November 16, 2023 • 26 mins
Erika Millard on Empowering Small Business Owners through Bookkeeping
This podcast episode features Erika Millard, a bookkeeping coach specializing in supporting female entrepreneurs. She educates listeners about her unique coaching services and her thoughts on small business owners doing their own bookkeeping initially to gain basic knowledge and understand the flow of day-to-day transactions. Erika explains the differences between accounting and bookkeeping, highlighting the importance of maintaining accurate, organized books to make informed business decisions. She talks about various mindset issues around money that can create roadblocks for potential clients. Erika also expresses her opinion about QuickBooks being the best software for bookkeeping and shares her process of using pre-recorded and custom video trainings to help her clients. The episode concludes with Erika touching upon the topic of business automation and workflows associated with her newly-launched podcast, 'Get Comfy With Numbers'.
00:00 Introduction and Guest Presentation
00:19 Erika's Journey into Bookkeeping
01:34 Building a Business Around Family Life
03:31 The Birth of a Bookkeeping Coach
04:30 Understanding Accounting and Bookkeeping
05:44 The Importance of Good Bookkeeping
07:45 Overcoming Roadblocks in Bookkeeping
11:41 DIY vs Hiring a Bookkeeper
14:17 Transitioning to Informed Bookkeeping
17:23 Overcoming the Fear of Numbers
19:33 Erika's Favorite Resources and Offers
22:10 Lightning Round Questions
25:36 Conclusion and Farewell
Facebook Page: https://www.facebook.com/profile.php?id=100066650323250
Instagram: https://www.instagram.com/erika_millard/
Email: coonect@erikamillard.com
Website: https://erikamillard.com/
Be Your Own Bookkeeper in 6 Simple Steps https://erikamillard.com/bookkeeping-checklist
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Learn more at Howyoupicturedit.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Kate (00:00):
Today I'm here with Erika Millard of Erika Millard
(00:03):
Bookkeeping and the Get Comfywith Numbers podcast.
Hi, Erika.
Erika (00:06):
Hey, thanks so much for having me today.
Kate (00:09):
Thanks so much for being here.
Can you go ahead and introduceyourself to our audience and
tell them a little bit aboutyou, what you do, who you do it
for, and then tell us a littlebit about who you are as a
person too.
Erika (00:19):
Yeah, so I'm Erika Millard.
I'm a bookkeeping coach, which Ithink I kind of coined that
phrase.
Um, and so I love teachingfemale business owners how to
get organized with bookkeeping,how to set up their system so
that it's simple and easy, andthen actually understand.
So you can really understandtheir numbers and use them to
make better decisions.
(00:40):
so if you DIY your bookkeeping,or Sometimes I even work with
people who have a bookkeeper,but just don't have that level
of knowledge around theirnumbers.
Um, those are the people that Ilove to serve.
And we currently live inBirmingham, Alabama.
My husband and three kids, and Ihave a fourth on the way.
(01:02):
So we are Crazy, but fun overhere.
And we love, well, when it's notblazing hot here, we love to be
outside and I love any and allsweets, so we're pretty much
always at an ice cream place orgetting slushies or all of that
kind of stuff.
Kate (01:19):
I, we have an ice cream problem here too.
My family loves ice cream and Ihave to be honest, a lot of the
times I skip out on it becauselike I have to be in the right
mood for ice cream for it to bemy thing.
So let's talk about a little bitabout how you're building your
business currently to fit thelife that you had pictured.
Erika (01:40):
Yeah.
So it's crazy.
You know, I actually went intoaccounting in college because I
knew I wanted to stay at home.
And I knew that it had someflexibility also because I
wanted to be in the FBI, whichis a funny story.
Um, but at the time they werehiring people for white collar
crimes and I thought that'd beso cool, but that dream didn't
(02:01):
happen.
But what I am excited for isthat I got to use the accounting
skills and be home.
And I never pictured running myown business that was never
really in that picture, but.
Um, it has just been such aflexible thing for our family,
and I've been able to really dopieces that I enjoy, and so part
(02:25):
of accounting just started toget a little boring, and I
wasn't fully fulfilled with it,but when I started working with
female business owners whoreally wanted to understand
their numbers, and actually notdo the actual bookkeeping for
them anymore, but really empowerpeople to do.
Make the decisions and see thattransformation.
(02:46):
That's when I was like, Oh mygosh, I could do this all day.
And so it has.
Yeah, just been such a sweetblessing to be able to be home
and be flexible, but also likereally help and serve people.
And so I, I feel like that isthe life that I pictured, right?
Of just like feeling fulfilledand passionate, but also being
(03:07):
able to bring an income and helpsupport our family while also
doing it in hours that servekids.
And my husband is really busyright now.
So Just being able to tailor itto a crazy schedule has been
awesome.
Kate (03:21):
Yeah, it sounds like you've really found your kind of
zone of genius and been able toplay into that, into those
strengths and make it fit withyour family life too.
That's awesome.
Erika (03:31):
Yeah, it was cool to see, you know, I kind of, like I
said, I kind of felt like madeup the bookkeeping coach term,
but I had several people withina month say, Erika, I can't
afford a full servicebookkeeper, but could you just
teach me how to use QuickBooks?
Or could you just make sure thatI'm not missing anything on my
spreadsheet?
Or could you just explain whatthese words mean to me?
(03:53):
And after I did some of thosecalls, I was like, Oh, I could
do this all day.
And so I thought, well, maybethere's something here.
Maybe there's a gap where thereare some people who can't quite
afford a full servicebookkeeper, but do need some
support and guidance.
And maybe I can provide that.
And I think it's unique becausenot everyone with an accounting
(04:15):
mind also can teach.
Um, I think those two things arenot always go together.
And so.
