Accountants are in the business of helping people better track, manage, grow, and understand their wealth.
Whether for businesses or personal finances, ultimately, this is the role of an accountant.
However, accountants do not always track, manage, and understand their own wealth.
This results in many strange and warped issues that prevent accountants from becoming the best financial version of themselves.
Too often accountants believe that the services they provide are no more than a commodity.
They do not see the value in what they are providing and neither do their clients. Obviously, this makes it hard to sell if you think that what you are doing has no value — it makes you feel like a fraud.
Because let’s be honest — if it’s so valuable, why are you not doing it yourself?
Accountants who have this problem, not being able to see the value in what they offer, universally do not do their own accounting.
Even basic bookkeeping provides massive utility if it is not currently being done — tracking, reviewing, and monitoring expenses and using the data to improve your financial results.
“Looking at every single transaction has an extremely powerful effect on your mind and it allows you to optimize all your behavior around those financial results.”
Once you begin to track your expenses and budget, it begins to have an impact on all of your daily spending.
The same holds true for business owners.
Business owners have to make a lot of decisions around their business every day, if not more so surrounding finances and money.
If they are not looking at even the most basic accounting, they are essentially running their business blind and they are definitely losing money as a result.
“Your entire life and business should optimize around net worth growth — not sales or income. I don’t care about any of that crap. It does not matter how much you make, it only matters how much you keep.”
The first step to increasing your own value and creating your own beliefs around money is to get your financial house in order.
You need to take yourself through the process so you can emotionally feel how challenging it is for your clients.
Here’s how I would recommend going about taking on your own finances:
Step 1: Set a goal of where you want to be at 65
The first step of getting your financial house in order is to set a goal of where you want to be financially at 65 years old. Even though you may not retire at 65, by that age, you should have the choice of whether or not you want to work regardless of your finances.
Step 2: Collect all of your accounts
Once you have a goal of where you want to be financially at 65 years old, compile all of your assets, liabilities, and any other financial accounts you may have.
• Bank accounts
• Investment accounts
• House valuation
• Credit cards
• Student loans, etc.
Step 3: Create a Personal Net Worth Statement and a Personal Income Statement
Once you gather all of your personal financial information, compile your personal income statement and personal net worth statement.
At this point, your entire life and business should optimize around net worth growth.
Sales and income do not matter as much as what you keep and one of the most interesting things is that almost no one in America thinks this way.
Almost everybody is focused on income, credit card debt, student loans, and mortgages, but all that matters at the end of the day is whether your net worth increases.
Ask yourself continually, “Is my net worth increasing?”
If the answer is no, then you need to get busy making changes to your life and business until the answer becomes yes.
As a person who plans to provide accounting services, you must make sure you do not fall into the major incongruent trap that most accountants do.
Once you begin tracking, and improving your own personal finances, you will fully understand and appreciate the value that you can provide to your clients.
You will be able to clearly feel what it is you are selling them and will never feel like a fraud selling services that you yourself do not even use.
As you compile your Personal Income Statement and Statement of Net Worth and monitor them regularly, you will be able to reach your personal net worth targets and provide the same value to your clients and their businesses.
To learn more about how to add value to your clients, head over to AccountingTax.com/Enroll