Oct 29, 2024
30
Mins

How Good Bookkeeping Transforms Your Business

Here are 2 accounting truths on which business growth stands. 1. Bookkeeping is necessary, not a necessary evil. 2. The tax code helps to save money, not drain it. Bad bookkeeping and tax planning can shut down your business. But you can’t be your own CPA and bookkeeper without burning out! In this episode, we talk with accounting guru Matt Nelson, and we’ll share insights into bookkeeping, and the solution we’ve created for how you can leverage dedicated services for both under one roof. Feed your business growth plan and free yourself up to build your business.

Guest:

Matt Nelson

What We Cover

Introduction to Matt Nelson [00:00]

  • Matt Nelson shares his journey into bookkeeping, from working on his own business's books to growing a scalable practice, importance of processes, training, and quality control in bookkeeping to meet client needs.

The Struggle to Balance Tax and Bookkeeping Services [02:40]

  • Mike and Kevin discuss the difficulties they faced running both tax and bookkeeping services, and how Matt’s expertise fills that gap.
  • How the new partnership, Revo Your Books, streamlines bookkeeping services for Revo clients.

The Value of Accurate Bookkeeping for Tax Planning [07:36]

  • Accurate financial records are critical for effective tax planning and business growth.
  • The importance of proactive bookkeeping, with monthly or quarterly financial reviews, cashflow forecasting and tax planning.
  • The difference between bookkeeping and tax as a function.

Common Bookkeeping Pitfalls and How to Avoid Them [12:50]

  • Discussion of common bookkeeping mistakes, such as improperly coded transactions and delayed financials
  • How these errors can lead to significant tax issues, including penalties and audit risks.

Real-Life Case Study: The Consequences of Poor Bookkeeping [15:32]

  • A cautionary tale about a client whose business was shut down by the Texas Comptroller for failing to pay payroll taxes due to poor bookkeeping.
  • Importance of maintaining clean, accurate financials to avoid such catastrophic outcomes

The Key to Growing and Scaling Your Business [17:30]

  • How good bookkeeping helps businesses grow by providing accurate financial insights.
  • The value of partnering with professional bookkeepers to focus on growth while avoiding cash flow problems and tax penalties.
  • Tailored bookkeeping plans and rates.

Revolutionizing Bookkeeping with Revo Your Books [20:55]

  • The launch of Revo Your Books, offering comprehensive bookkeeping services with a focus on quality, scalability, and proactive financial management.
  • The processes put in place to ensure transparency, consistency, and client satisfaction.
  • The importance of timely submission of financial records for effective tax planning.

Kevin Schneider: [00:00:00] We have a momentous occasion. Momentous.

Mike Pine: Very momentous.

Kevin Schneider: We have brought Matt Nelson. Matt is an accounting guru, can scale accounting, the accounting function, can handle sales tax, payroll, everything that Mike and I can't do in our team, Matt can do. And so welcome, Matt.

Matt Nelson: Thanks for having me. I'm excited to be here.

Kevin Schneider: Tell us how you entered this picture. Tell us a little bit about yourself.

Matt Nelson: Yeah. Matt Nelson, and I'm married, and got four young kids, entrepreneur, just like everybody listening. So, I understand all the challenges and things that we're all working with. And for me, I've, kind of, always been in the financial space.

So, whether that's bookkeeping, tax, financial planning, insurance, I've, kind of, held different roles within those. You can't get around entrepreneurship or running a business without bookkeeping, and so, being an entrepreneur myself, in that space, find myself just doing my own books, because it can be difficult to trust someone to do those things.

And then, from there, the referrals of your friends start creeping in and say, "Oh, can you do my books too?" So it started very naturally, the goal wasn't really to get into it, but once you start doing it, and once you start doing a good job, people will refer you, and those referrals can come.

So, as we started growing more in our bookkeeping practice, I've probably been in bookkeeping, 16, 17 years total, but then, it really started growing, and in the last three or four years, really trying to scale that, and provide solutions for people, take this unfulfilled service and do a really good job at it.

So, bring in quality people, quality training, quality processes, and then, the accountability piece of it. So again, it takes a lot of those things, and many more, to be successful at it because there are so many variables, so many people do it a different way, so many companies want it done different ways, the tax guys want it done their way. The banks and, and other institutions are wanting to see certain things. 

So, it takes a lot to bring that all together, but yeah, I've had a passion for it. I've had a passion for keeping people compliant, giving them their 'time-backs', taking this off their plate to where they can really, like, run and do their business better.

Kevin Schneider: Yeah. I love that because that's exactly what accounting will help people do as an entrepreneur. 

And for everyone listening, let Mike and I, kind of, give a little history of where we are, or where we've been. So, I joined Mike back in, probably 2018. He bought the firm, with a bookkeeping practice mainly being the source of revenue, but he did have a tax [00:03:00] add on at the time, so he eventually wanted to grow this bookkeeping practice, but tax kept on outweighing the revenue.

Mike Pine: To be honest with you, the entire reason I bought that bookkeeping firm was so I can get other people to do the bookkeeping because I love tax. I'm passionate about tax. I'm not good at bookkeeping and I don't even like it, to be honest with you. My wife even quit her job as a teacher to learn to be a bookkeeper, and became QuickBooks Pro certified because she saw how miserable I was in the bookkeeping.

So, we bought this bookkeeping practice and that was very underserved in the tax world, and that excited me and I wanted to focus on the tax. So, we started growing the tax. You joined, we were growing tax well, but the bookkeeping was always, kind of, like a millstone around our neck.

Fast forward a while, and we kept trying to find good managers to run our bookkeeping practice so Kevin and I could focus on tax, and it just wasn't happening. So, we sold our bookkeeping practice three years ago, or so, thinking we will help our clients find good bookkeepers.

That is a lot harder said than done, right?

Kevin Schneider: Yeah, it was. You can't do taxes without records. You can't do without bookkeeping. You know, this.

Matt Nelson: It's true.

Kevin Schneider: So, what we did at the time is we just offered an array of bookkeepers in the area, but what that ended up is, each bookkeeper did something different. Their processes were different. Their pricing was different.

Mike Pine: The quality was different.

Kevin Schneider: Yeah, exactly. And so, the quality was a huge thing because we'd get to a tax return, things would be coded incorrectly, we'd be taking wrong tax positions. So, we're like, this isn't working either.

 Mike Pine: And not being able to serve our clients well, and they were complaining too. Like in March, when we're ready to start their tax return, we're asking them for their financials, like, "Oh, well, that new bookkeeper I found, I can't get them to answer the phone." That frustrates them and we don't want that anymore, and we don't want any more unbalanced balance sheets.

I am amazed how many balance sheets that don't balance that we've seen from 'bookkeepers'. So, anyways, we've been listening to our clients. They want one place they can go for their books and their tax, and thank goodness, we found you, Matt. Kevin, I'm glad you found him. Now, we're going into business together.

We're forming a partnership. It's 'revo your books', www.revoyourbooks.com. Thank you for joining us, Matt. Thank you for taking over this bookkeeping need our clients have.

Matt Nelson: Yeah, I'm excited about joining, joining the Revo team. I think that having that cohesive brand, the cohesive values that we have are the same values, same consistency, same work ethic, same quality control. I think those things are going to be a huge value add for all of our current clients.

Kevin Schneider: Yeah, it's a good fit. You're coming from a background of experience, your trials, your successes, that is such a huge value that you're bringing to Mike and I's because we don't have 18 years of experience in accounting.

Whoever needs it, just go to [00:06:00] www.revoyourbooks.com. You can schedule a consultation from there.

Matt Nelson: Yeah, and I would say it doesn't hurt to check it out, right?

Check out the quality control. Check out the pricing. Check out the strategy and the planning. How does it fit together? Again, having things under one roof makes a huge difference from if you're getting one piece from this person, one piece of tax here, one piece of accounting here, payroll, somebody else. Yeah.

Mike Pine: And something else I'm quite impressed with, I'm excited to be working with you on this, Matt, is you figured out how to scale the bookkeeping service, meaning you can grow.

As we've been growing and figuring out how to scale tax, we've gotten pretty good at it. We found some really good bookkeepers, but suddenly, mid January, they say, "I can't take any more new clients from you guys. You're going to have to go find someone else," because they can't scale.

