The Overworked Entrepreneur’s Guide to Accounting - Brad Ebenhoeh

A presentation by Brad Ebenhoeh at Revolve Conference on October 29, 2015 at Wild Dunes Resort, Isle of Palms, SC

Transcript

1. The Overworked Entrepreneur’s 
 Guide to Accounting Brad Ebenhoeh Managing Partner, Accountfully
2. Goals • Remove Fear & Anxiety • Comparable to Daily Tasks • Simplify & Compartmentalize
3. 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
4. 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
5. 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
6. 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
7. Stewart’s Day At The Office • Stewart receives an overdraft bank balance alert. • Repercussion: Employee paycheck returned
8. 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. 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
15. 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
16. 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
17. Goals Revisited • Remove Fear & Anxiety • Comparable to Daily Tasks • Simplify & Compartmentalize
18. Questions or Comments? Brad Ebenhoeh Managing Partner, Accountfully brad@accountfully.com / www.accountfully.com