This is a SUPER exciting episode because I rarely bring people on the podcast, so you know that if I do — they’re REALLY freaking good. Alyssa Lang is the CEO of Magnetic Bookkeeping and I am soon going to be working with them because of the innovative and fresh approach she has to online business and entrepreneurial bookkeeping. I know that you might be thinking that managing your finances isn’t the sexiest thing in the world, but actually, Alyssa gives really good tips on how to SAVE and MAKE money by looking at your numbers, and how to simplify things like taxes, employment, and scaling a business to becoming a legit company.

 

We’ll be sharing:

  • The quickest way to dive into your numbers and see where you can cut expenses and save money within your company.
  • That not all CPAs do the same thing and what the right questions are to ask to ensure you get the support and help you need. (PS — it’s not that expensive!)
  • My journey of scaling from being a solopreneur, to hiring out contractors, then bringing on salaried employees, and the lessons I learned along the way.

… and so much more. Like I said, this conversation is NOT one to miss.

A lot of business owners bury their heads in the sand when it comes to their finances because they don’t want to face the mistakes they might be making or potential bad news. When in reality, it’s kind of like the monster under the bed. It’s a much bigger deal until you shine some light on it.

Tune in for how you can approach finance strategy in your business and how Magnetic Bookkeeping can help!

THEN your next step is to reach out Alyssa and her team to see how she can directly infuse her magic into YOUR bookkeeping. 

You don’t know what you don’t know, so as she says in the episode, just reach out to start a conversation (or word vomit everything that’s going on) and she will direct you from there. 

You can contact Alyssa via her instagram @magneticbookkeeping or via her website.

We’ve personally vetted her and trust her methods for our company so you can feel confident that you can do the same.

 

Like the podcast? Leave us a review on Apple or Spotify.

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READ THE EPISODE TRANSCRIPT

Emily Hirsh: 

Hello everybody, welcome back to the podcast. I am super excited for today’s episode, it’s very rare that I bring guests onto the podcast. So you know when I bring one on that they are really good. So I have with me my friend and an incredible entrepreneur Alyssa Lang who is CEO of Magnetic Bookkeeping and I actually teased that she was the sponsor of our event that we hosted. In may so I talked about her already on the podcast but I actually brought her on to share some of her genius with you guys. So hi Alyssa. I’m super excited you’re here. I obviously know you really well and trust you so I would love.

 

Alyssa Lang:

Hello, I’m so excited to be here. How exciting.

 

Emily Hirsh:

Just a quick intro for those of people who don’t know you who you are and a little bit about your business.

 

Alyssa Lang:

Yeah, so I’m the owner and founder here at Magnetic Bookkeeping consulting. We pretty much help women in business all throughout the United States that are making at least over two hundred and fifty k anywhere in the course space coaches creatives or e-commerce brands. So like Arizona genius. Specialize in a lot of the bookkeeping side. But really what we’re really known for and what we’re really good at is just taking women from that current phase of where they’re at in their business and just realigning with energetically where they want their business to be whether sometimes that correlates to the numbers or sometimes it means removing themselves from the day to day of the company. And so yeah and I’m also a nether business owner as you know like you said you know me but everybody else listening here does not I also am the owner and founder of workflow queen I’ve had that company since 20 it’s still active and I am also a course creator myself and we hit really quickly about 7 figures in like 1.5 years of being in that company. It’s just grown. There we actually help bookkeepers and accountants from around the world to implement tech systems automation. So hyper niched this is now my third business I won’t go down the rabbit hole. The first one. So I’ll kind of keep it short and sweet to the point on that one.

 

Emily Hirsh:

Yeah I love it. Yeah, Alyssa’s like the only person I found in the bookkeeping finance space who actually really understands the online industry which I think is so important because it’s so different. I’m in the process of switching over to their team I’ve been with the same company for years, but it’s so rare to find somebody who gets this space and and I think it’s important because there’s different things with the live launches and the way our margins work and and just the company works and so I just think that’s really cool and I want to state that because I’ve had a business for a while and I have not found someone who understands the space as well as you do and like ties that to finance strategy. So okay I have a few questions and we’ll see where the conversation takes us. But I would love for you to share what you see is like the top 2 or 3 mistakes that you see entrepreneurs make when it comes to their finances, yeah, let’s start there.

