8 Game-Changing Accounting Moves for Small Business – Part 1

Show Notes

Clay Clark teaches the importance of taking the time to consistently analyze your finances and always knowing your income, your fixed expenses and your variable expenses for the past 90 days.

Whenever you start a business you should do so with the goals of building a business that serves you and that will create both time freedom and financial freedom so that you can spend your time pursuing the goals you have for your faith, your family, your finances, your fitness, your friendship and your fun.

However, by default, most business owners end up creating a business that owns them and a business that creates neither time freedom or financial freedom. They create an 80 to 100 hour per week job for themselves that no one else would want and that no one else could ever do. This entire show is dedicated to helping you to finally nail down your numbers and the financial aspects of your business.

Knowing your numbers doesn’t need to be complicated or scary, but it does require work. On today’s show, we are going to teach you the 8 steps that every business owner needs to take to on top of your numbers.

Step 1 – Your accounting must be viewed as your dashboard and not your rearview mirror. (From Take a Look Under the Hood with Certified Public Accountant with former U.S. Small Business Administration Entrepreneur of the Year, Clay Clark)

 

Action Item – Determine the number of customers you can work with per week.

  1. What is your capacity?

Action Item – Determine how much profit you must be able to make per week per client to achieve your financial goals.

Action Item – Determine how many rejections per week you need to land this many clients per week.

Action Item – Invest the 8 hours needed to add the following items to a spreadsheet:

  1. All income for the past 90 days.
  2. All fixed expenses for the past 90 days.
  3. All variable expenses for the past 90 days.

MYSTIC STATISTIC – “8 out of 10 entrepreneurs who start businesses fail within the first 18 months.”

  1. https://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/#9f3cfc86978d

Step 2 – Casualness causes casualties. (From Take a Look Under the Hood with Certified Public Accountant with former U.S. Small Business Administration Entrepreneur of the Year, Clay Clark)

Step 3 – You must automate your success. (From Take a Look Under the Hood with Certified Public Accountant with former U.S. Small Business Administration Entrepreneur of the Year, Clay Clark)

Business Coach | Ask Clay & Z Anything

Audio Transcription

Broadcasting live from the center of the universe. It’s business coach school without the bs featuring optometrist turned entrepreneur, dr. Robert, zoellner ussba entrepreneur of the year clay clark. It is the pop time show that you’re pooping steps to make joe and sophie is hot, as hell p, p, the sea and the sea that was teaching mrs. Fields trucks like to know more about me, smoking back to the conversation cuz. It’s not time to show on your railing. My name is play. Tiberius, clark and I am so excited to be joined with you. Today we are talking about the eight game-changing accounting moves for small business, we’re going to be teaching from a copy of paul hood books on the grab it on my incredible desk in a bun copy, for you can I stay at the business coach microphone while grabbing the bucks out one copy for you, one copy for me:we’re teaching again the 8th game. Changing accounting moves for small biz we’ve heard of the good book. This is more like the hood book. Whatever you start a business, you should do so with the goals of building a business that serves you and that’s going to create the time, freedom and financial freedom that you need to be able to spend your time pursuing your goals. Your face, your family, your fitness, your friendship, your fun, your your daughter’s cheerleading activities, and so, however, by default, most business owners end up quitting businesses that owned them and a business that creates neither time freedom or financial. Freedom is not a business worth.

Having think about that, a business that doesn’t create time for them or financial freedom is not a business worth having I did what I did want to do it I want to create this plumbing business and I want to spend my entire day. I am tired at a plumbing truck I was bobby bobby. What do you want to do when you grow up? Well misses flanigan. What I want to do is I want to be a plumber. I want to spend my entire day the plumbing truck thinking about invoices and past due things, hopefully just barely making it, because that way, I’ll be able to mount a large amount of credit card should I could die of a heart attack induced by stress at the age of 60 tomato disney world. That I can’t spend time with mickey mouse, because I don’t want to be. It’s really really poor and I want my business coach website to not be found in google. I want to be like a history where people search on google to find me, but they can’t it’s like I’m finished I want to be like a communist spy, deep embedded into american the term mccarthyism, where I’m just always worried that I’ll be able to pay my bills. That’s what I thought it was really really detailed and dark. Bobby always be screwed up. I want to be behind on my business coach taxes for years. At a time, maybe I don’t want to file my taxes bobby. This is a really dark dream. Do you need to see a therapist, but I have no sales. Scripts I would have been no spill systems. All I want everything just be random all the time just random I want to have this new ideas everyday and run around chasing you chasing him to remove my hair on fire and I want to be distracted all the time. I want to have an email inbox with 4000 emails. Please come back to us being nice body be positive. This is a children’s class you’re scaring the other kid I want to be just like my father cuz.

