044: Accounting for Yoga Teachers with Hannah Smolinski

Accounting for Yoga Teachers with Hannah Smolinski   In part 4 of our 4-part Money Mini-series, we get accounting advice from Hannah Smolinski. Hannah and Shannon discuss accounting software, the difference between a bookkeeper, accountant and CFO, which expenses are deductible and much more to help you feel confident about the money side of your business.   Hannah has had an entrepreneurial spirit since grade school when she set up her first business making friendship bracelets. She loved counting her money, coming up with business strategies and even considering supply and demand.   So, it was no surprise she ended up working with numbers. Hannah studied accounting in her undergraduate studies and moved on to receive her Masters in Accounting at the University of Washington, followed by her CPA licence. After working in her field as an auditor and a chief financial officer of a small business, she felt the need to help people build their businesses up. Hannah decided to start her own business; BrightenUp Financial, a company that specializes in small business accounting and finance management.   As a takeaway from the Money Mini-Series, we hope tackling your money-related issues seems less overwhelming. When broken down into small steps financial mastery is within your grasp. 7:00 Hannah's journey into accounting and small business financial consulting   11:10 Accounting software recommendations   14:00 Difference between accountant, bookkeeper and a CPA   15:30 When to hire a bookkeeper   17:45 Having a business bank account is a must   20:30 What expenses are tax deductible?   36:35 What statement gives us a good idea of how our business is doing? Look your profit and loss statement and the difference between profit and revenue.   38:55 You can increase your profit in 2 ways- increase revenue or decrease your expenses   39:55 Keeping track of taxes you owe- ask for help from bookkeeper or accountant, or use an Estimated Tax form so you don't end up having to pay more taxes than you can afford at the end of the year   43:00 Monthly check-in for your business   44:20 Cost of goods sold   48:40 How to work with Hannah   49:25 Shannon's closing thoughts   Expenses you can usually write-off on your taxes :   Yoga teacher training and other courses related to your business books music props marketing software office supplies custom labour (cleaner, accountant) - if specific to business meals & entertainment insurance rent   Check with your tax professional about: home studio utilities mileage & fuel auto expense cell phone computer - listed as a business asset gifts - check limit   Links   Accounting Software:   Quickbooks Xero Wave Excel   For the US: IRS Estimated Tax for Individual   Hannah's Website: BrightenUp Financial   Brighten Up Financial on Facebook   Resources from Brighten Up Financial -e-book, articles, links to helpful tools   Other Money Mini-Series Episodes:   041: Generating Profit with Natalie Eckdahl   042: Money Mindset with Geraldine Carter   043: Minimum Viable Income with Steph Crowder   The Connected Teacher Facebook Group   Follow The Connected Teacher on Youtube   Book a Consultation Call with Shannon   Mama Nurture Teacher Training (RPYT) Gratitude to our Sponsor Schedulicity