Get [and Stay] Organized in Your Business
It’s official! You’re an ENTREPRENEUR.
Whether you’ve been doing this for a while or just cracked the newbie status, you get to spend your time creating something you love – and do it, for the good of you and your family; you’re not working for someone else’s retirement goals anymore. But with great power comes great responsibilities. While you get to work in your zone of genius most of the time, the harsh reality is that you do need to carve out time to make sure the “business” side of your business is taken care of.
Yes, I’m talking about the bills, tracking, invoicing, filing, paying, reporting crap that you unknowingly signed up for when you slapped on that “Owner” title. Let's explore some practical tips on how to get organized and stay organized so your business stays on track!
Starting Off Right
Set Clear Goals
Ok this isn’t really starting out “practical” but this is helpful! What are you trying to achieve here? World domination? Pay your bills? Vacation fund? It doesn’t matter what your goal is, but it does matter that YOU know it. This will have some impact on how you stay organized, but the hard truth is that whether you’re going for a trip to Disney World, or World Domination – how you “run” your business and stay organized is basically the same.
Separate Your Business and Personal Lives
For those of you that have been around a while, I must sound like a broken record. But in case you haven’t heard it (or if you haven’t LISTENED), let me say it again…you need to treat your business as a separate entity – whether it’s a sole proprietor or corporation – it is NOT your own private piggie bank. Digital business bank accounts cost as little as $5/mth.
Record your income and spending
No matter how big or little your business is, just like death, taxes are a guaranteed reality. These need to be filed every year, and so you need to set up a way to record the ins and outs of your accounts. You have several choices: 1) spreadsheets, 2) free accounting software, 3) paid accounting software. If you’re a corporation, you really should only use numbers 2 or 3, as the reporting requirements are much greater when you’re a corporation.
Staying Organized for the Long Haul
Create a Routine
Time is a precious resource. As you grow your business, you’re going to find that time seems to just disappear. The fun things take longer than you think, and the not so fun things (aka admin and books) seem to always fall off the to do list. A week behind turns into a month, and before you know it you’re staring down a tax deadline wondering how you’re going to get things together.
My suggestion – create a routine (and stick to it). Whether its first thing Monday morning, or end of the day Friday, find a time and schedule it in your calendar. Treat this like any other meeting or appointment and don’t brush it off. Your future tax-time self with thank you.
Embrace Digital Tools
It’s true that there’s an app for everything. I’m definitely committed to my tech stack, and I’d suggest you build yours as well. You can go check out what I use and while you don’t have to use what I’ve got, use that as your jumping off point to find similar tools that will meet your needs. SIDENOTE: I’m generally speaking, a cheapskate, so while I might be paying for these tools now, it’s a safe bet that they’ve got free versions that you can use.
Stay on Top of Your Taxes
I know. It’s probably the #1 thing that people hate about having a business. The reality is that 9 times out of 10 you’re having to PAY the government each year for taxes on your income. It sucks. I’ve had $40K tax bills, so I know your pain! Here’s how you can be ready for taxes:
Don’t miss out on write off’s
Everything you spend to move your business forward can be a write off. CLICK HERE to download a list of 101 things you can write off. Every dollar you write off, is money that you DON’T have to pay to the feds.
Put money away
Chances are you’ll need to pay something (sorry), so plan for it! I put 15-25% of my sales into a separate savings account so that when I get my disgusting tax bills, I don’t need to stress in order to pay it.
Get help
I know this seems like a shameless plug, but honestly, if you’re not sure, ask. Sometimes pro’s like us can help you find deductions to lessen that tax punch.
Save your Receipts
Speaking of taxes, let’s mention AUDITS. If you ever get audited from the feds, they’re going to ask for “proof” of the expenses you’re claiming. The only thing that will cut it will be the actual receipts for your purchases. So the best thing you can do is have this organized and saved from the start. I use Dext with my clients to save and store receipts and absolutely love it. It’s super easy to use, and if you’re interested, I can hook you up with a deal. I prefer to digitize receipts and store them electronically because inevitably paper receipts fade (or disappear entirely) or get lost. Digital storage eliminates that risk.
Don’t do things the hard way
There are so many business owners that have been down your path. Rather than struggling or scrambling to figure things out on your own, don't be afraid to reach out to mentors, peers, or business coaches. There’s a lot to learn and do, so getting some shortcuts, best practices, or things to avoid can save you a TON of time and energy…and maybe even money too. who can give you provide guidance and support. Continuous learning and networking can help you stay motivated and informed about industry trends.
Delegate and Outsource
You may be a solo-preneur, but that doesn't mean you have to do everything yourself. Delegate tasks that can be handled by others or outsource them to specialists. This will free up your time for more critical aspects of your business.
Starting a business has its challenges and rewards; it’s no joke! It can quickly spiral into a constant anxiety attack every time you think of your to do list. Stave off the overwhelm and give the tips above a try. Keep going and keep growing!