1. (MONEY MATTERS) HOW DO I PAY MYSELF? - KASFIA RASHID
- S4E21
- 15:00
- February 13th 2021
We have discussed Assets and Liabilities questions and today we move forward with Owner’s Equity! Owners’ equity rounds out one of the basic equations of accounting:
Assets = Liabilities + Owners Equity.
We can rearrange this equation to say:
Assets- Liabilities = Owners Equity.
Catch up on the concept from last season’s podcast here: https://pod.co/money-matters-with-kash-the-bookkeeper/1-money-matters-owners-equity-you-are-worth-it-kasfia-rashid
Today’s question is at the forefront of every business owner’s mind : How do I pay myself? The sassy bookkeeper answer is : “With a check” hahahaha. But no, seriously, when a business owner asks this question what they are really asking is “ How MUCH do I pay myself?” Now, figuring that out, is a whole other process. One we will be diving into today!
One of the main reasons to start a business is to simply make a living. Yes, ofcourse, there are other benefits that come with starting a business and other reasons to start a business. Let's be transparent for a moment, if you own a business you started this business in order to support a lifestyle. At some point you are going to want a return on your investment from your business. However, you don’t want to suck your business dry! Finding the right balance between how much to re-invest in the company and how much is needed to support your life-style can mean the difference between a thriving business and a failing hobby.
The National Federal of Independent Business says:
If you’re just starting out, the biggest determining factor for your pay is going to be your business’ cash flow. Wages, expenses, and all immediate obligations must be covered with cash. With limited or no cash flow—a reality for many startups—you might operate for a while without a paycheck, let alone a predictable salary.
Later in your business life, you may be able to take money from your business on a more regular basis, based on your personal financial situation.
I agree with most of that. I don’t agree that “as a start up, you may have to operate without a paycheck for a while.” If you plan your business correctly, with the appropriate legal and tax setups, there should be no reason that you are not starting off making a profit. Now what to do with that profit….?
MONEY MATTERS WITH KASH THE BOOKKEEPER
“Making good judgements when one has complete data, facts, and knowledge is not leadership- it’s bookkeeping.”-Dee Hock FOUNDER AND CEO EMERITUS VISA USA AND VISA INTERNATIONAL, NOW VISA INC
My name is Kasfia Rashid but you can call me Kash. It is my job to prepare you to understand the language of business AKA accounting. Think about it, what is the first thing you learn when you decide to travel to a foreign country? The language, of course! Warren Buffett, said that accounting is the language of business. So who better to learn from than an accountant with over 16 years worth of experience!
My mission is to repair the gap between small business owners and their bookkeeping processes. Take back control of your business and leave the bookkeeping to me. I am not your average bookkeeper. I understand that discussing money is difficult, my no-nonsense attitude combined with a no-judgement approach creates a safe environment. Ready to add the expertise of a corporate back office accounting manager to your small business?
- Accounting Coach
- Quickbooks Online
- Monthly Bookkeeping Maintenance
“Money matters-Ask the Bookkeeper” is all about answering burning accounting questions! You know, the ones you would only ask your best bookkeeping buddy. Each show will have one main question from the audience with supporting questions from my various travels. Have a question to ask? Don’t be shy, step right on up. We will follow the same path as last season with two shows on each of the main concepts of accounting and one show for each financial statement!
Each episode has additional written information your might find helpful. Here is a complete listing of Show Notes. Want to continue the conversation? Add your thoughts in the comments section available at the bottom of each page of notes on the site. Simply click "read more" and let's get the conversations started!
Catch this show onDemand by downloading the IBGR Business Growth Radio App for Android and iOS and gain access to even more great resources. Find the IBGR Business Growth Radio App on Google Play and in the Apple App Store.
Kash grew up in Brooklyn, NY and is a proud only child of a single mother who immigrated from Bangladesh.
Her accounting career started at age 8 when it was discovered that someone was skimming from her piggy back. After a careful audit of her records (kept in a little pink book) she confronted her mother about the missing funds.
In 2003 (12 years later-finally allowed out again) she started working in a Manhattan CPA firm while earning her degree in accounting with a double major in finance and economics.
Her corporate career ended in the hedge fund industry in 2014. She is a QuickBooks Online certified pro, and excel wizard and an automation expert. By having Kash as your bookkeeper you gain a partner, who acts as an extension of your C-class executive team, bringing the expertise of a corporate back office accounting manager to your small business.
When she is not managing small business’s books and records, Kash can be found networking at her BNI meeting on Tuesdays, attending monthly WHIMBY events, and other various networking organizations around town.
Kash broadcasts from Richmond, VA