The Equestrian Industry is built with a sturdy stock of business owners. We confront a 1,200 pound chestnut mare and body challenge her to not pin her ears, a scenario that might send most “ordinary” people running for cover. Nonetheless, despite our courage in the horse world, when it comes to being a business owner, sometimes the bravest thing we can do is ask for help.
The decisions we make as a business owner are completely different than when we are working with horses and clients. It is a mindset that takes on a different look. This certainly includes finances
and record keeping requirements. As owners, we need to satisfy the IRS that we run a business and not a hobby. We need to satisfy the bank that we are efficient and diligent with our funds. We need to prove to vendors that we can pay for services and products provided.
How can we do all this while spending time in the barn? By setting up a bookkeeping process that gives the ability to make decisions based on solid foundational information for the business owner.
Your books can tell you who really is a good client (participates regularly, pays on time) and who needs to be looked after. They can tell you which profit centers are making you the most revenue (is it lessons, competitions,
or sales?) They can tell you when you might have a cash flow issue (should you change deadlines or hold off on purchases?). They can show your expenses and tell you if something is off (my hay costs doubled what’s up?)
Using the books as a tool is no different than learning to post to the trot. Once you get the process in place, it will click and you’ll be able to use the books as a tool.