 

Alyssa Lang:

I think the first thing is that every single type of financial professional is the right professional. I see this a lot and I really wish there was a way more education in this space because granted we didn’t learn about taxes in school. We didn’t learn about the traditional things that I wish we would have learned about credit and managing our taxes and our finances and stuff we didn’t  so because I think there’s a lot of misconceptions that a lot of people think like oh I just need a cpa like the cpa is going to solve all my problems when that’s really not the case. Not all cpas do the books, not all cpas even file taxes like you’d be really surprised. Also there’s financial advisors which are people who do more of like your personal investments and also take business investments and put them into stocks or put them into like your iras and do strategic moves some cpas. Don’t do taxes as far as tax strategy, not just the filing of the taxes that’s way different and so I think a lot of the times when people start to work with any financial professional and. In any capacity they find that they’re going to be able to do everything so I always tell people like just explain to any financial professional. What is your deepest like what is your biggest issue and they can usually tell you oh we can help you with that. Oh we can’t. And just know that most likely it’s going to be 2 to 3 people that you’re going to work with especially at a certain stage in business and I think that’s the biggest mistake I see I think the next biggest mistake is everybody is so tuned in to just making money making money and like this big vanity metric when ultimately.

 

Alyssa Lang:

In my opinion I’ve actually seen companies that make multi million dollars that actually make less money aka profit than someone who’s at only like let’s just call it like 250 k that actually makes more profit than them and the most important thing is not that big number at the very beginning because as you know as launchers. It’s pretty normal for us to be like oh my god we had this like hundred k launch and it was so amazing. But it’s like in my mind I’m always like but what did you keep? What did you actually get to earn from that and what stays in your pocket and I think that’s the big thing too. It’s not about the big number. The one at the bottom is the most important number.

 

Emily Hirsh:

So good. Oh my gosh. Yeah, both of those open up thoughts for me. So good. Okay, so on the first one I totally agree and I think it’s hard because at least for me, it’s overwhelming. It’s like everybody can say different things in the finance space and then yeah you think that you’re going to get a cpa is going to give you strategy. They usually don’t like they’re not really even allowed to do that and so what would you say is like to build a really solid financial team around your business. I know it probably varies. Obviously the size of the business but let’s say from when you start needing financial help because in the beginning if you don’t have money coming in. You don’t have a lot of need for bookkeeping and things like that yet. But the beginning to like 1 or $2000000 a year like what is the the team I should surround myself with to kind of check the boxes that I have that support.

 

Alyssa Lang:

Yeah, so this is why we transition actually very recently like I want to say five or six months ago to deciding to one niching down to really working with women specifically because we just energetically understand them but also 2 it was the requirement of at least making 250 k and beyond and the requirement from that a lot of people are like well you’re not willing to help people at the starting phase. It’s not that there’s plenty of other people out there who will support you at any stage. We found that what we are asking of our clients in the strategy side of things to make big moves. You have to already still be making a certain amount of money. So a lot of times if you’re making over one hundred k I do recommend at least like getting someone to do the books or if you aren’t ready to make that investment to maybe potentially hiring someone to maybe oversee your work and maybe you’re doing more of the Diy route but still get someone in there to double check it because there’s a lot of compliance things I think a lot of people I say this all the time. It’s not rocket science for people to do bookkeeping like it truly isn’t that’s why everyone says their mom does it. Their cousin can do it like anybody can do it. It’s all the other backend things that happen to make sure that you’re aligned, that if in the case of an audit you’re set in stone and so 250 k is a really good sweet spot where you want to start making. Now, you’re gonna start thinking about can I get a tax strategist? Can I also be working with like a really good tax repairer if you’re hitting the 7 figure stage. You’re definitely gonna want at least a financial advisor because at that time I believe the rule of thumb with the financial advisor. We recommend our clients to is they want everybody to at least be profiting an additional.

 

Alyssa Lang:

Like five thousand to ten thousand a month that’s like outside of everything you’ve paid everyone you’ve paid yourself an additional lump sum so that you can make additional investments like stocks into your ira as things to lower your tax liability even more. But I think at the 7 figure stage. You’re really starting to think even bigger because now you want someone who’s. Strategizing with you because you’re having way bigger bills your tax bill is now over 6 figures and you need to not just be hit and blindsided on April fourteenth that you need to or I’m sorry April fifteenth and be blindsided and said you need to be proactive and then a good bookkeeper. Not most bookkeepers will. Do strategy. It’s not really traditional. Usually just go in. They do the numbers and they kind of leave. So I think it just depends on the stage and I always say like take a step back what you actually want and how can you get there if you don’t know reach out to your people like your people go a long way to say I know someone who can support you in that because I’ve been through that. Like your whoever you surround yourself with whenever they’ve been through, ask them and they might have a recommendation for you of who they’ve worked with in the past as well.

