The Overworked Entrepreneur’s 
 Guide to Accounting Brad Ebenhoeh Managing Partner, Accountfully

Goals • Remove Fear & Anxiety • Comparable to Daily Tasks • Simplify & Compartmentalize

An Exercise • Cash in pocket • Cash in wallet • Bank balance —> Personal checking • Bank balance —> Business checking • Revenue YTD for business • Monthly break-even point • Annual projected net profit • Revenue per employee or revenue per customer • Projected income tax burden

What Is Accounting? • Accounting is not bookkeeping • Accounting is not complex • Accounting questions can’t be crowdsourced • Accounting is a fundamental tool for smart decision making

Your Financials: Simplify & Compartmentalize • How much access should 
 I have? All • How much do I need to understand? Most • How much should I do? Some

Meet Stewart • He’s smart • He’s a hard worker • His business is growing 
 
 BUT • He’s overworked • He’s overwhelmed • He’s not an accountant

Stewart’s Day At The Office • Stewart receives an overdraft bank balance alert. • Repercussion: Employee paycheck returned

Stewart’s Day At The Office • Stewart receives a call from an important vendor who tells him he still hasn’t received payment for services. • Repercussion: Loss of credibility

Stewart’s Day At The Office • Stewart receives mail from the IRS. It’s a notice saying Stewart has not filed or paid payroll taxes. • Repercussion: Avoidable penalties and interest

Stewart’s Day At The Office • Stewart struggles to apply for business loan because he can’t pull financial statements together. • Repercussion: Jeopardizes growth opportunity

Stewart’s Day At The Office • A potential business partner is frustrated because Stewart is unable to gather KPIs (and doesn’t understand them anyways). • Repercussion: Feels dejected

Stewart’s Day At The Office • Stewart finds out his tax bill will be substantially larger than he originally anticipated. • Repercussion: Personal savings take a hit

Worst Day Ever • Overdrafted his bank account • Received unhappy vendor call about missing check • Discovered he forgot to file and pay 
 payroll taxes • Delayed his business loan • Pissed off potential partners • Found out his tax bill is 
 going to be #*@#& huge

Your Financials: Simplify & Compartmentalize Bank Overdraft No Check To Vendor Payroll Tax Notice Need Financials for Loan KPIs for Partnership Huge Tax Bill Access X X X X X X Understand X X X X Do X X

Don’t Be Stewart • Get organized • Develop good habits • Understand basic financials • Utilize technology • Know your limitations. Find a strategic advisor you trust—meet with them often and ask questions. • Remember: Access vs Understand vs Do

The Entrepreneur’s Toolbox • To maintain books and records • QuickBooks Online & Xero • To pay bills • Bill.com • To track time and invoice • Harvest • To manage payroll • Gusto • To report • Fathom

Goals Revisited • Remove Fear & Anxiety • Comparable to Daily Tasks • Simplify & Compartmentalize

Questions or Comments? Brad Ebenhoeh Managing Partner, Accountfully [email protected] / www.accountfully.com