146. Dos and Don’ts of Bookkeeping with Katie of Rocket Books
We have a special guest *back* on the podcast today! After her first time on the podcast, we kept chatting and I ended up hiring her! Katie has been working with me for 3 years as my bookkeeper! She is one of my favorite people in the world because she makes my life so much easier! Katie is a bookkeeper, small business owner of Rocket Books, and your righthand (wo)man!
A lot of her clients are people who have either gone through my coaching programs or have listened to my podcast! I’m so glad that Katie has been able to help so many of you CEO Moms!
The first time we talked on the podcast we discussed the Profit First method! Today, I want to shift the conversation to something that is SO relevant right now. Business owners are preparing for taxes and there are a lot of groans around this time of year!
Taxes do not have to be stressful – Katie knows that it can be a headache and she know that it’s overwhelming! Don’t be afraid to ask for help in the things that you don’t love doing. Taxes are something that we can outsource. It’s okay to ask for help on the things that we don’t like doing. It’s okay to delegate! Katie works with a lot of women and we both have seen that many women carry this load of, “we have to do everything on our own.” We must be *independently* successful. It’s exhausting, friends! We do not all need to be experts at every part of our business.
If you’re at a point in your business where you are tackling your taxes by yourself, Katie has some incredible tips for you:
START DOING RIGHT AWAY:
- Get Quickbooks
- Reconcile your accounts
- Plan for Tax Obligations throughout the year (20-30% of your net income)
- Track your mileage
STOP DOING RIGHT AWAY:
- Use spreadsheets (too much room for human error)
- Use personal accounts
- Don’t use personal accounts for business
- Stop overlooking Tax Deductions and Credits
I also talked with Katie about a “Healthy Profit Margin”! Every quarter, Katie will send me a report of my overall financials. Not only is it motivating to have someone else seeing these things and cheering me on, it’s motivating for my whole business!
Profit Margins are tough. It changes so much with your industry, your own business, etc. In general, for the average business owner, we are striving for a net Profit Margin of 10-20%. E-commerce clients have a slightly smaller net Profit Margin of around 5-30%. Service based businesses should aim for 15-30% net Profit Margins. With these margins, you should be able to support your payments to yourself, pad the savings, set money aside for tax season, and grow your business! If your business falls into these regions, you’re on the right track! If you are looking at beefing up your Profit Margins, try the following things:
- Increase Pricing
- Get Lower Pricing from Suppliers and Vendors
- Eliminate Subscriptions, Food, and Extras
I cannot say enough things about outsourcing this in your business. It is the best thing that you can do. I cannot recommend Katie and Rocket Books enough! Rocket Books is kind of different because they don’t specify in one industry or niche. Katie truly believes in supporting and focusing on female entrepreneurs. It’s all about this community for her! With Rocket Books, you’re offered a tailored experience. No 2 businesses are exactly the same – they’re always going to need something different, so they offer their services in an “a la carte” type of way. She wants to modernize bookkeeping.
Find Katie and Rocket Books HERE!
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