ownership. Our brains can play tricks on us but the numbers tell the real story. If your profit margin has decreased or your general and administrative expenses are higher than last year, that means you made less money. You should have that information so that you can act accordingly, if there are adjustments to be made.
Come join us and move along at your own pace. We’ve set up the course like a Q&A of the most frequently asked questions we encounter. If you have questions or more topics you would like us to discuss within this realm, reach out to us so that we can continue to add content.