Small Business Tool Kit

By Bonnie Chavez

Executive Summary:

What my MBA taught me and what I actually do, is very different.

Bonnie Chavez is the CEO of Building Beloved Communities, a local consulting firm specializing in community-centered business solutions. Her driving force is to help all organizations overcome business barriers with a lens focusing on smart solutions that benefit the community. Bonnie is a proud lesbian, Latina woman who values her family, roots, heritage, and culture.

Business ownership, unemployment taxes … and wine

Before we begin, it’s important to hire a CPA and bookkeeper as your growth allows. Building a business is like building a house, you can boot strap it for a little while, eventually you will hire professionals.

Most entrepreneurs do something really well, and do it so well, people pay them to do it. Not every business owner is good at “doing the books” but are ultimately responsible for “the books.” So, if you were swindled by a rogue bookkeeper, the IRS is coming for you.

Let’s avoid that and discuss steps for success: • Educate yourself. What are you legally required to pay?

The Roanoke Regional SBDC, a CPA, a bookkeeper, are great resources. • Know what entity you are paying, when you pay them, how to pay them. For example: my federal, monthly, payroll tax is due the 15th, for the previous month, via the EFTPS online system. - Pro Tip - use a spreadsheet as a system to track those websites, logins, and security questions • Create a monthly, quarterly, and yearly process to verify your financial obligations have been met and paid on time. I’ve heard harrowing stories from entrepreneurs who were devastated to discover they incurred hundreds of avoidable late fees, had a $10,000 unexpected tax bill, or worse - $18,000 owed in unemployment tax payments that a shady bookkeeper stole! • Shop around for the best fit. I loved my first CPA, still do, but

I changed to a larger CPA firm (still local) with a small business expert, for me, and a nonprofit expert to refer my clients. • Donate to charity. Put this in an annual budget, then break it down into a monthly charitable donation. Your donation could make a life changing difference to some one in our community. There is power in giving and there is power in giving collectively. Reach out to me personally, I can help design a giving program, no matter what your budget, at no cost to you. • Speaking of budgets, make one. This seems obvious on the surface, but I challenge you to dive deeper. Set aside a day in Q4 (that’s next month for those paying attention!) and really understand your numbers, inspect your budget, and set financial goals for your business. • Fund your future self. One day you will retire, close or sell your business, be ready for that day. If you don’t already have a financial planner, get one. Start saving. If you save, regularly re-evaluate if your accounts are performing the way you want. If you are already doing that, increase the amount!

My retirement is filled with wine brunches and traveling plans with my lovely partner Kim. I’m saving with gusto because I really like wine - cheers to a bright financial future!