Anyway, so I feel like that isone unique thing that I can
bring to people looking for thatkind of service.
Kate (04:30):
So we've talked a little bit, you've said the words
accounting and bookkeeping.
Can you tell me a little bitabout what the difference
between those two are, um, andwhat they mean?
Erika (04:39):
Yeah, I actually just released an episode today all
about the differences between abookkeeper, a CPA, a CFO, a tax
professional, and it can bereally confusing because people
use them all interchangeably.
So, um, I'm gonna, I'll explain,but then also kind of caveat by
saying there's a lot of uniquedifferences or exceptions to the
(05:03):
general rules, but in general.
A bookkeeper is going to helpyou with the day to day
transactions.
They're going to help youcategorize your income and
expenses.
They may help you run payroll.
They may help you get preparedfor taxes.
But then typically when you hearthe word accounting, that's
usually kind of the next level.
(05:23):
And that's usually where you'llfind the tax preparers.
or people like CFOs who willcome in and help you with
financial strategies.
So that's kind of the differenceis that a bookkeeping is usually
more about day to daytransactions and then accounting
is typically the piece thatcomes in with taxes and
strategies.
Kate (05:44):
So what are some of the benefits of having good books
and keeping books?
Erika (05:49):
Yeah, you know, I feel like it is so hard to make
informed decisions if you don'tknow your numbers and you can't.
actually look at your numbersunless they're complete and
accurate, meaning everything'scategorized, everything's in
order, everything's organized.
And that can sound very tediousand sometimes it can be, um, but
(06:11):
really I feel like this is wherethe fun and excitement can come
in and this is where I've seensome transformation in my
clients too of just Once you canget over like, well, I'm not a
numbers person, or I'm not goodat math.
Honestly, your system willreally do a lot of the math for
you.
It's really more theorganization that you need to be
(06:32):
part of.
And after that, you can reallysee, okay, what are these
numbers telling me?
Are my sales where they want,where I want them to be?
Are certain packages or servicesthat I offer?
actually doing better thanothers.
Maybe it's time to focus onthose.
Where are some expenses?
That's the one I need to cut.
(06:52):
Where's that networking groupthat I forgot that I signed up
for that is not really giving mea return on my investment
anymore.
So that's where once you havethose books organized, then you
can see, Oh, now I get to makedecisions based on what is
happening.
And I think that's where theshift comes in of feeling
(07:13):
empowered and informed to makethose decisions versus just
never really knowing.
Well, yeah, I have some cash inthe bank, but I don't really
know what's actually selling andwhat's not, or if these are
smart decisions.
So I think that's.
Obviously, aside from taxes andbeing, um, in line and being
(07:34):
organized for tax season, butreally taking it a step further,
the real reason is so that youcan actually understand what the
numbers are meaning.
Kate (07:45):
So what kind of roadblocks do you find your clients have
before they seek out help withtheir books?
Erika (07:52):
Yeah, you know, I think the financial industry has done
a lot of people a disservice, Ithink.
That there's so much of, let'sjust leave that to the expert,
or let's just, that's, you know,that's just something you just
outsource, we don't even touchnumbers.
And so I see a lot of fear andshame around it, and
(08:13):
embarrassment, because a lot ofpeople know that they should be
doing their bookkeeping, butthey aren't.
And so I see a lot of fear, too,of, well, I want to ask this
question, but I feel like Ishould probably already know the
answer.
So I don't want to look dumb.
And so there's just not a lot ofsafe places to ask those kinds
(08:34):
of questions and to really getthat knowledge.
And then I think it's also astruggle, even, even things that
I've tried to Google, I can'tget a good answer for.
And so there's just like layersand layers of frustration that I
see a lot of people workthrough.
And then on top of that, I heara lot of.
(08:55):
Well, I talked to a CPA and theymade me cry or I went to the
bank to try to open an accountand they belittled me or made me
feel super dumb like my businesswasn't worth anything or that I
didn't know what I was talkingabout.
And so it's also then reinforcedwhen you talk to certain
financial professionals.
And so just having all of that,all those feelings around money
(09:20):
swarming through, not even tothen mention anything that you
grew up with that are moneymindset blocks, or if you
struggle with even success, orif you struggle with the fear of
failure.
There's just so many factorsthat can come in when we're
talking about money.
that it can be really hard toovercome all of those things.
(09:42):
So that's what I typically seeis fear, shame, embarrassment,
just even not knowing what youdon't know.
And so sometimes that can createa lot of struggle too.
And honestly, I usually findpeople are in better shape than
they think they are.
Um, people usually say, Oh, I'msuch a hot mess.
And.
Really you, you understand someof the basics, you just need a
(10:05):
little bit more of a push and alittle bit more of an
understanding.
The gap isn't that big is whatI'm trying to say.
Your knowledge gap isn't as bigas you think it is, it's just
that we've been told that it'sso mystical that it's hard to
understand and that's anotherthing that I love to debunk is
that yes, there are somechallenging accounting
(10:27):
principles, but for the mostpart, the things that you need
to know to make informeddecisions.
You can understand.
Kate (10:34):
Well, and I have to say that Definitely that, um, just
not understanding, like, whatyour books mean and what they
can tell you has been somethingthat's, uh, been a problem for
me in the past, in the earlyyears of my business, I didn't
really look at, you know, shouldI spend this money on XYZ or
(10:54):
should I save it or should I,like, be paying myself more or
should I raise my prices?
I didn't have that, like,background knowledge of, well,
my Books are what's going totell me the answer to those
questions.
And I think that that isprobably a common theme for a
lot of small business owners,especially like in the
photography industry or like ourmom owned businesses where we're
(11:15):
kind of maybe started out as ahobby and then have grown to
something where we're bringingin more money, not knowing like
what we don't even know.
