Questions and answers from McKnight and Stone partner Scott Stone about small business accounting, mompreneurs, and the need for reviewing your business plan periodically… topics he covered in person on a recent episode of Great Day Green Country on Fox23 in Tulsa.
Q. So, Scott… you’re saying that even the smallest business can benefit from good accounting practices?
A. Yes! Many of our clients are small businesses, and we’ve found that sometimes these business owners don’t do things like prepare financials, or a profit and loss statement, because they either don’t know exactly what one is, what goes on it or why they might need one.
Q. Let’s talk about mom-preneurs… whether home-based or not. Do those businesses need this kind of business accounting, and why?
A. Definitely. Good accounting practices help even the smallest business know exactly where they stand, financially. Plus, it makes sure things like the right deductions for expenses, tax planning, payroll (even if you just pay yourself a little bit out of the profits!) are all done properly. It doesn’t have to be expensive or scary, either.
Q. Scary? Do you find that people are scared of accounting?
A. I think they’re often scared of doing something wrong, or of spending money to know how much money they have. Small businesses and startups often think they can just look at their bank statement and know how much money they have. But really, in business, that’s just not the case. Business owners need to be looking at their statements, ledgers and other financial documents.
Q. When you’re working with a small business owner, what’s the most important thing you tell them?
A. To relax… we really are there to help, to make sure they understand everything and to help them keep their business moving forward in the right direction. We try to take the “fear factor” out of accounting.
Q. What about bigger or established businesses? Any words of advice for them?
A. Sure. If you haven’t updated or reviewed your business plan in a while… it’s time to sit down and take a good look at your goals, strategies and financials and make sure your plan is still working, or that you have one in the first place. The business environment has changed a lot in the past couple of years…. months even. We can help update your plan if you need it, and it’s just a good idea to annually review the plan. Does it fit? Is it viable? Do you need to adjust something?