036 - How to Work with a CPA with Lori Yearwood
You don’t hire a hand surgeon to perform heart surgery. Just like you wouldn’t hire a tax accountant to be your managerial accountant. Bringing the right accountant in is crucial. That’s why we’ve brought in Lori Yearwood, expert CPA and managerial accountant extraordinaire, to discuss missteps and must-haves when it comes to your bookkeeping. Listen now to hear her first-hand advice that is bound to improve your business.
Show Notes
Who is Lori Yearwood? (01:20)
Auditing (05:20)
Accrual Accounting (13:00)
Reconciling Cash (26:00)
Hire a Managerial Accountant, not a Tax Accountant (30:00)
Embezzlement (44:00)
The Envelope System (1:05:00)
How to understand my Financial Statements (1:14:40)
Quotable Moments
“Let’s be honest, when you work part-time in your own business it never actually works out– especially if you want your business to grow.” –L (02:38)
“Audit is a Latin word and it means to hear or to listen. We use the word ‘audit’ because Royals in the 12th century were illiterate and had courtiers come in and read everything aloud.” –M (08:29)
“Accrual-basis accounting records transactions when they happen whether or not you were paid. Cash-basis accounting ignores everything until you pay somebody or somebody pays you.” –M (14:49)
“If your balance statement is not right then your income statement is inevitably incorrect.” –L (22:00)
“If I go into a company and their cash is reconciled then we are leaps and bounds ahead of other companies.” –L (26:00)
“Contractors should not be doing their own books. They need to hire someone.” –K (29:00)
“The whole purpose of accounting is to have detail and to have completeness; it’s not guess work.” –L (50:21)
Resources
Martin’s Embezzlement Article
Profit First by Mike Michalowicz
Profit First Analysis Resource
Zeal Accounting Solutions Website
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