Like you said, you don't knowwhat you don't know.
There.
So, um, and I love your commentabout not knowing what to
Google, too.
I think that's a huge thing, notbeing able to ask the question
(11:37):
right to get the answer that youneed to.
So let's talk about why someonewould choose to DIY versus
hiring this app.
Erika (11:47):
Yeah, so I think this is where I have an unpopular
opinion, um, and I am really anadvocate for business owners
doing their own books for aseason, and that's because of a
few reasons.
One is that I often hear, well,I hired this bookkeeper, but I
don't really know what I'mdoing, and I don't think she
knows what she's doing, but Idon't know enough of what I'm
(12:09):
doing to know if she's doingwhat she's supposed to be doing,
and so there's this gap of...
It's just kind of distrust, Ithink, that can be built just
because of the lack of knowledgeof what they should be offering
you because everyone just says,well, just outsource it,
outsource it, outsource it.
And so when you don't have thatbasic knowledge, it can kind of
(12:30):
put those doubts in your mind,even if they are doing a good
job, just because you don'tfully understand what all goes
into it.
So that's one piece of it.
But also, I think, again, we'vejust been sold, we'll just
outsource it.
Well, it's actually really goodfor you to understand just the
basics of ins and outs of what'scoming in, what's going out, how
(12:52):
do we categorize that, how do wechoose Does this go to office
supplies or subscriptions andfees?
Like a lot of times it honestlydoesn't really matter, but just
understanding how those thingsflow together can be really
beneficial later on.
So even if you do choose tooutsource it, Then you can have
that confidence of, okay, mybookkeeper is doing what I'm
(13:14):
supposed to be doing.
You can know what to look forwhen you look at your reports
because you have a generalunderstanding of how the
transactions flow together, howinvoicing works, all of that
kind of stuff, I think is reallyvaluable for a season.
Now, obviously, there's a pointwhere it's time to graduate and
hire that bookkeeper becauseyour time is...
(13:37):
obviously a great investment.
And so you want to know whenthat tipping point is, but I
think it's really empowering toat least understand the basics
in the beginning, especially sothat you can feel like you're
making confident decisions.
And when you have a bookkeeperwho is potentially working
through reviewing the numberswith you, You can make informed
(14:00):
decisions too and not justalways trust what the
professional is saying, but havea good understanding, like I
said, of just knowing, okay,yes, this is good advice because
of this and I know why they'readvising me this way.
Kate (14:16):
That's really great information.
So say someone has only donetheir books to file their taxes.
How would someone get started?
Moving out of that kind of phaseof just bare minimum bookkeeping
into more informed bookkeeping,consistent record keeping, and
um, just doing a better joboverall.
Erika (14:38):
Yeah, well, I think the first step, I have a free
checklist.
It's a monthly checklist thatjust goes through six simple
steps that if you could do thisevery month, you'd be in really
good shape with yourbookkeeping.
I think Just creating thatconsistent routine and habit is
a good place to start versusjust being stressed in April
when it's time to file andyou're trying to frantically get
(15:01):
everything together.
This way you can be at morepeace and even if you don't do
it monthly, even if you just getto it quarterly, you're taking a
step to Getting it more togetherthan just that frantic place.
And so that is better.
Um, taking a step towards thatis better than staying stuck
like that.
(15:21):
Um, another thing, a lot of myclients like to do is make a fun
ritual or routine around doingtheir bookkeeping.
So tying it to something fun.
So go to your favorite coffeeshop, get your favorite drink,
light a candle.
Um, I've had all kinds of funideas of just.
Trying to make it fun,especially when you're trying to
(15:43):
create a new habit.
Sometimes we need that extramotivation and encouragement to
actually do it.
And so that's another kind ofbrain trick you can try.
Now some of my clients, thismight sound kind of harsh.
Some of them actually won't paythemselves until they've done
their bookkeeping.
And so that's another motivator,probably a negative motivator.
(16:06):
So it depends which way.
that you operate if you want totry to do the fun thing or the
harsh thing.
But, um, that can be anotherjust way to actually get
yourself to do it.
Um, the main thing is just doingit, right?
So setting aside that time inyour calendar.
Really taking this step towards,okay, I'm going to categorize
(16:28):
everything, but then also Ithink then the next step is just
getting familiar.
How do you run a report inwhatever software you're using?
Or if you're looking at aspreadsheet, you know, just
trying to understand, okay, whatis this trying to tell me?
Can I see which months did mysales do better?
Is that because I ran some ads?
(16:49):
Is that because of just a fluke?
Is that because.
something else.
It was, am I really like aseasonal business?
And then like we kind ofmentioned before too, are any of
these expenses things that I cancut?
Are there things that I'm notreally using and starting to get
more familiar with what they'retelling you?
(17:10):
I think the more that you lookat it, sometimes the more you
can see too.
Okay.
Now I know I have somequestions, um, but if you never
look at it, then it's just goingto stay intimidating in your
head.
Kate (17:23):
Yeah, so let's get to the mindset piece a little bit more.
What Would you suggest forsomeone who just has that
mindset of like I don't want toknow I don't want to see the
numbers You know the numbersscare me.
I'm not a numbers person.
How do you kind of break peopleout of that?
mindset
Erika (17:43):
Yeah.
You know, I think the first stepis just finding someone you
trust that you can have theseconversations with.
So whether that is someone likeme or a business coach or any,
even a business friend, justsomeone else that you can have
these conversations of.
Okay, I actually don't reallyunderstand this.
(18:03):
Can you explain it to me?
I think that can be hard toadmit, but it's a great first
step.
So just finding that supportgroup and community.
I feel like I've found that inother areas, like sometimes
business tech can beintimidating.
And so I'm trying to find placeswhere I can ask those kinds of
questions and not feel like youdon't know that as a business
(18:25):
owner.