 

Emily Hirsh:

Yeah I love that so a bookkeeper, strategist, Cpa and possibly financial advisor would be the core things. Yeah, and and I can tell you firsthand like for me, it’s it’s easy to ignore these things until it’s not I think that’s a good way to put this like you know entrepreneurs like we don’t really want to have to deal with like obviously taxes and all these things but then you hit a point where we’re like okay I’m losing a lot of money. 

 

Alyssa Lang:

100%

 

Emily Hirsh:

So definitely do the work of like putting the foundation in place and then it’s actually pretty easy for you as a CEO because you get the support. You know I think it’s overwhelming when it’s like there’s just so much unknown and for me like especially having a company that’s in a bunch of different states because of the employees that we have, it’s like I don’t even know what to do with that you know and so it definitely need need support with that. So I think that’s huge like as early as possible putting the foundation in place to have the financial support is something that I would actually go back and tell myself as an early entrepreneur because I definitely ignored it. It was like whatever I have income coming in and like you have one bank account and I’m not really you know filtering the money but it’s good enough and then it gets really messy, really fast.

 

Alyssa Lang:

Yeah, messy, overwhelming or not even that it’s like even if you’re not going to hire the person right away. It’s always good to have the resource because a lot of like financial professionals you work with can be on retainer or they can do like 1 off calls with you and like that’s okay, so just. Have to find the people that are willing to do that because not all firms would be you know you have to be a client in order to do x y z so like if they do offer different solutions and just get immersed in the world of like what you need as you need it because what you what I needed at the very beginning stages like you said I thought this was a side hustle look. Girl bossed way too hard and then you write yeah like with these 2 companies like and it’s great. But like you said it’s really exhausting and there’s these big bills and then all of a sudden. It’s like man I have all these registrants having the same like our employees are in different states and it’s really overwhelming and it’s their sales tax and then there’s this and then there’s compliance and then there’s like. You know the reporting and the new boi reports and it’s just like so many things so just get someone in your back pocket who can even answer those questions on the 5 or maybe you’re not having to pay them on a monthly basis to just ask questions.

 

Emily Hirsh:

Yeah, love that love that, okay so on that your second point of really making sure you’re looking at profit in that number. I want to dig into that. I think you probably have such an incredible perspective because you’ve seen so many backend of business numbers. It’s like me with like seeing behind the scenes of marketing. Honestly, you could look at someone’s numbers and tell so much. So so fast. So I’m like there is so much knowledge you have because of that. So based on your experience of all the different businesses you’ve seen and the the gross revenue the Net revenue and like mistakes they make what do you see is like especially in this space online some top mistakes people make where they’re they end up not having a lot of profit like where are they putting their money or what are they doing That’s causing that to happen.

 

Alyssa Lang:

Yeah, so 1 big thing. Especially for course creators I see this a lot is ad spend and like I know that me and you have had this conversation of like there is like ad spend where it’s like it’s justified and then there’s like holy shit like what are. Spending your money on here like this is crazy like I’ll give you an example like we have a client who spends like almost a million to make a million like an additional million and that’s like half of your income is being spent just to like bring in that. So. It’s like how can we maybe switch things to be more. Organic but also utilizing things like ads to really amplify it or my suggestion to her was possibly maybe a different ads agency maybe instead of taking it in-house is probably not the smartest thing at this point because an agency can actually go and do it for sometimes cheaper as you know it’s ah usually cheaper to hire an agency than it is to hire. Ah, copywriter a designer all these individualized team members and so I always encourage people like take a step back and like you might just be pouring way too much ad spend in because it’s really eating your cost and your company shouldn’t survive by just ads like it should have other ways that it’s bringing in people and so how can we push that in the forefront. The other big thing which I don’t think it’s like specific to like course creators or even coaches and like who we support it’s in general is people who overspend on employees and contractors. I think it’s really normal and like I think a lot of times people think like oh we need this many people. But I think that’s okay.

