Who Needs a Business Office When You Have... Just You?
One of the things they don't talk about when you start your own business is finances—and I mean the nuts and bolts of actually managing money, not just making it.
For nearly thirty years, I lived in a bubble of financial simplicity. Need to pay for something? Submit a requisition. Want reimbursement? Fill out a form, attach receipts, and magically money appeared in your account. Taxes? The business office handled payroll deductions. Filing requirements? Someone else's problem.
The school's business office was my financial safety net, and I didn't even realize how much I depended on it.
The Reality Check
When you go out on your own, that safety net disappears. Suddenly, you are the business office. You're responsible for:
Accounts payable and receivable
Tax filings and quarterly payments
Payroll (even if it's just paying yourself)
Business entity compliance
Financial planning and strategy
This isn't inherently bad or good—it's just reality. But it's a reality that catches many former educators off guard.
The IRS Fear Factor
I'll be honest: I have an irrational fear of the IRS. The thought of quarterly tax payments, ensuring adequate withholdings, and determining whether to take a salary from my business entity kept me up at night during those first few months. These concerns aren't unique to me, but they're amplified when you've spent decades having someone else handle the complexity.
The Solution: Get Help
Here's my hard-won advice: hire an accountant or accounting firm immediately. Don't try to figure this out on your own while simultaneously building your business.
My accounting firm handles my taxes, tax planning, and even payroll processing. While I still manage accounts payable and receivable (tracking invoices, following up on payments), having professional support for the more complex financial aspects has been invaluable.
The Takeaway
This isn't meant to scare anyone away from entrepreneurship. Thousands of people successfully manage business finances every day. But if you're considering leaving the comfortable cocoon of school employment, factor in the financial management responsibilities you'll inherit.
The business office that once handled everything for you? When you go out on your own, it's all you. Plan accordingly.
Have you made a similar transition? What financial surprises caught you off guard? Share your experiences in the comments below.