Let’s say you’re launching a solo consulting or coaching practice. How can you budget and keep track of your revenue and expenses?
When I started my consulting firm, I saw three choices if I wanted to have my act together financially.
- Hire a bookkeeper and delegate all financial details
- Buy an expensive software package and invest the time to learn it
- Create my own ad-hoc system for keeping track of the money
Now there’s another choice, a simple tool to help you keep your accountant informed and your money straight.
Take the Arrg! Out of Accounting
After ten years in marketing roles for big companies, followed by part-time consulting for nonprofits when her children were small, Michele Rath started a solo consulting practice and jumped in with both feet. She soon realized that she, too, needed a way to track her invoices, expenses and tax schedules.
Michele ran to the local big box office store and grabbed a gleaming box of high-priced, prepackaged, highly endorsed accounting software. She’d done her research, and this was the best one out there. It cost more (okay, way more!) than she wanted to spend at the time. Just starting out, she wanted to keep her operating expenses as low as possible.
Nevertheless, she rushed home and tore open the newly purchased package. She popped in the tutorial DVD and sat listening intently… for over two hours. Her eyes glazed over and she felt overwhelmed. A very complex and comprehensive package it was. But she had started a simple solo consultancy! The packaged software was way more than she needed, or wanted to spend time to learn. And at especially that point, time was money.
So she spoke with her accountant and fleshed out all the inputs he needed to properly file her tax return. Mindful of her expense budget, Michele wanted to minimize how much of his time she needed.
What you’ll see in the Take the Arrg! Out of Accounting workbook is the result of a few years of pulling in all the needed inputs for Michele’s accountant. These inputs and calculations kept her tuned in to her business expenses, and more importantly, her growing net income.
What About You?
Are you unsure of how you’ll get your revenues and expenses under control?
Would you like to turn tax time into a low-hassle event?