The Accounting Edit

Leah McCool of Orca Accounting and Aminder Mann ofSequoia CPA share five practical steps to prepare small business books before year-end. They explain how to catch up and clean up bookkeeping, prepare for 1099 filings, review financial statements, and decide when to get professional help so January and tax season are less stressful.

Takeaways

·     Assess how far behind your books are, estimate the time required, and catch up month by month; reconcile bank and credit card accounts and verify processor revenue at gross rather than net of fees.

·     Schedule dedicated bookkeeping time and allow realistic hours, especially when transaction volume, adjustments, or revenue reconciliations add complexity.

·     Resolve uncategorized or mystery transactions, check for duplicates, and review open invoices, accounts receivable and payable, and QuickBooks undeposited funds.

·     Prepare contractor information ahead of 1099 season: track payments, gather W-9s, and verify which contractors and payment types require forms. Leah cites a $2,000 threshold for 2026 and a January 31 filing deadline; confirm current IRS requirements for your situation.

·     Review financial statements line by line using a worksheet, spot-check transactions, and compare current-year results with last year to investigate unexpected changes.

·     Check balance-sheet items such as loan balances and interest, and ensure the financials make sense before using them for planning or tax preparation.

·     Consider one-time cleanup or ongoing support if bookkeeping feels overwhelming; getting help sooner can reduce delays and busy-season costs.

Chapters

00:00 Five year-end steps to avoid a January bookkeepingscramble

01:49 Gauge your backlog and catch up one month at a time

04:03 Estimate the hours and schedule bookkeeping time

06:03 Clean up uncategorized, duplicate, and mystery transactions

08:33 Check invoices, payables, and undeposited funds

11:47 Get contractor records ready for 1099 filing

14:51 Why payment method and business structure matter for 1099s

16:18 Review statements line by line and compare year over year

20:05 Check balance-sheet balances, loans, and interest

22:11 When to get cleanup help, and why to start early

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

 Keywords: year-end bookkeeping, small business accounting, bookkeeping cleanup, 1099 contractors, financial statements, QuickBooks, tax preparation

This episode offers practical tips for DIY accounting, focusing on routine, organization, checklists, and structuring your chart of accounts to simplify your bookkeeping process and prepare for tax season.

Takeaways

·     Scheduling regular time for bookkeeping

·     Organizing documentation and receipts

·     Creating monthly checklists for accounting

·     Structuring and simplifying the chart of accounts

·     Using account numbers for clarity and consistency

Chapters

00:00 Introduction to DIY accounting tips

00:11 Importance of routine in bookkeeping

01:10 Scheduling time and making it routine

02:25 Organizing documentation and receipts

03:40 Creating monthly checklists for accounting

16:14 Structuring your chart of accounts

23:20 Wrapping up and next steps

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: DIY accounting, bookkeeping tips, small business finance, organization, chart of accounts, routine, documentation, tax preparation

Leah and Aminder share lighthearted insights into their personal and professional lives, exploring topics from work preferences to pet choices, and seasonal favorites. This episode offers a fun break and a chance to get to know the hosts better.

Takeaways

·     Meetings vs. emails: preferences and hybrid approaches

·     Career paths: startup vs. traditional accounting

·     Work schedule preferences: morning vs. afternoon meetings

·     Pet choices: dogs vs. cats and lifestyle fit

·     Seasonal favorites: summer vs. fall and weather preferences

·     Coffee vs. tea: favorite types and routines

·     Technology preferences: Mac vs. PC

·     Networking strategies: working the room vs. finding a friend

·     Career achievements vs. lifestyle freedom

·     Routine vs. spontaneity in daily life

Chapters

00:00 Introduction and episode overview

00:49 Getting to know the hosts and episode purpose

01:53 Meetings or emails: preferences and hybrid methods

04:15 Career paths: startup versus traditional accounting

07:38 Scheduling meetings: morning or afternoon

11:12 Pets: dogs or cats and lifestyle considerations

13:55 Coffee or tea: preferences and routines

18:00 Tech preferences: Mac or PC

22:20 Seasonal favorites: summer or fall

26:33 Work routines and spontaneity

26:34 Closing remarks and episode wrap-up

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: accounting, entrepreneurship, work habits, pets, coffee, routines, seasons, networking, lifestyle, career

This episode clarifies what a bookkeeper should do eachmonth, emphasizing the importance of accurate financial management for business owners. Leah McCool and Aminder Mann discuss the key responsibilities involved in bookkeeping beyond simple data entry, including reconciliations, reviewing financial statements, and understanding the nuances of categorizing transactions.