My father went bankrupt, multiple time that you know that they out of 10 americans to start a business, fail. Bobby, stop., 70% of people hate their jobs because my parents hate there’s two I just want to be just like them. Why are you saying I just I just doesn’t know it is you know it’s life is all about just having a bunch of empty intentions and ambitions are growing up to be a pathetic idiot. That’s what that’s up to her talking about today. That was impressive, I’m! Just there’s a lot of people out there guess i, don’t know what’s going on, but what happens if we wake up and more like crap? How do I get here? How did I end up here for me? I actually woke up and then I came down to the man cave and that’s how I got here, but I’ll tell you a lot of times you just get it at cycle of of just losing its were trying to help you do today is helping you get ahead financially, specifically by holding in who do you make a laser beam shoe accounting, knowing the eight game-changing accounting moves that you can use to grow your business? What is step number one step one year, accounting must be viewed as your dashboard and not your rear-view mirror truck. We driving your wife’s business coach car when you drive on the old truck today. So don’t talk to me about the dashboard in the role of the dashboard, the end of the windshield play in your driving activity, so I can see where I’m going by looking forward through the windshield actually see where I’m headed I have a destination that I’m headed to I’m, not turned around looking backwards. You’re, looking in the sky in tears, driving the car using your rear view mirrors not a hundred percent, no no I’m, not I’m, looking through the windshield right driving, where I want to go to my destination. To my contacts to my calls and then the dashboard is a conglomeration of tools. I can use to make sure that I have everything in place that I need to get where I’m going to on the dashboard.

You could see if you’re running out of fuel run out of gas, how fast I’m going to need to know that I need to get more people to their business. That shows you where you’re going, if you’re running out of cash you’re running out of your fuel, cash cash, how fast your going exactly everything that you need to know if the the key instruments inside the business vehicle or working correctly stuff, like that one of you, your accounting as a dashboard, not a rear view, mirror so action item number one everyone needs to do. You need to determine the number of customers that you can work with for a week. Think about that! You want to think about you. What is your current capacity check? What to put on the show notes that the maybe a better way to say that is what is your capacity your capacity? Let me tell you something about capacity, my friends. This show pushes me to my mental capacity, and it also shows my mental. What’s the word I’m looking for fortitude? No, no, it shows what I did it shows my. What do you mean you’re incapacitated? No, that’s not! It shows my ceiling I struggle to find the right.. What am I going to find the right research and find the right words and it’s a radio business coach show, and you see what happens when you to the show of shows my mental capacity or lack thereof. Is it weird now in portland man in tulsa oklahoma, so your day, somebody else sent me an email and that I said hey. Could you appear on my podcast and I love the request? But here was what I said:i said:i every single monday, every single tuesday between the hours of 2:30 and 5 i, have blocked that out specifically to do said podcast, but that’s all I got all baby, that’s all I got, but that is literally the only times. I have available for what I said, because you know 5, you see what the month five rolls around 5:30 I take my wife on a date we used to go to research, which is a local grocery store. I’ll go to the meat department. You know and I know the guys there I walk in there.