So just finding those safeplaces.
Sometimes it's even working witha mindset coach.
Uh, okay.
Let me dig deeper into, is theresome fear and shame?
Is there some.
Deep rooted childhood thingsthat I need to root out.
And then a tip from a mindsetcoach specifically was just to
(18:47):
start journaling about some ofthat.
You know, if you encounter afinancial professional that made
you feel a certain way, justkind of journal about what was
it about that person.
And, you know, I think it'shelpful to know, I think
sometimes we can walk away frompeople feeling like, well, that
must just be how the industryis.
And so, but we get to choose whowe work with.
(19:09):
And so maybe that just wasn'tthe right fit for you.
And so continuing to work withpeople that will teach us and
just give us that support isanother important factor too.
So just don't stay stuck.
Just take a step is usually whatI advise people, whatever you
feel like.
That next step is for you.
(19:30):
Just keep taking steps towardsthat understanding.
Kate (19:34):
I, and it sounds like that, uh, checklist that you
mentioned is a good first step.
I, I really want to do, I'mbringing a new thing to the
podcast with the lightning roundquestions, but we're going to
get to that in a second.
First I want you to tell peoplewhere they can find that
checklist and what your favoritething that you offer is right
now.
Erika (19:52):
Yeah.
So if you go to ErikaMiller.
com, you can find that freechecklist and yeah, it's helped
so many people.
One of my clients even said thatshe takes it and she prints it
off every month so that she canphysically check market.
And she said, once she startedgoing through it, she could do
her whole bookkeeping, includinginvoicing and an hour a month.
(20:13):
And so that's what I'm reallytrying to help people with is
that.
That's probably not even worthoutsourcing.
And that's why I kind of talkabout my unpopular opinions
around it.
But if you can get into a simpleand easy routine where it just
flows, that's really what I wantfor people.
And so, yeah, so my checklist isthere and I'd love for you to
grab it.
Kate (20:34):
So what's your favorite thing that you offer in your
business right now?
Tell me about your coachingoffers and how that works.
Erika (20:40):
Yeah.
So I help people in severalways.
I think this time of year.
A lot of people are thinking, isit time to set up a new system
or, you know, change my system?
And so right now I'm reallyloving doing QuickBooks setups
or bookkeeping intensive.
So let's say if you're brand newto QuickBooks, I'll set it up
(21:00):
for you and then train you onhow to use it.
But there's also a lot of peoplewho have probably Signed up for
QuickBooks, then got intimidatedby it and were like I might
break something in here and thennever look at it.
And so I also offer abookkeeping intensive so it's
partially pre recorded and thenpartially customized.
(21:21):
So you'll go through my trainingand then I'll send you custom
videos too.
specifically answering all yourquestions.
So again, you can feel empoweredto actually use the system that
you have and actually understandthe things around it and not
have to deal with QuickBookscustomer support because they're
not always the best, sadly, butthey're still the best
(21:44):
bookkeeping software, in myopinion, that's out there right
now.
So those are some things thatI'm loving helping people with.
Kate (21:51):
I love that.
That's such a useful thing.
And like you said, pretty rareto find someone who will help
you with your books and not justdo them for you so that you do
feel empowered to make thosedecisions, um, and to understand
your numbers and what they meanfor you and for your business.
All right, let's get into ourlightning round questions.
Um, first, what is your favoritebook that you've read lately,
(22:13):
business or, uh, for fun?
Erika (22:16):
Yeah, I've been in a for fun kick and so I've been
reading the Miss Julia seriesand it's like this older lady
and she just has like a drywitty humor.
So every book is written fromher perspective and all these
crazy things happen to her and Ifind myself just like giggling
as I read it.
(22:37):
So it's a really fun thing tokind of unwind at night and
that's what I find I need.
in a fun book right now.
Kate (22:44):
That's fun.
Are you a hard copy book personor an audio book person?
Erika (22:49):
Yeah, I've been checking them all out from the library,
if that tells you how old schoolI am.
Kate (22:54):
I love it.
I, I cannot read books on paperanymore because I get so like
focused on it that I can't doanything else.
So I'm an audio book girl, but Ilove that you can do the paper
books and I love that you canuse the library.
I use the library for my audiobooks too.
Um, okay.
What is the best free resourceyou've accessed in your business
(23:14):
lately?
Erika (23:16):
I am a huge fan of the Society of Women Business
Owners, Sowbo.
And if you join their Facebookgroup, they have a free work
less, pay more.
That's what it's calledchallenge.
And so anyway, so they have yougo through just all of these
things, every single thing thatyou're doing in your business.
And then what are some thingsyou could be outsourcing and
(23:37):
what are the things that youhave to do?
And I just love working throughthat challenge because it helps
me just change my perspective,get kind of in more of that CEO
mindset of, okay, what do Iactually have to do myself?
And then what do I need tooutsource?
And so it just helps me kind ofgive fresh perspective.
on my business.
So that's one thing that I loveto work through every year as
(24:00):
I'm planning for the year of, itkind of helps me see like, okay,
what should my next hire be?
Or what are some other thingsthat don't actually need my
attention?
So I love that.
Kate (24:11):
That's super valuable.
I, I'm a member of Sowbo, too,and that's where we met, so
that's a fun, uh, tie together,too.
What new thing have you learnedlately that's helping you?
Erika (24:21):
Oh man, I feel like I could go so many directions with
that.
Um, but I just launched mypodcast, so I'm kind of in the
learning all things podcastingand it's just been fun to see.
And just see a whole new worldof how AI and those kinds of
things can help automate thingsin your business.
(24:44):
Um, I've been using ClickUp andsetting new workflows of how to
do my podcast too.