 

Alyssa Lang:

The thing that I see that I always question whenever things come up and I see a lot of ah large spin on that is I ask people a time track. It will blow your mind. How much data you can get from these thirty days that’s it like one full month of time tracking for you, your contractors your whole entire team. Look at what their direct cost is per hour that they’re working for you. You would be surprised how many people find that their team’s not efficient. They need to actually let go of team members because they’re no longer doing the work. They’re no longer serving in the capacity that they should be so that you can actually lean out your team. I’m not saying just go fire off team members, I’m talking. Really taking the intentional time to reevaluate what you’re spending your money on and and just from those little types of things there can tweak and change the way that the bottom line is going to give you more money in your pocket.

 

Emily Hirsh:

Yeah I think this is such an important conversation. I actually just released a podcast where I talked about we doubled our profit margin from April to may and. We did that so I basically just took inventory of every place of the business. Our team did a time study and I especially looked at places that we hadn’t looked at in a long time like it’d been four years and we had. We’re just doing the same thing and so I think. Especially as you grow a business you you go through seasons of expansion and then contraction and that contractions really important where it’s like you expand and you hire and you’re investing in things and maybe you’re spending money on ads for the first time or you’re increasing your ad spend and then you kind of need to have a season even if it’s like a week or 2 where you’re like okay, let’s actually now take inventory of everything and and make sure it’s actually producing an ah roi and I and I don’t think enough people do that, especially if you’re growing because it’s like my numbers were good and I was profitable. But I was able to double it and I didn’t need to do that. But the opportunity was there and I think when you’re growing and you’re making sales and things are going. Well, it’s like it’s good until it’s not but you probably could have saved a lot of money if you had process in place to to take that inventory to make sure everything is really producing an ah roi and especially if you went through a season of adding growing spending investing you probably need to go through a season of pulling a few things back that aren’t producing what you thought they were going to.

 

Alyssa Lang

Yeah, we always do this like it’s the same thing. It’s like waste right? So waste within the business like sometimes we overdo files on our Google drive or like our canvas a hot mess right? So like we all have been there. We all get it because we’re on this vicious hamster wheel constantly as an entrepreneur. And when things are going really good. You just stop looking at the other things because you’re scared to pull back the curtain. This is actually one of the big reasons why most people don’t work with financial professionals. You’d be very surprised how many I know that are doing so well where you’re like I can’t believe you guys have never even tried to like look at this stuff because they’re so scared to face the truth and it is very scary I’ve had. I just had a conversation with a client who like I cast to shut down her business. There was nothing that we could do in the strategy to support her or get her to the next level. She actually shuts down in July and I’m really sad because like I really would love to see it keep going but unfortunately like sometimes there is that hard truth as well. But if she would have just kept pouring money from her pocket. Back into her business. She would have gone bankrupt. So sometimes you have to face that hard truth and then there’s the beautiful side of it like you said where you’re at this beautiful stage in business where sometimes you’re just we’re so caught up in being a part of masterminds leading the company doing the webinars doing the things. That we don’t stop to do those things so we always encourage our clients like once a year at least reevaluating all software and all team members. So usually that’s more towards the end of the year and you’re just kind of looking through everything and it just is such an easy way to be like why do we even have out of it like we never even use it like what’s the point of it. Let’s get rid of it. And I think that that’s the big thing is we’re just so like we’re done to everything’s on auto pay mortgages you know bills and all these things stop, pause every once while and just look at what’s going on because you’d really see what’s happening so access to your data is 100% key.

 

Emily Hirsh:

Yeah, and it’s like if you don’t look at it. It doesn’t change that it’s still there. It’s the reality you know and I can almost guarantee for everybody if you haven’t done that in a while you will find waste you will like because it’s just the way that it happens whether it’s team or it’s ad spend.

 

Alyssa Lang:

Yeah, exactly. 100%

 

Emily Hirsh:

And you know this is why you and I both share a love for numbers. But it’s like numbers. You can’t lie like numbers are straight up truth. They tell a story and so I think that’s also a great takeaway. It’s like I do it on the marketing side of like you have to know your numbers. Every phase of a funnel to be able to make decisions. You also have to know your business numbers and not just total revenue total expenses but like the categories How much did that launch cost like what is working more than the other thing that you’re doing.

 

Alyssa Lang:

Yeah.

