Hiring a professional is as cost effective as the mistakes they can help you avoid. As a business owner, you’re responsible for everything. You’re hiring, interviewing, training, putting out fires, paying bills, researching the market, selling your product, developing a marketing plan, and finding time for your personal life.
The truth is that something has to give. You may no longer have time for personal relationships.
What if you know nothing about personal finance? Adapting to the world of business finance could seem overwhelming.
The biggest reason you need an accounting or bookkeeping service is to avoid mistakes.
Mistakes are costly and when it comes to our money, even more so. We can help you avoid them.
Professionals save you time
Hiring a professional accountant in the high desert or anywhere you’re located will save you time.
At Anguiano, we’ve adopted visual services so that we can serve not only Victorville but anywhere our clients may go. We use software to breakdown our financial analysis and visually show you.
Time is a commodity for all of us. A professional won’t just save you a headache, they will save you time.
You might not have time to add up your business’s financial information, separate it into specific reporting, and analyze the data.
What happens if you made a mistake? One wrong balance throws the whole ledger off.
Unfortunately, you probably wouldn’t have the time to notice it. Your accountant can reconcile your banks in a timely fashion.
Each business has an account receivable, which is the balance of money owed to you by your customers. These are outstanding items for goods or services. Income that your business has yet to collect.
Account payable is the opposite of your receivables. Payables is a short term debt that should be paid off to avoid additional penalties.
What if that debt included taxes? What if those taxes weren’t paid?
Failure to pay taxes timely means that you’ve elected to pay fees.
Fees are unnecessary if payments happen timely.
Time is what you’re buying. The minutes it would take to report fraud found on your account. The hours it would take you to correct a statement that didn’t balance — those days where you’re wrapped up trying to create a system for yourself.
Without training on your general ledger, you wouldn’t know where to start.
With us focused on your books, you can stay focused on cash flow. As we teach you, your metrics, you will learn new ways to increase cash flow.
Your focus as the business owner should be on revenue. You are keeping the money coming in so that your business can continue to operate.
Your finances is a full-time job. If your focus is on trying to understand your numbers, you won’t be building your business.
Quickbooks is a system that helps compile your financial information. It’s easy to use and affordable, but there’s still the time we need to invest in learning it. You would do better to find a coach to assist you. We use Quickbooks for all of our clients and have a mix of desktop and Quickbooks Online.
This system allows us to serve our clients in the High Desert, California, and other parts of the world remotely.
With a professional, you’re purchasing systems that have been implemented and tested. You are buying more than a service. You’re buying control. What you’re buying is an extension of you.
At Anguiano, we have a unique way of networking and building relationships with our clients. We treat this more as a partnership with a team that is focused on getting the job done accurately. Our focus includes assisting you in as many areas that will help you grow your business.
I used to joke that I wish I could clone myself, but services allow you to do just that.
They allow us to clone a small portion of ourselves dedicated to a particular subject. Professionals will enable us to stay dedicated, with laser focus.
If you’re not sure about what you could benefit from, ask. Avoid ‘figuring it out later’ and do it right the first time. You’ll be setting your business and yourself up for success.
The information age
We are currently in the information age. Our collective human knowledge is doubling every 12 months, and by 2020 it is expected to double every 12 hours. With so much information how do you keep up?
In the caveman days when we foraged for food and fought for survival daily, the information could save your life. Information could change your status within the tribe and elevate your basic needs.
Today, we have too much information. Brands are telling you what to wear and what to buy. You’re being sold by the media and social circles that surround you. The point is that the whole world is fighting for your attention. Having someone whose main goal is your focus, can pay you wonders.
Think and Grow Rich did an accurate analysis of over 25,000 men and women who experienced failure. Lack of decision was near the head of the list. More information becomes a crutch that stops us from making a decision. Consulting is when you pay for decisions.
You reach out beyond your own mental faculty to help you move forward. It’s not the most educated that succeed but the ones who can acquire the knowledge they need.
It pays to have an expert
It always pays to have an expert or someone with experience on your side.
When I was a boy, my next-door neighbor was obsessed with fitness. When we visited, he would change what the family ate, the snacks around the house, and instead of soda, they served water.
I noticed that over time, my neighbor didn’t change but his family did. The missing ingredient was the levels of activity. I went to school with his boys and like young boys we ran ourselves into the dirt. Their Mom was always busy taking them to sports. When she joined us at practice, she would walk with the other moms.
The Dad worked and after a long day, he would come home and relax. Finally one day he decided to hire a personal trainer. He was tired of not achieving the results he wanted.
In weeks, you could see the change in his appearance. His muscles were a little fuller, his skin was a little tighter, and he stood a little taller. Sometimes it pays to have an expert.
