EP8: Accounting for Entrepreneurs with Dan Nicholson

“People want to build a balanced life. But you have to
deconstruct what that means when you have a business.” - Dan
Nicholson (17:05-17:14)

Timothy Dick


Profit Layer



Having the right financial processes in your business is critical
to your success. Failing to manage your money impacts your
ability to market your business or deliver your services in a way
that builds credibility and client loyalty.


Dan Nicholson helps entrepreneurs get clear on their financial
goals while helping them optimize the strategies they use to grow
their businesses. Dan’s work has taken him to the intersection
where money, wisdom, health, and human capital meet. This broader
approach to money management is rooted in the idea that money
can’t be separated from the other things that contribute to your
quality of life.



“Making a profit isn’t necessarily an end goal. At the end of the
day, you have to do something with that profit.” - Timothy Dick
(15:33-15:41)

Most people put all of their time, energy, and attention into
just one area of their life. Entrepreneurs typically focus on
revenue goals without first identifying the driving force behind
those goals. In most cases, they spend much of their time
wondering if they’re going to be financially okay in the long
run. By exploring the “why” behind their revenue goals, they find
that their motivation actually comes from something bigger. That
could be more time for themselves and with their families,
creating a legacy, or supporting loved ones.


When you look at profit as the end goal of your business, it’s
easy to forget that ultimately you have to do something with the
profit you make. Business owners realize that the game they’re
playing is much bigger than they once thought. But they haven’t
deconstructed what it means to live the life they want.



Getting Clear on Your Profit
Priority
Your financial processes will depend on your priorities. How much
money do you really need to live the life you want? When do you
need to reach that goal? These and other questions help you begin
exploring what really matters. You can begin to create timelines
for your goals and better determine where your money should be
going.


Chasing attention, fame, and other vanity metrics causes
entrepreneurs to lose sight of what’s important. They start
comparing themselves to others. They achieve a goal only to
reposition the goal post and try to achieve more without defining
what it is they really want. Instead, consider your own unique
situation and establish what your priorities are.



“The essential question everyone is asking themselves is, ‘Am I
going to be okay, maintain the lifestyle I want, and achieve my
goals?’” - Dan Nicholson (11:41-11:55)

When you identify your true financial goals, you begin to get
clear on the priorities and identify any financial issues that
could be impacting your ability to achieve lasting success.
Business owners can keep more of what they make just by
optimizing the system they use and improving their cash flow.
They can look at their taxes and asset utilization to reallocate
money towards their bigger goals.


Get Guidance for Your Financial Decisions


When you manage your own financial operations, you can determine
if you’re going to be okay in the long run, but you still need a
partner to hold you accountable. Without ongoing support, most
business owners spend their savings. The more they make, the more
they’re likely to spend. Having someone alongside you who
understands how you do business is essential to reaching your
financial goals.


Most business owners resist tax accounting. But you need to make
sure you have the right business entity in place to meet your
goals. Avoiding your financial wellbeing can get in the way of
your ability to take action. Becoming revenue-focused helps you
understand how much money you need to cover costs and meet your
financial goals.


When you’re clear about why you have your business, it becomes
possible to be intentional in everything you do. Optimizing your
financial systems gives the structure needed to put your goals
into motion. The goals of your business are bigger than profit.
When you align your actions with the purpose of your business,
you position yourself to achieve new levels of success.



How to get involvedIf you
would like more information about Timothy Dick, and the success
businesses have gained through working with him, please visit his
website.

If you liked this episode, be sure to subscribe and leave a quick
review on iTunes. It would mean the world to hear your feedback
and we’d love for you to help us spread the word!


Learn more about Dan and his work by visiting his website at
nthdegreecpas.com.