 

Emily Hirsh:

You’ve got this team member. How much are they making you, how much are they producing like really looking at those things. So the first step is knowing them and actually allowing them to tell a story. So then you can make decisions off of it because if you just have them like and you don’t understand them. You know that’s another problem. So I think awareness is such a huge thing and everybody listening like if you have a business that you’ve run for a while honestly regardless of the size I bet you if you just took inventory of all your expenses like you literally went through everything for the last few months you’d find waste that you could save.

 

Alyssa Lang

Yeah, yeah, 100% and even if just to give the advice to anybody who maybe doesn’t hasn’t been really proactive with maybe an accounting system or you’re not anywhere just print out your statements like it’s really doesn’t have to be super complicated. It can truly be let’s just go to my bank of America and print out the last three months of statements for the business and just good old high ladder pen of paper goes a long way and just sit there and be like why do we need this like you’d be surprised how many things are on subscription and you just don’t realize it’s like oh I’m paying for Netflix but I’m also paying for paramount I’m like how did that.

 

Emily Hirsh:

Yeah, so it’s true for your personal too. A hundred percent I love it yeah so awareness awareness is the first step then creating a story with that and then allowing that to dictate decisions and I think that action alone today you guys will make you some money save you some money. Okay I have 1 more topic I wanted to dive into specifically around companies that are scaling and I see this a lot where like a company is maybe it’s a solopreneur or they maybe have contractors or a small team and they’ve created success. They’re profitable but it’s time for them to kind of become like the legitimate business and have employees and like more kind of committed expenses and they feel very hesitant to do that like have the commitment. You know the fear of okay if I have an employee on payroll. What if I for some reason can’t pay them and now I’m committed to doing this or I invest in this and then I don’t actually have the money to cover it. But you do have it right now you know so I’m sure you see that too of that like there’s different hurdles. But I think one of them is when you go from probably like that two fifty k to a million. It’s like you’ve got to change. I remember when I went from a bunch of contractors to legit employees and then I had employment taxes and all that stuff and I was like man I’m a real business now with way more expenses. But how do you navigate feeling confident in making that transition whatever that is but basically investing in your business and making sure you have the confidence in the security and in that investment.

 

Alyssa Lang:

So there’s probably 3 things that came top of mind as soon as you said it. So first one if anyone’s ever feeling stressed out about can I even afford this person. The payroll taxes is not are not as scary as we think they are especially be depending on the states that are they’re in like Texas you don’t have to worry about paying their state tax which is great. Certain states. You don’t have to which is nice but go to gusto.com and you can just Google search like gusto payroll. You know, sample calculator I don’t know I always forget like the exact Google term. But anyways we do this with our clients where it’s like looking. It’s really not that scary so you input the salary or input the hourly. And say like how many hours are they probably most likely going to work and it will spit out a number for you and it will give you a lot of clarity I will say that like let’s just say for example, someone you know who’s working for you at like $55000 salary most likely will probably cost you 63 in the long term but you’re paying a part of their taxes That’s just how it goes so. A lot of times though we’re going back to awareness. It’s really just about like you’re just making numbers up because in your mind you’re like oh my god it’s going to be this like really expensive thing that is a lot of extra money on top of things but the benefit you get from being able to have someone on call twenty like not twenty four seven like during 9 to 5 let’s be night. Let’s be good bosses here.

 

Alyssa Lang:

The other thing that I was thinking about too is cash flow like just understanding your cash flow in general because sometimes what you fear right now and when you keep looking at your bank account your bank account going to tell you one number, but that number let’s just say that you have $50000 in your bank account. Just because you see it there now doesn’t mean it’s going to be there even like one month from now because you have pre-obligations to the contractors. The vendors. The people that you have software subscriptions with the courses. The masterminds whatever you’re a part of that. That’s why the books and the numbers and the correlation between your cash flow. We call them. Cash flow projections go a really long way. So I just hired as you know we all kind of went through this in your master mind. Everybody was hiring a personal assistant. I just went through that process and before I even dove into making that 100% of thing I wanted to make sure I can afford it so I have cash flow projections I threw in her salary I threw in her info and we were good. We were good for like a couple years and I know I don’t have to worry. But if I didn’t have that I feel like I would have blindly have just stepped into just doing and like just hoping for the best when sometimes just having that awareness around like what tools can we use to know that I’m okay or that give me that clarity or know that I’m okay I had the third one and then it flew out my mind like.

