I looked up 5 ladies that have had successful careers and still went broke. Yes, some have gained it back, many 10 fold, but I can guarantee you that they created a routine around them being involved in their money flow.
- Toni Braxton – filed bankruptcy twice, once estimated at $50 Million in debt
- Rihanna – allowing others to handle her entire money flow, but she learned and now worth more than $85 Million
- Lindsay Lohan – credit card debt
- Lady Gaga – gambled with her $3 Million and went on tour, caused her to go bankrupt for a short time, but her gamble worked – her goal was to get the exposure and land a $40 Million contract, she did
- Lauryn Hill – didn’t pay taxes
Yes. You can have a bookkeeper, CPA, and accountant, but you had better keep your eye on your money.
WHY YOU NEED A BOOKKEEPING ROUTINE WHETHER YOU OUTSOURCE YOUR BOOKKEEPING OR NOT
You need to know enough to be dangerous like:
- Income: How much income you have coming in, where to check, and match that up with your contracts, sales report, etc.
- Expenses: What your expenses are and where money is going. You need to know if the numbers sound about right
- Money Plan – You’ve got to have a money plan (some like to say budget, but I think budget is a dirty word!). I wrote an article all about BUDGETING MIGHT BE A DIRTY WORD, BUT MONEY PLAN IS SEXY!
- Income vs Expenses – You need to know both and be able to run the calculations to see if you’re at a profit or loss. Or at least be able to run your financial reports, have access to them, and the report will do the calculations and tell you what you need to know. As long as you can read the financials.
- Cash Flow Projections – You need to know what income is due to come in and what your monthly expenses are and do you have enough money to cover your expenses and for how long?
It’s not difficult. It won’t take much time once you wrap a system around your money routine. Systems creates freedom and in this case Your Bookkeeping Routine will:
- Save you time
- Keep you on top of your money
- Save you money with a bookkeeper that charges by the hour
- Plus you’ll always know the final fitness of your business