Michelle works there like what’s up michelle, how you doing big shout out to michelle big shock. The meat guy walk up there meet guy jerry, hey I need some meat. Boom come back put it on the grill I watch seinfeld, with the kids, beat most of the kids under the age of 10 inch ass, my wife’s beating me now it’s taking my my business coach joy away. Things to do in the business is a vehicle to get there. Are you feeling what I’m saying not going to a podcast interview at 6 p.M. No I’m not going on boarding meeting with a franchisee at 6. Going to answer a sales call at 6 I’m not going to respond to an email at 6, because it’s business time to do this experience this time, I’m talking about no business meeting, but it’s business time if I’m not going to spend my night one more deals going to ask yourself today. What is the capacity of the most number of deals? Your team can do with your current team right. Second determine how much profit you want to make per week to achieve your financial goals, see what I figure out my current capacity so just make it real. With my dj come in the most weddings that I could dj on a weekend with every single guys going out was 80, and you know why captain 80 jump to not go crazy. Cuz I didn’t want to go anymore. I didn’t want to make any bigger I like the size of it. I don’t know if this makes sense to the listeners out there. You had goals that you’re working towards them when you got there, you were there right, nice, so I knew my goals financial. How much do want to make love you and make $100,000 hundred thousand hours club, but I really want to reference a lot today, but I’ll find it on the shelf during the break, though I would say is if you take $100,000 a year and you divide that by 52, you need to make $1,923 a week now, if you divide that by far this is what gets me excited. This is what gets me pumped. That means you to make $384 a day. Okay, now we know so you don’t overthink it like. Don’t just get down to how much ready to make per day. You need to make. How much do you make per day? How much do I need to make per day? Once you get to that level, then it gets kind of excited. But if you don’t know that it’s kind of a vague random goal, don’t you got to do what you got to do? Is you got to sit down? You got to term how many rejections per week. You need to have how many rejections. Do you need to make per day? How many rejections per day? Do you need to get those numbers of deal? This is a big concept and it’s a big mindset shift that we work with a lot with our clients. Is that whole mindset of getting the business coach rejection is needed to get the yeses because a lot of people getting get hung up on that. It’s natural, it’s natural when you’re told no multiple times a day, be the exact rejection and not a fun natural feeling to get told no over and over and over. But if you know that hay on average I need to get told no 9 times to get a deal, then it’s easy. Then you just go for those 9 nose and you know you’re going to get that deal.

I will just say this. If you were, if you are somebody out there who fears rejection, then you need to get out of the game of entrepreneurship. You need to go. You need to do. Is you can go work for somebody because you’re competing with manbearpig like me, where I don’t care at all like I’m missing the part of my brain there’s, a thing called the amygdala and the amygdala foremost is active when they experience rejection, scientific truth here when they experience rejection, the emotionally there amygdala fires and they can no longer get their cerebral cortex to make logical and strategic decisions. Look this up. Your cerebral cortex is what makes the strategic decisions in your amygdala emotionally processes things the only way to get over the the worry or the feelings of scared. Of being scared that you would experience while riding a bike is to do what make yourself ride a bike, and then eventually, science will show. The amygdala is no longer active while riding a bike. Cuz you’re, not in a panic mode, I have made so many calls and I train my team on making. So many calls-and nobody in my company is scared of making calls. We just don’t care. It’s like it’s like a cultural. It’s like we have novocaine the brain. It’s like. We can’t feel it you’ve heard of the amygdala. We have the bro magdala 8 hours, 8 hours, 8 hours and making a spreadsheet of all of your expenses on your income. All your all, your income, all your fixed expenses and all your variable expenses for the last 90 days, and if you need help I would highly recommend you reach out to paul hood with hood cpas, it’s paul with hood cpas. What are the top accountants in oklahoma he’s a proud sponsor of the show going to hood cpas. Com today and schedule your one-on-one consultation with paul hood and he’ll. Give you a free copy of warren buffett’s only authorized biography book by the name of snowball. Again you get that fan. Hood cps.Com! We come back with you to the 8 game game.

Changing account that you can you attend the world’s best business workshop, led by america’s number one business coach for free by subscribing on itunes and leaving us an objective review clean your tickets by emailing. Did you did it and your contact information to info at drivetime show.Com? Welcome back to the conversation? Is the thrive time show on your radio, and they were talking about? Is the 8th game? Changing accounting moves for small business presented by hood cpas.,? This is the thing. This is the concept. This is the issue. This is the crux of the issue. This is the problem. This is the irritant, is at most small business owners, I’m, not talking about you to other people. Most small business owners never get on top of their finances. Never 8 out of 10 businesses go out of business 9 out of 10. Businesses fail according to forbes, don’t put this on the show nuts, but eight eight out of ten when I’m at church right-and they say all right. Ladies and gentleman welcome to business coach church today, I’m going to be a pastor, happy and we’re going to start off today by doing a little survey, so whatever the church to stand up all right all right, all right, then we’re doing songs like you know, what’s a good, what’s a good church song, what’s a good church song that we could do hear of a 1980s church song, but it’s I got to be be to our god forever and ever and I got to be like if you sound like that gravely at the age of 19 change, my heart, oh god, make it ever true change. My heart, oh god, may I be like you. My name is cleo. Get back to the shop mold me.

