All About Debt.

Last year, I was able to get my head above water for the first time since COVID hit. In 2020, I decided to grow my business as the demand for bookkeeping services was high and, let’s face it, we all had some time on our hands. Then things went off the rails in my personal life as I navigated through waves of therapists, lawyers, and other professionals in an effort to support my kids and their mental and physical health. Business grew like crazy, but I was still trying to figure out how to pass off the skills and information that lived only in my own brain as the sole employee for the first several years. It was a lot, to say the least. And everything felt urgent and necessary, so I just kept moving forward and the bills came and the payroll had to be ran and so I entered into a cycle of robbing Peter to pay Paul to just stay afloat. 

I did not make all the right decisions. In fact, I think some of those choices were dumb. But I was doing the best, with what I had and trying to keep everything from collapsing around me.  Finally, in the beginning of 2023, I pulled everything together to really understand where I was at. I avoided it because if it's not all laid out in front of me, maybe it's not as bad as I thought. But it WAS bad. Worse than I had realized. 

I had tens of thousands of dollars in high interest debt. On top of that, I had grown my business substantially, but I hadn’t updated my prices since 2019 and had made several mistakes in billing that had cost me. I was drowning, but I could see a path forward. And I knew I wasn’t alone. From conversations with my peers and friends or meeting with clients and other small business owners, I knew that I was surrounded by people who were all in a similar spot. 

In 2023, the average American household had over $100K in debt, and delinquency on car and credit card debt was at levels not seen since 2008. And we are all feeling the crunch of increased prices for everything from housing to food to everything in between. 

I took steps throughout 2023 to get things back under control and I also did a ton of research. I cut up cards, updated my rates, streamlined my expenses and monitored my finances and billing every month. Through all of this, I learned a lot and we are going to share some of that knowledge with you this month. 

We will discuss debt in many forms: how to use it well, how to manage it, how to avoid it and how to get out of it.  This will cross the lines between personal and business because we all know that, as small business owners, it is rarely black and white. I hope that you will take what you find useful, share your own challenges and successes and together we will all get to a better place in 2024.  

It is humbling to share my own struggles, but I also know that there is so much power in knowing we aren’t alone. I am excited to talk about this over the next month!

Clients: Wondering what you can do to be ready to file taxes ASAP?

Check the portal for any outstanding transaction questions or requests for other information. If you have any business transactions you paid out of your personal accounts that we may not be aware of, now is the time to let us know! Have questions? Email team@missoulabookkeeper.com. Want to schedule a meeting? Go HERE and find a time that works for you!