So I'm definitely in like alearning about all things
podcasting phase and just tryingto figure out, okay, how to,
what is my system going to looklike?
And so trying to set that up,um, I'm kind of, I'm getting
there, but I feel like I, I'vegot a long way to go too.
Kate (25:05):
Well, and I think those things are always evolving, too.
Like, no matter what, you'renever gonna have, like, the
perfect system.
It's gonna change.
It's gonna have to grow withyou.
So that is a good one, too.
All right, Erika.
Thank you so much for joining metoday.
We can find you at ErikaMillard.
com, um, and you can find thelink in the show notes.
It's Erika with a K, so that ishelpful too, and on podcasts you
(25:29):
can find Erika at Get Comfy WithNumbers, and listen in to her
advice there.
It was so great having you.
Anything else you want to add,Erika?
Erika (25:38):
No, thanks so much for having me.
I love talking all thingsbookkeeping.
So thanks again.
Kate (25:44):
Thank you.
Today I'm here with Erika Millard of Erika Millard
(00:03):
Bookkeeping and the Get Comfywith Numbers podcast.
Hi, Erika.
Erika (00:06):
Hey, thanks so much for having me today.
Kate (00:09):
Thanks so much for being here.
Can you go ahead and introduceyourself to our audience and
tell them a little bit aboutyou, what you do, who you do it
for, and then tell us a littlebit about who you are as a
person too.
Erika (00:19):
Yeah, so I'm Erika Millard.
I'm a bookkeeping coach, which Ithink I kind of coined that
phrase.
Um, and so I love teachingfemale business owners how to
get organized with bookkeeping,how to set up their system so
that it's simple and easy, andthen actually understand.
So you can really understandtheir numbers and use them to
make better decisions.
(00:40):
so if you DIY your bookkeeping,or Sometimes I even work with
people who have a bookkeeper,but just don't have that level
of knowledge around theirnumbers.
Um, those are the people that Ilove to serve.
And we currently live inBirmingham, Alabama.
My husband and three kids, and Ihave a fourth on the way.
(01:02):
So we are Crazy, but fun overhere.
And we love, well, when it's notblazing hot here, we love to be
outside and I love any and allsweets, so we're pretty much
always at an ice cream place orgetting slushies or all of that
kind of stuff.
Kate (01:19):
I, we have an ice cream problem here too.
My family loves ice cream and Ihave to be honest, a lot of the
times I skip out on it becauselike I have to be in the right
mood for ice cream for it to bemy thing.
So let's talk about a little bitabout how you're building your
business currently to fit thelife that you had pictured.
Erika (01:40):
Yeah.
So it's crazy.
You know, I actually went intoaccounting in college because I
knew I wanted to stay at home.
And I knew that it had someflexibility also because I
wanted to be in the FBI, whichis a funny story.
Um, but at the time they werehiring people for white collar
crimes and I thought that'd beso cool, but that dream didn't
(02:01):
happen.
But what I am excited for isthat I got to use the accounting
skills and be home.
And I never pictured running myown business that was never
really in that picture, but.
Um, it has just been such aflexible thing for our family,
and I've been able to really dopieces that I enjoy, and so part
(02:25):
of accounting just started toget a little boring, and I
wasn't fully fulfilled with it,but when I started working with
female business owners whoreally wanted to understand
their numbers, and actually notdo the actual bookkeeping for
them anymore, but really empowerpeople to do.
Make the decisions and see thattransformation.
(02:46):
That's when I was like, Oh mygosh, I could do this all day.
And so it has.
Yeah, just been such a sweetblessing to be able to be home
and be flexible, but also likereally help and serve people.
And so I, I feel like that isthe life that I pictured, right?
Of just like feeling fulfilledand passionate, but also being
(03:07):
able to bring an income and helpsupport our family while also
doing it in hours that servekids.
And my husband is really busyright now.
So Just being able to tailor itto a crazy schedule has been
awesome.
Kate (03:21):
Yeah, it sounds like you've really found your kind of
zone of genius and been able toplay into that, into those
strengths and make it fit withyour family life too.
That's awesome.
Erika (03:31):
Yeah, it was cool to see, you know, I kind of, like I
said, I kind of felt like madeup the bookkeeping coach term,
but I had several people withina month say, Erika, I can't
afford a full servicebookkeeper, but could you just
teach me how to use QuickBooks?
Or could you just make sure thatI'm not missing anything on my
spreadsheet?
Or could you just explain whatthese words mean to me?
(03:53):
And after I did some of thosecalls, I was like, Oh, I could
do this all day.
And so I thought, well, maybethere's something here.
Maybe there's a gap where thereare some people who can't quite
afford a full servicebookkeeper, but do need some
support and guidance.
And maybe I can provide that.
And I think it's unique becausenot everyone with an accounting
(04:15):
mind also can teach.
Um, I think those two things arenot always go together.
And so.
Anyway, so I feel like that isone unique thing that I can
bring to people looking for thatkind of service.
Kate (04:30):
So we've talked a little bit, you've said the words
accounting and bookkeeping.
Can you tell me a little bitabout what the difference
between those two are, um, andwhat they mean?
Erika (04:39):
Yeah, I actually just released an episode today all
about the differences between abookkeeper, a CPA, a CFO, a tax
professional, and it can bereally confusing because people
use them all interchangeably.
So, um, I'm gonna, I'll explain,but then also kind of caveat by
saying there's a lot of uniquedifferences or exceptions to the
(05:03):
general rules, but in general.
A bookkeeper is going to helpyou with the day to day
transactions.
They're going to help youcategorize your income and
expenses.
They may help you run payroll.
They may help you get preparedfor taxes.
But then typically when you hearthe word accounting, that's
usually kind of the next level.
(05:23):
And that's usually where you'llfind the tax preparers.
or people like CFOs who willcome in and help you with
financial strategies.