 

Emily Hirsh:

That’s okay, you if it doesn’t come. It’s okay, that’s really good and I want to I want to bring up like honestly I’m so excited to switch and work with you because I don’t have like some of these things I’m like man you’re you’re probably like I see that all the time multimillion dollar company like barely has their, I’m pretty good with my numbers and my margins but I don’t do the cash flow projections and I can share like for me as an entrepreneur you go through this where it’s like you realize how fast you could lose it all once you have high payroll you’re like that’s great that we have you know $50000 cash well my payroll is 60000 every two weeks you know and so it’s like as you grow you have to build a capacity and a tolerance for these large numbers and you just learn how to do it like if I if I went back five years ago I couldn’t even imagine handling the numbers that I handled today in and out you know, but having awareness gives you like having awareness and like you’re saying a cash flow projection looking ahead here’s what we’re like for us, it’s like here’s what we’re projecting to bill this month this quarter so we do have that and that gives me confidence right? Otherwise it’s just like the unknown and it feels like you’re just throwing something up and hoping that it works and the bigger you get the scarier that gets because you realize that what used to be a huge number to you at 1 point is now like a penny. And because you have big expenses and that that was an adjustment for me like to go from managing and thinking that $10000 was a lot of money and it is a lot of money but it’s all in perspective because then when you have you know a $50000 every two week payroll $10000 is nothing. You know so.

 

Alyssa Lang:

Yeah, it’s a lot. I think a lot of people think the energy around what we do and the third thing did come to me. The third thing was just all about taking a step back and just recognizing that where you’re currently at you can get out of it.

 

Emily Hirsh:

Yeah.

 

Alyssa Lang:

So I think a lot of people feel that I’m stuck Alyssa. Let’s I hear this all the time when I get on calls like with women one they get mansplained so bad that they’re like I feel like I can never ask a question to my cpa because they’re treating me like I don’t know anything they’re using big words they don’t slow down and stop and like talk to me in my own terms. And I think that that’s the big part. So like most women fear even asking the question or asking the hard things that they don’t they’re really terrified of because there are people who go to bed at night like you said and have $50000 in payroll and what if that launch that we anticipated fails because a lot right now I’m telling you from from knowing the backend of the numbers. That is the 1 thing I do have the beauty of is being able to see it in the industry. A lot of course creators are really struggling right now because there’s just everything’s weird. It’s an election year I will tell anybody give you grace like the election years will mess with everybody’s finances always just because nobody knows what’s happening with the president and so on and so forth, but just give yourself the grace that like with whatever knowledge and whatever stuff you kind of learned up until this point got you to this moment but it’s okay, if like you can now open a different side of yourself and say I’m going to get educated in this in this arena because it’s really important to me because not only do you have the duty for yourself Now you now have the duty for your team.

 

Alyssa Lang:

And it is up to you and I bet you when you start to have $50000 in payroll you will start to sell way more like it’s just so funny. How your mind will kick into a different version of yourself when other people rely on you and you can’t just fire them tomorrow like a contractor you can.

 

Emily Hirsh:

Yeah, and I think it just ultimately you increase your capacity for what you can handle and part of that is like the the amount in and the amount out financially like you have to have the capacity energetically and within yourself to to be able to handle that and handle the bigger bills that come across and and expenses that come across that are are not easy, but you build capacity for it and yeah, you definitely also realize like it always will be Okay, you know and ah even if that means like to your client has to shut down their business. They might open a new one and maybe it’s the best thing they do. It’s like this is the journey of entrepreneurship of the ups and the downs and the evolving and the shifting and it’s like no, you can’t actually fail as long as you stay committed to the journey and just kind of have that trust too that whatever happens is meant to be and even if I can’t see it right away, so I I love this conversation and I think the more business owners can have awareness around their numbers I Also think they’ll be more willing to make the good investments because I see that sometimes with ads where it’s like you’re getting you know three X return on ad spend but you’re not willing to spend more than $2000 a month but it’s like but why because if you spent $6000 and you made 18 You know that’s that’s so much better. It’s like but it’s scary to spend $6000. That’s what comes up is like it’s scary and what if it doesn’t work and so having that awareness and seeing business for what it is so much of it is numbers right? Obviously there’s other components. But yeah, totally, the last thing I wanted to bring up was on my points and I want to just share it because it’s one of the things that I really love about the way you look at finances and if you have anything to add to it. But

 

Alyssa Lang

Yeah, detachment.