You're very process focused. You seem to figure out the magic formula to scale. So, I'm excited for this long partnership that we're going to have serving our clients together.

Matt Nelson: Yeah, it's going to be great. And on the scale piece, I mean, I do, kind of, have a tax background as well, where I understand that scalability, understand where, come tax season, it's game time, and so, kind of taking that, and then, moving it into the bookkeeping business.

So we've had different waves of growth based on businesses, all of a sudden, are flush with money. So, we would have to ride that wave.

If we were in a downturn, we wanted to keep people on, rather than let them go and try to hire again. So, that's what one thing we did was focus on training, focusing on other value-adds that we can do, to where we were able to ride those waves up, and continue to scale.

So, if you start selling a hundred cakes a day, as opposed to one, that's a great run. Does come with its challenges that you're on top of making sure that somebody's balancing those hundred cakes. And we're excited to jump in and join you guys with it.

Kevin Schneider: No one knows your business better than you as the business owner, but doing true accounting, principled financial statements is probably not the entrepreneur's wheelhouse or passion.

Mike Pine: They need to focus on making money, not doing book.

Kevin Schneider: Correct. That's the value-add for bookkeeping. How else are you going to be able to make any decision in your business if you don't know what the bottom line is, where your revenue is coming from? But a lot of entrepreneurs are so busy selling, hiring, growing their own business, accounting, almost, is the first thing to take the back seat.

Mike Pine: That's right.

Matt Nelson: Yeah. That's what I've noticed too, is it's an afterthought, and it needs to be part of the plan, especially if you're interested in growth. A lot of people, again, "I'll get to my accounting when I have a problem, or when I need a bank statement, or come tax time," but it should be part of a proactive plan to grow and scale your own business.

Mike Pine: Oh, absolutely. Look at all the startups that fail. Something like 1 out of 6 startups fail in the first year or two, and they almost all fail because they run out of cash flow. They're not projecting and planning cashflow. That's what a good set of financial books will help you do, if you work with a good bookkeeper, to know what your cashflow is going to be two, three months out from now, and without [00:09:00] that, that's why people fail.

And that's why we are excited to find a solution that can scale. We've met a lot of really good bookkeepers. I've not met one that can scale quickly and well without losing quality control and quality services. And so, very impressed on how you've done that in your firm.

Kevin Schneider: Yeah. And this is the genesis of our partnership here, is because Mike and I, we saw the need for accounting services.

When you said a couple of times, "proactive", that is what drew me to you for it, because when we've had conversations in the past, you have that mindset, and that's how our mindset is on tax. Being proactive in your business, being proactive in your books, being proactive in your taxes. Not being passive and letting things happen to you, because in what area of life, when we sit back and let things happen to us, does it work out?

Well, it doesn't work out well in your marriage. It doesn't work out well with your children. You've got to engage. You've got to go forward. You've got to actually put effort into things for it to succeed.

Mike Pine: Yeah. And “proactive” is kind of revolutionary in the bookkeeping world and the tax planning world, right?

And amazingly, everyone agrees with that in our industry, in the tax world, in the bookkeeping world, in the financial world, but how many people are actually doing it? That's the whole reason behind Hidden Money. We want people to be proactive and take charge of their financial lives, and it's not that hard to do it if you have good partners.

Matt Nelson: Yeah. And like you said, talking about making informed decisions, if your books aren't right and you're not looking at it, or paying attention to it, or have something that's giving you some proper numbers, then you're making a lot of emotional decisions, which usually doesn't lead to success.

Mike Pine: Yeah. For instance, we have an awesome client. He owns about 50 different rental properties. The guy is focused on growth, on providing good housing solutions, and he does that constantly.

He's found himself where he had to pull out money, early withdrawal, out of his 401(k) retirement account, just so that he could land on a deal and close. And then, suddenly, he finds out he owes $100,000 in penalties for pulling out a million dollars from his 401(k). If he had cashflow forecasting, which is an important part of good bookkeeping systems, he wouldn't have that.

But at the same time, he hasn't been able to find the time to focus on that. He needs a good partner to do it with him and for him.

Matt Nelson: Yeah. And like you said, if you want to be that person in your own business, be your bookkeeper, that's great, but that will limit your time to go out and find other deals, or paint more houses, or bake more cakes.

So, you’ve got to figure out where that trade-off is. Yeah.

Mike Pine: Let's unpack for a second, because I know a lot of our listeners, a lot of our clients don't know the difference between bookkeeping and tax as a function. They figure accountants are accountants, we do it all. How would you differentiate bookkeeping from tax?

Matt Nelson: Yeah, I think that's a great question. I would say your bookkeeper is more into your day to day transaction, monthly, operations of what you're doing. Again, I think, aside from yourself, they should probably be the second person that knows the most about your business just because they're able to see things from a [00:12:00] non-emotional decision, and just looking at the debits and credits of your business.

So again, a lot of times, I think, entrepreneurs just look at their bank account, and if they see some money in there, and they think they're doing okay, as bookkeepers, we should know the ins and outs of your businesses, and we should be able to advise you,

"Hey, here's what's going on from a numbers perspective." At least, you're making informed decisions through it. And then, you're able to help them make the informed decisions to save on tax, or to be proactive in the following year, whatever it might be.

Mike Pine: Yeah.

Kevin Schneider: You're going to be working with your clients on a monthly, if not weekly, basis because you're in the nuts and bolts. From a tax standpoint, we love to meet with clients on, at least, a quarterly basis, biannual at very least, But from there, we need good clean financials because there are tax-advantageous ways to report things on your financial statement, so having someone in with experience there, too, is beneficial.

Matt Nelson: So, yeah, and I'm sure you guys have been there in the past where you've planned with a client, only to find out their books weren't right. And then, you have to go back and unwind all of your work to get the accounting right, which then again, changes the tax plan.

Mike Pine: It's actually going to be incredibly costly and terrible. 

More often than not, we get clients that come in in September, October for tax planning. We say, "Well, how's your business doing? You got financials?" "No, we don't do our financials till the end of the year." And then, we're like, "Okay, but how do we plan? We don't know what your financials look like." 

But then, at times, we've had other clients, when they got the PPP loan, they coded it to income and it shouldn't have been income. That happened a lot.

Matt Nelson: I saw that too.

Mike Pine: And they include an extra $100,000 of income, and pay tax on it. We didn't know that. We didn't do their books at that time. It was buried in income in the one, big line item.

And thankfully, they have a new bookkeeper that found it, and now, they're able to amend their tax returns, but that's a big process and hassle to go through. It's increasing an audit risk. So, accurate books are so important for tax planning, for running your business.

 Kevin Schneider: Yeah. And from our fee standpoint, we're going to a flat fee model next year of our tax returns, but even in our flat fee model, if you want us to clean up your accounting records, we're going to have to bid that work, get it cleaned up. 

But generally, what we've seen is before we've offered that, our tax fees would be double what they would mean otherwise.

So, for instance, I had a client who we do a lot of creative tax planning for. Give it to him to put in his own books, it wouldn't get in there properly. I would probably do about eight or nine adjustments from a tax planning perspective.

It took me probably five, six hours at my bill rate to do that when he could have had an accountant on the call, and just saying, "Just do these six, seven, or eight adjustments." But then, when we got to tax time, I gave him all the adjustments, and then half of them made it in, and the other half that he did were incorrect.

So then, I had to spend more time finding out what happened. And I knew what the end result should be, but he couldn't [00:15:00] get it there on the financials, but that is where a good accountant could come in.

Mike Pine: And save them a ton of money.

Kevin Schneider: Yeah.

Matt Nelson: And you mentioned cleanup too.

I mean, we do clean up services, and that's a service that many people take us up on, but sometimes unwinding all that work, you would have been better off just starting it from the beginning rather than having us to unwind it, train you, show you, teach you, do it, check it again at the end of the year.

We have seen if they would just do it right from the beginning, it makes it a lot better.

Mike Pine: And smoother.

Matt Nelson: Smoother.

Mike Pine: A lot less stressful too.

Before we got started with this recording, you were mentioning a story of one of your bookkeeping clients just a few days ago. It's a good story to share with people here because it happens, and this is one of the, kind of, worst-case scenarios of if you're not paying attention to your books, you don't know what you're doing, it can be tragic to your business. Can you tell us that story?

Matt Nelson: Yeah. And again, this isn't a scare tactic, this is a real-life story. It can happen.

What happened was we had bid out some accounting work, and it was going to be all their bookkeeping, payroll, sales tax, many different functions that they were doing in the pool industry. And they decided not to go with us.

They were going to keep doing it on their own. And we had seen their books to see what the cost might be, and we knew they were in a mess. And I just said, "Hey, let's just keep up with them because they are going to need us soon. I can tell." 

And three days ago, we get a call from them, and saying they need help, that the Texas Comptroller was at their business!

 Mike Pine: That's never a good start of a phone call. That's never a good start.

Matt Nelson: Yes. And they were sitting there in their business with them, wondering why they hadn't paid their payroll taxes, why they were behind on filing reports.

And then, the next day, they obviously couldn't remedy the situation right then, but they called us. We got on the phone, we got working with them, took it off their plate. At least, we were able to be the mediator between the Texas Comptroller's office and the client. We figured out what needed to be done, and we got those things implemented for them.

The next day though, since they obviously couldn't pay everything right away, and in a few hours, they confiscated all their cash and their registers, took away their sales tax permit. So, they're technically not allowed to do business anymore.

Mike Pine: They literally shut down your client's business.

Matt Nelson: Yeah. They shut them down. They can fine them by the day until they make their payments. They're technically out of business.

So again, hopefully, that's a worst-case scenario for many people, but even, again, let's say you miss a payment, and you've got a penalty and interest. Well, the bookkeeping fee, typically, is going to be a lot less than your paying that penalty or interest. 

So again, when we see books that need to be cleaned up, it's a sign of there's probably other things going on, and they're just letting the accounting go, sweeping under the rug until something like this happens.

Kevin Schneider: Yeah. That's hard, and that's the struggle with a lot of small businesses, "I don't have the cash. I can't hire." And so, what we see in the ‘Mom and Pop’s’ industry is an office manager will, kind of, dual-function accounting.

But then that's why, you know, you, there's a group already established, ready to go to help you in that.

So, if someone's interested in [00:18:00] some sort of accounting work, maybe they have a couple of rental properties, they're a W2 earner, and they have some rental properties, or they're self employed, and they may gross $500,000 a year, some may gross a million dollars a year in revenue.

How do you bid those two jobs, and what's our price that we're aiming for?

Matt Nelson: We want to obviously be very transparent, and what we're charging, and then, what our responsibilities are.

We even have a sheet that, "Hey, this is not what we do. This is what you do," just to make sure it's very clear, so, setting those expectations with the clients, to make sure that we're quoting accurately. So, we'll see if they've got any kind of profit-loss statement, if they've got QuickBooks already going, and it's going to be based on the number of bank accounts, number of credit cards, number of transactions that they might see in an average month.

Maybe other factors could be number of employees, number of partners, number of manual journal entries that would need to be made, types of assets, size of the business, types of revenue.

Our goal is to make it efficient and systematize it as possible. We want to get you on a streamlined platform where we can be seeing things at the same time.

And then again, we want to make sure it's a price that works for you. We're going to give you options of different add-ons or different types of plans where you can choose.

As far as specific pricing, we've got plans that are as low as, probably, $500 a month, and they go up from there. So, we want to make sure we're having a value-add for your business.

Mike Pine: And frequency is a big deal on that too, right?

I mean, If you're operating business with sales tax, with payroll, you probably need a monthly bookkeeper, but for a lot of our clients that have one or two rental properties, that might be something where it's perfect to do it twice a year, close it right before tax planning season. What I like about your offerings, too, is it's not 'one size fits all' because clients aren't the same, businesses aren't the same.

And I like how you fit our clients to help make them comfortable, and you're not trying to oversell them stuff that they don't need. Sure.

Kevin Schneider: Yeah, and that's why with our partnership here, what we're trying to do is find that good price point, good quality financial statements, and then get that fee on a flat fee pricing on the bookkeeping and accounting function. 

Because budgeting is a huge part of the accounting function, people want to know what's this going to cost? What is my tax return going to cost?

So, really, when you go to a flat fee model, then that puts more accountability on us as leaders to make sure our team is efficient and trained, and then, the benefit is for the client. They have a stable monthly invoice for all of their accounting, payroll and sales tax, doesn't fluctuate, and internally, it's our job to make sure we're efficient and doing the right job.

Matt Nelson: Yeah. So, we know that we have to do a good job consistently within the pricing that we're working with.

Mike Pine: Yeah, agreed.

Kevin Schneider: Yeah, we haven't unveiled our website, but our website will be www.revoyourbooks.com. If you go to www.revoyourbooks.com, from there, you'll be able to see the bios of me, Mike, Matt, our team that we've [00:21:00] put together.

I just love working with them. Amy, who's kind of the GM of this whole new business we've created together, I love working with her because she's so detail oriented, holds people accountable, and so, she's very good in this position, and I'm very excited for it.

So, yeah, www.revoyourbooks.com. If you have any accounting needs, you can go there and schedule a consultation with either Amy, we have Teresa, a number of accountants you'll speak with that we have already, and ready to go. 

Just have a conversation. What do you need? Do you want payroll? Do you want sales tax? What do you want? We'll do it.

Matt Nelson: Yeah. Excited to join forces and launch this together. I'm really excited about how it's going to really transform our clients day to day, monthly, and then year-end needs. Again, it's all about people at the end of the day.

I know you guys are all about that. So, I love that. I love working with you guys. So, excited to see what the next steps are.

Mike Pine: Kind of based on what you just mentioned, accountability and stewardship, we're all called to be good stewards over whatever we're given. If you have a business, being a good steward is knowing where the money's coming from, where it's going, and planning for the future and budgeting. How can you do that without a set of financials?

A lot of us entrepreneurs, we are visionaries. We like to look at where we're heading. It's hard to get to where you're heading without knowing what's right in front of you and where you're standing right now. That's a huge part of bookkeeping, and I'd say it's impossible to be a good steward over your business without good, clean, accurate, and timely financials.

Matt Nelson: Yeah. And I think we don't have to be ‘solopreneurs’. We don't have to do everything ourself. We want to surround ourself with a team that can help us make those good decisions that keep us on track.

So, yeah, teaching stewardship of your business is a huge goal of ours. We want to be good stewards. We want to be honest in what we're doing. Like, on the quality control, we've got to hold the line on things, like, "Hey, it doesn't work like that. We got to do it like this," and hold them to that. 

So, I think that was a great point about the stewardship piece.

Kevin Schneider: Yeah. We're called to all be good stewards, no matter what we're given.

Matt Nelson: Yeah. And so, I wanted to go over that process with us of what we've agreed to, and how we do, how we run things, because the quality control is a big piece of it. 

So, let's say you've engaged with us. You'll be assigned a primary bookkeeper. You're going to get to know this person probably fairly well. They're going to have an intake form where they're going to learn about your business, learn about you, learn about your books, learn about how you do things.

You can be in contact with them consistently. Well, what if my bookkeeper is out of town, or they get sick, or what happens?

Well, you've got a secondary bookkeeper that's always assigned to your account as well. So, if the primary bookkeeper is gone, you've got a secondary person that's always there. That secondary person also does quality control from a backup perspective. So, your main primary bookkeeper is kind of doing all your day-to-day functions, and then, your secondary one is doing a double check of those things, [00:24:00] more of on a monthly basis.

And we've also got a quarterly review from a bookkeeping manager. So, they'll go in and look at more of the journal entries, or any of the bigger items that might've been missed, or that might affect something if they were done inaccurately, and then, they're also going to be the ones that are going to be looking for trends.

So, if they notice, for example, “Hey, you haven't got any sales for two, three months. Is that normal?” They'll have that conversation with the business owner. We want to make sure that he's aware of that, and then, that he does plan, or forecast, and, "Can I be checking those things out?" 

So, we've got checklists and processes for everybody to follow that will, hopefully, make it very easy for, and transparent for a client to see what we're doing, and when we're doing it. And then, also, what obligations do we need from the client?

So, it's kind of that give and take, but again, we want to be really transparent and know that, "Hey, quality is really important to us. I know that's really important to you guys."

Mike Pine: That's three people you've got focused on books. I know, as we've been hourly all of our lives, but now we're switching to flat fee, this is going to be less of an issue.

We have similar quality control. We have multiple people on everything, and a lot of our clients in the past have said, "Hey, I don't need two people to look at the numbers, or three reviews of my tax return. Just do one." And we said, "No." and there's a big reason for that.

When I was having my own practice, and I was doing all my own work, the bookkeeping, the tax return prep, I would make really dumb errors because I'm looking at this data all day long. I might spend 12 hours nonstop from beginning in the morning to late at night.

The only way that we really upped our game and taxes, when we implemented the multi-step review process, so it mitigates human error. It provides better quality of service, and it also helps mitigate computer error. There's so many times that I've seen, where QuickBooks online, ‘Home Depot’, it's a repair supplies, right?

So, suddenly after six months, all of a sudden ‘Home Depot’ gets put into office supplies. Like, it does it automatically.

Those kinds of things happen without having those multi-steps of quality control, and I think it's great that you guys have that, and that's why we have it, and that's how you up your game.

 Matt Nelson: Yeah, that's right. And just like you mentioned, even with income, it's like that PPP loan got put into income, probably just because that was just 'anything that hits the bank is just going to be income', no matter what, whereas, by that one little thing, that would have saved tons by getting that out of there.

Kevin Schneider: Yeah. $20,000 tax error.

Mike Pine: That's real money.

Kevin Schneider: It's real money. And what you said was “mitigate error" because we can't completely guarantee, even on the tax side, on the accounting side, that errors don't happen.

This is life. And what we do is if errors occur, we, like you mentioned, honesty, integrity, coming to the client, said, "Hey, I botched this, this, and this. Even through my QC process, I can't guarantee perfection.

It's just impossible. There's no one perfect." And we back our work up. If we caused the client damage penalties, depending on what the [00:27:00] situation is, we back that up. We say, "Hey, you're not going to feel any damages on our errors."

But we make that right, and we have the same theology on the accounting side too, honesty and integrity, and when you're dealing with people's finances, taxes, I think that's a huge thing.

Matt Nelson: It's a big thing. Yeah. I know where training is very big with you guys as well, so it is with us, too. These things are changing every so often to where we're making sure that we're, that we have to be on top of any changes with the Comptroller, changes with payroll, changes with bookkeeping, whatever those things might be.

So, training is a big piece of what we do to where we are always staying leading edge on all of those things.

Mike Pine: Absolutely.

Kevin Schneider: I think the biggest pain-point in the tax side of things for the past few years is timing.

So, if you're a client listening, please work with your accountant quickly near year end. It is so important to get your books closed and finalized quickly after December 31st.

Just get your books reconciled. Get with us, we will reconcile your books, do any cleanup, back work. We'll get your financials. If we can get it by mid-February, we can probably get you out on time on the filing by March 15th for your businesses. I think that timing is such an important key aspect.

So, your process, your quality, and then timing is going to be a huge one that we're going to solve for our clients.

Matt Nelson: Yeah, I think you want your tax person to be one of your best friends. So, the great way to do that is get bookkeeper timely financials, so that we can get timely books so they can then start preparing those taxes.

Mike Pine: There's nothing more frustrating as a tax CPA looking around on February 10th and seeing all of your staff just watching videos on the internet because they have no work, and we know it's coming. We don't want to put in a hundred-hour weeks on April 15th because our clients, bookkeepers didn't get us their stuff until March 20th.

So, please do get that stuff in early, and you get better quality that way, because you want a CPA working on your taxes, who hasn't slept in a week? Or do you want someone that's in the swing of things and excited and knows what they're doing and, and can see straight? I'm just curious. What kind of people do you want?

Kevin Schneider: Good point. Good point. Well, guys, this has been fun, and this is an exciting new business we're creating together. www.revoyourbooks.com. Matt, we're so excited for what the future has. Any parting words?

Matt Nelson: Yeah. Again, I think I'm excited about the partnership. At the end of the day, our growth is dependent on our clients' growth and our clients' success, which is one reason why I love this business. It's because I succeed when I see clients succeed. So, that's what I'm really excited about. And again, yeah, excited to get this thing going. Yeah.

Mike Pine: There you have it. Check us at www.revoyourbooks.com.

Kevin Schneider: www.revoyourbooks.com.

Mike Pine: Revolutionize those books.

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