By OBBM Network Editorial Staff

Derived from an episode of On Main Street.

In the entrepreneurial world, expertise in your field is just the beginning. The right business structure can make or break your financial success, potentially costing or saving you six figures. This nuanced topic was explored in depth on On Main Street with host Rick Amato.

The Hidden Costs of Business Structures

Rick Amato welcomed Cheston Bogan, a fractional CFO and tax strategist, to discuss how many entrepreneurs might be unknowingly losing significant amounts of money due to improper business structures. Cheston Bogan, who owns By the Books Consulting, emphasized the importance of understanding the financial architecture of one’s business. He stated, “People go into business specializing in what they know, which is different than eliminating the financial blind spots of running a business.”

Recognizing Financial Blind Spots

Bogan explained that many business owners are successful within their areas of expertise but often lack awareness of financial inefficiencies. He highlighted the concept of ‘financial blind spots’ where business owners are not even aware of potential losses until they are addressed by an expert. “You’re operating inside of the knowledge base that you know,” Bogan noted, “but then there are things that we don’t know that we don’t know.” This is where experts like him can significantly enhance a business’s financial performance.

The Power of Strategic Oversight

Amato and Bogan discussed the role of oversight and accountability in business management. Bogan stressed that while delegation is key, complete reliance on others for financial management is not advisable. Instead, having someone who maintains a high level of accountability and oversight can ensure that the business’s financial structure is optimized. This strategic approach can prevent unexpected financial pitfalls and enhance profitability.

Practical Tools for Financial Management

The conversation also touched on practical tools that can aid business owners in managing their finances more effectively. Bogan mentioned the integration of financial tools like QuickBooks with CRM systems to streamline operations. As a certified QuickBooks advisor, Bogan explained how these tools have evolved beyond mere financial tracking to become comprehensive management systems.

Implications for Business Owners

The insights shared by Cheston Bogan underscore the critical need for business owners to look beyond their immediate expertise and address potential financial blind spots. By adopting the right business structure and employing strategic financial oversight, entrepreneurs can unlock significant financial benefits. The discussion with Rick Amato on On Main Street serves as a reminder of the intricate balance between expertise and financial management.

The full episode of On Main Street is available on OBBM Network TV.

Watch On Main Street on OBBM Network TV: https://www.obbmnetwork.tv/series/on-main-street-208164