Professionals understand metrics
My whole life I’ve been trying to gain weight. I never started tracking what I ate until I spoke with a nutritionist. When I spoke with her, she opened my eyes to the numbers I needed in my diet. I knew how to eat healthily but a professional helped me understand my metrics.
I was measuring my health, which wasn’t wrong but my goal was to get bigger. Measuring my health is a great side effect of working out but I was always short of my goal. Likewise, if I measured getting big. I might of sacrificed my health. The nutritionist’s job was to help me with the metrics, while I focused on the task.
It’s easy to measure things but don’t get stuck measuring the wrong things.
Scaling takes a team
In order to grow, you will always need more than yourself. Scaling takes a team, it takes employees and leaders to provide excellent service to your customers. As you scale the more your attention and focus is pulled in other directions. Having an accountant or bookkeeper can keep you on track.
Interdependence is where your success lives. That’s not to say you can’t be successful being independent. But true power is in interdependence, what you can build with other people.
When you own a business, it’s easy to hold onto everything. It’s easy to do all the duties but that’s what everyone does. The hard part is figuring out what you can outsource and what you can automate.
The secret in scaling is figuring out what you can let go so that you can move forward.
Perks of hiring accounting services
In our article on accounting vs bookkeeping, we discuss the pros and cons of outsourcing, you can read that here. But I’ll discuss the perks of hiring accounting services and how we help our clients daily.
Our accountants are constantly in your books. How much time would you have to dedicate to your finances daily? Is it 10 minutes, an hour, or more? It’s better to pay someone who can live in your books because when you don’t have to guess about your business’s cash flow, you can sleep peacefully at night.
If you have a question about your finances our team can schedule a call with you to review and help you understand. Your understanding is what matters most. It makes no sense to outsource and let go, you need someone who can help give you exactly what you need, to make smart decisions.
The importance of decision making
I learned the importance of decision making in the military. It’s why we pay consultants because making decisions is hard.
Air Force Colonel John Boyd was a military strategist and the creator of the OODA loop. Something to note is that he was an Air Force Colonel and I was a Marine.
The OODA was a process designed to help his jet fighters make faster decisions. The approach explains how agility can overcome raw power in dealing with any human opponent. This can be applicable to cybersecurity, cyberwarfare, and other operations. I use this approach with myself.
We are usually the ones that stop us from making the decision, whether we admit it or not.
How fast are you making decisions? This technique is used at the single-decision level. CEO’s, Bosses, Presidents, Colonels, and you, the individual. Decision making comes down to speed, but you can only get good at it by practicing. If you only make four or five decisions in your life, how much control did you have?
One could argue that those four or five decisions weren’t really yours but the outcome of your environment. You went to college because that’s where your friends went. You choose to get married because it what your peers did. We go with the flow rather than against the grain because our brains are hardwired to avoid anything painful or uncomfortable.
But what if you made a decision, and then another. That process continued until everything in your life was something that you choose. I think that through decisions we build what we want but through decisions, we must also learn. Not all decisions will benefit you, some of them will be the wrong decision.
The key is to not let it stop you, don’t let it interrupt your OODA loop.
The best way to describe this is with a Diagram.
The first letter in the OODA loop stands for Observe.
This is the collection phase, where you gather all the raw information and data.
You’ll notice that Observation is not only the beginning but observation of each phase as you complete it. The greatest among us understood the importance of reflection. Reflection helps us adjust our course when we make a wrong turn. I first learned about reflection from Bruce Lee’s philosophy.
The second letter in the OODA loop stands for Orient.
This is our relation to our culture, our heritage, our traditions, our perspective, how we think, what we think, our experiences till now, Orientation is your mind.
Now you can probably understand why it’s the most important step.
As you think, so shall you become – Bruce Lee
The third letter in the OODA loop stands for Decision. Your brain is going to give you four or five possible actions. Really it’s processing millions but if we tried to think about a million possible outcomes at once our mind would snap, so it picks the most common.
The last letter in the OODA loop stands for Action. Based on those four or five decisions you must act. During the decision and action process, you’re observing.
Based on the outcome of the actions you repeat the process. Observe, Orient, Decide, Act.
The next time around you has more information to work with.
Was it my perspective that limited me from reaching a favorable outcome? Well if you want to know you would just orient yourself, decide, and act. Observe, Orient, Decide, Act.
Decision making is costly. When it was first taught to me, the cost was someone else’s life. I hope you won’t be working with such high stakes but if you are, it’s worth working on your decision making process.
The horse evolved into the car and changed the way the world forever operated. Automation will turn us into creative machines, and it will change the way we work forever. Our focus will be on making the decisions that are the most important for us and our business.
Shift your focus now, because I’ve always found that if you’re going to play a game, it’s better to get ahead.
The OODA loop was a process designed to help his jet fighters make faster decisions.