3 Essential Steps for Managing Your Small Business Finances
- Dr Gregory Gray Jr
- Mar 18
- 3 min read
Step 1: The Tax Person – Laying the Groundwork with the Right People
Taxes can feel overwhelming at first, but staying compliant and minimizing your burden requires year-round effort. A CPA or tax professional can help you meet legal requirements and maximize deductions.
People: Your tax person is your first financial teammate. They're the expert who knows the ins and outs of tax codes, deadlines, and filings—saving you from costly mistakes or missed opportunities. Look for someone reliable, communicative, and experienced with small businesses in your industry.
Process: A good tax person doesn't just file your returns; they help you set up basic processes. This might include organizing receipts, tracking deductible expenses, or setting up a system to separate personal and business finances. These early habits lay the groundwork for everything that follows.
Performance: The immediate payoff is compliance and peace of mind, but the real win is optimization. A skilled tax person can reduce your tax liability, leaving more money in your pocket to reinvest in your business.
Think of your tax person as the gatekeeper who gets you started on the right foot. They're not managing your day-to-day finances, but they're critical for keeping you out of trouble and maximizing your returns.
Step 2: The Bookkeeper – Building a Process That Scales
Step 3: The Fractional CFO – Driving Performance and Growth
The Right Experts At The Right Time.
Hiring a tax professional, bringing in a bookkeeper, and eventually engaging a fractional CFO.
Each step builds upon the previous one, creating a system that works for you.
Bringing It All Together: People, Process, Performance
Managing small business finances isn't a one-size-fits-all endeavor, but the progression from tax person to bookkeeper to fractional CFO offers a clear, scalable path.
Each role plays a distinct part in the people, process, and performance. Start small, but think big. You don't need all three roles on day one—bring them on as your business evolves. A tax person might be enough when you're launching, but as revenue climbs, a bookkeeper becomes essential. When you're ready to scale, a fractional CFO can take you to the next level.
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