Entrepreneurs: Most Common Pitfalls With Finances Revealed

Author: Total Fit Boss Chick
Published: Thu 27 Jan 2022
Episode Link: https://total-fit-boss-chick-podcast.simplecast.com/episodes/entrepreneurs-pitfalls-with-finances-EkAZntev

Topics on Entrepreneurial Finances

Importance of Our Finances
Paying Ourselves
Common Pitfalls
Heather’s Programs

An Entrepreneur’s Common Pitfalls with Finances

Like I’ve said previously, there’s no shame in falling into these rabbit holes as an entrepreneur. Sometimes, we don’t even realize it!

Listen to Episode 78 Most Common Pitfalls With Finances Revealed of the Total Fit Boss Chick Podcast as Heather takes us on a journey in highlighting and correcting these pitfalls so we can truly finance our freedom!

Key Points on Common Pitfalls with Finances

Co-mingling Funds

Co-mingling is when we don’t necessarily separate our business account from our personal accounts. This can get tricky pretty quickly. It can be more difficult if you have a bigger company - imagine needing to go through all the transactions and figuring out what’s a business expense and not?

Creating a business account is the best and easiest way to rectify it! Additionally, it’s a great way to ensure you pay yourself.

Taxes

Tax is something not taught in schools, and it can get very confusing very quickly. The tax you have to pay will be different based on your business. For example, a sole owner versus a partnership will have different tax regulations.

It can get confusing if you also operate in different states. You might be getting mail asking you to pay tax or not even be aware that you had to pay tax in a different state. It’s important to know that taxes work differently for each state!

It’s important for you to contact a CPA or lawyer, especially if you operate in a partnership. Also, you can look into the IRS website and get an EIN (employee identification number), which you can use and open a business bank account with.

Fees and Expenses

We might think we’re earning a certain about of money - but have we considered fees and expenses? Sometimes we can end up earning more than we realize, but fees and tax make it look like we might not have. Hence, it’s important to differentiate revenue, dales, fees, and expenses!

We can automate separating out fees and expenses with software to help you find the true number of your sales! This is also useful when paying taxes!

Now You Know the Most Common Pitfalls With Finances Let’s Start Financing Freedom!

There are loads of insightful points in Episode 78 of the Total Fit Boss Chick Podcast! Don’t forget to listen!

If it feels like all this information is overwhelming, I highly suggest you check out the “One Day at a Time” Daily Planner ((https://www.totalfitbosschick.com/onedayatatime) it’s the FREE tool that helps everyday people do extraordinary things. Start with a brain dump and free your finances!

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