Take me home failed. Please sit down. The problem is 810 businesses with failed. Now you said:okay, now that we really taking the church to a dork point and there’s only 20% of you standing when I want to do is if your business barely makes it every month as a result of you, shifting debt from card to card maxing out every expense possible, please sit down and where the house of god, so don’t like she’s watching I am watching. God actually did just comment. Well it down. That’s a good, a sound effect back there in the box that was really effective in the back sound guy, the voice, the voice, the voice of god seriously sit down if your business is barely making it do you understand it like one person in the church would now be standing yeah, so they were like now. If you’re standing, could you please sing the song with it with us now change my heart standing solo performed! That’s what it’s like to build a successful company, nobody does it nobody but I’m, going to teach you i! Do nobody! Nobody, nobody baby and the band keeps playing on keith, sweat, I’ll, wild woman and I know what nobody right now to be successful casual. This is a surprise, is casualness causes casualties, I’m, going to open up a look under the hood. The book that paul, hoodie and I have written for you here, I’m going to open this up to page 15, the dd tim tebow page of this book, your I’m in rare form. Today the temp evo page open up your page 15 opening up using my hands, while you’re, so talented and I’m open to page 16, because that’s where the words are all right, but it says here besides your faith and family there’s not much more important than the success of your business. You are blessed with business coach abilities in the opportunity to live in a great country where you are allowed to pursue your dreams.

How you use these god-given abilities is the greatest gift you can give him and your family hard work is often not enough. You must work smart. Is that so negative? What you got to do is you got to take 8 hours and hours and hours do this task it it’s it’s a super fun to ask when you get to the end of it. The part, that’s terrible, the first eight hours, if you want to list that all of your income that you’ve made of the last 90 days all of the income, the inflow, the money coming in the entrance, the income money coming to you all sources, second, make a list of all of your fixed expenses. This would be like your utility bill, your home, your home, your office, your end, if you have to do gasoline i, have to do a lot of things. I have to go out to eat every night. Every night I go out to eat, that’s not a fixed expense! That is you choosing other about your list, all your all, your pics expense, all the cost, even if you didn’t sell one widget or provide one business coach service you’re still going to have an array of cost throughout the month. Those are all of your fixed cost. Now then, the next move number 3. If you want to look at all your variable expenses for the past 90 days after you’ve done, that was going to happen. As you are going to determine oh wow, oh wow, would you look at it? Just look at that cute? That’s a lot of money! Bjorn make a lot of money.

Can you get the ross in darfur I want to bury myself under the eyes. What’s the little one to die right now, bite ice fishing I want to? Could you order a hole in the ice and I want to die of shivering head-first? Do you want? Please help me I think. So what are you going to know got to know you got to know some people say i, don’t want to know i, don’t want i, don’t want no i. Don’t want to accept this. What I just want to see a lot of entrepreneurs are singing this song them so that you know I would do anything for success, but I won’t take the eight hours needed to look at my fixed expenses. My variable expenses on my income I would do anything. I would do anything. I would do anything for, the love of my business, but I won’t do the 8 hours of work needed. You know, i, wouldn’t do the 8 hours of work needed to add up all of my income. All of my fixed expenses on my expenses I would do anything for my business love, but I won’t do that. Cuz I would do anything for love, but I won’t do I would do anything for love and it said you’ve been dreaming up, but I just won’t do that. I would do anything for love, but I just got a bigger week and I’ve got a lot of crap to do so. I don’t have time for that, so I will be perpetually poor as a business coach . I will live with my parents. Some more and I will lose all my money and have that people don’t they want to spend all their time doing everything except the one freaking thing that matters you got enough you’re making money, and so you got to go to hood cpa. Just do it got to go to hood cpas you’ve got to some people. Don’t like about things. You got to go to galaxy. You have to go to hot cpas. Com. You have to schedule your free consultation he’s going to give you a copy of warren buffett’s book snowball in an hour of his time to help you get your finances, a line to go to hood cpa.Com. If you don’t I’m going to send meatloaf over and cogan station

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