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The Overworked Entrepreneur’s Guide to Accounting - Brad Ebenhoeh

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

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Revolve Conference

October 29, 2015
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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