Do you follow “fake it till you make it” rule moneywise? In this Expert Insight Interview, Tatiana Tsoir discusses numbers, money, and taxes for small business owners. Tatiana Tsoir is an accounting expert and writer of the book “Dream Bold, Start Smart” which will be released next year. She is also a CEO and founder of Linza Advisors Inc.
The interview discusses:
- Starting with simple things
- Starting the right way
People who have a small business, in general, have an aversion towards the handling of money and taxes. Their lack of knowledge usually makes them afraid that they will go to jail if something is not done right. However, there are things people can do to make themselves more comfortable with money. The first thing to do is to separate business and personal. No matter how big your business is, you should always have a business credit card and business checking account to avoid headaches when filling up for taxes later. Another thing is to learn what goes into business expenses. The rule for that is to think whether a credible business owner would consider that expense as a legitimate business expense. If the answer is yes, then it is deductible. Furthermore, a very important thing is to keep track of your records. Nowadays people usually keep their records online through QuickBooks or through Excel. QuickBooks is easy because it has the option for you to attach all the receipts and it is automatically stored. For Excel, on the other hand, it is recommended to make separate folders for each year of expenses. That way if the business gets audited, it will be easy to just pull out the needed year. Weekly or monthly updates of records will save you of a nightmare at the end of the year. It is easier to remember expenses that happened this month than 12 months ago, thus, be sure to update your records regularly.
Start the Right Way
When starting a business, it is important to start it right from the beginning. Many business owners have their books not managed properly which causes expensive remakes. In addition, many owners start their businesses as LLC, but having a Limited Liability Company will make your taxes go higher than having it registered as some other legal entity. Being your own boss is not hard if you start your business right from the beginning. The key is to plan today for the future. Having a vision of how you want your business to look in a couple of years will help you to start working on those things today. For example, if you want to sell your business in five years you will choose a different legal entity than if you want to expand your business into partnership in five years. There are so many things to consider how you want to run your business, but the important thing is that everything can be learned. Thus, people should feel empowered to follow their dreams and open their own business because there are secrets on how to manage their finances and taxes right.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.