Thanks to the wonders of technology, I’m pleased to have financial guru and entrepreneur Katelyn Magnuson from The Freelance CFO share some killer tips and tricks to help you be successful in your business. Thank you, Katelyn!
As an accountant and entrepreneur, Katelyn knows how to speak your language. From brand new start-ups to four million a year in revenue ventures, she certainly knows how to help any business succeed.
Finance tips and tricks to help you succeed
Because Katelyn has seen it all, she is more than adequately equipped to provide some high caliber tips to help you along.
#1 Have separate accounts for your business
First, in this round of tips, we find that Katelyn encourages entrepreneurs to have separate accounts. You should have your personal and work accounts separate. Even if you’ve been in business for a while, please consider taking this advice.
Do you use PayPal or stripe? Make sure you have a paypal or stripe account that’s dedicated to your business. This also means you should set up a checking account that’s specifically for business too.
Katelyn insists this is important for any business owner. It doesn’t matter if you’re a sole proprietor, an LLC, or not registered at all. Get your business on accounts that are separate from your personal.
By having separate accounts, it will make it easier for you to see the profitability of your business. It will also take the nightmare out of having to go through all of your accounts to identify whether anything is a business expense or not.
#2 Register your business
For protection, Katelyn insists that registering your business as a single person LLC is important. In doing so, you are protecting your house, your spouse’s income, any cars you own, etc.
In the unfortunate event that someone wants to sue your business, you won’t lose your personal assets.
Katelyn says, “If you fail to plan, you plan to fail.”
Registering your business can make a big difference in helping you succeed. Best of all, it’s relatively inexpensive when you step back and look at the big picture. The amount of grief it could save you is worth the expense. It’s certainly worth the peace of mind.
Of course, what you register as will vary from person to person. In most cases, Katelyn will recommend registering as a single person LLC. That is normally enough for a small entrepreneurship.
#3 Keep records
If you want to succeed, you can do so by keeping a record of your income and spending. You can do this through apps such as Zero, Quickbooks online, and Wave. Zero and Quickbooks online are both apps that entail monthly fees. Wave does not incur monthly fees at this time. Should you decide to start with Wave, Katelyn suggests upgrading to Zero or Quickbooks later on.
There are two major reasons that denote the importance of this tip. First of all, it’ll be a breeze to get all your information to your tax preparer. And second, you’ll be able to interpret what’s going on with your business. This brings us to our fourth tip.
#4 Know your numbers and sit with them.
Treat your business like a business. Knowing your numbers allows you to make educated decisions about the direction of your business.
Katelyn says she’s a big believer in knowledge, empowerment, and educating yourself. She says by getting a clear picture of your numbers, you can assess what needs changing and what needs to be left alone.
In knowing your numbers, you can set goals and execute a better business strategy.
Bonus tip: Get an Employer Identification Number
Basically, an EIN (Employer Identification Number is an SSN for your business. If you don’t have an EIN, you have to give out your SSN when you fill out business paperwork. By using your SSN, you put yourself at greater risk for identity theft.
So get an EIN as soon as possible.
And the best thing of all? It’s free. It’s easy. And it will keep you safe. So what do you have to lose? To apply for an EIN, visit the Internal Revenue Service website.
Keep your business on the road to success
By taking these tips to heart, you’ll be on the right path to protecting yourself and your business. And a business that’s taken care of is a business that’s on the right path to being successful.
To help you out, Katelyn is providing you with a handy freebie. This freebie includes the points she covered above, plus an annual checklist to assess your business.
Remember, it’s all about knowledge, empowerment, and educating yourself.
Katelyn is The Freelance CFO. She helps clients quadruple their annual income by providing financial insight, mindset practice, bookkeeping services, forecasting, and more to the self-employed, coaches, consultants, and small business owners! Check out her FUSE membership group.