I’m an accountant by trade; a CPA in fact. But when people ask me what I do for a living, I tell them that I am responsible for the financial health and wellbeing of the company that I work for. Sounds more impressive, doesn’t it?
But it’s true; I have a very important job. As an accountant, I am responsible for the life blood of the company – its money. It’s my job to know where the money is coming from and when it’s coming as well as where the money is going to and when it’s going. I am responsible for reporting that information – and a whole lot more – to management so that together we can make decisions that will ensure the success, and in the long run, the life of the company.
I am not a writer. I am an accountant who happens to like to write but mostly, I am an accountant who is passionate about helping small businesses succeed. I don’t know what the statistic is these days, but I have heard it said that only 1 in 10 new businesses will make it past their first year. Of those that do, only 1 in 10 will make it past their second year.
My experiences have shown me that many small business owners are really great at providing their trade or service or producing their product but not very good at actually running a business. To operate and maintain a successful small business, the small business owner may need to wear many hats (at least at first).
He may need to be the President and CEO, the Marketing Manager, the Accounting Manager, the HR Manager, the Production Manager, the Operations Manager, and even the Receptionist. If he’s lucky, he may already know a little bit about each of these areas. But I don’t think that knowing just a little bit is enough. A small business owner needs the help of professionals in each of these areas whether they’re hired or consulted.
Marcus Lemonis, who is currently best known for being the star of the CNBC reality show “The Profit,” is famous for saying that the three most important aspects of a business are its People, Process and Product. I happen to agree with him. Now, as an accountant, I don’t think that I will be able to help you with your people or product development. But if you do have a successful product or service, I believe that I CAN help you with your process by helping you to see and understand what your business and your money are doing. Because I also believe that regardless of how great your product or service is, if a small business owner doesn’t understand the business part of his Process, he will wind up being a statistic (or on Marcus’ show).
This is my first blog post. It is an introduction to the things that I would like to talk about and share with small business owners so that more of them can grow, flourish and be profitable. Because isn’t that the goal? Things like how to set up your books, how to really understand your P&L, why every small business needs an accountant (not just a bookkeeper), how to keep out of trouble with the IRS, protecting yourself and your small business from liability, forming entities, and so on and so on. There are so many topics, that I think I’m already set for the rest of the year.
But I would also like to hear from small business owners and address what you would like to know. What issues are plaguing you, make you curious or could help improve your business?
So please, come back again. I hope to have a new post soon. I already have a topic in mind but please leave a comment or question if you are so inclined. Maybe your contribution will prompt a future post.