 

Emily Hirsh:

When I first met Alyssa and we were she’s in my mastermind and she explained to me how when you have your finances and you understand like oh I have this tax bill coming up. Well you could just live launch right before that to make money tax bill and I was like that’s so good like nobody talks about that. It’s like using your business to support. Whatever’s coming so I actually told someone that I think you’re in the embodied circle chat who said I have this big tax bill coming up and I’m nervous about it I said well you should live launch a list told me. So I love that concept of like it’s like so empowering because it is so true, especially an online business. It’s like at any time we have the ability to create a cash infusion for a business and you can do a live launch. You can do a promotion. So if you have a bill or you got behind on something you the tax bill coming up, you got behind on your payments last month like creating a financial strategy that then actually aligns with your marketing strategy is genius so I don’t know if you want to talk on that but like as soon as Melissa said that as her coach I was like oh that’s your webinar like that’s so good.

 

Alyssa Lang:

Yeah, actually yeah I think especially when like we’re dealing with so many moving parts in the business and then sometimes like the tax bill. We’re not pro, most people are not proactive. I am like I know by October of the year prior what my tax bills projected to be It could obviously change but that way I’m not like blind sided then I have like six months and that’s why we scheduled a launch it literally was the reason why we launched was to pay our taxes I wrote something down so I didn’t forget to touch on this point. But. This is what you were saying at the very beginning where like most firms don’t understand this I can’t even tell you all the old school cpa firms tax firms bookkeepers who do not understand the concept of making money online like it is so like not even existing in their mind. It’s like not possible. So like when they try to guide you and give you strategy. They’re so hesitant to pull that rug right out and from underneath you because they’re like they can’t fathom that you can make money being paid by a software that you absolutely love and you always shout out like it just does not register for them. So I wrote down that they’re most likely going to tell you like there’s no way that you can live launch. So one get that negative shit out of here because like we don’t need that negativity because like it it is true I can tell you from experience. We’ve seen so many of our clients I’m like do we just need cash like that’s all that we’re going to need if you are not a course creator and you’re listening if let’s just say that you’re a web designer or you’re an ads agency that can look like a quick promo sale. It can be something that maybe for two weeks you have like a special sale and you’re just really infusing that cash. I will say you’re kind of biting yourself like and I think do people say in the foot is that what people say I forget to. But we’re going to go with it. But anyways the people buy themselves somewhere and the problem that I see that happens is not only are you now launching to infuse the cash to be able to pay this bill but guess what you’re currently in the year that you’re also going to now to pay taxes the following year. So my recommendation is if you are going to go that route to at least set an additional 30% aside to cover your tax bill plus 30% of whatever’s left over because remember your tax bill is not deductible.

 

Emily Hirsh:

Yeah, yeah.

 

Alyssa Lang:

And there’s only like a couple of instances that it ever would be but at they’re very small instances. So my recommendation is cover the tax bill cover your expenses. So go big as much as you can and set aside more. So if you haven’t already set up some sort of a tax account and this is really easy depending on where you bank like for us it’s relays where a lot of our clients. Go to and we just tell him set up a tax account hide it don’t make it easy kid to get access to it’s that way when you do launch put aside the 30% because you’re going to be tempted to buy that car or go invest in that house that you want to and it’s all fun in games until next year and all of a sudden you got Uncle Sam like being like hey yo remember that time you launched and we kind of need the money for that. You know.

 

Emily Hirsh:

Yeah, yeah, yeah, it’s so so good I think it’s so empowering to number one really understand that your business like you get to make it work for you and you know I can’t stand when people just accept like oh it’s just a slow season. So I’m just like sales are going to be really bad. It’s like yeah well it might be a slow season but you can also do something about that to get sales up and and project that and then another thought I had as you were talking about setting aside the money for the taxes I love that and also doing that for other things like a savings cash flow for payroll because my experience is as your money goes up that you make you just spend it all like like if you just put like you know $20000 I made this month and I’m just gonna pay myself that like you will spend it. It’s the craziest thing but somehow you put it in and you know you just spend it. But if you put it away and you get strategic with that.

 

Alyssa Lang

Yep.

 

Emily Hirsh:

It will be like somehow you just don’t need it to spend like it’s not a big pool So that’s a really good strategy to do and implement and have like multiple accounts that you can transfer stuff and save. Yeah.

