The Bottom Line

In Tuesday's class we started talking about the financial elements of starting a business. We talked about our attitudes about money and the basic descriptions of different bookkeeping systems.

This is where the rubber meets the road. This is where I usually shift into reverse and go in the opposite direction as fast as I can.

I have to put my fears and doubts on the side of the road, or I will not be able to go forward.

Two years ago, when I first considered the possibility of becoming an entrepreneur, I met with an accountant to talk about how to start keeping records for a small business. I took notes and was excited about everything I was learning...until I asked her about how much information she needs to do the yearly tax return for a business, how she reconciles the work she does with a family's personal taxes. Oh, she said, she also does the personal taxes for the business owner because she needs to make sure all the numbers match up.

Hmmmm....

What about the FAFSA, I asked. How would I get the numbers by March 1, the filing deadline in Massachusetts where my son is in college?

Oh, she said, we can ask for an extension. She would fill out the FAFSA as well because she would have all the tax information at hand.

Really....

Well, that sent my control issues into a tailspin. I have always done our taxes. I have a good relationship with the people at the other end of 1-800-IRS-GOVT and call them anytime I have a question. By the time I get everything in order for an accountant, I might as well fill out the forms myself, and there have been years where there have been lots of forms to fill out. I always figure out what to do.

Then I use those numbers to fill out the FAFSA for whoever in the family needs one filled out.

It's a source of pride for me that I have been able to manage our family's finances all these years. I like knowing what the numbers are, that columns match up, that accounts settle out, and that amounts have been checked and double checked.

It's not that I don't think an accountant knows what they are doing.

It's that I don't know what they're doing, which is one of the main reasons I am taking this class. We are going to learn everything we need to know about cash basis bookkeeping and filing taxes for a small business.

It's not that we will need to do all of the bookkeeping and tax filing ourselves. It is that we need to understand what is involved in keeping records and filing taxes for a small business.

Last Tuesday was just an introduction. Next Tuesday we will spend the entire class with a certified public accountant who will go through the income tax forms with us. The following week we will work on laptops to become familiar with cash flow, balance sheets, and profit & loss statements.

This is a big leap for me. I am entertaining the idea that the day might come when I will turn over the filing of my family's income taxes to a professional accountant.

What can I say, other than I like to keep my eye on the bottom line.