So that's kind of the differenceis that a bookkeeping is usually
more about day to daytransactions and then accounting
is typically the piece thatcomes in with taxes and
strategies.
Kate (05:44):
So what are some of the benefits of having good books
and keeping books?
Erika (05:49):
Yeah, you know, I feel like it is so hard to make
informed decisions if you don'tknow your numbers and you can't.
actually look at your numbersunless they're complete and
accurate, meaning everything'scategorized, everything's in
order, everything's organized.
And that can sound very tediousand sometimes it can be, um, but
(06:11):
really I feel like this is wherethe fun and excitement can come
in and this is where I've seensome transformation in my
clients too of just Once you canget over like, well, I'm not a
numbers person, or I'm not goodat math.
Honestly, your system willreally do a lot of the math for
you.
It's really more theorganization that you need to be
(06:32):
part of.
And after that, you can reallysee, okay, what are these
numbers telling me?
Are my sales where they want,where I want them to be?
Are certain packages or servicesthat I offer?
actually doing better thanothers.
Maybe it's time to focus onthose.
Where are some expenses?
That's the one I need to cut.
(06:52):
Where's that networking groupthat I forgot that I signed up
for that is not really giving mea return on my investment
anymore.
So that's where once you havethose books organized, then you
can see, Oh, now I get to makedecisions based on what is
happening.
And I think that's where theshift comes in of feeling
(07:13):
empowered and informed to makethose decisions versus just
never really knowing.
Well, yeah, I have some cash inthe bank, but I don't really
know what's actually selling andwhat's not, or if these are
smart decisions.
So I think that's.
Obviously, aside from taxes andbeing, um, in line and being
(07:34):
organized for tax season, butreally taking it a step further,
the real reason is so that youcan actually understand what the
numbers are meaning.
Kate (07:45):
So what kind of roadblocks do you find your clients have
before they seek out help withtheir books?
Erika (07:52):
Yeah, you know, I think the financial industry has done
a lot of people a disservice, Ithink.
That there's so much of, let'sjust leave that to the expert,
or let's just, that's, you know,that's just something you just
outsource, we don't even touchnumbers.
And so I see a lot of fear andshame around it, and
(08:13):
embarrassment, because a lot ofpeople know that they should be
doing their bookkeeping, butthey aren't.
And so I see a lot of fear, too,of, well, I want to ask this
question, but I feel like Ishould probably already know the
answer.
So I don't want to look dumb.
And so there's just not a lot ofsafe places to ask those kinds
(08:34):
of questions and to really getthat knowledge.
And then I think it's also astruggle, even, even things that
I've tried to Google, I can'tget a good answer for.
And so there's just like layersand layers of frustration that I
see a lot of people workthrough.
And then on top of that, I heara lot of.
(08:55):
Well, I talked to a CPA and theymade me cry or I went to the
bank to try to open an accountand they belittled me or made me
feel super dumb like my businesswasn't worth anything or that I
didn't know what I was talkingabout.
And so it's also then reinforcedwhen you talk to certain
financial professionals.
And so just having all of that,all those feelings around money
(09:20):
swarming through, not even tothen mention anything that you
grew up with that are moneymindset blocks, or if you
struggle with even success, orif you struggle with the fear of
failure.
There's just so many factorsthat can come in when we're
talking about money.
that it can be really hard toovercome all of those things.
(09:42):
So that's what I typically seeis fear, shame, embarrassment,
just even not knowing what youdon't know.
And so sometimes that can createa lot of struggle too.
And honestly, I usually findpeople are in better shape than
they think they are.
Um, people usually say, Oh, I'msuch a hot mess.
And.
Really you, you understand someof the basics, you just need a
(10:05):
little bit more of a push and alittle bit more of an
understanding.
The gap isn't that big is whatI'm trying to say.
Your knowledge gap isn't as bigas you think it is, it's just
that we've been told that it'sso mystical that it's hard to
understand and that's anotherthing that I love to debunk is
that yes, there are somechallenging accounting
(10:27):
principles, but for the mostpart, the things that you need
to know to make informeddecisions.
You can understand.
Kate (10:34):
Well, and I have to say that Definitely that, um, just
not understanding, like, whatyour books mean and what they
can tell you has been somethingthat's, uh, been a problem for
me in the past, in the earlyyears of my business, I didn't
really look at, you know, shouldI spend this money on XYZ or
(10:54):
should I save it or should I,like, be paying myself more or
should I raise my prices?
I didn't have that, like,background knowledge of, well,
my Books are what's going totell me the answer to those
questions.
And I think that that isprobably a common theme for a
lot of small business owners,especially like in the
photography industry or like ourmom owned businesses where we're
(11:15):
kind of maybe started out as ahobby and then have grown to
something where we're bringingin more money, not knowing like
what we don't even know.
Like you said, you don't knowwhat you don't know.
There.
So, um, and I love your commentabout not knowing what to
Google, too.
I think that's a huge thing, notbeing able to ask the question
(11:37):
right to get the answer that youneed to.
So let's talk about why someonewould choose to DIY versus
hiring this app.
Erika (11:47):
Yeah, so I think this is where I have an unpopular
opinion, um, and I am really anadvocate for business owners
doing their own books for aseason, and that's because of a
few reasons.
One is that I often hear, well,I hired this bookkeeper, but I
don't really know what I'mdoing, and I don't think she
knows what she's doing, but Idon't know enough of what I'm
(12:09):
doing to know if she's doingwhat she's supposed to be doing,
and so there's this gap of...
It's just kind of distrust, Ithink, that can be built just
because of the lack of knowledgeof what they should be offering
you because everyone just says,well, just outsource it,
outsource it, outsource it.
