Business women are advised how to manage their money

Budget coach Faigie Berman and financial adviser Sara Glaz last week offered advice to women on how to avoid some of the common pitfalls of being in business for themselves. 

“How do you figure out how much money you need to run yout business?” Berman asked a meeting of Jewish Women Entrepreneurs at Ohr Torah in North Woodmere. She distributed a budget worksheet and pointed out that a businesswoman cannot chart a path to growth until she knows the costs of running her business and whether or not it is profitable.

Berman also cautioned that it’s important to keep business money separate from personal money. Paying yourself a salary is a handy way to keep funds separate and is especially helpful for those who do freelance work and must keep track of what will be owed in taxes, she said.

How to properly expense a home business and business travel was also discussed. One attendee offered information about why her business was audited (the accountant took too many deductions, which raised flags), an experience she said was time consuming, costly and extremely unpleasant. Berman added that auditors typically will check on you for a few years after the initial audit, to make sure the business is not slipping back into old bad habits.

There are actions small business owners often ngage in that attract the attention of the IRS, and Berman reminded the assembled entrepreneurs that, as religious women, they have a responsibility to not only act ethically, but to follow the law of the land as well as halacha.

Other attendees shared best practices about paying employees, how they grew their businesses, and where to find business information resources.

Establishing the true value of one’s time and effort, and paying oneself properly, is problematic for women in general, said Berman.

“How much are you truly worth?” said asked. “Women tend to undervalue this amount, so here is a way to figure it out: How much would you pay someone else to do all that you are doing for the business?” Even if a businesss owner cannot yet pay herself as much as her determined worth, following this advice will make the business’ finances much clearer.

Among Berman’s worksheet questions: How much is enough to invest in your business? How do you feel about asking for money from customers? When is it time to hire outside help? How does it feel when you think about money?

In addition to her counseling business, Berman volunteers for Achiezer’s financial management program, helping local residents who are going through financial difficulties.

Glaz wrapped up the evening by suggesting a nifty tip for reducing your tax bill by making payments to your own retirement plan.

To learn about the next Far Rockaway-Five Towns JWE event, email FTFR@thejwe.com.