In this episode, we welcome Ean Price Murphy, Business Coach, Certified Profit First Professional, and the Founder of Moxie Bookkeeping and Coaching goes on to share the amazing impact her service has on the entrepreneurial realm.
She excitingly talked about the unsexy part of the business that we usually neglect, not because we don’t know how valuable it is, but sometimes it feels irrelevant. But Ean paved the way for us to understand the importance of knowing our numbers as entrepreneurs. Let’s join her as she transforms bookkeeping into something that excites us to generate data that will remove the barriers of financial uncertainties.
Description: This episode with Ean Price Murphy is about looking at financial matters beyond what we see. As business owners, we cannot manage what we cannot measure. Hold on to your seats, this segment can make you a better entrepreneur than you are…
- “I think that’s one of the places that a lot of businesses take a wrong turn is they go oh, look, I have $1,000 profit for the month I’m going to reinvest that in the business. Well, now you have zero profit because you’ve just created expenses, so the system that I like to use is if you are earning revenue, choose to set aside 1% of what’s available.”
- “It’s important to have a tax accountant that knows your laws. And that, to me is the difference between what a bookkeeper does and what an accountant does. Because some bookkeepers do accounting, some accountants do bookkeeping. So the difference for me is who’s in charge of the management of the day to day information, and who’s in charge of the compliance with the tax law.”
- Think of the good that you’re doing, think of the beauty that you’re creating. And if you were earning more and had more leftover, wouldn’t you do more? Wouldn’t you make things even better, even more beautiful? It’s not about hoarding cash like a dragon, it’s about using money as the tool that it is to get you the things you want out of life for you, for your family, for your community and the world.
A quick look at today’s episode…
[2:11] The price we should pay ourselves as an entrepreneur
- Ean is a big fan of paying yourself from day one. And part of the reason for that is we won’t actually know whether we have a sustainable and viable business if we cannot afford to pay ourselves. If the company is profitable then it should be reflected, as entrepreneurs, we should be paying ourselves at least 1%.
[3:40] Can entrepreneurs compare the salary that they’re getting from corporate to their own business salary…
- She believes that if an entrepreneur affords to pay themselves as much as what they were getting from corporate that that’s a whole lot better.
- Even small businesses can pay themselves much, and the only bar that separates is our own ideas of how much a reasonable salary is.
[7:45] On finding the balance between spending money to grow and having enough cash in your business…
- Ean knows that spending money to grow has to come from the amount of money that you have in your business.
- In the US number, 82% of small businesses fail in the first five years because of cash flow, not because they’re not selling or earning, but because they’re not able to collect as fast as they’re spending. And a lot of times, bad collection cycle caused by invoicing yet not getting cash on at the moment.
[13:45] The right time to hire a bookkeeper
- Ean mentioned the right time to hire a bookkeeper is when an entrepreneur feels the pinch, and the overwhelm that there’s always too much to do. And the best first hire is an assistant who can help you with all of the things, usually what that overwhelm is, is just needing a little bit of assistance everywhere and some help organizing.
[39:08] A great lesson in managing your finances…
- Just remember that bookkeeping is just a skill to be learned. It’s just practice, get a buddy. Having someone to help us out really helps if you pay them or not.
I can’t thank you enough for listening to You Can Have It All Podcast, I really hope this episode makes managing your finances a whole lot easier. If you enjoyed listening to this episode please head over to iTunes, Google Podcast, and Spotify to give us a review, and please subscribe to ensure you never miss an episode.
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Happy listening. I’ll see you at the next one!