 

Alyssa Lang:

Yeah, yeah, yeah. Even for payroll like if you got a big payroll because we have like a payroll account as well. So we have like an annual bonus pool where I think 5% of all of our income goes into a bonus pool for the team and then they’re pulled out based off Kpis and so it’s just really helpful. So like you said, depending but someone at the beginning stages would not need a payroll account. So it’s like it’s all about what season are you in like you said and what can we focus on and what can we set aside for these big expenses. Maybe your big thing right now is a big marketing budget and cool set aside you know 7% towards marketing like that’s all you have to do it really doesn’t have to be.

 

Emily Hirsh:

Yeah I was gonna say ads. Yeah.

 

Alyssa Lang:

I think people think strategy really has to be these really complicated things but they’re truly the smallest thing that can change the way you think about your money or the way that you think about the way you can keep more of it.

 

Emily Hirsh:

Absolutely yeah, oh so good so much so much value in this just depending on what level business you’re at you can find something in here that you can go implement today and it was so valuable. Alissa is a wealth of knowledge. I love her brain and the way that she thinks. As I shared at the beginning, I am personally switching to using Alyssa. It’s been I think like five or six years since I switched. It was one of those things that I’m like it is time, so I’m very very excited and can’t say enough incredible things about Alissa about her team. I know them very well, so I’d love it if you want to share Alyssa the best way next steps for someone who’s interested in working with you and your team.

 

Alyssa Lang:

Yeah, so best place to follow us is Instagram and that’s @Magneticbookkeeping to be honest, my biggest approach is just reach out. You might not even know what you need and a lot of time you just don’t know what you don’t know. I like to say just word vomit. All your problems to me. And just yeah, sometimes that means a voice note I’ve had people reach out and like through voxer same thing. It’s at magnetic bookkeeping I’ve had people message me on Instagram, email us which is support@magneticbookkeeping.com come to our website. Everything is magneticbookkeeping.com right now because we are going through a rebrand but I’m sure everything will redirect whenever it’s appropriate. But I always say just like tell me what’s going on I can’t tell you how many times I’ve I’ve stepped women out of really bad situations just from having a conversation because what they say to me is like I can’t solve all those problems but I am well connected and I can connect you to the right people? So the best way is like just get on a call or just reach out. And so you can get on a call by going to our website and you’ll find like get on a consult call. You can also fill out a form. It’s whatever makes the most sense. We do offer a free diagnostic review which means that if you do have a pre-existing set of books in place. Well essentially like pick up the hood like you go to a mechanic to get your car fix. We pick up the hood to see what’s going on or need there to be able to properly quote you and tell you what’s wrong. We will also highlight things that we see that aren’t maybe doing good for you and that maybe you aren’t aware of so we can support you in that but don’t get confused by the 2 just get on a call and I’ll guide you from there I am truly your trusted advisor whether you work with our us or not I will connect you to the right people if it’s not us.

 

Emily Hirsh:

Amazing. Well, I highly recommend. I’m currently getting the diagnostic and going through that process myself. So I’m super excited I really have not met someone who combines the strategy with the actual execution. The way that you guys do and understand the industry and like you said. Female-led business owners. So definitely reach out to Alyssa. I’ll link everything in the show notes too so they can go find you. Thank you so much for today. It was so great having you on and

 

Alyssa Lang

Sweet. Yeah.

 

Emily Hirsh:

Yeah, just thank you and thank you for the impacts that you had on the ultimate entrepreneur experience event as well. Which I don’t know if you listen to the podcast. Did you listen to it? Okay, so you know how big of a deal it was.

 

Alyssa Lang:

I did as soon as you told me about it I was like I did not know it was like that deep I didn’t know that like I was like a sign like I was thought and it’s so interesting that we are so wrapped up in our own little world that we don’t see those little things to be as a no brainer was like oh you want me to sponsor it. You’re like I didn’t even think about sponsors.

 

Emily Hirsh:

Like literally before you said that I hadn’t even thought about sponsoring that I’m like yeah, let me send you some options. So yes, it was a very big big deal which was really cool that it was you too and yeah, fun story.

 

Alyssa Lang:

Yeah, it’s so interesting. Yeah I definitely listed I was like oh my gosh I feel so special.

 

Emily Hirsh:

Yeah, which also is just so representative of you like Alyssa is just such a supportive entrepreneur to everyone in our mastermind everywhere I’ve seen you so just definitely go get in her world for sure. Alright? Thank you so much Alyssa!

 

Alyssa Lang:

Yeah. Thank you, bye!

 

Emily Hirsh:

Talk to you later.