Canadian Small Business Women

Connection, Synergy, Community

The Cost of Hiring an Amateur

Understandably as a business owner there are A LOT of expenses to start and run your business. A common area entrepreneurs try to save a little is by doing their own bookkeeping. However bookkeeping is a vital process for a business and doing this wrong can be financially devastating! If you are going to be a DIYselfer avoid the following mistakes!

  • Keep track of your personal contributions into the business! The money you invest becomes part of your cost base and one day you will need to know what this cost when you sell the business or die. Keeping track of your personal contributions into the business will also have an immediate tax impact when you want to withdraw money from the business.
  • Missing eligible deductions! You don’t know what you don’t know and that could result in you missing eligible deductions or not maximizing the expenses you are claiming. So what? That means more taxes paid (or not enough loss recorded!). This is a hard one to learn on your own and some accountants or business development centers do offer courses on exactly this.
  • Not preparing financial statements! If you are just using an excel spreadsheet and putting your expenses under the right column heading; unfortunately this is not going to be helpful. Yes you have a grand total at the end of the month, and you can use this to make an income statement, but what you are lacking is the ability to make a balance sheet. This will be of greater consequence if you ever need to ask for a bank loan, investors or want to sell the business – they will want to see a complete set of financial statements.
  • Mixing personal and business finances. If you don’t separate the activities of the business from your personal activities it will be virtually impossible for you to truly understand how your business is doing. Did you spend that money investing back into the business… or did you spend it on personal activities? Plus if everything is combined the CRA then will access everything if they are auditing you. Treat the business – mentally and physically – as a separate entity and keep a proper paper trail of activities between business You and personal You.

These mistakes are by no means the full list of common mistakes. But each of these has a significant tax impact and business impact for you often immediately and in the future.

 

 

 

“Behind Every Great Business is a Great Accountant”

For more information on how to keep your business tax efficient, or to get a consultation on whether you are making all the right tax choices for your business, contact Dharna CPA. www.dharnacpa.ca. Info@dharnacpa.ca

Is time to step up and go pro!

Uchechi

Have you recently had an idea for a great new project, or possibly recently launched one? Maybe you’ve already set up a business, but sometimes find yourself not stepping up and making the commitment you need to get the results you want.

I see this so many times with people. I get into a conversation with someone who passionately wants to build and grow their business. They are blessed with amazing gifts that they one day hope to cultivate further, and become more successful; however they do not take ownership of their gifts. They stay stagnant and remain stuck or dabbling in it and not fully committing to it, and sometimes treating their business like a hobby.

The key to unlocking your potential and building the business you crave is to stop being an amateur and going pro. This is something I’ve learnt from Marie Forleo and Steven Pressfield, who are strong advocates of the need to stop living our lives as amateurs.

I recently read that “in every moment of your life, you’re either operating like an amateur or a professional. An amateur does things half-assed, is late for meetings, doesn’t give 100% of themselves and let’s their negative attitude and self-limiting beliefs {i.e.: “I can’t do it. It’s too hard. I don’t have the money”, etc.} run the show. In contrast, a professional gets up every morning, practices extreme self-care, is on time, doesn’t let their mind-chatter run the show and is in it, to win it.” How honest and direct is that?!

If you do not have the level of success you want in your business, it’s time to take inventory and see in what ways you’ve been operating like an amateur. Where have you not stepped up and committed to growing your business? If you want more clients, but don’t make offers and network with potential clients. Or, you have an idea of great new product that can help grow your sales, but find yourself constantly procrastinating and never getting started. How many times have you stopped and quit at the first sign of opposition, or complained, gotten frustrated and angry because things are not working out as you’ve plan and you’ve yet to reach your ideal goal?

Going pro means being fully committed and not just being interested in achieving your goals. When you are just interested you do what is convenient versus being committed which means doing whatever it take.  When you are committed, you will not make any excuses. You focus on how you can and will.

This is not an easy task, but it starts with making a firm decision and going after your goals, regardless of the inner critic voicing its concerns. You keep going and working towards your dreams. It also means doing the things you don’t feel like doing, and facing possible rejection and criticism.

Think about how the greatest athletes practice their craft. Yes, they have a passion that fuels them, but they’re also disciplined and committed to being the best they could be. This is something each and every one of us is able to do in our own lives and in our business. This will lead us to the desired results we all crave. But it starts with a decision to stop being an amateur and going pro.

So I ask you, in what ways are you ready to turn it up and go pro? Let me know in the comments below.

Uchechi Ezurike-Bosse is a Business & Lifestyle Strategist, Speaker and Writer, but most importantly, a proud Mother and Wife. Uchechi is Co-Founder of Elite Wellness Services Inc. (www.elitewellness.ca) and Founder of My Empowered Living (www.myempoweredliving.com) a website aimed at helping women change negative and disempowering mindset and live their passion! Whether it’s starting and building their dream business, or helping them create a lifestyle they crave, Uchechi is the modern woman’s secret to success! Visit Uchechi at www.myempoweredliving.com to get your FREE copy of 5 Simple Steps to Create a Life you’re Crazy About! A 15-page workbook!