Now today’s episode is for any creative entrepreneur or small business owner who gets a little squeamish when it comes to the finances of your business. If you feel super confident creating and selling the products or services you offer, but when it comes to looking at and making decisions based on your profit and loss statements your head does cartoon-like question marks… OR if you’re sitting there not even knowing what a profit and loss statement is…. Today’s episode is tailor-made for you my friend.

Today we sat down with LoriAnn Kuntz, a virtual bookkeeper and CFO for creative entrepreneurs to talk about EVERYTHING bookkeeping, finances, payroll, and more.

Today LoriAnn dropped SO. MUCH. Information… but in the most easy-to-understand and approachable way possible. She covered questions such as: what’s the difference between a bookkeeper and an accountant? Which should I hire first? Benefits of being a Sole proprietor vs an LLC vs an S-Corp when it comes to your books and taxes? How to logistically pay yourself as an owner depending on if you’re a Sole proprietor and LLC OR if you’re an S-Corp (cause YES – you need to do it differently depending on how your business is set up). How much you can hand over to a bookkeeper vs what you should stay on top of as the owner/CEO? How to approach your finances without being intimidated or overwhelmed, how to set up your finances (easily and quickly) to help push your business to success, and the best softwares and apps to keep tabs on your numbers.

 

LoriAnn’s Story 

LoriAnn’s parents were entrepreneurs, and at a young age she started loving numbers. You have to have numbers and financials is able to run and grow a business. 

LoriAnn strives to bridge the gap between traditional accountants and business owners. Whether you are just starting out, or have been in business for years, her mission is to help you feel peace and confidence about your finances. 

Difference between Accountant and Bookeeper

Accountant is more towards taxes. A bookkeeper is more towards a month to month or week to week guidance on what your finances are saying and how to utulize what it is saying, in order to grow your business. When you get to the end of the year the bookkeeper sends the finances to the accountant, the accountant tells you what you can utlize for you tax return. 

What to get first? 

If you are filing your taxes on your own and have clean numbers and are up to date on your bookkeeping, you can usually file it on your own. Whenever you get more and your business is growing, you most likely need both at the same time – a bookkeeping and a CPA. 

 

Why you need a bookkeeper

As you contintue to grow your business, you can utlize a spreadsheet. You start making more money, schedules get booked up, you’re not able to do everything and the bookkeeping starts falling behind. It goes one month, then two months and then three months and then you don’t even know what you’re profiting. 

Whenever it starts getting pushed aside and not getting done that is when you need a bookkeeper. 

 

Our mindset around numbers

All of our money mindset and how we view money is from our past. Whether it’s from childhood- how we grew up or past businesses and what has happened then. Ask yourself, what has happened in order to make you think about money in this way? 

View money as a brick, it’s not good or bad. That brick can be used to build a house or used to throw through a window. It’s what we do with that money. 

 

What numbers should you look for when looking at your bookkeeping documents? 

Most bookkeepers will give you a profit and loss or income statement (they are interchangeable titles) or a balance sheet, as well as a cash flow statement. It depends on the type of business you have. An agency model will look different than operating on your own. Look over each month and notice the trends of income and expenses. See if things are going up and down. 

What are you goals for your business? And are you numbers reflecting what those goals are? 

 

What is the biggest lesson you have learned in business?

Creating different boundaries. Being a mom and a business owner and having boundaries in both areas to be able to do all the things. Knowing when to outsource and take things off your plate. 

 

What’s your favorite book you recently read? 

Love and Other Words by Christina Lauren 

The E-Myth Revisted by Michael Gerber

 

 

Show notes 

Niching Down Freebie: www.theheartuniversity.com/niche

 

Basecamp: www.basecamp.com/heart

And sign up today to start a free 30-day trial!

 

Athletic Greens: www.athleticgreens.com/HEART

 

Love and Other Words by Christina Lauren 

The E-Myth Revisted by Michael Gerber

 

Follow along with LoriAnn: 

www.instagram.com/loriannkuntz.co

www.loriannkuntz.com

https://www.loriannkuntz.com/DIY

20% off code: HEART 

 

If you want to connect with us and other listeners in the Heart and Hustle community join our Facebook group here.

 

PODCAST10 for 10% off anything from The Shop!

www.theheartuniversity.com/shop

 

Follow along:

www.instagram.com/mrslindseyroman

www.instagram.com/evierupp

www.instagram.com/theheartuniversity