Takeaways

·     Reconciling bank and credit card accounts

·     Reviewing financial statements for accuracy

·     Categorizing transactions correctly

·     Understanding balance sheet components

·     Analyzing financial trends and movements

·     Ensuring proper recording of assets and liabilities

·     Flagging discrepancies and negative balances

·     The importance of a consistent bookkeeping flow

Chapters

00:00 Introduction to Bookkeeping Responsibilities

00:47 What Bookkeepers Should Do Monthly Beyond Data Entry

02:04 Reconciling Bank and Credit Card Accounts

03:11 Reviewing Financial Statements for Accuracy

04:58 Supporting Business Decisions with Financial Data

06:27 Holistic Review of Financials and Flagging Issues

07:07 Understanding the Balance Sheet and Its Components

08:48 Verifying Assets, Liabilities, and Equity

12:20 Ensuring Transactions Are Accounted for Correctly

18:28 Reviewing Financials for Errors and Trends

23:45 The Value of Human Judgment in Bookkeeping

25:07 Conclusion: Reliable Financial Statements for Business Success

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

 Keywords: bookkeeping, financial statements, reconciliation, business finance, accounting, financial accuracy, bookkeeping responsibilities, financial review, small business accounting

This episode explores the importance of separating business and personal finances for small business owners. Leah and Aminder discuss practical steps, common pitfalls, and how to establish good financial habits to ensure clarity and compliance.

Takeaways

·     Keep business and personal accounts separate to ensure clarity.

·     Regularly review and clean up your financial records.

·     Work with a tax professional to identify deductible expenses.

·     Plan your owner’s pay based on business profitability and cash flow.

·     Avoid impulsive owner draws; plan withdrawals carefully.

Chapters

00:00 Introduction to the importance of financial separation

01:03 Problems caused by mixing finances

01:58 Why small business owners must separate accounts

05:35 What should and shouldn't be in your accounting software

07:56 Common mistakes with personal and business accounts

11:35 Understanding the 'why' behind financial separation

14:47 How to determine how much to pay yourself

22:10 Paying yourself as a business owner

27:55 Handling already mixed finances and next steps

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: business finances, personal finances, bookkeeping, cash flow, tax planning, business growth, financial management,QuickBooks, owner’s salary, financial separation

In this episode, Aminder and Leah share the key lessonsthey've learned by intentionally letting go of certain business practices to foster growth, balance, and fulfillment. They discuss how saying no, delegating, and embracing imperfection have transformed their businesses and lives.

Takeaways

·     Saying no to opportunities to focus on aligned clients

·     Protecting time and setting boundaries

·     Hiring first employees and delegating tasks

·     Letting go of perfectionism and embracing progress

·     Creating a business that can operate independently

·     Balancing business growth with personal life

·     Strategies for effective delegation and training

·     Shifting mindset from operator to visionary

·     Planning for time off and future family needs

·     The importance of progress over perfection

Chapters

00:00 Introduction: Lessons Learned by Letting Go

01:48 Saying No to Unaligned Opportunities

03:47 Protecting Time and Setting Boundaries

05:57 Hiring and Delegating for Growth

09:00 From Operator to Visionary

12:07 Planning for Time Off and Future Family Needs

15:08 Overcoming Perfectionism and Embracing Progress

17:45 Key Takeaways: Growth Through Letting Go

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: business growth, intentionality, delegation, work-life balance, perfectionism, entrepreneurship, business lessons, mindset, productivity, leadership

In this episode, Leah and Aminder discuss five key financial red flags that every business owner should watch out for. Understanding these signs can help prevent serious issues and promote healthier business finances.

