Judy McKenna, a Toronto-based chartered professional accountant. “No need to put the cart before the horse. Research, get advice and make informed decisions.” LEAN ON EXPERTS. “Part of our pitch to potential clients is to use professionals, not ‘accidental planners,’” says Sue Mercer, the founder of Step In Marketing Solutions and president-elect of the Canadian Society of Professional Event Planners, which directs much of its programming to entrepreneurs. “Use the same logic in your business.” Most of us need to call in reinforcements—think accountants, lawyers, financial advisors. “Hiring a bookkeeper, for example, can be really beneficial. Every hour you spend managing your business is an hour that takes you away from clients, and I’d much rather be paid a senior-level strategic planning rate than allocating that time to enter receipts in QuickBooks,” she says. (Bonus tip: “Boutique accounting firms are reasonably priced and have the experience to take you through the stages of entrepreneurship, including advising on registering for GST/HST, incorporating, etc.,” says McKenna.) PREP FOR TAX TIME. Mercer remembers getting hit with a big tax bill just a couple years into her business. “I wasn’t paying attention to the concept of putting money aside for taxes and to cover HST,” she says. It’s a mistake she hasn’t repeated— she now makes quarterly HST and tax payments. “Having a separate bank account that’s only for tax allocation is also helpful. When I get paid on invoices, the entire amount of HST goes right in, as does a percentage of revenue.” ENLIST TECH. “Using Toggl Track changed my life. When I started tracking the number of hours I was actually working on projects and what I was charging, it was eye-opening,” says Mercer. Since time is money, using apps and other programs that can help push your business forward is a good investment. Accounting software, for example, is ideal for record keeping. “I have a friend who, the minute she gets a receipt that’s related to her business, uploads it right to her QuickBooks account. Using technology that makes a difference in your performance and your ability to open yourself up for more opportunities is smart.” WHEN I STARTED TRACKING THE NUMBER OF HOURS I WAS ACTUALLY WORKING ON PROJECTS AND WHAT I WAS CHARGING, IT WAS EYE-OPENING. REVIEW YOUR BUDGET QUARTERLY. Odds are you’re an ace when it comes to budgeting for clients, but many of us aren’t as disciplined when we’re dealing with our own finances. McKenna says calculating your expenses every three months is helpful to see where you’re at and where you’re going, and it allows you to make necessary changes in the next quarter. “It’s better to do it this way instead of waiting to do your taxes once a year to see where you spent your money,” she says. “Looking at it in quarterly increments is also much less overwhelming and can become a routine.” ” “ Fall 2024 | Ignitemag.ca | 51
