One of my goals in 2011 here on Life Without Pants is to share with you, the readers, my entrepreneurial “wisdom” – keeping things transparent and offering up advice and information as I continue to learn and grow as a business-owner and entrepreneur.
Recently I stumbled across an idea shared by Frank Chimero that really resonated. In a recent post, he writes about a simple and effective concept known as Whiteboard Accounting. In short, Whiteboard Accounting is a way to stay organized with your finances – helping you understand visually what you’ve made, what you need to make, and how ‘on track’ you are with your goals.
Whiteboard Accounting is a god-send for someone like me, who loves making money, but hates thinking about it (I’m extremely fortunate to have a wife who’s the exact opposite and works with numbers for a living as an accountant). Whiteboard Accounting has already helped immensely in putting things into perspective. Knowing what I’ve made and what I need to make in a simple, easy to digest format lets me know what work to take on, what I can delegate to others, when to say no – and is critical to goal-setting and financial planning.
I encourage you all to watch the video above (can’t see the video? click here) and read Frank Chimero’s post about Whiteboard Accounting.
I’d love to hear what all of you are doing to stay organized and financially sane, especially during tax-time – and what tools/tips/tricks you’d recommend to myself and other entrepreneurs/freelancers/anyone out there. Feel free to speak your mind in the comments below.