And so when you don't have thatbasic knowledge, it can kind of
(12:30):
put those doubts in your mind,even if they are doing a good
job, just because you don'tfully understand what all goes
into it.
So that's one piece of it.
But also, I think, again, we'vejust been sold, we'll just
outsource it.
Well, it's actually really goodfor you to understand just the
basics of ins and outs of what'scoming in, what's going out, how
(12:52):
do we categorize that, how do wechoose Does this go to office
supplies or subscriptions andfees?
Like a lot of times it honestlydoesn't really matter, but just
understanding how those thingsflow together can be really
beneficial later on.
So even if you do choose tooutsource it, Then you can have
that confidence of, okay, mybookkeeper is doing what I'm
(13:14):
supposed to be doing.
You can know what to look forwhen you look at your reports
because you have a generalunderstanding of how the
transactions flow together, howinvoicing works, all of that
kind of stuff, I think is reallyvaluable for a season.
Now, obviously, there's a pointwhere it's time to graduate and
hire that bookkeeper becauseyour time is...
(13:37):
obviously a great investment.
And so you want to know whenthat tipping point is, but I
think it's really empowering toat least understand the basics
in the beginning, especially sothat you can feel like you're
making confident decisions.
And when you have a bookkeeperwho is potentially working
through reviewing the numberswith you, You can make informed
(14:00):
decisions too and not justalways trust what the
professional is saying, but havea good understanding, like I
said, of just knowing, okay,yes, this is good advice because
of this and I know why they'readvising me this way.
Kate (14:16):
That's really great information.
So say someone has only donetheir books to file their taxes.
How would someone get started?
Moving out of that kind of phaseof just bare minimum bookkeeping
into more informed bookkeeping,consistent record keeping, and
um, just doing a better joboverall.
Erika (14:38):
Yeah, well, I think the first step, I have a free
checklist.
It's a monthly checklist thatjust goes through six simple
steps that if you could do thisevery month, you'd be in really
good shape with yourbookkeeping.
I think Just creating thatconsistent routine and habit is
a good place to start versusjust being stressed in April
when it's time to file andyou're trying to frantically get
(15:01):
everything together.
This way you can be at morepeace and even if you don't do
it monthly, even if you just getto it quarterly, you're taking a
step to Getting it more togetherthan just that frantic place.
And so that is better.
Um, taking a step towards thatis better than staying stuck
like that.
(15:21):
Um, another thing, a lot of myclients like to do is make a fun
ritual or routine around doingtheir bookkeeping.
So tying it to something fun.
So go to your favorite coffeeshop, get your favorite drink,
light a candle.
Um, I've had all kinds of funideas of just.
Trying to make it fun,especially when you're trying to
(15:43):
create a new habit.
Sometimes we need that extramotivation and encouragement to
actually do it.
And so that's another kind ofbrain trick you can try.
Now some of my clients, thismight sound kind of harsh.
Some of them actually won't paythemselves until they've done
their bookkeeping.
And so that's another motivator,probably a negative motivator.
(16:06):
So it depends which way.
that you operate if you want totry to do the fun thing or the
harsh thing.
But, um, that can be anotherjust way to actually get
yourself to do it.
Um, the main thing is just doingit, right?
So setting aside that time inyour calendar.
Really taking this step towards,okay, I'm going to categorize
(16:28):
everything, but then also Ithink then the next step is just
getting familiar.
How do you run a report inwhatever software you're using?
Or if you're looking at aspreadsheet, you know, just
trying to understand, okay, whatis this trying to tell me?
Can I see which months did mysales do better?
Is that because I ran some ads?
(16:49):
Is that because of just a fluke?
Is that because.
something else.
It was, am I really like aseasonal business?
And then like we kind ofmentioned before too, are any of
these expenses things that I cancut?
Are there things that I'm notreally using and starting to get
more familiar with what they'retelling you?
(17:10):
I think the more that you lookat it, sometimes the more you
can see too.
Okay.
Now I know I have somequestions, um, but if you never
look at it, then it's just goingto stay intimidating in your
head.
Kate (17:23):
Yeah, so let's get to the mindset piece a little bit more.
What Would you suggest forsomeone who just has that
mindset of like I don't want toknow I don't want to see the
numbers You know the numbersscare me.
I'm not a numbers person.
How do you kind of break peopleout of that?
mindset
Erika (17:43):
Yeah.
You know, I think the first stepis just finding someone you
trust that you can have theseconversations with.
So whether that is someone likeme or a business coach or any,
even a business friend, justsomeone else that you can have
these conversations of.
Okay, I actually don't reallyunderstand this.
(18:03):
Can you explain it to me?
I think that can be hard toadmit, but it's a great first
step.
So just finding that supportgroup and community.
I feel like I've found that inother areas, like sometimes
business tech can beintimidating.
And so I'm trying to find placeswhere I can ask those kinds of
questions and not feel like youdon't know that as a business
(18:25):
owner.
So just finding those safeplaces.
Sometimes it's even working witha mindset coach.
Uh, okay.
Let me dig deeper into, is theresome fear and shame?
Is there some.
Deep rooted childhood thingsthat I need to root out.
And then a tip from a mindsetcoach specifically was just to
(18:47):
start journaling about some ofthat.
You know, if you encounter afinancial professional that made
you feel a certain way, justkind of journal about what was
it about that person.
And, you know, I think it'shelpful to know, I think
sometimes we can walk away frompeople feeling like, well, that
must just be how the industryis.
And so, but we get to choose whowe work with.
(19:09):
And so maybe that just wasn'tthe right fit for you.
And so continuing to work withpeople that will teach us and
just give us that support isanother important factor too.
So just don't stay stuck.
Just take a step is usually whatI advise people, whatever you
feel like.
That next step is for you.
