Fact or Myth
If there is money in the bank, the business is doing fine
MYTH -- a healthy business has at least 6 months worth of expenses in cash or liquid assets to be considered healthy
You need last month’s income and expenses
Call your bookkeeper
Using your personal card for business purchases
WRONG - It muddies your records, causes tax issues, and wastes hours separating personal vs business later
Venmo or Quickbooks for managing transactions?
QUICKBOOKS - QuickBooks tracks income properly and integrates with your entire financial picture — Venmo blurs business records. However, Venmo transactions can be accounted for within Quickbooks.
You use the same card for personal and business purchases
RED FLAG - Mixing money makes bookkeeping messy, leaves room for error, and causes tax headaches.
A bookkeeper's only job is to enter numbers into QuickBooks
MYTH - a skilled bookkeeper acts as a financial partner, not a data clerk. We:
Interpret numbers so owners actually understand performance.
Catch errors and keep financials accurate month to month.
Organize receipts, reconcile accounts, and track cash flow.
Build reports that help you make business decisions.
You’re filing your tax return.
CPA
Matching every bank transaction in QuickBooks
RIGHT - Matching ensures your records reflect reality — every dollar in or out is accounted for
Shoebox of receipts or cloud folder?
CLOUD FOLDER - Digital storage keeps receipts organized, secure, and easy to access for taxes or audits.
You reconcile your bank accounts every month.
GREEN FLAG - That’s how you keep books accurate and catch missing or duplicate transactions that over or understate your income
Your bank, credit cards and loans should be reconciled every month
FACT - reconciliation is comparing the data and totals we have to actual bank and loan statements to ensure accuracy, account for any caveats such as interest paid and so on
You want to know if you can afford to hire.
Bookkeeper
Guessing your profits by checking your bank balance
WRONG - Your bank balance doesn’t show upcoming bills, loans, or unpaid invoices
Guessing or budgeting?
BUDGETING - Budgets help predict cash needs and control spending instead of reacting last-minute
You haven’t looked at your financial reports since last tax season
RED FLAG - reviewing monthly helps you spot problems early and knowing where your business stands so you can pivot and plan
Profit and cash are the same thing
MYTH - Profit is what you earned; cash is what’s actually in your account. Your business can show a profit but still have low cash if your money is tied up in unpaid invoices, inventory, or upcoming bills
The IRS sends you a scary letter
CPA
Keeping receipts in a labeled digital folder
Digital storage saves time, prevents lost deductions, and keeps you audit-ready
Waiting for your CPA or reviewing monthly with your bookkeeper
MONTHLY W. BOOKKEEPER - Monthly reviews catch mistakes early — not months later when the CPA sees it.
Recurring invoices are sent automatically through QuickBooks
GREEN FLAG - Automation keeps cash coming in and saves time chasing payments.
Clean books make taxes faster and cheaper
FACT - When your books are organized, your CPA spends less time putting the pieces together and this makes for accuracy and faster filing
You want regular financial reports that tell how your business is doing month by month
Bookkeeper
Waiting until tax season to look at your books
WRONG - You’ll face errors, missed write-offs, and stress — monthly bookkeeping avoids that mess
Chaos at tax time or clarity all year?
CLARITY ALL YEAR - Staying organized year-round saves time, money, and stress when taxes roll around
Your P&L shows profit, but your cash is constantly short
RED FLAG - That means cash-flow issues — this could be a result of slow client payments or poor timing on expenses.