This week's bookkeeping tip: You are in charge of taking care of your money. If your business is earning under $100,000/year- you need to handle your bookkeeping. Once you are ready to hire a bookkeeper, require weekly reconciliation reports from him or her.
I was SO excited to be able to see Oprah speak at the QB Connect conference in late 2015.
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 she 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 or have not broken through the $100K mark in revenue...
...you need to 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 manage it yourself.
If you are working with a bookkeeper or accountant...
...you need to be in regular communication with her. At least once a month. 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. And they need to know about your goals in order to help you navigate them smoothly.
What does Oprah do? W.W.O.D.
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.
For more tips from fabulous women entrepreneurs, check out this small business guide from my friends at Xero.