Your Accounting Must Be Viewed As Your Front Dashboard Not Your Rear View Mirror

Audio Transcription

Are you on top of your business’s financial picture? During today’s Thrive Time Business Coach Radio Show, Clay Clark and Doctor Zoellner teach the importance of taking a proactive approach towards managing the finances and accounting aspects of your business. During today’s show they cover fixed expenses, break-even points, tax liabilities, variable expenses and more.

Your Accounting Must Be Viewed As Your Front Dash Board Not Your Rear View Mirror

FUN FACTS:

1. “63% Of Americans Don’t Have Enough Savings To Cover A $500 Emergency” – Maggie McGrath – Forbes

1. “100% of the non-homeless and non-cult member people I’ve met say they want to become successful.” – Clay Clark

2. “8 out of 10 entrepreneurs who start businesses fail within the first 18 months.” – Eric Wagner – Forbes

SUPER MOVE #1 – Know the # of Customers Need Per Month to Break-Even:

1. NOTABLE QUOTABLE – “Know your numbers’ is a fundamental precept of business.” – Bill Gates (Co-founder of Microsoft)

SUPER MOVE #2 – Hard / Fixed Expenses Per Month:

1. AMPLE EXAMPLES:

   1. Office Space

   2. Phone Bills

   3. Internet

   4. Insurance

   5. Team Salaries

   6. Printer Costs

   7. Heat and Air

   8. Water

SUPER MOVE #3 – Variable Expenses Per Transaction:

1. AMPLE EXAMPLES:

   1. Pay Contractor Per Action Item

   2. Merit-Based Pay

   3. Cost of Goods Needed to Deliver a Service or Make a Product

   4. Advertising

   5. Savings

SUPER MOVE #4 – Tax Liabilities:

1. AMPLE EXAMPLES:

   1. Payroll Tax (Medicare and Social Security)

   2. Income Tax On Your Salary

SUPER MOVE #5 – Hidden and Often Forgotten Costs:

1. AMPLE EXAMPLES:

   1. Shrinkage Due to Theft

   2. Loss Due to Errors  

   3. Legal Bills

   4. Worker’s Compensation

SUPER MOVE #6 – # of Customers Needed Per Month to Achieve Your Dreams:

SUPER MOVE #7 – Know Your Pro-Forma

1. Pay Yourself First

   NOTABLE QUOTABLE – “Be the big pig at the trough.” – Dr. Robert Zoellner (Thrive Time Show CEO and optometrist turned tycoon)

   NOTABLE QUOTABLE – “Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett (An investor, and philanthropist worth over $70 billion)

SUPER MOVE #8 – Take Action:

1. Step 1 – Find a Quality Accountant Who Has a Proactive Approach to Accounting

2. Step 2 – Find a Payroll Processing Company and Bookkeeper Who Has a Proactive Approach to Accounting

3. Step 3 – You Must Schedule a Weekly Time to Meet with Your Bookkeeper

4. Step 4 – You Must Schedule a Monthly Time to Meet with Your Accountant

5. Step 5 – Cut 3% of Your Expenses

6. Step 6 – Set Up a Budget

   NOTABLE QUOTABLE – “A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey