This week's business tip: If you want your business to be financially stable, you have to learn how to do your books. This includes learning how to calculate your tax liability and figuring out how to pay yourself a consistent salary. If Oprah still does something of her bookkeeping, we all need to be involved with our books!
Last year, I was SO excited to watch Oprah speak at the QB Connect conference this past week. She's soooooo amazing.
For starters, the biggest takeaway I had from her speech was that "your business is an energetic force and every action has an equal, opposite reaction. Therefore, be intentional with her decisions."
With a reported net worth of well over $1 billion,
you may think that Oprah leaves all of her accounting and financial dealings to someone else. When I chat with entrepreneurs, that is certainly the goal for some.
They'll say, "I can't wait until I can hire an accountant so I don't have to deal with this money stuff."
Or they'll just ignore the money stuff completely until they do hire a financial professional.
Maybe this describes you. However, if you are in business, making and keeping your money is the intention. If you are just launching your business, do your own bookkeeping. Learn the process for filing taxes.
If your intention is to earn money and hold on to it, you will need to learn how to do your own books.
Even if you are working with a bookkeeper or accountant, you need to know how to manage your business finances. And this isn't because they may be stealing from you (most financial professionals are 100% trustworthy), but because you need to know what is going on in your business.
Remember, no one cares more about your money than you.
What does Oprah do?
Even with her overflowing bank account(s), she keeps a watchful eye on her money. In her interview with CNN's Piers Morgan, Oprah reveals that she signs every check over $100,000 (which is a lot of money to most of us, but compared to a billi, it's a small drop in the bucket). And she works closely with her team of accountants during tax filing- drinking margaritas with them and the IRS when she writes the tax check.
What's the lesson?
She does not leave the task to her accountants. Oprah understands the value of money and respects its role her life. And together, Oprah, her accountants, and the IRS make it a team effort to make sure everything is accurate.
Sounds like a celebration to me. Writing a check, drinking margaritas and collaborating. That's how your relationship with bookkeeping and accounting should be---and who knows, maybe that is the secret to building a billion dollar empire.
Want to learn how to do your books and finally have peace of mind?
Now I want to hear from you! How often do you do your books? And if you don't, what is one reason why you haven't started doing it? Let me know in the comments below.
For more tips from fabulous women entrepreneurs, check out this small business guide from my friends at Xero.
Cheers to your wealth and wellness,