Episode Description
Michelle Lee is a seasoned financial expert, entrepreneur, and the CEO of Super Accountants. With over 30 years of experience as a Chief Financial Officer (CFO), controller, and director of finance, Michelle has devoted her professional life to assisting businesses in navigating financial complexities and establishing robust financial practices.
In this engaging episode Michelle shares her keen insights into transforming the daunting world of finances into an organized, strategic, and empowering aspect of business ownership. The conversation balances practical advice with Michelle's unique approach to financial storytelling, aiming to make fiscal prudence accessible and engaging for entrepreneurs at all stages of their careers.
Michelle dives deep into best practices for financial management, providing listeners with actionable strategies such as implementing a 90-day cash flow plan and maintaining a rolling 12-month budget. She emphasizes the importance of correctly categorizing employees and expenses, a critical factor for avoiding costly legal repercussions. Alongside strategic planning, Michelle addresses common missteps like improper tax deductions and offers guidance on choosing the right business structure. Her approach focuses on proactive financial planning, aiding entrepreneurs in achieving not just compliance, but true financial empowerment and success.
Key Takeaways:
- Hire Financial Experts: Entrepreneurs should invest in financial expertise to optimize financial strategies and avoid costly mistakes.
- Budgeting is Key: Establishing a budget allows businesses to direct their finances proactively rather than reacting to financial outcomes.
- Correct Classification: Proper classification of employees (W2 vs. 1099) and choosing the right business structure (LLC vs. S Corp vs. C Corp) are essential to avoid penalties.
- Strategic Financial Planning: Utilizing cash flow forecasts and budgeting aids in predicting future financial scenarios and aligning business goals.
- Importance of Financial Education: Educating oneself about proper deductions and tax savings can significantly impact a business's bottom line.
Notable Quotes:
- "It's important to hire an expert... finances is an area that you really do need to have someone who knows what they're doing."
- "A budget allows you to tell your money what you want to do with it or where you want it to go."
- "There's a quote that basically says, you think that I cost a lot, then just wait till you see how much an amateur costs you."
- "QuickBooks has done a really good job of making software that brings accounting down to the common person."
- "We can't save the world all at once. But we're trying to do it one person at a time."
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