Takeaways

·     Revenue growth vs bank account growth

·     Importance of cash flow over revenue

·     Knowing your financial numbers

·     Keeping books up to date

·     Monitoring profit margins

Chapters

00:00 Introduction to Financial Red Flags

01:39 Red Flag 1: Revenue is growing, but your bank account isn’t.

05:23 Red Flag 2: Your making decisions based on your bank balance

09:52 Red Flag 3: You don’t know your numbers

13:04 Red Flag 4: Your books are always behind

16:20 Red Flag 5: Your profit keeps shrinking

19:37 Takeaways

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: business finance, red flags, cash flow, financial statements, profitability, bookkeeping, financial health, business growth, cash flow forecasting, financial management

In this episode, Leah and Aminder share their insights onessential business softwares including accounting, payroll, accounts payable, receivable, and project management tools. Perfect for entrepreneurs and growing firms, this discussion helps you choose the right tech stack to streamline your operations.

Takeaways

·     Choosing between QuickBooks Online and Zero foraccounting

·     Best payroll software: Gusto vs QuickBooksPayroll

·     Managing accounts payable with Bill.com andTipalti

·     Accounts receivable solutions: HoneyBook andStripe

·     Top project management tools: Asana, Toggl,Smartsheet

Chapters

00:00 Introduction to Business Software Essentials

01:07 QuickBooks Online vs Zero: Which is Better?

08:32 Why Gusto is a Top Payroll Choice

15:38 Managing Accounts Payable Effectively

19:39 Streamlining Accounts Receivable

24:28 Best Project Management and Time Tracking Tools

28:12 Wrapping Up: Choosing Your Software Stack

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: business software, accounting, payroll, AP, AR, project management, entrepreneurship, tech stack, QuickBooks, Zero, Gusto, Bill.com, HoneyBook, Toggl

Leah and Aminder discuss the unique challenges women face in entrepreneurship, focusing on talking about money, managing emotional stress, and building authority over time. This episode offers practical insights and personal experiences to empower women entrepreneurs.

Takeaways

·     Women tend to be conditioned to avoid discussing money, which can hinder confidence.

·     Confidence in talking about money improves with experience and time.

·     Building authority as a woman entrepreneur is a gradual process that involves trusting oneself.

·     Community support is crucial for emotional resilience in entrepreneurship.

·     Women often face societal and internal barriers that require unlearning and confidence-building.

Chapters

00:00 Introduction and episode overview

01:01 The importance of talking about money comfortably

02:07 Challenges women face in discussing finances

03:27 Pricing and communicating value confidently

04:55 Overcoming confidence hurdles in sales

07:19 The emotional side of entrepreneurship

10:36 Building authority as a woman takes time

17:28 The ongoing journey of confidence and authority

25:26 Final thoughts and encouragement for women entrepreneurs

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: women entrepreneurs, talking about money,emotional resilience, building authority, entrepreneurship challenges

This episode explores the differences between being busy and growing a business, the importance of culture fit in client relationships, and debunks the myth that more education is always necessary before starting. Hosts Aminder and Leah share practical insights on pivoting, client management,and trusting your own expertise to accelerate growth.

Takeaways

·     Difference between being busy and growing a business

·     Importance of measuring results and ROI

·     Pivoting as a growth strategy

·     Client personality and culture fit

·     Debunking the need for more courses before starting

Chapters

00:00 Entrepreneurship Insights: Busy vs. Productive

07:45 The Cost of Cheap Clients

14:09 The Myth of Needing More Courses

Website: TheAccountingEdit.com

Aminder's Links

Website: sequoia-cpa.com

Instagram: @sequoiacpa

LinkedIn: linkedin.com/company/sequoia-cpa

Leah's Links

Website: orca-accounting.com

Instagram: @orcaaccounting

LinkedIn: linkedin.com/in/leahmccool

Keywords: business growth, client management, pivoting,entrepreneurship, professional development, culture fit, scaling a business, mindset, productivity, marketing