(19:30):
Just keep taking steps towardsthat understanding.
Kate (19:34):
I, and it sounds like that, uh, checklist that you
mentioned is a good first step.
I, I really want to do, I'mbringing a new thing to the
podcast with the lightning roundquestions, but we're going to
get to that in a second.
First I want you to tell peoplewhere they can find that
checklist and what your favoritething that you offer is right
now.
Erika (19:52):
Yeah.
So if you go to ErikaMiller.
com, you can find that freechecklist and yeah, it's helped
so many people.
One of my clients even said thatshe takes it and she prints it
off every month so that she canphysically check market.
And she said, once she startedgoing through it, she could do
her whole bookkeeping, includinginvoicing and an hour a month.
(20:13):
And so that's what I'm reallytrying to help people with is
that.
That's probably not even worthoutsourcing.
And that's why I kind of talkabout my unpopular opinions
around it.
But if you can get into a simpleand easy routine where it just
flows, that's really what I wantfor people.
And so, yeah, so my checklist isthere and I'd love for you to
grab it.
Kate (20:34):
So what's your favorite thing that you offer in your
business right now?
Tell me about your coachingoffers and how that works.
Erika (20:40):
Yeah.
So I help people in severalways.
I think this time of year.
A lot of people are thinking, isit time to set up a new system
or, you know, change my system?
And so right now I'm reallyloving doing QuickBooks setups
or bookkeeping intensive.
So let's say if you're brand newto QuickBooks, I'll set it up
(21:00):
for you and then train you onhow to use it.
But there's also a lot of peoplewho have probably Signed up for
QuickBooks, then got intimidatedby it and were like I might
break something in here and thennever look at it.
And so I also offer abookkeeping intensive so it's
partially pre recorded and thenpartially customized.
(21:21):
So you'll go through my trainingand then I'll send you custom
videos too.
specifically answering all yourquestions.
So again, you can feel empoweredto actually use the system that
you have and actually understandthe things around it and not
have to deal with QuickBookscustomer support because they're
not always the best, sadly, butthey're still the best
(21:44):
bookkeeping software, in myopinion, that's out there right
now.
So those are some things thatI'm loving helping people with.
Kate (21:51):
I love that.
That's such a useful thing.
And like you said, pretty rareto find someone who will help
you with your books and not justdo them for you so that you do
feel empowered to make thosedecisions, um, and to understand
your numbers and what they meanfor you and for your business.
All right, let's get into ourlightning round questions.
Um, first, what is your favoritebook that you've read lately,
(22:13):
business or, uh, for fun?
Erika (22:16):
Yeah, I've been in a for fun kick and so I've been
reading the Miss Julia seriesand it's like this older lady
and she just has like a drywitty humor.
So every book is written fromher perspective and all these
crazy things happen to her and Ifind myself just like giggling
as I read it.
(22:37):
So it's a really fun thing tokind of unwind at night and
that's what I find I need.
in a fun book right now.
Kate (22:44):
That's fun.
Are you a hard copy book personor an audio book person?
Erika (22:49):
Yeah, I've been checking them all out from the library,
if that tells you how old schoolI am.
Kate (22:54):
I love it.
I, I cannot read books on paperanymore because I get so like
focused on it that I can't doanything else.
So I'm an audio book girl, but Ilove that you can do the paper
books and I love that you canuse the library.
I use the library for my audiobooks too.
Um, okay.
What is the best free resourceyou've accessed in your business
(23:14):
lately?
Erika (23:16):
I am a huge fan of the Society of Women Business
Owners, Sowbo.
And if you join their Facebookgroup, they have a free work
less, pay more.
That's what it's calledchallenge.
And so anyway, so they have yougo through just all of these
things, every single thing thatyou're doing in your business.
And then what are some thingsyou could be outsourcing and
(23:37):
what are the things that youhave to do?
And I just love working throughthat challenge because it helps
me just change my perspective,get kind of in more of that CEO
mindset of, okay, what do Iactually have to do myself?
And then what do I need tooutsource?
And so it just helps me kind ofgive fresh perspective.
on my business.
So that's one thing that I loveto work through every year as
(24:00):
I'm planning for the year of, itkind of helps me see like, okay,
what should my next hire be?
Or what are some other thingsthat don't actually need my
attention?
So I love that.
Kate (24:11):
That's super valuable.
I, I'm a member of Sowbo, too,and that's where we met, so
that's a fun, uh, tie together,too.
What new thing have you learnedlately that's helping you?
Erika (24:21):
Oh man, I feel like I could go so many directions with
that.
Um, but I just launched mypodcast, so I'm kind of in the
learning all things podcastingand it's just been fun to see.
And just see a whole new worldof how AI and those kinds of
things can help automate thingsin your business.
(24:44):
Um, I've been using ClickUp andsetting new workflows of how to
do my podcast too.
So I'm definitely in like alearning about all things
podcasting phase and just tryingto figure out, okay, how to,
what is my system going to looklike?
And so trying to set that up,um, I'm kind of, I'm getting
there, but I feel like I, I'vegot a long way to go too.
Kate (25:05):
Well, and I think those things are always evolving, too.
Like, no matter what, you'renever gonna have, like, the
perfect system.
It's gonna change.
It's gonna have to grow withyou.
So that is a good one, too.
All right, Erika.
Thank you so much for joining metoday.
We can find you at ErikaMillard.
com, um, and you can find thelink in the show notes.
It's Erika with a K, so that ishelpful too, and on podcasts you
(25:29):
can find Erika at Get Comfy WithNumbers, and listen in to her
advice there.
It was so great having you.
Anything else you want to add,Erika?
Erika (25:38):
No, thanks so much for having me.
I love talking all thingsbookkeeping.
So thanks again.
Kate (25:44):
Thank you.
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