Profit Isn't Cash: Where Is Your Money Really Going? with Tammy Clement

If your business is profitable on paper but the money never seems to reach your bank account, you are far from alone, because it is the complaint PowHERhouse hears more than any other. Tammy Clement, Lead Tax Advisory Specialist at PowHERhouse Money Coaching, ran her own salon for more than 20 years before COVID shut it down, and she now helps business owners find out exactly where their profit is going.Host Nicholle Overkamp asks Tammy why profit and cash flow so often tell different stories, why one meeting a year with your CPA keeps you compliant without giving you a plan, which expense numbers should worry you, and the easiest first step for anyone who would rather not look at their numbers at all.What you'll learn:1: Why your profit and loss statement can show a profit while your cash flow is negative, and the loan, credit card and interest payments that often explain the gap2: How to reconcile your bank and credit card accounts every month so your P&L and your bank balance finally make sense together3: The difference between tax compliance and tax planning, and how to ask your CPA or advisor for year-round strategy4: How to read your expenses as a percentage of revenue, and why payroll at 70% or utilities at 11% of gross revenue can signal a problem5: The three business services Tammy recommends shopping every year: insurance, credit card merchant services and payroll6: The simplest place to start with small business bookkeeping when your finances feel overwhelmingAbout HOST:Nicholle Overkamp, MBA, ChFC®, CDFA®, CLU®, is the founder and CEO of PowHERhouse Money Coaching and Wilcox Financial Group, and a financial advisor and business coach for women. LinkedIn → https://www.linkedin.com/in/nicholleoverkamp/About GUEST:Tammy Clement is the Lead Tax Advisory Specialist at PowHERhouse Money Coaching, where she leads the bookkeeping, tax and advisory services, and she brings more than two decades as a small business owner to every client conversation.LinkedIn → https://www.linkedin.com/in/tammy-pollino/TIMESTAMPS:00:00 Preview: profit, cash and your P&L00:42 Meet Tammy Clement, lead tax advisory specialist01:52 From salon owner to tax advisor after COVID03:39 Why owner experience changes the advice04:57 The opportunities other professionals were missing05:50 "My CPA isn't helping me plan"07:02 Once a year with your CPA is compliance08:29 Profitable on paper, empty in the bank09:09 First move: look at your P&L10:46 Reconcile monthly so the numbers match the bank11:22 Expenses as a percentage of revenue: the red flags12:19 Audit your vendors and cut what doesn't pay13:02 Three bills to shop every year14:12 Overwhelmed? Where to start15:46 Rip the Band-Aid off, somewhere comfortable16:53 You already did the hard part17:18 Questions and sign-offKey Links and Resources:PowHERhouse Money Coaching website https://powherhousemoney.com/FREE Money Coaching PowHer Bundle https://powherhousemoney.com/online-courses/money-coaching-bundle/PowHERhouse Money Coaching socialshttps://www.facebook.com/powherhousemoneyhttps://www.instagram.com/powherhousemoneyhttps://www.linkedin.com/company/powherhouse-money-coaching/Money Bitch book https://powherhousemoney.com/product/money-bitch/Money Bitch Community on Facebook https://www.facebook.com/groups/moneybcommunityAbout the show:PowHERhouse Money Coaching is the podcast where Nicholle Overkamp and her guests have honest conversations about money, business and the decisions that shape both. Each episode gives women business owners practical steps they can put to work in their own numbers right away.If this conversation hit home, subscribe and turn on notifications so you catch every new episode, and share it with a business owner friend who keeps asking where her money went.